VOL. 11 – October 6, 2023

Summit Consulting Takes Top Honors at the AcademyHealth 2023 Health Equity DataJam

Summit is proud to announce our recent win at the prestigious AcademyHealth 2023 Health Equity DataJam competition. The event brought together some of the brightest teams in the healthcare and data analytics fields to tackle complex healthcare challenges using innovative data-driven solutions.

Summit won the grand prize for our submission “Mental Health in the DMV (MIND),” pictured above. AcademyHealth recognized Summit for our “design, technical achievement, innovation, relevance, and potential for impact.” MIND is an intuitive application that can help individuals with mental health issues take the first step toward receiving necessary and accessible care. For an inside look at the framework behind the MIND application, see our blog post.

“We are incredibly honored to have won the AcademyHealth DataJam competition,” says Scott Senkier, manager of data science at Summit. “Our team supports several initiatives in the healthcare  space, so we really enjoyed participating in DataJam and building a solution that could help improve anyone’s access to care. Our web application MIND provides an option for people to search for mental health facilities within the DC, Maryland, and Virginia metro area based on their preferences and including their transportation limitations. Like many of our applications and tools, this  application and its associated architecture is user-friendly, efficient, and scalable. We’re really proud of how the team worked together to meet the competition requirements with such high quality and limited time.”

To view and use the winning MIND application, go to mind.summitllc.us.

Summit Partner Albert Lee Joins a Data Foundation Webinar Panel to Discuss AI in Government

On August 29, Summit founding partner Albert Lee served as a webinar panelist discussing the challenges and opportunities of leveraging data to implement AI technologies in government. The webinar, “Data as the Foundation: Privacy, Policy, and Artificial Intelligence," also featured Center for Data Innovation policy analyst Gillian Diebold and was moderated by Data Foundation policy director Corinna Turbes. You can watch the webinar by clicking the image above or visiting the Data Foundation website.

Thought Leadership from the Summit Blog

Interest Rate Risk: How Do We Measure and Mitigate It?

In this blog post, Summit director Josh Goldberg and senior consultant Michael Easterly take a look at interest rate risk as it relates to regional banks in the United States. According to a working paper from the National Bureau of Economic Research, the market value of assets in the U.S. banking system is $2 trillion lower than their book value. Silicon Valley Bank failed not because it lost too much money on its loans to high-flying start-ups, but due to investments in securities that had the lowest probability of default—Treasury notes and mortgage-backed securities backed by Fannie Mae and Freddie Mac.

When the Federal Reserve started to raise interest rates, the securities that Silicon Valley Bank held on its balance sheet lost value, wiping out its capital. Other banks are in a similar predicament, with the same working paper estimating that 1,519 banks do not have enough assets to cover their uninsured depositors, although the authors also note that a scenario where uninsured depositors remove their money from these banks is “likely too extreme.” Read more of our analysis on the Summit blog.

Opportunities for CDFIs to Support the Growing Opportunity Zone Market

As part of our ongoing series with CapZone Impact Investments, senior analyst Tony Violante and manager Auyon Rahman of Summit and Jonathan Ewert of CapZone look at the significant congressional attention Opportunity Zones (OZs) have received in recent months.

The Rural Opportunity Zone and Investment Act would expand OZ eligibility to 1,926 census tracts where a minimum of 50% of the census blocks are designated as rural and exhibit persistent poverty levels of 20% or greater over the previous 30-year period. And the Opportunity Zones Enhancement Act of 2023 encourages banks to increase investment in OZ communities through tax incentives and allows OZ investments to fulfill Community Reinvestment Act requirements.

This legislative activity indicates a push for expanded OZ investment opportunities, and the level of interest in OZs is reflected in the size of the market itself. Learn more on the Summit blog.

What’s New on Federal Credit Fridays

USDOT’s Dr. Morteza Farajian on the Changing Role of Infrastructure Finance

In this podcast, partner Anthony Curcio and Dr. Morteza Farajian, executive director of the Build America Bureau at the U.S. Department of Transportation, discuss the changing role of infrastructure finance. Dr. Farajian is responsible for a growing $29 billion loan guarantee portfolio that supports the development of large-scale and multimodal transportation infrastructure.

Joaquin Altoro of the Rural Housing Service Talks Priorities for Loan and Grant Programs

Joaquin Altoro, administrator of the Rural Housing Service, discusses his priorities for loan and grant programs that address rural single- and multifamily housing, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools, first responder vehicles and equipment, and housing for farm laborers.

Missed an episode? Listen to past Federal Credit Fridays here.

About Federal Credit Fridays: The U.S. government is one of the largest lenders and credit guarantors on earth. Its portfolio is estimated at over $3.6 trillion, as measured by loan assets and the face value of loan guarantees. The government uses credit for a wide variety of policy missions, including housing, higher education, small businesses, rural and urban economic development, infrastructure, and export promotion, among others. This podcast will familiarize you with the vast world of federal credit, and we hope that you’ll learn about similarities and differences between these programs as well as the importance of their work to achieving policy missions within the framework of public-private collaboration.

Our Newest Case Studies

Statistical and Analytics Support for the U.S. Department of Labor Employee Benefits Security Administration

The U.S. Department of Labor Employee Benefits Security Administration (EBSA) wanted statistical and analytical expertise to support legal investigations into employer-sponsored benefits.

EBSA protects the pension, health, and other benefits of over 150 million Americans across more than 6 million private-sector employee benefit plans.

Due to continued support from the Summit team since 2014, EBSA has been able to expand its reach and protect employer-sponsored plan beneficiaries. Our expertise, tools, and training sessions touch all aspects of EBSA’s work. As the landscape for healthcare and retirement benefits continues to change, Summit will help EBSA adapt and protect the benefits for which employees are entitled.

Curious about our other case studies? See more here.

Learn About Summit’s Latest Work Supporting Federal and State Agencies

The U.S. Department of Commerce recently announced the latest step in the Broadband Equity, Access, and Deployment (BEAD) Program, which is the single largest broadband investment in U.S. history. It lays the groundwork for widespread access, affordability, equity, and adoption of broadband services.

Summit is currently supporting six states implementing their individual allocation of the BEAD Program’s funding, and we congratulate Commerce on this recent announcement. This historic investment in broadband connectivity will have an impact that will be felt for decades, especially in rural areas. We are proud to support this vital work that will have a huge impact for unserved and underserved communities.

Read our case study to learn how Summit supported the state of Montana on a five-year action plan using federal funding from the Infrastructure Investment and Jobs Act.

The US Government Accountability Office recently published a report on fraud detection in emergency assistance programs and found that since 2003, the federal government has paid an estimated $2.4 trillion in improper payments.

Fraud poses a significant challenge across multiple agencies, causing substantial financial losses and damaging public trust. Summit specializes in leveraging advanced modeling techniques like artificial intelligence and machine learning to identify fraudulent activities swiftly and effectively. As senior manager Corey West states, “Summit empowers agencies to stay one step ahead. Our team of expert analysts combines stakeholder interviews, exploratory data analysis, and predictive modeling to create sophisticated fraud detection models tailored to your unique needs.”

Read our case study to learn more about how Summit expanded FEMA’s ability to detect fraudulent funding requests, thus ensuring that assistance is received by genuine applicants at a higher frequency.

Summit Bids Farewell to a Fantastic 2023 Summer Associate Class and Applications for 2024 Are Open

In August, we bid a fond farewell to our fantastic summer 2023 interns, who brought fresh perspectives, great energy, and enthusiasm to our teams. Their hard work over the past couple of months has left an indelible mark on our projects and our spirits. From brainstorming sessions that ignited creativity to their willingness to dive into new challenges, they’ve all shown what it truly means to be an integral part of the team.

Applications for 2024 summer associates are open! If you are or know an undergraduate or graduate student looking for a 2024 summer internship filled with learning and growth opportunities, Summit is the place to be. Our internship program is unsurpassed in offering a unique blend of mentorship, hands-on experience, and professional development opportunities that truly set it apart. Apply now using the link on our Careers page. Applications close November 3.

Summit’s yearly tradition of taking our summer associates to a Washington Nationals game has transitioned over the last few years into a firm-wide, family-friendly event. This year, we watched the Nats beat the San Francisco Giants on July 21. There’s nothing quite like celebrating America’s favorite pastime together!

Summit attends the AGA 2023 Internal Control & Fraud Prevention Training

Summit director Sarah Cunningham attended the AGA fraud prevention training on September 19–20 in Washington, DC, to learn how to minimize the risk of fraud, waste, and abuse through the use of data analytics and allow Summit and federal agencies to stay ahead in the battle against financial misconduct.

Summit attends Data Foundation forum on federal statistical regulations

On September 26, Summit director Sarah Cunningham attended the Data Foundation event “Shaping Trust: Navigating Federal Statistical Regulations for Evidence-Based Policy.” This forum gave stakeholders the opportunity to provide feedback on the proposed Office of Management and Budget regulations for federal statistical agencies and hear from other members of the community ahead of the deadline for submitting formal comments.

 We’re hiring!

See all open roles here: https://www.summitllc.us/careers

Apply now and join our dynamic team dedicated to making government effective and society just:

• Contract Climate Risk Modeler
• Quantitative Modeler
• Senior Economist
• Summer Analyst/Intern
• Summer Business Development Analyst

Don’t see anything that fits your expertise? Apply to future roles at Summit by submitting your résumé now!

U.S. Department of Housing and Urban Development (HUD)

Office of Healthcare Programs — Risk Management Analysis Services

Summit was awarded an extension of our multiyear work supporting the hospital lending program at HUD with spreading software and customized dashboarding.

Ginnie Mae — Economic Model Validation

Summit’s first option year was exercised, and the team continues to validate the suite of more than a dozen models at Ginnie Mae. We also provide model risk management services that go beyond evaluating an individual model.

U.S. Department of the Treasury

Community Development Financial Institutions (CDFI) Fund, Bond Guarantee Program — Underwriting Support

Summit provided underwriting support to the CDFI Fund Bond Guarantee Program for the 2023 guarantee application round through August 2023.

Federal Financing Bank, Office of Recovery Programs

Summit received a 2-month contract extension of our ongoing work to support Treasury in implementing its pandemic relief programs.

U.S. Department of Labor

Employee Benefits Security Administration — Option Year 3 

Summit was awarded option year 3 to continue providing statistical support, health claims expertise, training, and tools to the Division of Economic Research and Analysis at the Department of Labor’s Employment Benefits Security Administration. Summit has been supporting this office since 2014.

U.S. Department of Education

Student Loan Model — Independent Validation and Verification

Summit just won a base year plus four option years to validate the Department of Education’s student loan model. The techniques are complex and include micro simulation.

Office of Federal Student Aid (FSA) — NextGen Program Office and SABER Support

Summit was awarded additional funding and a 3-month extension to continue providing program management support for FSA’s Next Gen Program Office and Student Aid and Borrower Eligibility Reform (SABER) initiatives. Summit supports the modernization of FSA’s IT systems and business processes underpinning the delivery of federal aid to millions of students each year through risk management, schedule management, acquisition management, communications, and process improvement support.

U.S. Department of Agriculture

Farm Service Agency — Budget Office Support

Summit provides federal credit budget and program support for Farm Service Agency and Commodity Credit Corporation programs, including model and fee calculator maintenance, estimate, budget formulation, and budget execution support. Summit also won a modification to this contract for more work under same scope as the previous contract with an associated funding increase.

Rural Development, Rural Utilities Service — Project Management Support Services

Summit won a new contract providing Agile support to enable requirements management and quality assurance processes, train program personnel, and assess overall program performance with the goal of identifying opportunities to improve. The team will help improve the execution of the ReConnect program, which furnishes loans and grants to fund the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas.

U.S. Small Business Administration

Evaluation of Fraud Mitigation Oversight
Summit won its first task order under the Small Business Administration (SBA) Evaluation, Data Science, and Technical assistance Blanket Purchase Agreement. This formative program evaluation will examine fraud prevention, detection, mitigation, and response policies and processes for programs and operations. In addition to documenting changes in fraud response, the evaluation will identify opportunities to strengthen the SBA’s communication around the fraud risk framework, assess the Fraud Risk Management Broad and program office contributions to SBA Fraud Risk Management Strategic Plan goals and objectives, inform fraud risk prevention and detection, and track progress toward any outstanding audit findings.

U.S. Department of Energy

Loan Programs Office — Accounting Training

The Department of Energy (DOE) awarded Summit an option for a 2-day tailored training covering all aspects of budgetary accounting for direct loans and loan guarantees, highlighting areas specific to the Energy Loan Programs Office portfolio. This training will help DOE’s accounting staff support efficient, transparent, and accountable delivery of new and expanding programs as DOE implements authorities in the Infrastructure Investment and Jobs Act. 

U.S. Environmental Protection Agency

Water Infrastructure Finance and Innovation Act (WIFIA) Program — Loan Origination and Underwriting Support 

The Summit team will provide loan origination and underwriting support to the Environmental Protection Agency’s WIFIA Program through June 2024.

Federal Home Loan Bank of Chicago

Haircut Model Validation

Summit was hired for a 3-month model validation project to review the model used to determine the collateral value for advances. The Federal Home Loan Banks (FHLB) provide liquidity to the member banks in their region. This contract fits well with the other validation contracts—the Government-Sponsored Enterprises (Fannie Mae and Freddie Mac) and Federal Deposit Insurance Corporation. This is Summit’s first contract with FHLB and could lead to more business with a new client.

Mortgage Partnership Finance — Pricing Models

The Federal Home Loan Bank provides liquidity for home mortgage loans to members approved as Participating Financial Institutions through the Mortgage Partnership Finance (MPF) Program. The MPF Program combines the retail expertise of community lenders with the wholesale advantages of the FHLBs. Summit has been hired to validate the MPF pricing models. This is the second set of models awarded to Summit by FHLB since June.  We hope to be the model validation vendor of choice for them going forward.

U.S. International Development Finance Corporation

Stress Testing Program

The Development Finance Corporation (DFC) Office of Finance and Portfolio Management requires a stress testing program to assist the risk management team in modeling DFC’s statement of net cost under a variety of stress scenarios. Stress is applied to the finance portfolio through risk rating downgrades, defaults, and loss given default changes. To model the expected cost of stress, subsidy reestimate calculations are required under each scenario that flow into a forecasted statement of net cost.

Howard University

Steam Plant Modernization

Summit will provide professional services to Howard University to assist in the implementation and governance of the Steam Plant Modernization Project. Services may include transaction management support, project cash flow tracking, project oversight and governance assistance, post-completion monitoring, inflation reduction act assistance, and other related services.

Water Finance Exchange

Financial Advisory Services

Summit will provide consulting services to the Water Finance Exchange as it implements its strategy to facilitate the financing of long-term solutions for local water challenges. Services may include project screening, financial modeling, credit analysis, financial plan development, review of alternative financing products the Water Finance Exchange provides, program governance advice, and related activities.

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