SEC's $40.9M legal support contract with CACI-ISS, LLC awarded via full and open competition

Contract Overview

Contract Amount: $40,910,332 ($40.9M)

Contractor: Caci-Iss, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2014-09-26

End Date: 2021-03-23

Contract Duration: 2,370 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS LEGAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $40.9 million to CACI-ISS, LLC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS LEGAL SUPPORT Key points: 1. Contract provides essential legal services to the SEC, supporting its mission. 2. Awarded through full and open competition, suggesting a robust market. 3. The contract duration of nearly 2.5 years indicates a significant need for ongoing support. 4. Time and Materials pricing structure may pose cost control challenges if not closely managed. 5. The contract's value is moderate within the context of federal legal services. 6. Performance occurred primarily in the District of Columbia, indicating a localized impact.

Value Assessment

Rating: good

The contract value of $40.9 million over approximately 2.5 years for legal support services appears reasonable when benchmarked against similar federal contracts for specialized legal assistance. The use of Time and Materials pricing, while common, necessitates diligent oversight to ensure cost-effectiveness. Without specific per-unit data, a direct comparison is difficult, but the overall award amount suggests a competitive pricing environment given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of four bids suggests a healthy level of competition for these legal services. This competitive process is expected to drive more favorable pricing and service quality for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure legal support services at the best possible value, preventing potential overspending associated with less competitive solicitations.

Public Impact

The Securities and Exchange Commission (SEC) is the primary beneficiary, receiving critical legal support. Services delivered include all other legal services, crucial for regulatory enforcement and operations. The geographic impact is concentrated in the District of Columbia, where the SEC is headquartered. The contract supports legal professionals and administrative staff within CACI-ISS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously monitored and controlled.
The duration of the contract (2370 days) suggests a long-term reliance on external legal support, potentially indicating internal capacity gaps.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential bidders.
The contract was awarded to CACI-ISS, LLC, a known entity in federal contracting.
The contract provided essential legal services, directly supporting the SEC's mission.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically legal services. The federal government is a significant consumer of legal services, both for internal counsel and external support in areas like litigation, regulatory compliance, and contract law. Benchmarking this $40.9 million contract against other federal legal support contracts of similar scope and duration would provide further context on its market competitiveness.

Small Business Impact

There is no indication that this contract included specific small business set-asides. As a full and open competition award, the primary contractor, CACI-ISS, LLC, would be responsible for any subcontracting efforts. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the Securities and Exchange Commission's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Legal Services
Professional and Technical Services
Securities and Exchange Commission Operations Support
Contract Law Services
Litigation Support

Risk Flags

Time and Materials pricing structure requires vigilant oversight to control costs.
Contract duration indicates long-term reliance on external legal support.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $40.9 million to CACI-ISS, LLC. IGF::OT::IGF FOR OTHER FUNCTIONS LEGAL SUPPORT

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $40.9 million.

What is the period of performance?

Start: 2014-09-26. End: 2021-03-23.

What is CACI-ISS, LLC's track record with the federal government, particularly in providing legal support services?

CACI-ISS, LLC, a subsidiary of CACI International Inc., has a substantial history of federal contracting across various agencies and service areas, including IT, intelligence, and professional services. While specific data on their legal support service performance for the SEC under this contract is not detailed here, CACI generally holds a strong position as a large federal contractor. Their broader track record includes numerous prime contracts and subcontracts. Performance reviews and past performance information, often available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more granular view of their success in delivering legal support and other services.

How does the $40.9 million value compare to other federal contracts for similar legal support services?

The $40.9 million value for approximately 2.5 years of legal support services is a moderate figure within the federal contracting landscape for specialized legal assistance. Larger agencies, particularly those involved in extensive litigation or complex regulatory enforcement (like the Department of Justice or SEC), often award contracts in the tens or hundreds of millions for comprehensive legal support. Smaller agencies or those with more routine legal needs might award contracts in the single-digit millions. Given the SEC's mission, this award appears aligned with the scale of support typically required for such an agency, especially when considering the full and open competition which usually drives prices towards market rates.

What are the primary risks associated with a Time and Materials (T&M) contract for legal services?

The primary risk with Time and Materials (T&M) contracts, including those for legal services, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If not managed diligently, contractors may bill for excessive hours or use more expensive materials than necessary, driving up the total cost beyond initial estimates. For legal services, this could manifest as extended research, lengthy consultations, or inefficient case management. Robust oversight, detailed timesheet review, and clear task definitions are crucial to mitigate these risks and ensure value for taxpayer money.

How effective was the full and open competition in ensuring value for money for this SEC contract?

Full and open competition is generally considered the most effective method for ensuring value for money in federal procurement. By allowing all responsible sources to submit bids, it fosters a competitive environment that incentivizes contractors to offer their best pricing and technical solutions. The fact that four bids were received for this SEC legal support contract suggests that the market was sufficiently robust and that the solicitation was structured to attract multiple capable vendors. This competitive pressure typically leads to lower prices and higher quality services compared to sole-source or limited competition scenarios, ultimately benefiting taxpayers.

What is the historical spending pattern for legal services by the Securities and Exchange Commission?

The Securities and Exchange Commission (SEC) consistently requires significant legal support due to its regulatory and enforcement mandates. Historical spending patterns show a recurring need for external legal counsel and related services to supplement internal resources. This spending often fluctuates based on the volume and complexity of enforcement actions, litigation, and rulemaking activities. While this specific $40.9 million contract represents a substantial award, it is part of a broader, ongoing investment by the SEC in legal expertise. Analyzing prior years' budgets and contract awards for legal services would reveal trends in spending levels and the types of legal support most frequently procured.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal 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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $40,910,332

Exercised Options: $40,910,332

Current Obligation: $40,910,332

Actual Outlays: $1,836,832

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $185,606

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SECHQ114D0035

IDV Type: IDC

Timeline