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In response to a hotline complaint, we conducted an evaluation of the Government National Mortgage Association’s (Ginnie Mae) managed data center sole-source requisition. Specifically, the hotline complaint alleged that Ginnie Mae (1) intended to circumvent the normal competitive process and did not publicize the full details of the scope of the contract, (2) intended to issue a sole-source contract and then enlarge the scope post-award without the opportunity for further competition, and (3) purchased information technology (IT) equipment and licenses that will ultimately be transferred to the sole-source contractor. 

Our objectives were to determine whether Ginnie Mae followed Federal and U.S. Department of Housing and Urban Development (HUD) procurement procedures for the managed data center requisition and used funding under an existing contract vehicle to purchase IT hardware and licensing for use under the managed data center requisition (future contract).

We reviewed the allegations contained in the hotline complaint and found no evidence to substantiate these claims. Additionally, we reviewed an allegation that data center hosting and managed servicing is competitive in nature, with dozens of companies (either specialized data center providers, other industry providers, or government contractors) that are able to provide comparable services.  We found no reportable findings from this evaluation and have no recommendations in this memorandum.