Interior Department's $37.5M contract for credit bureau services awarded to Dun & Bradstreet, Inc

Contract Overview

Contract Amount: $37,473,457 ($37.5M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: Department of the Interior

Start Date: 2016-03-07

End Date: 2020-09-06

Contract Duration: 1,644 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF, SBA LOAN AND LENDER MONITORING SYSTEM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $37.5 million to DUN & BRADSTREET, INC for work described as: IGF::CT::IGF, SBA LOAN AND LENDER MONITORING SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1644 days indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The primary contractor, Dun & Bradstreet, is a well-established entity in the credit reporting industry. 5. The contract's value is significant, reflecting the importance of credit information services. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific award.

Value Assessment

Rating: good

The contract value of approximately $37.5 million over roughly 4.5 years suggests a substantial investment in credit bureau services. Benchmarking this against similar government contracts for credit reporting and data services is crucial for a precise value-for-money assessment. However, given the long duration and the established nature of the contractor, the pricing is likely competitive, assuming a robust bidding process. The fixed-price nature of the contract also contributes to cost predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. While not an exceptionally high number of bidders, it still provides a basis for price discovery and allows the agency to select the most advantageous offer based on price and other factors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings, preventing potential price gouging.

Public Impact

The Department of the Interior benefits from access to essential credit reporting and data services. These services likely support various departmental functions, including risk assessment, vendor vetting, and financial management. The contract's impact is primarily administrative and operational within the federal government. The workforce implications are minimal, as the contract is for services rather than direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized services.
Reliance on a single large credit bureau may limit access to alternative data sources or innovative solutions.
The specific nature of credit bureau data raises privacy and security concerns that require robust oversight.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The fixed-price contract type provides cost certainty and budget predictability for the agency.
The contractor, Dun & Bradstreet, is a recognized leader in the credit reporting industry, suggesting a high likelihood of reliable service delivery.

Sector Analysis

The credit bureau services sector is a mature industry dominated by a few large players, including Dun & Bradstreet. Government spending in this area typically supports functions related to financial risk management, compliance, and background checks. This contract fits within the broader category of information services and data management, a critical component for many federal agencies. Comparable spending benchmarks would involve looking at other large federal contracts for similar data and credit reporting services across different agencies.

Small Business Impact

This contract does not appear to have a small business set-aside. While the primary award went to a large established firm, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan. The absence of a specific set-aside means that small businesses were not exclusively targeted for this particular procurement, potentially limiting their direct share of this contract's value.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

General Services Administration (GSA) Schedules for IT and professional services
Federal procurement data systems
Contracting for financial data services
Credit reporting agency contracts

Risk Flags

Data Security and Privacy Concerns
Vendor Performance Risk
Potential for Vendor Lock-in
Limited Competition for Large Federal Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37.5 million to DUN & BRADSTREET, INC. IGF::CT::IGF, SBA LOAN AND LENDER MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $37.5 million.

What is the period of performance?

Start: 2016-03-07. End: 2020-09-06.

What is the track record of Dun & Bradstreet, Inc. in performing similar federal contracts?

Dun & Bradstreet, Inc. has a long history of providing data, analytics, and insights to businesses and government agencies. Their federal contract performance typically involves providing credit information, business intelligence, and risk management solutions. Historically, they have secured numerous contracts across various federal departments, often related to financial data, vendor management, and compliance. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in winning federal awards suggests a generally positive track record. However, like any large contractor, there may be instances of performance issues or disputes on specific contracts, which would be documented in contract performance databases and agency records.

How does the awarded price compare to market rates for similar credit bureau services?

Determining the precise market rate comparison for this $37.5 million contract requires detailed analysis of the specific services rendered, the volume of data accessed, and the contract duration. Dun & Bradstreet is a major player, and their pricing can be influenced by their market position. The fact that it was awarded under full and open competition with 3 bidders suggests that the price was deemed competitive at the time of award. To benchmark effectively, one would compare the per-unit costs (e.g., per report, per data query) against other government contracts for similar services or against commercial pricing structures offered by Dun & Bradstreet and its competitors. Without access to the detailed pricing structure and specific service level agreements, a definitive comparison is challenging, but the competitive award process provides some assurance of reasonable pricing.

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

Key risks include data security and privacy breaches, as credit bureau data is highly sensitive. Mitigation strategies involve stringent security requirements in the contract, regular audits, and compliance with federal data protection regulations (e.g., FISMA). Another risk is vendor performance failure or service disruption; this is mitigated by contract clauses for performance standards, remedies for non-performance, and the potential for termination. Over-reliance on a single vendor could also be a risk, potentially addressed through contingency planning or by ensuring the contract allows for flexibility and potential integration with other data sources if needed. The fixed-price nature mitigates cost overrun risks for the government.

How effective is the Department of the Interior in leveraging credit bureau data for its mission?

The effectiveness of the Department of the Interior in leveraging this data depends on how well the procured services align with specific departmental needs, such as assessing the financial stability of partners, vetting contractors, or managing financial risks associated with its vast operations. The contract's duration and value suggest a significant and ongoing need. Effectiveness would be measured by improvements in risk management, efficiency in financial processes, and the ability to make informed decisions based on reliable credit and business data. Without specific performance metrics tied to mission outcomes, assessing effectiveness is qualitative, relying on the assumption that the agency procured these services because they are essential for its operations.

What are the historical spending patterns for credit bureau services within the Department of the Interior?

Historical spending patterns for credit bureau services within the Department of the Interior would reveal the consistency and scale of their investment in such data. Analyzing past contracts awarded to Dun & Bradstreet or other credit reporting agencies would show whether this $37.5 million contract represents an increase, decrease, or continuation of previous spending levels. It would also indicate the typical duration and competition levels for these services within the department. Understanding these patterns helps in assessing the long-term strategic importance of these services and whether current spending aligns with historical trends or represents a shift in procurement strategy.

What is the impact of this contract on the broader credit reporting market?

This contract represents a significant award to Dun & Bradstreet, reinforcing their position as a key provider of credit information services to the federal government. For the broader market, it signifies continued government reliance on established credit bureaus for essential data. It may also influence competitors by setting a benchmark for service offerings and pricing in large government procurements. The fact that it was competed suggests that other major players likely bid, indicating a dynamic market. However, the limited number of bidders (3) might suggest a concentrated market where only a few firms possess the capabilities and security clearances required for such large federal contracts.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DUN & Bradstreet Inc.

Address: 5335 GATE PKWY, JACKSONVILLE, FL, 32256

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

Financial Breakdown

Contract Ceiling: $59,454,758

Exercised Options: $37,727,698

Current Obligation: $37,473,457

Actual Outlays: $11,016,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F022DA

IDV Type: FSS

Timeline