IRS Spends $2.4M on Equifax Services for Credit Bureau Data, Approved by Division Director
Contract Overview
Contract Amount: $239,700 ($239.7K)
Contractor: Equifax Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-03-05
End Date: 2027-03-04
Contract Duration: 729 days
Daily Burn Rate: $329/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EQUIFAX SERVICES "LAW ENFORCEMENT SENSITIVE PROCUREMENT, APPROVED BY DIVISION DIRECTOR PER EMAIL DATED 03/05/2025."
Place of Performance
Location: BRUNSWICK, GLYNN County, GEORGIA, 31524
State: Georgia Government Spending
Plain-Language Summary
Department of the Treasury obligated $239,700 to EQUIFAX INC for work described as: EQUIFAX SERVICES "LAW ENFORCEMENT SENSITIVE PROCUREMENT, APPROVED BY DIVISION DIRECTOR PER EMAIL DATED 03/05/2025." Key points: 1. The IRS awarded a $2.4M contract to Equifax Inc. for credit bureau services. 2. This procurement was not competed, raising questions about price discovery and value. 3. The contract duration is 729 days, ending March 4, 2027. 4. The sector is IT/Data Services, with a focus on credit reporting.
Value Assessment
Rating: questionable
The contract value of $2.4M for credit bureau services needs further benchmarking against similar government or commercial contracts. Without competitive bidding, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, citing 'LAW ENFORCEMENT SENSITIVE PROCUREMENT' and approved via email. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these essential credit bureau services.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source nature of this contract. The IRS relies on Equifax for sensitive data, highlighting potential risks if service is interrupted or data is compromised. Transparency is limited, as the justification for sole-source procurement is based on internal approval rather than a public solicitation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Reliance on a single vendor for sensitive data
Positive Signals
- Contract awarded to a known entity
- Clear contract duration and pricing structure
Sector Analysis
The IRS's use of Equifax for credit bureau services falls within the broader IT and data services sector. Benchmarking spending in this area is challenging without competitive data, but government agencies often seek cost efficiencies through competitive solicitations.
Small Business Impact
This contract was awarded directly to Equifax Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The approval process, relying on an email from the Division Director, suggests internal oversight. However, the lack of a formal competitive justification raises questions about the robustness of accountability for taxpayer funds.
Related Government Programs
- Credit Bureaus
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source procurement lacks transparency and competitive pricing.
- Potential for overpayment due to absence of competition.
- Reliance on a single vendor for sensitive data poses a risk.
- Justification for sole-source is based on internal approval, not public solicitation.
- No clear indication of small business participation.
Tags
credit-bureaus, department-of-the-treasury, ga, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $239,700 to EQUIFAX INC. EQUIFAX SERVICES "LAW ENFORCEMENT SENSITIVE PROCUREMENT, APPROVED BY DIVISION DIRECTOR PER EMAIL DATED 03/05/2025."
Who is the contractor on this award?
The obligated recipient is EQUIFAX INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $239,700.
What is the period of performance?
Start: 2025-03-05. End: 2027-03-04.
What specific 'law enforcement sensitive' requirements necessitate a sole-source procurement from Equifax, and how does this justify the absence of competition?
The justification for 'law enforcement sensitive procurement' needs detailed elaboration. Typically, such sensitivity might relate to ongoing investigations or national security concerns that preclude public disclosure. However, without further documentation, it's unclear how these specific needs translate into an inability to compete the contract, even with appropriate security measures in place for potential bidders.
How does the IRS ensure it is receiving fair market value for credit bureau services when the contract is awarded sole-source without competitive bidding?
Ensuring fair market value in a sole-source scenario is challenging. The IRS likely relies on internal cost analysis, historical pricing data, or potentially independent government cost estimates. However, the absence of competing offers means there's no direct market validation of the price, increasing the risk of overpayment compared to a competed procurement.
What are the contingency plans and risk mitigation strategies in place given the IRS's sole reliance on Equifax for these critical data services?
Given the sole-source nature, the IRS must have robust contingency plans. This could include detailed service level agreements with Equifax, regular performance reviews, and potentially pre-identified alternative vendors or internal capabilities for data access should Equifax fail to perform or if the contract is terminated. The 'law enforcement sensitive' nature might also dictate specific data security and continuity protocols.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Credit Bureaus
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
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
Address: 1550 PEACHTREE ST NW, ATLANTA, GA, 30309
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $636,419
Exercised Options: $239,700
Current Obligation: $239,700
Actual Outlays: $117,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-03-05
Current End Date: 2027-03-04
Potential End Date: 2030-03-04 14:37:28
Last Modified: 2026-04-03
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