CFPB Spends $68.9M on Financial Transactions Processing with Rust Consulting, Inc

Contract Overview

Contract Amount: $68,865 ($68.9K)

Contractor: Rust Consulting, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2020-08-25

End Date: 2023-08-31

Contract Duration: 1,101 days

Daily Burn Rate: $63/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FDAA MATTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $68,864.58 to RUST CONSULTING, INC. for work described as: FDAA MATTER Key points: 1. The contract value of $68.9M is significant for financial transaction processing services. 2. Rust Consulting, Inc. secured this contract through full and open competition. 3. The contract duration of 1101 days suggests a long-term need for these services. 4. The fixed-price contract type aims to control costs for the CFPB.

Value Assessment

Rating: good

The contract value of $68.9M for financial transaction processing appears reasonable given the 1101-day duration. Benchmarking against similar large-scale financial processing contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process likely ensured a fair price, minimizing unnecessary taxpayer expenditure for these essential financial services.

Public Impact

Consumers may benefit from efficient and reliable financial transaction processing facilitated by this contract. The CFPB's ability to manage financial transactions effectively is crucial for consumer protection. This spending supports critical infrastructure for financial services oversight.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Positive Signals

Full and open competition
Firm fixed price contract type

Sector Analysis

The financial transactions processing sector involves managing, clearing, and settling financial transactions. Spending in this area is critical for regulatory bodies like the CFPB to ensure market stability and consumer protection.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in subcontracting.

Oversight & Accountability

The contract was awarded via a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the performance and adherence to terms of this specific order.

Related Government Programs

Financial Transactions Processing, Reserve, and Clearinghouse Activities
Consumer Financial Protection Bureau Contracting
Consumer Financial Protection Bureau Programs

Risk Flags

Contract duration is substantial (1101 days).
No small business participation indicated.
Reliance on a single vendor for critical processing.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $68,864.58 to RUST CONSULTING, INC.. FDAA MATTER

Who is the contractor on this award?

The obligated recipient is RUST CONSULTING, 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 $68,864.58.

What is the period of performance?

Start: 2020-08-25. End: 2023-08-31.

What specific financial transactions are being processed under this contract, and how do they align with the CFPB's core mission?

This contract likely supports the CFPB's mission by processing various financial transactions related to consumer complaints, enforcement actions, or market monitoring. This could include data related to loan applications, payment processing, or other financial activities that fall under the Bureau's purview, ensuring accurate data for regulatory oversight and consumer protection initiatives.

What are the key performance indicators (KPIs) for Rust Consulting, Inc. under this contract, and how is their performance being measured?

Key performance indicators would likely focus on transaction accuracy, processing speed, data security, and compliance with CFPB regulations. Performance is typically measured through regular reporting, audits, and adherence to service level agreements (SLAs) outlined in the contract. The CFPB would monitor these metrics to ensure the contractor is meeting expectations and delivering value.

Are there any potential risks associated with relying on a single vendor for such a critical financial transaction processing function?

Potential risks include vendor lock-in, service disruptions if the vendor experiences issues, and data security breaches. Mitigating these risks involves robust contract management, clear contingency plans, regular security audits, and potentially exploring alternative solutions or diversifying vendors for future contracts to ensure continuity and resilience.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 625 MARQUETTE AVE STE 900, MINNEAPOLIS, MN, 55402

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

Financial Breakdown

Contract Ceiling: $68,865

Exercised Options: $68,865

Current Obligation: $68,865

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: CFP17D00004

IDV Type: IDC

Timeline