HHS/CMS Spends $83.5M on Equifax Credit Bureau Services via Full and Open Competition

Contract Overview

Contract Amount: $83,503,101 ($83.5M)

Contractor: Equifax Workforce Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-03-29

End Date: 2018-03-31

Contract Duration: 1,828 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $83.5 million to EQUIFAX WORKFORCE SOLUTIONS LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $83.5M over 5 years. 2. Awarded through full and open competition, indicating market availability. 3. No small business participation noted. 4. Sector: IT/Data Services, specifically credit bureaus.

Value Assessment

Rating: good

The contract value of $83.5M over 5 years averages to approximately $16.7M annually. This appears reasonable given the nature of credit bureau services for a large agency like CMS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple vendors were able to bid. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: The use of full and open competition likely resulted in a fair market price, maximizing taxpayer value for the services rendered.

Public Impact

Impacts millions of individuals whose credit information is managed by CMS. Ensures data integrity and security for sensitive financial information. Supports CMS operations in fraud detection and identity verification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type.

Sector Analysis

This contract falls within the IT and Data Services sector, specifically focusing on credit bureau services. Benchmarks for similar large-scale data services contracts can vary widely, but $83.5M over five years suggests a substantial, ongoing need.

Small Business Impact

The data indicates no small business participation in this contract. This could be an area for review to ensure opportunities are being provided where feasible.

Oversight & Accountability

The contract was awarded through full and open competition, which inherently involves a degree of oversight in the bidding process. Further oversight would focus on performance and adherence to contract terms.

Related Government Programs

Credit Bureaus
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

No small business participation.
Potential for vendor lock-in over contract duration.
Reliance on a single vendor for critical services.
Past data breach history of the awarded vendor (Equifax).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $83.5 million to EQUIFAX WORKFORCE SOLUTIONS LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is EQUIFAX WORKFORCE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $83.5 million.

What is the period of performance?

Start: 2013-03-29. End: 2018-03-31.

What specific credit bureau services were procured, and how do they align with CMS's mission?

The contract likely covers services such as credit reporting, identity verification, fraud prevention, and potentially data analytics related to financial risk. For CMS, these services are crucial for verifying beneficiary information, preventing healthcare fraud, and managing financial programs effectively, ensuring that resources are directed appropriately and protecting against financial malfeasance.

What are the potential risks associated with relying on a single vendor for credit bureau services, even with full competition?

Even with initial full competition, long-term reliance on one vendor can lead to vendor lock-in, reduced negotiation leverage in future contract renewals, and potential complacency in service quality or innovation. There's also a risk if the vendor experiences data breaches or operational failures, which could significantly disrupt CMS operations and compromise sensitive data.

How effectively does this contract support CMS's goals for data security and privacy?

The effectiveness hinges on the specific security and privacy clauses within the contract and Equifax's adherence to them. Given Equifax's past data breach, rigorous oversight, regular audits, and strong contractual penalties for non-compliance are essential to ensure data security and privacy are maintained at the highest standard.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Credit Bureaus

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20130154

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Equifax Inc (UEI: 045812369)

Address: 11432 LACKLAND RD, SAINT LOUIS, MO, 63146

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

Financial Breakdown

Contract Ceiling: $83,503,101

Exercised Options: $83,503,101

Current Obligation: $83,503,101

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline