OPM awards $57.9M for credit monitoring, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $57,905,600 ($57.9M)

Contractor: Identity Theft Guard Solutions, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2024-01-01

End Date: 2028-09-30

Contract Duration: 1,734 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SP-CFO-65075 CREDIT MONITORING AND IDENTITY PROTECTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $57.9 million to IDENTITY THEFT GUARD SOLUTIONS, INC. for work described as: SP-CFO-65075 CREDIT MONITORING AND IDENTITY PROTECTION Key points: 1. The contract value of $57.9 million over its period of performance suggests a significant investment in identity protection services. 2. With only two bids received, the level of competition may warrant further investigation into potential barriers to entry or market concentration. 3. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for value. 4. The contract's duration of approximately 4.8 years allows for sustained service delivery but also necessitates ongoing performance monitoring. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to encourage small business participation. 6. The North American Industry Classification System (NAICS) code 561450 points to the credit bureaus industry, a specialized sector for these services.

Value Assessment

Rating: fair

The contract value of $57.9 million for credit monitoring and identity protection services over nearly five years appears substantial. Benchmarking this against similar government-wide contracts for identity protection services would be necessary for a definitive value assessment. However, the limited number of bids (2) could suggest that pricing may not have been driven by robust competition, potentially impacting overall value for money. The firm-fixed-price structure is generally favorable for the government, as it shifts cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. This limited number of bidders, despite the open competition, raises questions about the market dynamics for these services. It could indicate a concentrated market, high barriers to entry, or that the solicitation may not have reached a sufficiently broad audience of potential providers.

Taxpayer Impact: A limited number of bidders, even in an open competition, may result in less competitive pricing for taxpayers. It suggests that the government might not be achieving the lowest possible price due to reduced pressure from multiple competing firms.

Public Impact

Federal employees and annuitants will benefit from enhanced credit monitoring and identity protection services. The services delivered aim to safeguard individuals against identity theft and financial fraud. The contract's primary geographic impact is national, serving beneficiaries across the United States. This contract supports jobs within the identity protection and credit services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may indicate potential market concentration or barriers to entry, impacting price discovery.
The substantial contract value warrants close monitoring to ensure services are delivered effectively and efficiently throughout the performance period.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to better cost control.
Awarded under full and open competition, theoretically allowing any qualified vendor to bid.
The contract duration allows for consistent service provision to beneficiaries.

Sector Analysis

The credit monitoring and identity protection services sector is a critical component of the broader information services industry. This contract falls under NAICS code 561450 (Credit Bureaus). The market includes specialized firms that provide credit reporting, identity theft protection, and fraud monitoring. Government spending in this area is often driven by the need to protect sensitive personal information of federal employees and citizens. Comparable spending benchmarks would typically involve analyzing other large-scale government contracts for similar services, as well as private sector enterprise agreements.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' flag being false. The prime contractor, IDENTITY THEFT GUARD SOLUTIONS, INC., is likely a larger entity. There is no explicit information provided regarding subcontracting plans or requirements for small business participation. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Office of Personnel Management (OPM), the contracting agency. As a delivery order under a larger contract vehicle (implied by 'DELIVERY ORDER'), oversight may also involve the contracting officer and program managers responsible for the parent contract. Transparency is generally facilitated through contract award databases. Specific accountability measures would be detailed within the contract's terms and conditions, including performance standards and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Employee Benefits
Identity Theft Prevention Programs
Data Security Services
Consumer Protection Services

Risk Flags

Limited Competition
Potential for Price Inflation due to Low Bidder Count

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $57.9 million to IDENTITY THEFT GUARD SOLUTIONS, INC.. SP-CFO-65075 CREDIT MONITORING AND IDENTITY PROTECTION

Who is the contractor on this award?

The obligated recipient is IDENTITY THEFT GUARD SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2024-01-01. End: 2028-09-30.

What is the historical spending pattern for credit monitoring and identity protection services by OPM or similar agencies?

Analyzing historical spending requires access to detailed procurement data over multiple fiscal years. Without specific historical data for OPM's credit monitoring services, a direct comparison is difficult. However, federal agencies, particularly those managing large employee databases like OPM, have increasingly invested in identity protection services following data breaches. Spending in this category has generally trended upwards across the government as awareness of cyber threats and data privacy regulations has increased. Comparable agencies like the Department of Defense or Social Security Administration may have similar or larger contracts depending on their beneficiary populations and data sensitivity.

How does the per-beneficiary cost of this contract compare to industry benchmarks or other government contracts?

To determine the per-beneficiary cost, we would need to know the estimated number of individuals to be covered by this $57.9 million contract over its duration. Assuming the contract covers a significant portion of federal employees and annuitants, and given the contract's length (approx. 4.8 years), the annual cost per beneficiary would need to be calculated. Industry benchmarks for comprehensive identity protection services can range widely, from $10-$30 per person per month, depending on the features offered. If this contract covers, for example, 1 million individuals for 5 years at $57.9M, that's roughly $11.58 per person per year, or about $0.97 per person per month, which would be exceptionally low. This suggests either a very large beneficiary pool or a less comprehensive service than typical commercial offerings, warranting further investigation into the scope of services.

What are the specific services included in this credit monitoring and identity protection contract?

The contract title 'CREDIT MONITORING AND IDENTITY PROTECTION' suggests core services related to monitoring credit reports for suspicious activity and providing alerts to individuals. This typically includes credit report monitoring across major bureaus, fraud detection alerts, and potentially identity restoration services in case of an incident. The exact scope, features, and service levels would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's difficult to ascertain the full extent of protection offered, such as dark web monitoring, social security number monitoring, or insurance coverage for identity theft losses.

What is the track record of IDENTITY THEFT GUARD SOLUTIONS, INC. with government contracts, particularly with OPM?

Assessing the track record of IDENTITY THEFT GUARD SOLUTIONS, INC. requires reviewing their past performance on federal contracts. Information on previous awards, contract values, and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be crucial. If this is a new contract for them with OPM, it's important to understand if they have successfully executed similar large-scale identity protection contracts for other federal agencies. A history of successful contract completion, adherence to schedules, and meeting performance requirements would indicate reliability. Conversely, past issues with performance, delivery, or compliance could be a red flag.

Given only two bids, what are the potential risks associated with this contract's pricing and performance?

The primary risk stemming from limited competition (two bids) is the potential for suboptimal pricing. With fewer bidders, there is less downward pressure on price, potentially leading to higher costs for the government than if there were more robust competition. Performance risks could also be elevated if the two bidders represent a very narrow segment of the market, potentially lacking the full range of capabilities or innovation. Furthermore, if one of the bidders is significantly less experienced or capable, the government might be reliant on a single, potentially less reliable, provider. This situation necessitates rigorous performance monitoring and clear contract management to mitigate risks.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4145 SW WATSON AVE STE 400, BEAVERTON, OR, 97005

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

Financial Breakdown

Contract Ceiling: $91,733,469

Exercised Options: $57,905,600

Current Obligation: $57,905,600

Actual Outlays: $57,902,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0037T

IDV Type: FSS

Timeline