DHS awards $32.8M contract for business entity verification services to Dun & Bradstreet

Contract Overview

Contract Amount: $32,867,169 ($32.9M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-21

End Date: 2026-09-20

Contract Duration: 1,460 days

Daily Burn Rate: $22.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUSINESS ENTITY VERIFICATION SERVICE

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.9 million to DUN & BRADSTREET, INC for work described as: BUSINESS ENTITY VERIFICATION SERVICE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 1460 days (4 years) suggests a long-term need for these services. 3. Services are categorized under Computer Systems Design, indicating a focus on IT infrastructure and support. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Geographic coverage is limited to Florida, which may indicate a pilot program or specific regional need. 6. No small business set-aside was applied, suggesting the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract value of $32.8 million over four years for business entity verification services is substantial. Without specific benchmarks for similar services or detailed cost breakdowns, it is difficult to definitively assess value for money. However, the lack of competition suggests potential for higher costs than if multiple vendors had bid. The fixed-price nature provides some cost control, but the absence of competitive pressure could lead to less favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Dun & Bradstreet, Inc., was solicited. This approach bypasses the competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for the business entity verification services.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced capabilities to verify business entities. Services delivered include computer systems design and related support for verification processes. The geographic impact is currently focused on Florida. The contract supports the operational efficiency of the TSA by ensuring the integrity of business data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the justification for a sole-source award.
Limited geographic scope may not address broader federal needs.
Fixed-price contract could still lead to overpayment if not properly benchmarked.

Positive Signals

Established contractor with a known service offering.
Fixed-price contract provides budget certainty.
Contract duration ensures continuity of essential verification services.

Sector Analysis

The market for business entity verification services is diverse, encompassing data providers, credit bureaus, and specialized software companies. Dun & Bradstreet is a major player in this space, offering extensive data and analytics. Government spending in this area supports critical functions like fraud prevention, security vetting, and compliance. Comparable spending benchmarks are difficult to establish without knowing the exact scope and depth of verification required, but large federal contracts for data services can range from millions to hundreds of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, and Dun & Bradstreet, Inc. is a large corporation. There is no indication of subcontracting requirements for small businesses within the provided data. This means the primary economic benefit of this contract will likely flow to the large prime contractor, with limited direct opportunities for small businesses unless they are part of Dun & Bradstreet's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and procurement oversight mechanisms, specifically within the Transportation Security Administration. As a definitive contract, it is subject to standard reporting requirements. Transparency regarding the justification for the sole-source award and ongoing performance monitoring would be key accountability measures. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

General Services Administration (GSA) Schedules
Contracting for Data Services
Business Integrity and Verification Programs
Department of Homeland Security Procurement

Risk Flags

Sole-source award lacks competitive justification.
Limited geographic scope may not meet broader agency needs.
Absence of detailed performance metrics (KPIs/SLAs) in summary data.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.9 million to DUN & BRADSTREET, INC. BUSINESS ENTITY VERIFICATION SERVICE

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2022-09-21. End: 2026-09-20.

What is the specific justification provided by the TSA for awarding this contract on a sole-source basis to Dun & Bradstreet, Inc.?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. Federal regulations (e.g., FAR Part 6) allow for sole-source procurements under specific circumstances, such as when only one responsible source is available or when a public exigency requires immediate contract award. Without access to the specific justification documentation filed by the TSA, the precise reason remains unknown. Typically, such justifications would detail why other vendors could not meet the requirement, the unique capabilities of the chosen vendor, or the urgency of the need. This lack of transparency is a common concern with sole-source awards, as it limits the public's ability to scrutinize the government's decision-making process and ensure fair competition was not unnecessarily bypassed.

How does the $32.8 million contract value compare to historical spending by the TSA or DHS on similar business entity verification services?

The provided data does not include historical spending figures for similar services by the TSA or DHS, making a direct comparison impossible. To assess this, one would need to analyze past contracts for business entity verification, data services, or IT support related to vetting and verification within these agencies. Factors such as the scope of services, duration, and inflation would need to be considered for a meaningful comparison. The current contract's value of $32.8 million over four years ($8.2 million annually) represents a significant investment. Without historical context, it's challenging to determine if this represents an increase, decrease, or stable level of spending for these critical functions.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure Dun & Bradstreet, Inc. delivers effective business entity verification?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are crucial components of any government contract, especially for IT and data services, as they define the expected quality, timeliness, and accuracy of the services provided. Typically, for business entity verification, KPIs might include metrics related to the accuracy rate of verified data, the turnaround time for verification requests, the uptime of the verification system, and the security of the data handled. The absence of this information in the summary prevents an assessment of how the TSA will measure contractor performance and ensure the value derived from the $32.8 million investment.

What specific types of business entities are being verified under this contract, and what is the intended purpose of this verification for the TSA?

The data indicates the contract is for 'BUSINESS ENTITY VERIFICATION SERVICE' under NAICS code 541512 (Computer Systems Design Services), awarded to Dun & Bradstreet, Inc. The specific types of business entities being verified are not detailed. However, given the contractor (a major credit reporting and business data firm) and the awarding agency (TSA, part of DHS), the verification likely pertains to entities interacting with or seeking access through TSA systems, potentially including vendors, contractors, employees, or individuals undergoing security clearances or background checks. The purpose is likely to ensure the legitimacy, financial stability, and security compliance of these entities to mitigate risks to transportation security and DHS operations.

Given the sole-source nature, what mechanisms are in place to ensure ongoing cost reasonableness and prevent potential price creep over the four-year contract term?

While the contract is fixed-price, which helps establish a baseline cost, the sole-source nature necessitates proactive measures to ensure ongoing cost reasonableness. The TSA should implement robust contract administration, including regular reviews of Dun & Bradstreet's performance and potentially periodic market research to gauge current market rates for similar services. Contract clauses may allow for price adjustments based on objective economic indices, but without competition, the government lacks the leverage of alternative bids. The agency should also ensure that any contract modifications or option periods are carefully scrutinized and, where possible, competed. Regular communication and performance monitoring are key to identifying any potential inefficiencies or unjustified cost increases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70T02022R7560N001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5335 GATE PKWY, JACKSONVILLE, FL, 32256

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

Financial Breakdown

Contract Ceiling: $42,096,340

Exercised Options: $32,867,169

Current Obligation: $32,867,169

Actual Outlays: $25,350,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline