DHS's $39.8M contract for business entity verification services awarded to Dun & Bradstreet, Inc

Contract Overview

Contract Amount: $39,777,488 ($39.8M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-20

End Date: 2022-09-20

Contract Duration: 1,826 days

Daily Burn Rate: $21.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BUSINESS ENTITY VERIFICATION SERVICE (BEVS) TO SUPPORT ITS TSA/DHS AIR CARGO SECURITY MISSION WITHOUT INTERRUPTION.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.8 million to DUN & BRADSTREET, INC for work described as: IGF::OT::IGF BUSINESS ENTITY VERIFICATION SERVICE (BEVS) TO SUPPORT ITS TSA/DHS AIR CARGO SECURITY MISSION WITHOUT INTERRUPTION. Key points: 1. The contract's value of nearly $40 million over five years suggests a significant need for reliable business verification in air cargo security. 2. Awarded on a sole-source basis, the lack of competition may have limited opportunities for price negotiation and potentially higher costs. 3. The fixed-price contract structure shifts performance risk to the contractor, Dun & Bradstreet, Inc. 4. The service supports the Transportation Security Administration's (TSA) critical air cargo security mission. 5. The contract's duration of 1826 days (5 years) indicates a long-term requirement for these services. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to small businesses.

Value Assessment

Rating: fair

The contract's value of $39.8 million over five years for business entity verification services appears substantial. Without specific benchmarks for similar services or detailed cost breakdowns, it's difficult to definitively assess value for money. However, the sole-source nature of the award raises concerns about whether competitive pricing was achieved. Comparing this to other government contracts for similar data verification services, especially those competed, would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Dun & Bradstreet, Inc., was solicited. This approach is typically used when a unique capability or proprietary product is required, or in cases of urgent need where competition is not feasible. The lack of competition means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to secure the most favorable terms.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from the potential cost savings that can arise from a competitive bidding process. This could translate to a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS), who receive essential data for their air cargo security operations. The service delivered is business entity verification, crucial for identifying and vetting entities involved in air cargo to mitigate security risks. The geographic impact is national, as air cargo security is a federal responsibility covering all airports and cargo operations within the United States. Workforce implications are minimal for the public, as the service is provided by a contractor, but it supports the operational efficiency of TSA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to lack of competition.
Risk of vendor lock-in given the sole-source nature of the award.
Dependency on a single provider for a critical security function.

Positive Signals

Contract supports a critical national security mission (air cargo security).
Fixed-price contract shifts some financial risk to the contractor.
Long-term contract (5 years) provides stability for service delivery.

Sector Analysis

The contract falls within the management consulting services sector, specifically focusing on business information services. This sector is vital for government agencies needing to verify the legitimacy and background of entities they interact with. The market for business data and verification services is dominated by a few large players, making sole-source awards for specialized or comprehensive data sets not entirely uncommon, though competition is generally preferred for cost efficiency.

Small Business Impact

This contract does not appear to have a small business set-aside. The awardee, Dun & Bradstreet, Inc., is a large corporation. There is no indication of subcontracting plans for small businesses within the provided data, suggesting that the primary benefits of this contract will not flow to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of Homeland Security (DHS), and its relevant components like the Transportation Security Administration (TSA). The contract's fixed-price nature and defined period of performance provide a framework for accountability. Transparency would be enhanced through regular reporting requirements and potential audits, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

DHS Air Cargo Screening
TSA Vendor Management
Federal Business Registration Services
Government Data Verification Contracts

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Potential for vendor lock-in.
Dependency on a single provider for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.8 million to DUN & BRADSTREET, INC. IGF::OT::IGF BUSINESS ENTITY VERIFICATION SERVICE (BEVS) TO SUPPORT ITS TSA/DHS AIR CARGO SECURITY MISSION WITHOUT INTERRUPTION.

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 $39.8 million.

What is the period of performance?

Start: 2017-09-20. End: 2022-09-20.

What is the historical spending pattern for business entity verification services by the TSA or DHS?

Analyzing historical spending on business entity verification services by the TSA and DHS is crucial for context. While this specific contract is for $39.8 million over five years, understanding if this represents an increase, decrease, or stable level of spending compared to previous periods or similar services is important. Without prior contract data for this exact service or comparable services, it's difficult to establish a trend. However, the five-year duration and significant value suggest a sustained and substantial requirement. Further investigation into prior contracts, including any sole-source awards or competitively bid alternatives for similar verification needs, would provide a clearer picture of spending patterns and potential cost efficiencies over time.

How does the pricing of this contract compare to market rates for similar business verification services?

Assessing the pricing of this $39.8 million contract against market rates is challenging without detailed service level agreements and specific data points. Dun & Bradstreet is a known provider of business information, but the 'sole-source' nature of this award means direct price comparisons with other government contracts or commercial offerings are difficult. To benchmark effectively, one would need to identify comparable services from other vendors, considering factors like data scope, update frequency, access methods (API, portal), and support levels. Given the lack of competition, there's a risk that the price may not reflect the most economical option available in the broader market. A thorough market research report or analysis of alternative solutions would be needed to determine if the pricing is competitive.

What are the specific risks associated with relying on a sole-source provider for air cargo security verification?

Relying on a sole-source provider like Dun & Bradstreet for air cargo security verification introduces several risks. Firstly, there's a potential for price escalation over time, as the government lacks the leverage of competitive bidding to negotiate lower rates. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers even if performance issues arise or better alternatives emerge. Thirdly, there's a dependency risk; if Dun & Bradstreet experiences service disruptions or decides to discontinue specific offerings, the TSA's air cargo security mission could be significantly impacted. Finally, without competitive pressure, there might be less incentive for the vendor to innovate or proactively enhance service quality beyond the contractually mandated minimums.

What is Dun & Bradstreet's track record with government contracts, particularly with DHS or TSA?

Dun & Bradstreet, Inc. has a history of providing data and analytics services to various government agencies, including potentially DHS and TSA, though specific contract details for this exact service are not provided. Their extensive experience in the commercial sector in business information and data verification suggests a foundational capability. However, evaluating their track record specifically for government contracts requires examining past performance reviews, any documented issues or disputes, and their success in meeting delivery timelines and quality standards on similar federal awards. A review of contract databases and performance penilaian systems (like CPARS) would offer more insight into their reliability and effectiveness as a government contractor.

How critical is the 'Business Entity Verification Service (BEVS)' to the TSA's overall air cargo security mission?

The 'Business Entity Verification Service (BEVS)' is likely critical to the TSA's air cargo security mission by providing essential vetting capabilities. In air cargo, verifying the identity and legitimacy of businesses involved in shipping and handling goods is paramount to preventing illicit activities, terrorism, and smuggling. BEVS likely helps the TSA assess risks associated with shippers, carriers, and other supply chain partners. Without reliable verification, the TSA would face significant challenges in identifying high-risk entities and enforcing security regulations, potentially compromising the integrity of the air cargo system. The substantial investment and long-term nature of this contract underscore its perceived importance to national security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DUN & Bradstreet Inc.

Address: 11710 PLAZA AMERICA DR STE 900, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $51,144,524

Exercised Options: $39,808,185

Current Obligation: $39,777,488

Actual Outlays: $30,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline