USDA's SNAP Earnings Verification Contract Awarded to Equifax for $38M

Contract Overview

Contract Amount: $38,000,000 ($38.0M)

Contractor: Equifax Workforce Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-09-30

End Date: 2024-09-29

Contract Duration: 365 days

Daily Burn Rate: $104.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOR THE SNAP EARNINGS VERIFICATION SERVICE CONTRACT.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $38.0 million to EQUIFAX WORKFORCE SOLUTIONS LLC for work described as: FOR THE SNAP EARNINGS VERIFICATION SERVICE CONTRACT. Key points: 1. Contract value of $38 million for earnings verification services. 2. Equifax Workforce Solutions LLC is the sole awardee. 3. Full and open competition was utilized. 4. The contract duration is one year.

Value Assessment

Rating: good

The contract value of $38 million for a one-year earnings verification service appears reasonable given the scope. Benchmarking against similar government contracts for data verification services suggests this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The use of a competitive process aims to ensure taxpayer funds are used efficiently for essential services like SNAP earnings verification.

Public Impact

Ensures integrity of the SNAP program by verifying applicant earnings. Supports efficient processing of benefits for eligible individuals. Leverages private sector expertise for critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition
Clear service requirement
Defined contract period

Sector Analysis

The IT and data services sector sees significant government spending on verification and data management. This contract aligns with trends in leveraging specialized commercial services for program integrity.

Small Business Impact

The data does not indicate specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The contract falls under the Department of Agriculture's Food and Nutrition Service, which has established oversight mechanisms for program integrity and contract performance. The use of a delivery order under a broader contract framework suggests existing oversight.

Related Government Programs

Credit Bureaus
Department of Agriculture Contracting
Food and Nutrition Service Programs

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Reliance on a single provider for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $38.0 million to EQUIFAX WORKFORCE SOLUTIONS LLC. FOR THE SNAP EARNINGS VERIFICATION SERVICE CONTRACT.

Who is the contractor on this award?

The obligated recipient is EQUIFAX WORKFORCE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2023-09-30. End: 2024-09-29.

What is the historical performance of Equifax Workforce Solutions LLC with government contracts?

Equifax Workforce Solutions LLC has a history of performing government contracts, particularly in areas related to credit reporting and workforce data. Past performance reviews and contract histories would provide a clearer picture of their reliability and effectiveness in delivering services similar to this SNAP earnings verification contract.

Are there any potential risks associated with using a single vendor for sensitive earnings data?

Potential risks include data security breaches, vendor lock-in, and a lack of competitive pressure on pricing or service quality over time. Robust data security protocols, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness of the SNAP program?

This contract enhances the SNAP program's effectiveness by ensuring that benefits are distributed accurately based on verified earnings. This reduces improper payments, maintains program integrity, and allows resources to be directed towards truly eligible recipients.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Credit Bureaus

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550 PEACHTREE ST NW, ATLANTA, GA, 30309

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,000,000

Exercised Options: $38,000,000

Current Obligation: $38,000,000

Actual Outlays: $38,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12319823D0004

IDV Type: IDC

Timeline