PBGC Spends $4.8M on Dun & Bradstreet Financial Stress Scores, Lacking Competition

Contract Overview

Contract Amount: $485,576 ($485.6K)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2021-04-26

End Date: 2026-06-25

Contract Duration: 1,886 days

Daily Burn Rate: $257/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DUN AND BRADSTREET FINANCIAL STRESS SCORES FSS AND SEVERE RISK ALERTS SUBSCRIPTION

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $485,576 to DUN & BRADSTREET, INC for work described as: DUN AND BRADSTREET FINANCIAL STRESS SCORES FSS AND SEVERE RISK ALERTS SUBSCRIPTION Key points: 1. High cost for credit bureau data subscription. 2. Sole-source procurement limits price discovery. 3. Potential for better value through competitive bidding. 4. Financial data services are critical for risk assessment.

Value Assessment

Rating: questionable

The $4.86 million contract for financial stress scores appears high given the lack of competition. Benchmarking against similar data services or government-wide contracts would be necessary to confirm fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This limits price negotiation and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure on pricing.

Public Impact

Access to critical financial risk data for PBGC. Ensures PBGC can monitor financial health of pension plans. Subscription provides ongoing updates and alerts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value without competition

Positive Signals

Provides essential financial risk data
Long-term contract ensures data continuity

Sector Analysis

The credit bureaus sector provides essential data for financial risk assessment. Spending benchmarks for similar data services are difficult to establish without competitive data.

Small Business Impact

This contract does not appear to involve small business participation, as it is a sole-source award to a large established firm.

Oversight & Accountability

Oversight is needed to ensure the PBGC is receiving value for money on this sole-source contract and to explore future competitive opportunities.

Related Government Programs

Credit Bureaus
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Lack of competition
High contract value
Potential for overpayment
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $485,576 to DUN & BRADSTREET, INC. DUN AND BRADSTREET FINANCIAL STRESS SCORES FSS AND SEVERE RISK ALERTS SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $485,576.

What is the period of performance?

Start: 2021-04-26. End: 2026-06-25.

Is the financial stress data provided by Dun & Bradstreet essential and unique, justifying a sole-source award?

The necessity and uniqueness of the data are key to justifying a sole-source award. While Dun & Bradstreet is a major provider, the PBGC should have explored if alternative data sources or aggregated data could meet their needs, especially given the significant contract value. Without this, the justification for not competing is weak.

What is the potential cost savings if this contract were competed?

Estimating precise savings is difficult without a competitive bidding process. However, sole-source contracts often result in higher prices than competitively awarded ones. A reasonable estimate for potential savings could range from 10% to 30% of the total contract value, depending on market conditions and the number of bidders.

How effectively does this data inform PBGC's risk management and decision-making?

The effectiveness hinges on how well the PBGC integrates this data into its analytical frameworks. If the data directly leads to proactive risk mitigation strategies or prevents significant financial losses, its value is high. Regular reviews of the data's impact on decision-making are crucial to ensure it's not just a data purchase but a tool for effective risk management.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 16PBGC21Q0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4100 FAIRFAX DR STE 500, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $585,576

Exercised Options: $485,576

Current Obligation: $485,576

Actual Outlays: $185,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline