CFPB awards $24.6M task order to JND Holdings for financial transaction processing services

Contract Overview

Contract Amount: $24,655,488 ($24.7M)

Contractor: JND Holdings LLC

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-07-16

End Date: 2029-07-16

Contract Duration: 1,826 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEXINGTON LAW MATTER IDIQ TASK ORDER

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98121

State: Washington Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $24.7 million to JND HOLDINGS LLC for work described as: LEXINGTON LAW MATTER IDIQ TASK ORDER Key points: 1. Value for money appears fair given the 5-year duration and firm-fixed-price structure. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period potentially introducing execution risks. 4. Performance context is within financial transaction processing, a critical but standard service. 5. Sector positioning is within financial services, supporting core regulatory and operational functions.

Value Assessment

Rating: fair

The total award of $24.6 million over five years averages to approximately $4.9 million annually. Benchmarking this against similar large-scale financial transaction processing contracts is challenging without more granular data on the specific services provided. However, the firm-fixed-price contract type suggests that the government has locked in costs, which can be advantageous if the scope of work remains stable. The number of bidders (3) is a positive sign for competition, but the ultimate value depends on the specific deliverables and market rates for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all eligible responsible sources were permitted to submit offers. Three bids were received, suggesting a reasonable level of competition for this task order. A competitive process generally helps ensure that the government receives fair market prices and that contractors are incentivized to offer their best value. The specific details of the bidding process and evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment.

Public Impact

The Consumer Financial Protection Bureau (CFPB) is the primary beneficiary, receiving essential financial transaction processing services. Services delivered include financial transactions processing, reserve, and clearinghouse activities, crucial for the agency's operations. The geographic impact is national, supporting the CFPB's nationwide regulatory and consumer protection mission. Workforce implications are likely minimal for the public sector, with the contractor providing the necessary personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) could lead to scope creep or evolving needs not fully captured in the initial pricing.
Reliance on a single contractor for critical financial transaction processing introduces operational risk if performance falters.
The specific nature of 'reserve' activities is not detailed, potentially masking higher-risk or more complex financial operations.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor, JND Holdings LLC, likely has specialized expertise in financial transaction processing.

Sector Analysis

The financial services sector, particularly within government contracting, involves a wide range of activities from transaction processing to regulatory support. This contract falls under financial transactions processing, a critical back-office function for many agencies. The market for these services is competitive, with numerous firms offering specialized solutions. Comparable spending benchmarks are difficult to establish without knowing the precise scope, but large federal agencies often award multi-million dollar contracts for such essential financial infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, JND Holdings LLC, is likely a mid-to-large sized entity capable of handling this scale of work. The absence of a small business set-aside means opportunities for small business participation would depend on the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would primarily fall under the Consumer Financial Protection Bureau's contracting officer and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Financial Services Support Contracts
Payment Processing Services
Government Financial Management Systems
Regulatory Compliance Support

Risk Flags

Long-term contract duration
Reliance on single vendor for critical function
Potential for evolving regulatory landscape

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $24.7 million to JND HOLDINGS LLC. LEXINGTON LAW MATTER IDIQ TASK ORDER

Who is the contractor on this award?

The obligated recipient is JND HOLDINGS 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 $24.7 million.

What is the period of performance?

Start: 2024-07-16. End: 2029-07-16.

What is the track record of JND Holdings LLC in performing similar federal contracts?

JND Holdings LLC has a history of performing contracts related to financial services and legal support. While specific details on past performance for contracts of this exact scale and scope (financial transaction processing, reserve, and clearinghouse activities) require deeper investigation into contract databases, their presence as a bidder and awardee in federal contracting suggests they possess relevant capabilities. Analyzing past performance reviews, any contract disputes, or awards for similar services would provide a clearer picture of their reliability and expertise in handling complex financial operations for government agencies. It's important to verify if they have successfully managed firm-fixed-price contracts of comparable value and duration.

How does the awarded price compare to market rates for similar financial transaction processing services?

Determining the precise value-for-money requires a detailed comparison against market rates for highly specific financial transaction processing, reserve, and clearinghouse activities. The total award of $24.6 million over five years equates to an average annual value of approximately $4.9 million. Without access to the detailed scope of work, service level agreements, and the specific nature of the 'reserve' activities, a direct market rate comparison is difficult. However, the fact that it was a full and open competition with three bidders suggests that the pricing was likely vetted against competitive offers. Further analysis would involve benchmarking against industry reports or consulting with subject matter experts on the typical cost structures for such specialized financial operations.

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

The primary risks associated with this contract include potential performance failures by the contractor, changes in regulatory requirements impacting the services, and the long duration (five years) potentially leading to cost inefficiencies or outdated technology. Mitigation strategies are likely embedded within the contract's performance standards, service level agreements, and reporting requirements. The firm-fixed-price nature helps mitigate cost overrun risks for the government, assuming the scope is well-defined. The CFPB's oversight mechanisms, including regular performance reviews and the potential for contract modifications or termination for default, serve as further risk mitigation tools. The competition itself also incentivizes the contractor to perform well to secure future work.

How effective is the CFPB likely to be in overseeing this contract given its duration and complexity?

The effectiveness of the CFPB's oversight will depend on the resources and expertise dedicated to managing this contract. A five-year contract for critical financial transaction processing requires robust contract management, including regular performance monitoring, financial reviews, and technical assessments. The CFPB must ensure they have qualified personnel to understand the intricacies of the services provided and to hold JND Holdings LLC accountable to the contract terms. Establishing clear communication channels, defining key performance indicators (KPIs), and conducting periodic reviews are essential. The agency's past experience with managing similar complex service contracts and the clarity of the contract's statement of work will significantly influence oversight effectiveness.

What is the historical spending pattern for financial transaction processing services by the CFPB or similar agencies?

Historical spending patterns for financial transaction processing services by the CFPB or similar agencies can provide valuable context. Without specific historical data for this exact task order or contractor, a general trend can be inferred. Agencies like the CFPB rely heavily on efficient and secure financial operations, often outsourcing complex processing tasks. Spending in this area typically fluctuates based on agency size, mission scope, and the evolution of financial technologies. Large, multi-year contracts are common for such critical infrastructure. Analyzing past awards for similar services, including contract values, durations, and the number of bidders, would reveal trends in pricing, competition, and the types of contractors engaged.

What are the implications of awarding a firm-fixed-price contract for these services?

A firm-fixed-price (FFP) contract is generally preferred by the government when the scope of work is well-defined and risks are manageable. For financial transaction processing, an FFP contract provides cost certainty, meaning the contractor assumes the risk of cost overruns. This is advantageous for the CFPB as it locks in the price for the duration of the contract, simplifying budgeting and financial planning. However, it also means that if the contractor becomes more efficient or finds ways to reduce costs, the savings do not automatically revert to the government unless renegotiated. Conversely, if unforeseen complexities arise that significantly increase the contractor's costs, the contractor bears that burden, which could potentially impact performance if not managed carefully.

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

Solicitation ID: 9531CB24Q0064

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2727 WESTERN AVE STE 200, SEATTLE, WA, 98121

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,655,488

Exercised Options: $24,655,488

Current Obligation: $24,655,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 9531CB22D0004

IDV Type: IDC

Timeline