DHS renews Dun & Bradstreet services for air cargo systems for over $27.3 million

Contract Overview

Contract Amount: $27,304,744 ($27.3M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-05-22

End Date: 2014-01-08

Contract Duration: 2,423 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS PR PROVIDES FUNDING TO RENEW DUN & BRADSTREET SERVICES FOR AIR CARGO'S INDIRECT AIR CARRIER MANAGEMENT SYSTEM, KNOWN SHIPPER MANAGEMENT SYSTEM, AND THE FREIGHT ASSESSMENT SYSTEMS. NOTE: CONTRACT NUMBER IS HSTS01-05-F-AOP196 THE CONTRACTING OFFICER POC IS MS.SAMANTHA GRAY, 571-227-4174. THE PROGRAM OFFICER POC IS MR. DON BARNES, 571-227-1333. THE COTR FOR THIS CONTRACT IS MR.ROBERT E. MOORE, 571-227-3505.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.3 million to DUN & BRADSTREET, INC for work described as: THIS PR PROVIDES FUNDING TO RENEW DUN & BRADSTREET SERVICES FOR AIR CARGO'S INDIRECT AIR CARRIER MANAGEMENT SYSTEM, KNOWN SHIPPER MANAGEMENT SYSTEM, AND THE FREIGHT ASSESSMENT SYSTEMS. NOTE: CONTRACT NUMBER IS HSTS01-05-F-AOP196 THE CONTRACTING OFFICER POC IS MS.SAMANTHA GRAY, 5… Key points: 1. Contract focuses on essential data services for air cargo management and freight assessment. 2. Sole-source award raises questions about potential cost savings through competition. 3. Long contract duration (over 6 years) may indicate a need for stable, ongoing data provision. 4. Performance context is tied to critical security and operational functions within air cargo. 5. Sector positioning is within the data services supporting transportation and security. 6. The contract's value is significant, underscoring the importance of accurate cargo data.

Value Assessment

Rating: fair

The total value of $27.3 million over approximately 6.7 years suggests an average annual spend of around $4 million. Without comparable contracts for similar data services from Dun & Bradstreet or competitors, a precise value-for-money assessment is difficult. The firm-fixed-price nature of the contract provides cost certainty but may not incentivize efficiency if the initial price was not aggressively benchmarked. The lack of competition further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when it is deemed not to be in the government's best interest to compete. The absence of a competitive bidding process limits the government's ability to explore alternative solutions or secure potentially lower prices through market forces.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from the price discovery and potential cost reductions that a competitive bidding process could have provided.

Public Impact

Benefits the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) by ensuring continued access to critical data services. Supports the operational efficiency and security of air cargo management systems, including known shipper and freight assessment. Indirectly impacts the air cargo industry by providing the foundational data infrastructure for regulatory compliance and operational oversight. Ensures the availability of data necessary for identifying and mitigating risks associated with air cargo transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Long contract duration could lead to vendor lock-in and reduced flexibility.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.

Positive Signals

Provides essential data services for critical national security functions within air cargo.
Firm-fixed-price contract offers budget predictability for the agency.
Dun & Bradstreet is a well-established provider of business information services.

Sector Analysis

This contract falls within the data services sector, specifically supporting government functions related to transportation security and regulatory compliance. The market for business information and data analytics services is substantial, with numerous providers offering solutions for risk assessment, compliance, and operational management. Government agencies often rely on specialized data providers like Dun & Bradstreet for critical functions, though the trend is increasingly towards leveraging competitive procurements to ensure best value.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source award to a large, established company like Dun & Bradstreet, it is unlikely to have direct positive implications for the small business ecosystem. The focus is on securing a specific service from a known provider rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Transportation Security Administration. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency regarding the justification for the sole-source award and ongoing performance monitoring would be key accountability measures, though details are not provided here.

Related Government Programs

Air Cargo Security Programs
Known Shipper Program
Freight Assessment Systems
Business Information Services Contracts
Transportation Security Administration Data Services

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.3 million to DUN & BRADSTREET, INC. THIS PR PROVIDES FUNDING TO RENEW DUN & BRADSTREET SERVICES FOR AIR CARGO'S INDIRECT AIR CARRIER MANAGEMENT SYSTEM, KNOWN SHIPPER MANAGEMENT SYSTEM, AND THE FREIGHT ASSESSMENT SYSTEMS. NOTE: CONTRACT NUMBER IS HSTS01-05-F-AOP196 THE CONTRACTING OFFICER POC IS MS.SAMANTHA GRAY, 571-227-4174. THE PROGRAM OFFICER POC IS MR. DON BARNES, 571-227-1333. THE COTR FOR THIS CONTRACT IS MR.ROBERT E. MOORE, 571-227-3505.

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2007-05-22. End: 2014-01-08.

What is the historical spending trend for Dun & Bradstreet services by the TSA or DHS?

The provided data indicates a single contract awarded in 2007 with an end date in 2014, totaling over $27.3 million. This suggests a significant, long-term investment in these specific services during that period. Without access to broader contract databases or historical procurement records, it is difficult to ascertain if this represents a consistent spending pattern or a one-off large requirement. However, the duration and value imply a sustained need for Dun & Bradstreet's data capabilities within the TSA's operations for air cargo security and management.

How does the $27.3 million contract value compare to similar data services contracts for transportation security?

Benchmarking this $27.3 million contract value against similar data services for transportation security is challenging without more specific details on the services provided and the scope of work. Dun & Bradstreet offers a wide range of business information services, and the value would depend heavily on the specific databases, analytics, and support included. Contracts for large-scale data analytics or regulatory compliance platforms can range from hundreds of thousands to tens of millions of dollars annually, depending on the agency's needs and the vendor's offerings. Given the sole-source nature and the long duration, this value appears substantial, suggesting a critical and comprehensive data solution for air cargo operations.

What are the specific risks associated with a sole-source award for critical data services?

The primary risks associated with a sole-source award for critical data services include a lack of competitive pricing, potentially leading to overpayment. It can also stifle innovation, as the government is reliant on a single vendor's offerings without exploring alternatives. Vendor lock-in is another significant risk, making it difficult and costly to switch providers in the future, even if performance or pricing becomes unfavorable. Furthermore, without the scrutiny of a competitive process, there's a potential for reduced diligence in ensuring the most effective and efficient solution is being procured. This can also limit transparency in the procurement process.

What is Dun & Bradstreet's track record with government contracts, particularly in security or transportation?

Dun & Bradstreet, Inc. has a long history of providing data and analytics services to government agencies, including those in security and transportation. Their core business revolves around business information, credit reporting, and risk management solutions, which are relevant to various government functions. While this specific contract highlights their role in air cargo management systems for DHS, their broader portfolio likely includes engagements with other agencies for similar data-driven insights. Their established presence suggests a capacity to meet government requirements, though the specifics of their performance on individual contracts would require detailed review.

How effective are Dun & Bradstreet's services in enhancing air cargo security and management?

The effectiveness of Dun & Bradstreet's services in enhancing air cargo security and management is largely dependent on how the Transportation Security Administration (TSA) integrates and utilizes the data provided. These services likely contribute to identifying known shippers, assessing cargo risks, and ensuring compliance with regulations. The long-term nature of the contract suggests that the TSA found value in these services for its operational needs. However, a definitive assessment of effectiveness would require analyzing specific performance metrics, security incident data, and operational efficiency improvements directly attributable to these services, which are not detailed in the provided information.

What is the justification for awarding this contract to Dun & Bradstreet without competition?

The provided data states the contract was 'NOT COMPETED' and awarded on a sole-source basis. While the specific justification is not detailed, common reasons for sole-source awards include unique capabilities possessed by the vendor, urgent and compelling needs where competition is not feasible, or when it is determined that it is not in the government's best interest to compete. For data services, this could stem from proprietary data sets, specialized integration requirements with existing systems, or the need for continuity of service from a provider with deep institutional knowledge of the agency's specific operational environment.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE DUN & Bradstreet Corporation (UEI: 884114609)

Address: 4350 N FAIRFAX DR, STE 650, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $27,699,041

Exercised Options: $27,304,744

Current Obligation: $27,304,744

Contract Characteristics

Multi-Year Contract: Yes

Timeline