SBA's $20.7M loan monitoring system contract awarded to Dun & Bradstreet, Inc

Contract Overview

Contract Amount: $20,722,292 ($20.7M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Small Business Administration

Start Date: 2020-09-18

End Date: 2023-03-31

Contract Duration: 924 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OFFICE OF CREDIT RISK MANAGEMENT LOAN AND LENDER MONITORING SYSTEM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $20.7 million to DUN & BRADSTREET, INC for work described as: OFFICE OF CREDIT RISK MANAGEMENT LOAN AND LENDER MONITORING SYSTEM Key points: 1. The contract value represents a significant investment in credit risk management technology. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Key risk indicators are evaluated based on contractor performance and contract structure. 4. Performance context is provided by comparing this contract to similar IT service agreements. 5. The contract positions the SBA within the broader federal IT services sector. 6. Value for money is benchmarked against industry standards for credit bureau services.

Value Assessment

Rating: good

The total contract value of $20.7 million over approximately three years appears reasonable for a comprehensive loan and lender monitoring system. Benchmarking against similar federal IT contracts for data management and analytics services suggests that the pricing is competitive, especially considering the specialized nature of credit risk management. The firm-fixed-price structure provides cost certainty for the agency. However, a detailed cost breakdown would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of multiple bidders generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The specific number of bids received is not detailed here, but the 'full and open' designation suggests a robust competitive process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value for government funds by driving down prices and encouraging innovation among bidders.

Public Impact

The Small Business Administration (SBA) benefits directly through enhanced capabilities in managing credit risk and monitoring lenders. The contract delivers essential IT services for maintaining and operating the loan and lender monitoring system. The geographic impact is primarily national, supporting the SBA's nationwide lending programs. Workforce implications include the need for skilled IT personnel within the SBA to manage and utilize the system effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly customized and difficult to transition.
Reliance on a single vendor for critical credit risk data and monitoring could pose a risk.
Ensuring data security and privacy for sensitive financial information is paramount.

Positive Signals

The use of a well-established vendor like Dun & Bradstreet suggests a level of reliability and expertise.
The firm-fixed-price contract provides budget predictability.
The system aims to improve the efficiency and effectiveness of SBA's lending oversight.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data management, analytics, and credit risk assessment. The federal IT services market is substantial, with agencies increasingly relying on specialized software and services to manage complex operations. Comparable spending benchmarks in this area would include contracts for financial management systems, data analytics platforms, and business intelligence tools used by various government entities.

Small Business Impact

The contract data does not indicate a specific small business set-aside. Dun & Bradstreet, Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business partners for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Small Business Administration's Office of Credit Risk Management. Accountability measures are inherent in the firm-fixed-price contract, requiring the delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Federal Financial Management Systems
Credit Reporting Services
Loan Portfolio Management Systems
Small Business Lending Programs

Risk Flags

Data Security Risk
Vendor Lock-in Potential
System Integration Challenges

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $20.7 million to DUN & BRADSTREET, INC. OFFICE OF CREDIT RISK MANAGEMENT LOAN AND LENDER MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2020-09-18. End: 2023-03-31.

What is Dun & Bradstreet's track record with the federal government, particularly in providing IT services for financial management?

Dun & Bradstreet has a long history of providing data, analytics, and business services to the federal government across various agencies. Their experience often centers on providing critical business data, credit information, and risk management solutions. While specific details on their IT service delivery for financial management systems are not detailed in this summary, their core competency in data management and analytics suggests a strong foundation for such contracts. Past performance reviews and contract databases would offer more granular insights into their success rates and any challenges encountered in similar federal IT engagements.

How does the value of this contract compare to similar IT contracts for credit risk management systems within the federal government?

Comparing the $20.7 million value requires identifying contracts with similar scope, duration, and complexity. Federal contracts for financial data management, loan origination systems, and risk assessment platforms can vary widely. Given this contract's duration of approximately three years and its focus on credit risk and lender monitoring for the SBA, the value appears to be within a reasonable range for specialized IT services. However, without direct comparisons to identical systems or services, a precise benchmark is difficult. Factors like the number of users, data volume, and specific functionalities would influence cost.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential over-reliance on a single vendor (vendor lock-in), data security breaches of sensitive financial information, and the possibility of the system not meeting evolving operational needs. Mitigation strategies often involve robust security protocols, clear performance standards in the contract, regular system reviews, and contingency planning for vendor transition. The firm-fixed-price nature of the contract also mitigates cost overrun risks for the government. The SBA's oversight mechanisms are crucial for identifying and addressing risks proactively.

How effective is the Office of Credit Risk Management's loan and lender monitoring system in supporting the SBA's mission?

The effectiveness of the system is directly tied to its ability to provide accurate, timely data for informed decision-making in credit risk management. An effective system should enhance the SBA's capacity to monitor loan portfolios, identify potential risks, ensure lender compliance, and ultimately support the agency's mission of facilitating small business growth. While this contract provides the technological foundation, its true effectiveness depends on user adoption, data quality, and integration with other SBA processes. Performance metrics and user feedback would be key indicators of its success.

What are the historical spending patterns for loan and lender monitoring systems at the SBA or similar agencies?

Historical spending on such systems can indicate trends in technology adoption and investment in risk management. Agencies like the SBA, which manage significant lending portfolios, typically invest consistently in systems that support oversight and compliance. Spending patterns may show an increase over time as technology advances and regulatory requirements become more stringent. Analyzing past contracts for similar systems, including their duration, value, and frequency, would reveal whether this $20.7 million award represents a typical investment or a significant shift in spending.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $20,722,292

Exercised Options: $20,722,292

Current Obligation: $20,722,292

Actual Outlays: $20,722,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F022DA

IDV Type: FSS

Timeline