SBA's $25.8M Loan/Lender Monitoring System Contract Awarded to Dun & Bradstreet
Contract Overview
Contract Amount: $25,851,226 ($25.9M)
Contractor: DUN & Bradstreet, Inc
Awarding Agency: Small Business Administration
Start Date: 2008-09-30
End Date: 2014-03-29
Contract Duration: 2,006 days
Daily Burn Rate: $12.9K/day
Number of Offers Received: 3
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: IT
Official Description: LOAN/LENDER MONITORING SYSTEM
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Small Business Administration obligated $25.9 million to DUN & BRADSTREET, INC for work described as: LOAN/LENDER MONITORING SYSTEM Key points: 1. The contract value of $25.8M over its lifespan indicates a significant investment in a critical system. 2. Competition was limited, with the award going to Dun & Bradstreet, a major player in credit bureaus. 3. Potential risks include vendor lock-in and the need for robust oversight given the system's importance. 4. The sector is IT services, specifically supporting financial operations within the Small Business Administration.
Value Assessment
Rating: fair
The total award amount of $25.8M spread over approximately 5.5 years suggests a moderate annual spend. Benchmarking against similar IT system development and maintenance contracts would be necessary to fully assess value, but the duration and scope imply a substantial, potentially fair, price point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was a delivery order, suggesting it was likely part of a larger existing agreement or a limited competition scenario. This limits price discovery and may not have secured the most competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for this system, and the limited competition raises questions about whether the best possible price was achieved.
Public Impact
Ensures the integrity and efficiency of the SBA's loan and lender monitoring processes. Supports the Small Business Administration's mission to aid small businesses through lending programs. Impacts the operational capacity and data management of a key federal agency. Potential for improved loan processing times and better risk assessment for SBA-backed loans.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Potential for vendor lock-in
Positive Signals
- Supports critical SBA functions
- Utilizes established vendor capabilities
Sector Analysis
This contract falls within the IT services sector, specifically focusing on data management and operational support for financial services. Benchmarks for similar credit bureau or financial system contracts would be relevant for comparison.
Small Business Impact
The data indicates this contract was not awarded to a small business. The primary contractor, Dun & Bradstreet, is a large corporation. There is no explicit information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Given the significant value and duration, robust oversight by the Small Business Administration is crucial. This includes monitoring performance, ensuring adherence to contract terms, and managing any potential risks associated with the system's operation.
Related Government Programs
- Credit Bureaus
- Small Business Administration Contracting
- Small Business Administration Programs
Risk Flags
- Limited competition may have resulted in higher costs.
- Long contract duration increases risk of vendor lock-in.
- Lack of transparency on performance metrics.
- Potential for system obsolescence over the contract period.
- Dependence on a single large vendor for a critical system.
Tags
credit-bureaus, small-business-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Small Business Administration awarded $25.9 million to DUN & BRADSTREET, INC. LOAN/LENDER MONITORING SYSTEM
Who is the contractor on this award?
The obligated recipient is DUN & BRADSTREET, INC.
Which agency awarded this contract?
Awarding agency: Small Business Administration (Small Business Administration).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2008-09-30. End: 2014-03-29.
What was the specific justification for limiting competition for this significant IT system contract?
The justification for limited competition is not provided in the data. Typically, such limitations might stem from the need for specialized expertise, integration with existing systems, or prior performance on related contracts. Understanding the rationale is key to assessing if the limited competition was justified or if it potentially led to suboptimal pricing for taxpayers.
What are the key performance indicators (KPIs) for this loan/lender monitoring system, and how is performance being measured?
The provided data does not specify the KPIs or performance metrics for the LOAN/LENDER MONITORING SYSTEM. Effective oversight would require clearly defined KPIs related to system uptime, data accuracy, processing speed, and user satisfaction. Regular performance reviews against these metrics are essential to ensure the system meets the SBA's operational needs and delivers value.
How does the cost of this contract compare to industry benchmarks for similar loan and lender monitoring systems?
Without specific details on the system's functionalities and the exact breakdown of costs (e.g., development, maintenance, licensing), a direct comparison to industry benchmarks is challenging. The total award of $25.8M over approximately 5.5 years suggests a significant investment. A detailed cost-benefit analysis and comparison with similar government or private sector contracts would be needed to determine if the pricing is competitive.
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: THE DUN & Bradstreet Corporation (UEI: 884114609)
Address: 11710 PLAZA AMERICA DR STE 900, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,919,011
Exercised Options: $25,919,011
Current Obligation: $25,851,226
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS22F9614D
IDV Type: FSS
Timeline
Start Date: 2008-09-30
Current End Date: 2014-03-29
Potential End Date: 2014-03-29 00:00:00
Last Modified: 2021-12-06
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