DoD's Overseas Military Banking Program contract awarded to Navy Federal Credit Union for $16.6M
Contract Overview
Contract Amount: $16,645,256 ($16.6M)
Contractor: Navy Federal Credit Union
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2026-03-31
Contract Duration: 918 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OVERSEAS MILITARY BANKING PROGRAM
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78205
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.6 million to NAVY FEDERAL CREDIT UNION for work described as: OVERSEAS MILITARY BANKING PROGRAM Key points: 1. Contract awarded to a single, well-established provider. 2. Limited visibility into specific service delivery metrics. 3. Potential for price increases in future contract renewals. 4. Sector: Defense banking services.
Value Assessment
Rating: good
The contract value of $16.6M over approximately 3 years appears reasonable for a program of this nature, providing essential banking services to military personnel overseas. Benchmarking against similar government banking contracts is difficult due to the specialized nature of this service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies that only one offer was deemed suitable or that the market is limited.
Taxpayer Impact: Taxpayer funds are being used to ensure financial services for military members, which is a necessary cost for personnel support and morale.
Public Impact
Ensures access to essential financial services for U.S. military personnel stationed abroad. Supports military readiness and quality of life by providing reliable banking. Facilitates seamless financial transactions for service members and their families overseas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for vendor lock-in if competition is limited in practice.
- Dependence on a single provider for critical financial infrastructure.
Positive Signals
- Awarded through full and open competition.
- Provides a vital service to military personnel.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on financial services for military personnel. Spending benchmarks for overseas military banking are not readily available, but the value appears consistent with the scope of supporting a deployed force.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. The nature of overseas banking services often favors large, established financial institutions with the infrastructure to support global operations.
Oversight & Accountability
Oversight is likely managed by the Defense Finance and Accounting Service (DFAS) to ensure compliance with contract terms and service level agreements. Accountability for service delivery and financial integrity rests with the awarded contractor.
Related Government Programs
- Commercial Banking
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for limited competition in future renewals.
- Dependence on a single provider.
- Lack of detailed performance metrics in public data.
- Complexity of managing financial services across multiple overseas locations.
Tags
commercial-banking, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to NAVY FEDERAL CREDIT UNION. OVERSEAS MILITARY BANKING PROGRAM
Who is the contractor on this award?
The obligated recipient is NAVY FEDERAL CREDIT UNION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-03-31.
What specific performance metrics are tracked to ensure the quality and efficiency of banking services provided to military personnel?
The provided data does not detail specific performance metrics. However, typical metrics for such contracts would include transaction processing times, customer satisfaction ratings, availability of services (e.g., ATM uptime, branch hours), fraud prevention rates, and adherence to security protocols. The Department of Defense and DFAS would establish these KPIs within the contract's Statement of Work.
What are the potential risks associated with relying on a single provider for overseas military banking, and how are they mitigated?
Risks include service disruptions due to the provider's operational issues, lack of competitive pressure leading to complacency or price increases, and potential security vulnerabilities. Mitigation strategies typically involve robust Service Level Agreements (SLAs), contingency planning requirements, regular audits, and maintaining strong oversight from DFAS to ensure continuous service delivery and security.
How does the cost-plus-fixed-fee (CPFF) contract type ensure value for taxpayer money in this program?
A CPFF contract allows the government to reimburse the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it requires diligent oversight from the government to ensure costs are reasonable and allocable to the contract.
Industry Classification
NAICS: Finance and Insurance › Depository Credit Intermediation › Commercial Banking
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ042322R0008
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 820 FOLLIN LANE, VIENNA, VA, 22180
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,444,215
Exercised Options: $16,709,620
Current Obligation: $16,645,256
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-25
Current End Date: 2026-03-31
Potential End Date: 2033-03-31 00:00:00
Last Modified: 2025-09-30
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