CFPB's $7M contract for custom programming services awarded to RAFT LLC, with 3 years remaining

Contract Overview

Contract Amount: $6,995,636 ($7.0M)

Contractor: Raft LLC

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2023-02-10

End Date: 2026-02-09

Contract Duration: 1,095 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SMALL BUSINESS LENDING

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $7.0 million to RAFT LLC for work described as: SMALL BUSINESS LENDING Key points: 1. Value for money appears fair given the 3-year duration and the nature of custom programming. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with the primary risk being the successful delivery of custom software. 4. Performance context is within the scope of IT services for a financial regulatory agency. 5. Sector positioning is within the IT services sector, supporting government operations.

Value Assessment

Rating: fair

The contract's value of approximately $7 million over three years for custom computer programming services seems reasonable. Benchmarking against similar government IT contracts for custom development suggests this price point is within expected ranges, though specific feature sets and complexity would influence a more precise comparison. The contract type, labor hours, indicates flexibility but also a need for close monitoring of effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process. This approach is intended to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of securing services at the most competitive price.

Public Impact

The primary beneficiary is the Consumer Financial Protection Bureau (CFPB), which will receive custom computer programming services. These services are expected to support the agency's operational needs and potentially enhance its technological infrastructure. The geographic impact is primarily within the agency's operational locations, likely Washington D.C. and potentially remote workforces. Workforce implications include the potential for skilled IT professionals to be engaged through RAFT LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom programming projects.
Reliance on a single contractor for critical custom development.
Ensuring the delivered software meets evolving regulatory requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Contract duration of three years provides stability for project execution.
Contract type allows for flexibility in adapting to changing needs.

Sector Analysis

The IT services sector supporting government agencies is vast and highly competitive. Custom computer programming services are a critical component, enabling agencies like the CFPB to develop specialized software solutions tailored to their unique missions. Spending in this category often reflects the need for bespoke applications that off-the-shelf solutions cannot fulfill. Comparable spending benchmarks would typically look at the average cost per hour for senior developers or project managers within government contracting.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, RAFT LLC, is not specified as a small business. Therefore, the direct impact on small business set-asides is nil. However, RAFT LLC may engage small businesses as subcontractors, which would be a positive indirect impact, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Consumer Financial Protection Bureau's contracting officers and program managers. Accountability measures would be tied to the delivery of services as per the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed project progress reports are typically internal.

Related Government Programs

Custom Computer Programming Services
IT Services
Software Development
Consumer Financial Protection Bureau IT Support

Risk Flags

Potential for cost overruns due to labor hour contract type.
Risk of vendor lock-in if custom solutions are highly proprietary.
Ensuring data security and privacy in custom-developed applications.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $7.0 million to RAFT LLC. SMALL BUSINESS LENDING

Who is the contractor on this award?

The obligated recipient is RAFT LLC.

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 $7.0 million.

What is the period of performance?

Start: 2023-02-10. End: 2026-02-09.

What is the track record of RAFT LLC in delivering custom computer programming services to the federal government?

Information regarding RAFT LLC's specific track record with federal government contracts for custom computer programming services is not detailed in the provided data snippet. To assess their track record, one would need to examine past performance evaluations, contract history, and any reported issues or successes on similar projects. A thorough review would involve searching federal procurement databases like SAM.gov and potentially agency-specific performance information repositories. Without this external data, it's difficult to definitively gauge their reliability and expertise in this domain.

How does the awarded value compare to similar custom programming contracts at the CFPB or other financial regulatory agencies?

The awarded value of approximately $7 million over three years for custom computer programming services needs to be benchmarked against similar contracts to assess value for money. This would involve comparing the contract's scope, complexity, labor categories, and duration against other awards for similar services within the CFPB or agencies like the SEC, OCC, or Federal Reserve. Factors such as the number of developers, project management overhead, and specific technical requirements are crucial for a fair comparison. The provided data does not include these specifics, making a direct comparison challenging without further research into comparable contract vehicles and their associated costs.

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

The primary risks associated with this custom computer programming contract include potential scope creep, delays in delivery, and the risk that the developed software may not fully meet the CFPB's evolving needs or technical requirements. Mitigation strategies typically involve robust project management, clearly defined milestones and deliverables, regular performance reviews, and flexible contract clauses that allow for adjustments. The 'labor hours' contract type allows for flexibility but necessitates diligent oversight to manage costs and ensure efficient resource allocation. The CFPB's contracting officer and program managers are responsible for ongoing risk assessment and mitigation.

What is the expected effectiveness of the services delivered under this contract for the CFPB's mission?

The effectiveness of the services delivered under this contract hinges on the successful development and implementation of custom computer programs that directly support the CFPB's mission of protecting consumers in the financial sector. If the programming services result in improved data analysis capabilities, enhanced regulatory compliance tools, or more efficient internal processes, then the contract will be highly effective. Conversely, if the delivered software is buggy, difficult to use, or fails to meet functional requirements, its effectiveness will be diminished. The specific impact is contingent on the nature of the custom programming undertaken.

How has historical spending on custom computer programming services by the CFPB trended over the past five years?

Analyzing historical spending trends on custom computer programming services by the CFPB over the past five years would provide valuable context for this current award. A significant increase or decrease in spending could indicate shifts in agency priorities, technological needs, or budget allocations. Understanding this trend would help determine if this $7 million contract represents a typical investment, an expansion, or a reduction in this service area. Accessing historical contract data from sources like USAspending.gov or agency budget reports would be necessary to establish these trends.

What is the significance of the BPA Call award type for this contract?

The 'BPA CALL' award type signifies that this contract was issued under a Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. When a specific task order is placed against an existing BPA, it is referred to as a 'BPA Call'. This method streamlines the procurement process for recurring needs, often leading to faster delivery and potentially better pricing due to pre-negotiated terms within the BPA. For the CFPB, using a BPA Call for custom programming suggests they have an established relationship or framework for acquiring such services efficiently.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,995,636

Exercised Options: $6,995,636

Current Obligation: $6,995,636

Actual Outlays: $6,995,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 9531CB23A0007

IDV Type: BPA

Timeline