SEC awards $23.8M contract to STG LLC for BMO Support, ending Oct 2020

Contract Overview

Contract Amount: $23,769,154 ($23.8M)

Contractor: STG LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2015-06-02

End Date: 2020-10-31

Contract Duration: 1,978 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BMO SUPPORT IGF::OT::IGF

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 $23.8 million to STG LLC for work described as: BMO SUPPORT IGF::OT::IGF Key points: 1. Contract value of $23.8M over 5 years. 2. STG LLC is the sole awardee. 3. Risk is moderate due to long duration and single award. 4. Services fall under Administrative Management and General Management Consulting.

Value Assessment

Rating: fair

The contract value of $23.8M over 5 years suggests an average annual value of approximately $4.76M. Without specific benchmarks for BMO support services, it's difficult to definitively assess pricing, but this appears to be a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The $23.8M expenditure represents taxpayer funds allocated for administrative support services at the SEC.

Public Impact

Ensures continued operational support for the Securities and Exchange Commission. Supports administrative and management functions critical to the agency's mission. Potential impact on market regulation and investor protection through effective agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) may limit flexibility.
Single awardee could reduce future competition.
Reliance on a single vendor for critical support.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.
Supports a key federal regulatory agency.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. Benchmarks for similar contracts would typically focus on the scope of services and the agency's size and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The SEC's internal oversight mechanisms and contract management processes would be responsible for monitoring performance and ensuring compliance with the contract terms.

Related Government Programs

Administrative Management and General Management Consulting Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Long contract duration.
Single awardee.
Potential for vendor lock-in.
Reliance on contractor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $23.8 million to STG LLC. BMO SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is STG 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 $23.8 million.

What is the period of performance?

Start: 2015-06-02. End: 2020-10-31.

What specific BMO support services are included in this contract, and how do they align with the SEC's core mission?

BMO Support likely encompasses a range of administrative, operational, and management functions essential for the SEC's day-to-day activities. This could include program management, financial administration, human resources support, or IT coordination. The alignment with the SEC's mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation is crucial for ensuring taxpayer funds are used effectively to support regulatory oversight.

What are the potential risks associated with a 5-year firm-fixed-price contract for administrative support?

A 5-year firm-fixed-price contract, while offering cost certainty, carries risks such as potential vendor complacency, difficulty in adapting to evolving agency needs over time, and the possibility of the government overpaying if market rates decrease. The fixed price may also disincentivize innovation or efficiency gains by the contractor. Furthermore, a long duration can make it challenging to incorporate new technologies or methodologies that emerge during the contract period.

How effectively did the full and open competition process ensure value for money for these administrative support services?

Full and open competition is designed to maximize value for money by encouraging multiple bidders to offer their best prices and solutions. The effectiveness in this case depends on the number and quality of bids received, the evaluation criteria used, and the negotiation process. While the method itself promotes competition, the ultimate value achieved hinges on the specific details of the procurement and the market dynamics for these specialized administrative support services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: STG Group, Inc. (UEI: 079257316)

Address: 11091 SUNSET HILLS RD STE 200, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,726,227

Exercised Options: $23,769,154

Current Obligation: $23,769,154

Actual Outlays: $4,685,470

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SECHQ115D0031

IDV Type: IDC

Timeline