CFPB awards $3.4M contract for financial transaction processing to JND Holdings LLC

Contract Overview

Contract Amount: $3,419,059 ($3.4M)

Contractor: JND Holdings LLC

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-03-29

End Date: 2029-03-31

Contract Duration: 1,828 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TEMPOE LLC 3RD PARTY REDRESS TASK ORDER

Place of Performance

Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042

State: New York Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $3.4 million to JND HOLDINGS LLC for work described as: TEMPOE LLC 3RD PARTY REDRESS TASK ORDER Key points: 1. Contract value appears reasonable given the scope of financial transaction processing and clearinghouse activities. 2. Full and open competition suggests a competitive environment, potentially leading to favorable pricing. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The award is for a delivery order under a larger contract vehicle. 6. The contractor, JND Holdings LLC, is positioned to provide specialized financial services.

Value Assessment

Rating: good

The contract value of approximately $3.4 million over five years for financial transaction processing and clearinghouse activities seems within a reasonable range for specialized services. Benchmarking against similar contracts for financial services processing is difficult without more specific details on the exact services rendered. However, the fixed-price nature of the contract suggests that the government has negotiated a set price for the defined scope, which can be advantageous for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a moderately competitive landscape for this type of service. A competitive process generally helps ensure that the government receives fair market value for the services procured.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government secures the best possible price for essential financial transaction processing services.

Public Impact

The primary beneficiaries are likely the Consumer Financial Protection Bureau (CFPB) and potentially consumers whose financial transactions are processed or managed through the services provided. The contract delivers essential financial transaction processing, reserve, and clearinghouse activities. The geographic impact is primarily within New York, where the contractor is located, but the services may have a broader national impact depending on the CFPB's operations. The contract supports the financial services sector by engaging a specialized provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Ensuring continued cost-effectiveness throughout the 5-year contract term.
Monitoring contractor performance to ensure adherence to service level agreements and regulatory compliance.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
Contract duration allows for stable service provision and potential for economies of scale.
Contractor is likely experienced in financial transaction processing.

Sector Analysis

The financial services sector is a critical component of the U.S. economy, encompassing a wide range of activities including transaction processing, banking, and financial technology. This contract falls within the financial transactions processing and clearinghouse sub-sector. Spending in this area is often driven by regulatory requirements and the need for efficient, secure financial operations. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided, but the overall market for financial transaction processing is substantial.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to JND Holdings LLC, without further context on its size, does not provide immediate insight into the impact on the small business ecosystem. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor is itself a small business.

Oversight & Accountability

Oversight of this contract would typically be managed by the Consumer Financial Protection Bureau's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is generally maintained through contract databases, though specific performance metrics may be internal. The Inspector General of the CFPB would have jurisdiction for investigating fraud, waste, and abuse related to this contract.

Related Government Programs

Financial Services Processing Contracts
Payment Processing Services
Clearinghouse Operations
Consumer Financial Protection Bureau Operations

Risk Flags

Long contract duration may require careful performance monitoring.
Need to verify contractor's specific experience in federal financial transaction processing.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $3.4 million to JND HOLDINGS LLC. TEMPOE LLC 3RD PARTY REDRESS TASK ORDER

Who is the contractor on this award?

The obligated recipient is JND HOLDINGS LLC.

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-03-29. End: 2029-03-31.

What is the track record of JND Holdings LLC in performing similar financial transaction processing services for federal agencies?

Information regarding JND Holdings LLC's specific track record with federal agencies for financial transaction processing is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government contracts. Without this, it's difficult to definitively gauge their experience and reliability in this specific domain for federal clients. Further due diligence would involve searching federal procurement databases and agency performance review systems.

How does the awarded price compare to market rates for similar financial transaction processing services?

The provided data does not include specific unit costs or detailed service breakdowns, making a direct comparison to market rates challenging. The total contract value of $3.4 million over approximately five years suggests an average annual value of around $680,000. To benchmark this, one would need to identify comparable contracts for financial transaction processing, clearinghouse activities, and reserve management, considering factors like volume, complexity, and service level agreements. The fact that it was awarded under full and open competition with three bidders offers some assurance that the price is competitive, but a definitive market rate comparison requires more granular data.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided summary data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, contracts for financial transaction processing would include metrics related to transaction accuracy, processing speed, uptime, data security, and compliance with financial regulations. These KPIs and SLAs are crucial for monitoring the contractor's performance and ensuring the CFPB receives the required level of service. A detailed review of the contract document itself would be necessary to identify these specific performance standards.

What is the potential risk associated with the long duration of this contract (over 5 years)?

The primary risks associated with a long-duration contract like this (over 5 years) include potential for cost escalation if not structured with appropriate price adjustment clauses, the risk of technological obsolescence if the services rely on outdated systems, and the potential for vendor lock-in, making it difficult and costly to switch providers if performance declines or better solutions emerge. However, long durations can also offer benefits like service stability, continuity, and potential for economies of scale. The fixed-price nature of this contract helps mitigate cost escalation risk, but ongoing monitoring for technological relevance and performance is still essential.

How does this contract align with the Consumer Financial Protection Bureau's overall mission and strategic goals?

This contract directly supports the Consumer Financial Protection Bureau's (CFPB) mission to ensure that markets for consumer financial products and services are fair, transparent, and competitive. By procuring services for financial transaction processing, reserve management, and clearinghouse activities, the CFPB is likely enhancing its operational capabilities to monitor, regulate, and enforce consumer protection laws within the financial industry. Efficient and reliable transaction processing is fundamental to understanding market dynamics and identifying potential consumer harm.

What are the implications of this contract being a delivery order under a larger contract vehicle?

This contract being a delivery order (awarded as 'DELIVERY ORDER') under a larger contract vehicle means that the underlying contract (likely an Indefinite Delivery/Indefinite Quantity or IDIQ contract) has already been awarded through a competitive process. This specific delivery order then defines the scope, price, and period of performance for a particular task. This approach allows agencies to procure services more efficiently once a broad contract is in place, potentially reducing administrative burden and lead time for individual task orders. It also implies that the initial competition for the larger vehicle likely vetted the contractor's general capabilities.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9531CB24Q0049

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2727 WESTERN AVE STE 200, SEATTLE, WA, 98121

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,419,059

Exercised Options: $3,419,059

Current Obligation: $3,419,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 9531CB22D0004

IDV Type: IDC

Timeline