CFPB awards $38.2M for Enterprise Platform Support, with Acumen Solutions Inc. as prime

Contract Overview

Contract Amount: $38,229,727 ($38.2M)

Contractor: Acumen Solutions, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2018-09-28

End Date: 2024-03-19

Contract Duration: 1,999 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE PLATFORM SUPPORT SERVICES SIISS BPA CALL

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $38.2 million to ACUMEN SOLUTIONS, INC. for work described as: ENTERPRISE PLATFORM SUPPORT SERVICES SIISS BPA CALL Key points: 1. Contract value of $38.2M over approximately six years indicates significant investment in platform support. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract's duration of nearly 2000 days points to a long-term need for these services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The 'Other Computer Related Services' NAICS code covers a broad range of IT support activities. 6. Prime contractor Acumen Solutions, Inc. has secured a substantial award for this service.

Value Assessment

Rating: good

The contract value of $38.2M over its nearly six-year term averages approximately $6.4M annually. Benchmarking this against similar enterprise platform support contracts is challenging without more specific service details. However, the fixed-price nature suggests an attempt to control costs. The number of bids received (2) is on the lower side for a full and open competition, which could influence the final pricing and value achieved.

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 bids. However, only two bids were received. This limited number of bidders, despite the open competition, might suggest a specialized service area or a challenging bidding environment. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, receiving only two bids could mean that the government did not achieve the full benefit of a highly competitive market, potentially leading to a higher-than-optimal price.

Public Impact

The Consumer Financial Protection Bureau (CFPB) is the primary beneficiary, receiving essential support for its enterprise platforms. Services delivered likely include maintenance, upgrades, and operational support for critical IT infrastructure. The geographic impact is primarily within the CFPB's operational centers, likely concentrated in Washington D.C. and potentially remote workforces. Workforce implications may include direct employment for Acumen Solutions, Inc. staff and indirect support for CFPB IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price negotiation leverage for the government.
The broad NAICS code (541519) could obscure the specific nature and cost-effectiveness of the services provided.
Long contract duration might lead to vendor lock-in or reduced agility in adopting new technologies.

Positive Signals

Full and open competition was utilized, adhering to procurement best practices.
Fixed-price contract type provides cost predictability for the agency.
The contract supports critical enterprise platform functions for a key financial regulatory agency.

Sector Analysis

The IT services sector, particularly enterprise platform support, is a significant area of federal spending. This contract falls under the broad category of computer systems design and related services. The market for such services is competitive, with numerous large and small businesses offering specialized support. Federal spending in this area is driven by the need to maintain and modernize complex IT infrastructures across various agencies.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor is Acumen Solutions, Inc., which is not typically classified as a small business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award appears limited, though subcontracting opportunities could exist if pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Consumer Financial Protection Bureau's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Enterprise IT Services
IT Platform Modernization
Computer Systems Design Services
IT Operations and Maintenance

Risk Flags

Limited competition
Broad NAICS code
Potential for scope creep in long-term contracts

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $38.2 million to ACUMEN SOLUTIONS, INC.. ENTERPRISE PLATFORM SUPPORT SERVICES SIISS BPA CALL

Who is the contractor on this award?

The obligated recipient is ACUMEN SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-03-19.

What is the track record of Acumen Solutions, Inc. with federal contracts, particularly in IT platform support?

Acumen Solutions, Inc. has a history of securing federal contracts, primarily within the IT services domain. While specific details on their performance for this particular CFPB contract are not provided, their ability to win this award suggests they meet the qualifications and experience required by the agency. A deeper dive into their past performance reviews, contract modifications, and any reported issues on other federal awards would provide a more comprehensive understanding of their track record. Analyzing their portfolio of past contracts can reveal patterns in the types of services they provide and their success rates in similar procurements.

How does the average annual value of this contract compare to similar enterprise platform support contracts at other federal agencies?

The average annual value of this contract is approximately $6.4M ($38.2M / ~6 years). Comparing this to similar enterprise platform support contracts across federal agencies requires access to a broader dataset of IT service awards. Factors such as agency size, complexity of platforms supported, scope of services (e.g., maintenance, development, cloud migration), and contract type (fixed-price vs. cost-plus) significantly influence pricing. Generally, large-scale enterprise support for critical infrastructure can range from a few million to tens of millions annually. Without specific comparable contract details, it's difficult to definitively benchmark this award, but it appears to be a substantial investment.

What are the primary risks associated with a long-term, fixed-price contract for enterprise platform support?

A primary risk with long-term, fixed-price contracts for enterprise platform support is the potential for scope creep or unforeseen technical challenges that are not adequately accounted for in the initial pricing. If the contractor encounters unexpected issues or the agency's needs evolve significantly, the fixed price may become unfavorable to the contractor, potentially leading to reduced quality or disputes. Conversely, if the contractor becomes highly efficient, the government might overpay relative to the actual cost of services. Another risk is technological obsolescence; the platform or support methods may become outdated during the contract term, requiring costly modifications or replacements not originally envisioned.

How effective is the 'full and open competition' strategy when only two bids are received?

The effectiveness of 'full and open competition' is diminished when only two bids are received. While the process itself adheres to principles of broad solicitation, the low number of responses suggests potential barriers to entry, a niche market, or insufficient outreach. This limited competition reduces the government's leverage in price negotiations and may result in a higher-than-market price. Ideally, full and open competition should yield multiple competitive bids, driving down costs and fostering innovation. Agencies often use market research and pre-solicitation notices to encourage broader participation.

What is the historical spending trend for enterprise platform support services at the CFPB or similar agencies?

Historical spending trends for enterprise platform support services at the CFPB or similar agencies are not directly available from the provided data. However, federal IT spending, in general, has been on a consistent upward trajectory, driven by the increasing reliance on digital infrastructure and the need for modernization. Agencies often consolidate IT support contracts to achieve economies of scale and improve efficiency. Analyzing past CFPB IT budgets and contract awards for similar services over several fiscal years would reveal specific spending patterns and the evolution of their platform support strategies.

What are the implications of the NAICS code 541519 ('Other Computer Related Services') for understanding the contract's value and performance?

The NAICS code 541519, 'Other Computer Related Services,' is very broad and encompasses a wide array of IT services beyond standard software development or hardware maintenance. This includes services like IT consulting, disaster recovery, data processing, and IT support for specialized platforms. While it correctly categorizes the general nature of the work, its breadth makes it difficult to precisely assess the contract's value or benchmark its performance against more specific IT service categories. Understanding the specific deliverables and service level agreements within the contract is crucial for a detailed performance evaluation.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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

Parent Company: Salesforce, Inc

Address: 8280 GREENSBORO DR STE 400, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $38,552,851

Exercised Options: $38,552,851

Current Obligation: $38,229,727

Actual Outlays: $38,229,727

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $2,170,972

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0287P

IDV Type: FSS

Timeline