CFPB IT support contract awarded to Acumen Solutions for over $24.6M, highlighting IT service needs

Contract Overview

Contract Amount: $24,646,592 ($24.6M)

Contractor: Acumen Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2017-03-23

End Date: 2022-03-29

Contract Duration: 1,832 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS EP SUPPORT SERVICES FOR THE CFPB

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $24.6 million to ACUMEN SOLUTIONS, INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS EP SUPPORT SERVICES FOR THE CFPB Key points: 1. Contract value of $24.6M over five years suggests significant IT support requirements. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and manage contractor risk. 4. Delivery Order award type is common for task-specific IT services. 5. Contract duration of 1832 days (approx. 5 years) aligns with typical IT service lifecycles. 6. The contract falls under 'Other Computer Related Services', a broad category.

Value Assessment

Rating: good

The contract value of $24.6M over approximately five years averages around $4.9M annually. Benchmarking this against similar IT support contracts for federal agencies of comparable size and scope would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to control costs. Without specific details on the services rendered and their criticality, a definitive value assessment is challenging, but the duration and total value indicate a substantial investment in IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of 3 bidders indicates a degree of competition, which is generally favorable for price discovery and achieving competitive pricing. This approach allows the government to solicit proposals from a wide range of qualified contractors, potentially leading to better service offerings and cost efficiencies.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The Bureau of the Fiscal Service benefits from reliable IT support for critical functions. The contract ensures the delivery of essential computer-related services to support agency operations. The geographic impact is primarily within the District of Columbia, where the agency is located. The contract supports a workforce of IT professionals, contributing to the federal IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies or proprietary solutions are heavily relied upon.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT functions could pose continuity risks if not managed proactively.

Positive Signals

Firm Fixed Price contract type helps mitigate cost overruns.
Full and open competition suggests a robust selection process.
The contract duration allows for stable IT support and planning.
Awarded to a single entity, potentially leading to streamlined communication and service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services'. The federal IT services market is substantial, with agencies consistently investing in support, maintenance, and modernization. Contracts like this are crucial for maintaining the operational integrity of government functions. Benchmarking against similar contracts would involve looking at IT support services for financial agencies or bureaus of similar size and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were likely the primary bidders. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for small business participation in federal contracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service and potentially the Department of the Treasury's Inspector General. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, but detailed performance metrics and oversight reports would require further investigation.

Related Government Programs

CFPB IT Modernization Efforts
Federal IT Infrastructure Support Services
Bureau of the Fiscal Service IT Contracts
Department of the Treasury IT Services

Risk Flags

Potential for service quality degradation if contractor faces cost pressures under FFP.
Risk of vendor lock-in with specialized IT services.
Limited small business participation due to lack of set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.6 million to ACUMEN SOLUTIONS, INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS EP SUPPORT SERVICES FOR THE CFPB

Who is the contractor on this award?

The obligated recipient is ACUMEN SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2017-03-23. End: 2022-03-29.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support functions, including but not limited to, IT infrastructure management, network support, help desk services, system administration, cybersecurity support, and potentially software maintenance or development support. Without access to the specific Statement of Work (SOW) or task orders issued under this delivery order, the precise nature of the services rendered remains unspecified. However, given the duration and value, it likely involved comprehensive support for critical IT systems and operations within the CFPB or the Bureau of the Fiscal Service.

How does the $24.6M contract value compare to similar IT support contracts for federal agencies?

The $24.6M contract value over approximately five years equates to an average annual spend of roughly $4.9M. This figure is moderate for federal IT support contracts, especially those supporting critical functions within financial regulatory agencies. Larger agencies or those with more complex IT infrastructures might award contracts in the tens or hundreds of millions. However, for a specific bureau or office, this represents a significant investment. A more precise comparison would require analyzing contracts with similar NAICS codes, contract types (firm-fixed-price), and durations awarded to agencies of comparable size and mission focus.

What are the potential risks associated with a firm-fixed-price contract for IT support?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty and shift risk to the contractor, they can present challenges in the IT support domain. If the scope of work is not meticulously defined and managed, contractors may face significant financial strain if unforeseen technical issues arise or if the agency's needs evolve beyond the initial scope. This could lead to the contractor seeking change orders, potentially increasing costs, or conversely, cutting corners on service quality to maintain profitability. For the government, the risk lies in potentially overpaying if the contractor's actual costs are significantly lower than anticipated, or receiving suboptimal service if the contractor struggles to meet the fixed price.

What does the number of bidders (3) suggest about the competition for this contract?

Having three bidders for a full and open competition suggests a moderate level of competition. While more bidders generally indicate stronger competition, three offers are sufficient to provide a basis for price and technical evaluation. It implies that the opportunity was attractive enough for multiple firms to invest resources in preparing a proposal. However, it might also suggest that the market for this specific type of service or the security clearance requirements limited the pool of potential bidders, or that the contract's value, while substantial, was not large enough to attract a wider array of major players.

How has spending on 'Other Computer Related Services' (NAICS 541519) trended within the Department of the Treasury?

Analyzing historical spending trends for NAICS 541519 within the Department of the Treasury requires access to detailed federal procurement data over multiple fiscal years. Generally, spending in this category has been robust across the federal government as agencies rely heavily on IT services for operations. For the Treasury, which manages vast amounts of financial data and critical infrastructure, consistent investment in computer-related services is expected. Trends might show an increase in spending related to cybersecurity, cloud migration, and data analytics, reflecting broader government IT priorities. Specific data for Treasury would reveal if this contract represents a typical or an outlier level of spending for this service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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

Address: 8280 GREENSBORO DR STE 400, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $27,885,140

Exercised Options: $27,794,860

Current Obligation: $24,646,592

Actual Outlays: $19,720,629

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $2,121,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0287P

IDV Type: FSS

Timeline