HUD's $20.6M Mortgage Broker Contract with PEMCO Limited Under Full and Open Competition
Contract Overview
Contract Amount: $20,652,813 ($20.7M)
Contractor: Pemco, Limited
Awarding Agency: Department of Housing and Urban Development
Start Date: 2010-06-01
End Date: 2013-03-31
Contract Duration: 1,034 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 27
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ASSET MANAGER (AM) M&M III - AREA 2S
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90001
Plain-Language Summary
Department of Housing and Urban Development obligated $20.7 million to PEMCO, LIMITED for work described as: ASSET MANAGER (AM) M&M III - AREA 2S Key points: 1. The contract value is $20.6 million over approximately 3.4 years. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract is for mortgage and nonmortgage loan broker services. 4. The sector is primarily financial services, supporting housing initiatives.
Value Assessment
Rating: fair
The contract value of $20.6 million for 1034 days of service appears reasonable for loan brokerage services. Benchmarking against similar contracts is difficult without more specific service details and market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a firm fixed price contract further incentivizes cost control by the contractor.
Taxpayer Impact: The competitive nature of the award and fixed pricing aim to ensure taxpayer funds are used efficiently for mortgage brokerage services.
Public Impact
Facilitates access to housing finance for individuals and potentially businesses. Supports the Department of Housing and Urban Development's mission in the housing market. Provides essential services that can impact the speed and success of loan origination.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for market fluctuations impacting loan volumes.
- Dependence on a single contractor for a significant period.
Positive Signals
- Competitive award process.
- Firm fixed price contract type.
- Clear service category (loan brokerage).
Sector Analysis
This contract falls within the financial services sector, specifically mortgage and loan brokerage. Spending in this area supports government housing programs and economic activity. Benchmarks are highly dependent on loan volume and complexity.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the contract was awarded to a larger entity or that small business set-asides were not applicable or utilized.
Oversight & Accountability
The Department of Housing and Urban Development is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability, especially given the fixed-price nature.
Related Government Programs
- Mortgage and Nonmortgage Loan Brokers
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Contract duration is substantial (over 3 years).
- No indication of small business involvement.
- Limited performance data available.
- Potential for market shifts impacting service needs.
Tags
mortgage-and-nonmortgage-loan-brokers, department-of-housing-and-urban-developm, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $20.7 million to PEMCO, LIMITED. ASSET MANAGER (AM) M&M III - AREA 2S
Who is the contractor on this award?
The obligated recipient is PEMCO, LIMITED.
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2010-06-01. End: 2013-03-31.
What was the specific volume and type of loans brokered under this contract, and how does this compare to the initial projections?
The provided data does not specify the volume or type of loans brokered. Understanding these details is crucial for a comprehensive value assessment. Comparing actual performance against initial projections would reveal if the $20.6 million expenditure yielded the expected level of service and supported the intended number of housing transactions.
What were the key evaluation criteria used during the full and open competition, and how did PEMCO, Limited's proposal score against these criteria, particularly regarding cost-effectiveness?
The data does not detail the evaluation criteria or PEMCO's scoring. For a risk assessment, knowing the emphasis on price versus technical capability is important. A strong emphasis on cost-effectiveness during the competitive bidding process would mitigate concerns about overpayment, while a focus on other factors might warrant closer scrutiny of the final price.
How effectively did PEMCO, Limited's services contribute to HUD's mission objectives, such as increasing homeownership or facilitating access to affordable housing?
The effectiveness of PEMCO's services in advancing HUD's mission is not directly quantifiable from the provided data. While the contract facilitated loan brokerage, its ultimate impact on housing accessibility or affordability depends on factors beyond the contract itself, such as market conditions and borrower eligibility.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Mortgage and Nonmortgage Loan Brokers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 27
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1632 S KING ST STE 100, HONOLULU, HI, 96826
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,619,625
Exercised Options: $25,619,625
Current Obligation: $20,652,813
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F0033V
IDV Type: FSS
Timeline
Start Date: 2010-06-01
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2016-09-28
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