OPM awards $414M credit monitoring contract to Identity Theft Guard Solutions, Inc. for 5+ years

Contract Overview

Contract Amount: $414,039,119 ($414.0M)

Contractor: Identity Theft Guard Solutions, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2019-01-01

End Date: 2024-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $206.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD OF OPM'S CREDIT MONITORING AND IDENTITY PROTECTION SERVICES.

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 $414.0 million to IDENTITY THEFT GUARD SOLUTIONS, INC. for work described as: AWARD OF OPM'S CREDIT MONITORING AND IDENTITY PROTECTION SERVICES. Key points: 1. Contract provides essential identity protection services to federal employees. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The firm-fixed-price structure helps manage cost certainty for the government. 5. The services are crucial for safeguarding sensitive personal information of federal employees. 6. The contract's value places it as a significant procurement within its service category.

Value Assessment

Rating: good

The contract value of over $414 million for credit monitoring and identity protection services over more than five years appears to be within a reasonable range for a large federal procurement of this nature. Benchmarking against similar large-scale identity protection contracts for federal agencies or large private sector organizations would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed service level agreements and performance metrics, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this significant contract. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and improving service quality through competitive pressure.

Public Impact

Federal employees and annuitants are the primary beneficiaries, receiving protection against identity theft and credit monitoring. The services delivered include credit monitoring, identity theft protection, and potentially fraud resolution assistance. The contract's geographic impact is nationwide, covering all federal employees and annuitants regardless of their location. The contract supports a specialized service industry, potentially involving a workforce skilled in cybersecurity and consumer protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long-term nature and specialized service.
Ensuring continued service quality and responsiveness over the contract's extended period.
Dependence on a single contractor for a critical service impacting a large population.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract type provides cost certainty for the government.
Addresses a critical need for identity protection for federal employees.
Long-term contract provides stability and continuity of essential services.

Sector Analysis

The market for credit monitoring and identity protection services is a growing segment within the broader information services and cybersecurity sectors. Federal agencies increasingly rely on specialized contractors to provide these services to protect sensitive personal data. The size of this contract, exceeding $414 million, indicates that OPM is procuring services on a large scale, likely serving a significant portion of the federal workforce. Comparable spending benchmarks would involve looking at other large federal contracts for similar services, such as those awarded by the Department of Defense or other agencies with large employee populations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The large value of the contract suggests it is likely awarded to a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for various support functions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of Personnel Management (OPM). Performance metrics and service level agreements within the contract would be key to monitoring contractor performance. Transparency is generally facilitated through contract award databases and public reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Employee Benefits Programs
Identity Theft Protection Services
Credit Reporting Agency Services
Cybersecurity Services for Federal Agencies

Risk Flags

Long contract duration may increase risk of vendor performance degradation.
Dependence on a single provider for critical identity protection services.
Potential for cost increases upon renewal if competition is limited in the future.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $414.0 million to IDENTITY THEFT GUARD SOLUTIONS, INC.. AWARD OF OPM'S CREDIT MONITORING AND IDENTITY PROTECTION SERVICES.

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 $414.0 million.

What is the period of performance?

Start: 2019-01-01. End: 2024-06-30.

What is the historical spending pattern for OPM's credit monitoring and identity protection services?

The provided data indicates a single award of $414,039,118.94 with an end date of June 30, 2024, and a start date of January 1, 2019. The duration is listed as 2007 (likely in months, though this is unusually long and may represent a typo or a different metric). This suggests a significant, long-term investment in these services. Without historical data prior to this award or details on previous contracts for similar services, it's difficult to establish a precise spending trend. However, the substantial value of this single award implies a consistent and high level of expenditure on identity protection for OPM's constituents over the contract period.

How does the per-unit cost of this contract compare to market rates for similar services?

Determining the precise per-unit cost is challenging without knowing the exact number of individuals covered and the specific services included in each 'unit.' The contract is a Blanket Purchase Agreement (BPA) Call, which often involves pre-negotiated rates. Given the scale of the contract (over $414 million) and the nature of identity protection services, the per-member-per-month cost would need to be benchmarked against industry standards for comprehensive identity theft protection plans. These plans can vary widely in features and price. A typical range for robust individual plans might be $10-$30 per month. For a large federal population, economies of scale could drive this cost down. A detailed analysis would require comparing the negotiated rates with those offered by leading identity protection providers to similar large groups.

What is the track record of Identity Theft Guard Solutions, Inc. with federal contracts?

Information regarding the specific track record of Identity Theft Guard Solutions, Inc. with federal contracts is not detailed in the provided data snippet. The current award is a significant one from the Office of Personnel Management (OPM). To assess their track record, one would need to examine their past performance on other federal contracts, including their timeliness, quality of service, and adherence to contract terms. Databases like the Federal Procurement Data System (FPDS) or the General Services Administration's (GSA) contract award search could provide more comprehensive details on their history with government agencies, including any past performance evaluations or disputes.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the detailed measurement methods for this contract. However, for credit monitoring and identity protection services, typical KPIs would likely include metrics such as the percentage of eligible individuals enrolled, the speed of detecting fraudulent activity, the effectiveness of fraud resolution services, customer satisfaction rates, and the number of reported breaches or incidents successfully mitigated. The contract's firm-fixed-price nature suggests that performance is tied to the delivery of agreed-upon services and outcomes, with potential penalties or remedies for non-performance outlined in the contract's statement of work and service level agreements.

What is the potential risk associated with relying on a single vendor for such a critical service?

Relying on a single vendor for critical services like identity protection introduces several risks. These include vendor lock-in, where switching providers becomes difficult and costly. There's also the risk of service disruption if the vendor experiences financial difficulties, operational failures, or security breaches. Furthermore, a lack of competition can reduce the incentive for the vendor to innovate or maintain competitive pricing over the long term. For OPM, a disruption in these services could lead to significant reputational damage and widespread concern among federal employees regarding the security of their personal information. Mitigation strategies often involve robust contract management, contingency planning, and regular performance reviews.

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: 10300 SW GREENBURG RD STE 570, PORTLAND, OR, 97223

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

Financial Breakdown

Contract Ceiling: $416,875,698

Exercised Options: $414,039,119

Current Obligation: $414,039,119

Actual Outlays: $234,833,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10FCA017

IDV Type: BPA

Timeline