Independent Model Validation (IMV)

The Department of Housing and Urban Development Federal Housing Administration Office of Risk Management and Regulatory Affairs is conducting market research to identify qualified sources for Independent Model Validation and related analytical support, with responses due by July 31, 2026 at 5:00 p.m. EST. This is a sources-sought notice for information and planning purposes; no award will be made and the government is not obligated to solicit or reimburse respondents.

The requirement, classified under NAICS 523940 (Portfolio Management and Investment Advice) with a $47 million size standard, encompasses three primary tasks: independent validation of Single Family Forward and Home Equity Conversion Mortgage models; independent validation of Commercial models supporting Multifamily, Section 232, and Section 242 portfolios; and development and execution of an independent challenger analytical framework for validation, benchmarking, sensitivity analysis, and comparative assessment. An incumbent contractor currently performs these services under contract number 86615725C00002 with unexercised options extending through 2030; the FY26 effort is characterized as a follow-on requirement to be issued under a separate contract.

Performance occurs primarily at the contractor's facility during normal Government business hours (8:00 a.m. to 5:00 p.m. Eastern Time, Monday through Friday, excluding federal holidays). The anticipated base period is 12 months plus four optional 12-month extension periods. HUD requires a multidisciplinary team with expertise in quantitative modeling, mortgage finance, actuarial and econometric analysis, credit risk, cash-flow modeling, programming (SAS, Python, R, SQL), cloud computing platforms (AWS, Azure, GCP), data engineering, and model risk management. Personnel must maintain organizational independence from production model development and avoid conflicts of interest. Interested firms must submit seven-page responses via email to Tracy.R.Scott@hud.gov and marie.a.niestrath@hud.gov addressing corporate overview, capabilities and approaches, staffing qualifications, certification requirements, government-furnished resources, organizational conflicts of interest, subcontracting needs, and recommended contract or pricing structures.