OPM Exercises $27M Option for Equifax Credit Bureau Services, Extending Contract to 2009

Contract Overview

Contract Amount: $27,059,651 ($27.1M)

Contractor: Equifax Information Services LLC

Awarding Agency: Office of Personnel Management

Start Date: 2004-12-31

End Date: 2009-09-24

Contract Duration: 1,728 days

Daily Burn Rate: $15.7K/day

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO EXERCISE OPTION PERIOD 3.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30309

State: Georgia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $27.1 million to EQUIFAX INFORMATION SERVICES LLC for work described as: TO EXERCISE OPTION PERIOD 3. Key points: 1. Contract value: $27.06 million for option period 3. 2. Incumbent provider: Equifax Information Services LLC. 3. Risk: Potential for vendor lock-in with sole-source extension. 4. Sector: Information Technology (Credit Bureaus).

Value Assessment

Rating: fair

The contract value of $27.06 million for an 18-month period suggests a moderate per-unit cost. Benchmarking against similar credit bureau services would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source exercise of an option period, likely based on the original contract's justification. Without competitive bidding, the government may not be achieving the best possible price.

Taxpayer Impact: Taxpayer funds are committed without a competitive process to ensure optimal value for money.

Public Impact

Federal employees and individuals whose data is managed by OPM are impacted by the continued use of Equifax. The continuity of credit reporting services ensures ongoing operational needs for OPM. Lack of competition raises questions about the long-term cost-effectiveness for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source extension limits competitive pricing.
Potential for price increases in future options without competition.
Vendor lock-in risk.

Positive Signals

Ensures continuity of essential credit reporting services.
Leverages existing vendor relationship and established performance.

Sector Analysis

The IT sector, specifically credit bureaus, provides essential data services. Spending benchmarks for similar government contracts are crucial for evaluating the fairness of this $27 million option exercise.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract action. The focus appears to be on the incumbent large business provider.

Oversight & Accountability

The exercise of an option period, especially sole-source, warrants scrutiny to ensure the government is receiving fair value and that competition was appropriately considered or justified.

Related Government Programs

Credit Bureaus
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Sole-source award
Lack of current price competition
Potential for price escalation
Vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $27.1 million to EQUIFAX INFORMATION SERVICES LLC. TO EXERCISE OPTION PERIOD 3.

Who is the contractor on this award?

The obligated recipient is EQUIFAX INFORMATION SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2004-12-31. End: 2009-09-24.

What was the original justification for awarding the contract to Equifax on a sole-source basis, and does that justification still hold for this option exercise?

The original justification for a sole-source award is critical. If the initial contract was awarded due to unique capabilities or proprietary data, that rationale must be re-evaluated for each option exercise. Without a clear, updated justification, the government risks not obtaining competitive pricing and potentially overpaying for services.

How does the per-unit cost of Equifax's services in this option period compare to market rates for similar credit reporting services?

Comparing the per-unit cost against market rates is essential for value assessment. If Equifax's pricing is significantly higher than comparable services from other reputable credit bureaus, it suggests a potential lack of price discovery due to the sole-source nature of the option exercise. This could lead to inefficient use of taxpayer funds.

What is the long-term strategy for ensuring competitive pricing for OPM's credit reporting needs beyond this contract?

A proactive strategy is needed to ensure future cost-effectiveness. OPM should consider market research and planning for competitive solicitations when current contracts approach expiration. Relying on sole-source option exercises indefinitely can lead to escalating costs and reduced leverage in negotiations, ultimately impacting the value taxpayers receive.

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

Contractor Details

Parent Company: Equifax Inc (UEI: 045812369)

Address: 1550 PEACHTREE ST NW, ATLANTA, GA, 30309

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,059,651

Exercised Options: $27,059,651

Current Obligation: $27,059,651

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS22F9663D

IDV Type: FSS

Timeline