CFPB awards $12.9M IT Technical Support Services contract to AAC Inc. for 3 years

Contract Overview

Contract Amount: $12,910,719 ($12.9M)

Contractor: AAC Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2023-05-01

End Date: 2026-06-30

Contract Duration: 1,156 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION TECHNOLOGY TECHNICAL SUPPORT SERVICES (TSS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $12.9 million to AAC INC. for work described as: INFORMATION TECHNOLOGY TECHNICAL SUPPORT SERVICES (TSS) Key points: 1. Contract Value: $12.9 million over 3 years. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for cost overruns if labor hours exceed estimates. 4. Sector: Information Technology services.

Value Assessment

Rating: good

The contract value of $12.9 million for 3 years appears reasonable for IT technical support services. Benchmarking against similar contracts for comparable services would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should lead to fair pricing. The use of labor hours allows for flexibility but requires careful monitoring to ensure cost-effectiveness.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.

Public Impact

Ensures continued IT support for the Consumer Financial Protection Bureau's operations. Supports critical technological infrastructure for financial consumer protection. Provides employment opportunities within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT Technical Support Services sector, which is crucial for government agency operations. Spending benchmarks for similar IT support contracts vary widely based on scope and complexity, but $12.9M over three years for a federal agency is within a typical range.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight will be critical to manage labor hours effectively and ensure the contractor meets performance requirements. The CFPB's contracting office is responsible for monitoring contract performance and expenditures.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, consumer-financial-protection-bureau, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $12.9 million to AAC INC.. INFORMATION TECHNOLOGY TECHNICAL SUPPORT SERVICES (TSS)

Who is the contractor on this award?

The obligated recipient is AAC 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 $12.9 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-06-30.

What is the estimated hourly rate for the labor hours under this contract, and how does it compare to market rates for similar IT support services?

The provided data does not specify the hourly rate. To assess value, the CFPB should compare the contracted hourly rates against industry benchmarks for IT technical support personnel with similar skill sets and experience levels. This comparison is essential for ensuring the government is not overpaying for labor.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risks associated with labor hour-based contracts?

Key performance indicators should focus on service availability, response times, issue resolution rates, and customer satisfaction. The CFPB must establish clear metrics and a robust monitoring process to track contractor performance against these KPIs. Regular performance reviews will help identify and address any potential issues proactively, ensuring effective service delivery.

How does the scope of 'Other Computer Related Services' align with the CFPB's specific IT support needs, and are there opportunities for consolidation or efficiency gains?

The 'Other Computer Related Services' NAICS code is broad. A detailed review of the specific tasks and deliverables outlined in the contract is necessary to confirm alignment with CFPB's needs. Exploring opportunities for service consolidation or leveraging technology for automation could lead to greater efficiency and cost savings in the long run.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9531CB22Q0054

Offers Received: 13

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8470 TYCO RD, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,332,353

Exercised Options: $13,386,461

Current Obligation: $12,910,719

Actual Outlays: $11,787,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D007S

IDV Type: FSS

Timeline

Start Date: 2023-05-01

Current End Date: 2026-06-30

Potential End Date: 2028-12-31 00:00:00

Last Modified: 2025-11-13

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