Lender-Placed Insurance Services

The U.S. Department of Agriculture Rural Housing Service is soliciting lender-placed insurance services to mitigate risk to its portfolio when borrowers fail to maintain adequate property insurance on properties financed through USDA Rural Development's housing programs. The procurement seeks a single contractor to provide comprehensive insurance administration, property inspections, and flood determination services through a firm-fixed-price commercial contract. Key contract requirements include developing an Information Management System compatible with USDA systems, maintaining stringent performance standards of 95-100% accuracy, processing claims, conducting property inspections, and providing comprehensive training to USDA Rural Development Insurance Staff. The evaluation will employ a Lowest Price Technically Acceptable methodology, with non-price factors considered significantly less important than price. The original proposal deadline was October 15, 2025, though this date has passed; the estimated contract award date has been postponed to March 30, 2026, due to a federal government shutdown, with a planned contract start date of March 30, 2026.

This is an unrestricted procurement with no set-aside designation, conducted using FAR Parts 12 and 13 Simplified Acquisition Procedures. No current incumbent information has been disclosed in the available solicitation materials. The contract encompasses approximately 185,000 Direct Single-Family Housing Loans as of May 2025, and will cover services throughout the United States and U.S. Territories. The contract structure consists of one base year and four option years, spanning five years total from December 30, 2025, to December 29, 2030, with pricing to be submitted on the provided J-2 Pricing Schedule covering insurance administration, property inspection services (1,500 inspections annually), and flood determination services (18,000 determinations annually). Performance will be executed nationwide with primary points of contact at USDA Rural Development headquarters in Washington, D.C., though the specific place of performance is listed as Missouri, USA.