SEC awards $76M+ for IT services to Ascella Technologies, Inc. over 9 years

Contract Overview

Contract Amount: $76,088,872 ($76.1M)

Contractor: Ascella Technologies, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2017-06-01

End Date: 2026-09-30

Contract Duration: 3,408 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS - WC1 OCIE NESS

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 $76.1 million to ASCELLA TECHNOLOGIES, INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS - WC1 OCIE NESS Key points: 1. Contract value exceeds $76 million over its lifespan, indicating significant investment in IT support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. A long duration of over 9 years may present risks related to technology obsolescence and price escalation. 4. The use of Time and Materials pricing could lead to cost overruns if not closely managed. 5. The contract is for custom computer programming services, a critical function for the SEC. 6. The primary awardee, Ascella Technologies, Inc., will be responsible for delivering these services.

Value Assessment

Rating: fair

The total award value of over $76 million spread across more than 9 years suggests a substantial investment. Benchmarking this against similar custom computer programming contracts for federal agencies of the SEC's size is difficult without more granular data on service scope and performance metrics. However, the duration itself raises concerns about potential price escalation and the risk of technology becoming outdated before the contract's end. The Time and Materials (T&M) pricing structure, while offering flexibility, also introduces a higher risk of cost overruns compared to fixed-price contracts if not rigorously monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this is generally expected to drive down prices and encourage innovation as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from the potential for better pricing and service quality due to the competitive nature of the award. The multiple bids likely ensured that the SEC secured a reasonable price for the services rendered.

Public Impact

The Securities and Exchange Commission (SEC) is the primary beneficiary, receiving essential custom computer programming services. These services are crucial for the SEC's operations, likely supporting its mission to enforce federal securities laws and regulate the securities industry. The contract is geographically focused on the District of Columbia, where the SEC's main operations are located. The contract implies a need for skilled IT professionals, potentially impacting the workforce in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) increases risk of technology obsolescence and price increases.
Time and Materials (T&M) pricing structure can lead to cost overruns if not managed effectively.
Potential for vendor lock-in given the long-term nature and specialized services.
Dependence on a single awardee for critical IT functions could pose continuity risks.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair process.
Multiple bidders (8) indicate significant market interest and potential for competitive pricing.
The contract supports critical IT functions for a major federal regulatory agency.
The BPA Call award mechanism may offer some flexibility in task order management.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The market for such services is vast and highly competitive, with numerous companies offering specialized skills. The SEC's spending on IT is consistent with the needs of large federal agencies that rely heavily on technology for data management, analysis, and regulatory enforcement. Comparable spending benchmarks would typically look at the total IT budget of agencies of similar size and mission, as well as the average cost of custom software development projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the primary awardee is Ascella Technologies, Inc., there is no explicit information regarding subcontracting plans with small businesses. The absence of set-aside provisions means that opportunities for small businesses to directly compete for this prime contract were limited. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement strategies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Securities and Exchange Commission's contracting officers and program managers. The contract's long duration and T&M nature necessitate vigilant monitoring of performance, costs, and adherence to scope. The SEC's Office of Inspector General (OIG) would also have jurisdiction to investigate potential fraud, waste, or abuse related to this contract, ensuring accountability and transparency.

Related Government Programs

Custom Computer Programming Services
IT Support Services
IT Professional Services
Software Development
IT Services (Federal)

Risk Flags

Long contract duration
Time and Materials pricing
Potential for technology obsolescence
Risk of cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $76.1 million to ASCELLA TECHNOLOGIES, INC.. IGF::OT::IGF FOR OTHER FUNCTIONS - WC1 OCIE NESS

Who is the contractor on this award?

The obligated recipient is ASCELLA TECHNOLOGIES, INC..

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 $76.1 million.

What is the period of performance?

Start: 2017-06-01. End: 2026-09-30.

What is the historical spending pattern for custom computer programming services at the SEC?

Analyzing historical spending patterns for custom computer programming services at the SEC is crucial for understanding the agency's IT investment trends and the evolution of its needs. While this specific contract spans from 2017 to 2026, it represents a significant portion of the SEC's IT expenditure. To provide a comprehensive view, one would need to examine prior contracts for similar services, noting the total amounts obligated, the duration of those contracts, and the types of programming services procured. This analysis would reveal whether the SEC has consistently relied on external contractors for custom development, if spending has increased or decreased over time, and if there have been shifts in the focus of programming needs (e.g., from legacy system support to cloud-based solutions or data analytics). Comparing this contract's value and duration to previous engagements can highlight any significant changes in procurement strategy or the scale of IT projects undertaken by the SEC.

How does the per-unit cost of services under this contract compare to market rates for similar custom programming?

Determining the per-unit cost for custom computer programming services under this contract is challenging due to its Time and Materials (T&M) pricing structure and the broad scope of 'Custom Computer Programming Services.' T&M contracts typically bill based on labor hours and material costs incurred, rather than a fixed price per unit of output. To benchmark effectively, one would need to identify specific, comparable tasks performed under this contract and compare their associated hourly rates for different labor categories (e.g., senior programmer, junior developer) against industry benchmarks for the Washington D.C. area or national averages for federal IT contracting. Data from sources like the Bureau of Labor Statistics, industry salary surveys, or government cost-comparison databases could be used. Without specific task breakdowns and associated rates, a direct per-unit cost comparison is not feasible, but the overall contract value relative to the contract duration and the number of potential labor hours can be assessed against agency IT budgets and similar federal procurements.

What is Ascella Technologies, Inc.'s track record with federal IT contracts, particularly with the SEC?

Ascella Technologies, Inc.'s track record with federal IT contracts, especially with the SEC, is a key indicator of their capability and reliability. A review of federal procurement databases (like FPDS or USASpending) would reveal the company's history of awards, contract values, agencies served, and performance ratings, if available. For this specific SEC contract, examining past performance on previous task orders or related agreements would be most relevant. Understanding their history with the SEC would highlight their familiarity with the agency's specific IT environment, requirements, and operational tempo. A positive history might suggest a strong understanding of SEC needs and a proven ability to deliver, while a history marked by performance issues or disputes could raise concerns. Evaluating their overall federal IT contract portfolio provides a broader context of their experience across different agencies and service types.

What are the primary risks associated with the long duration (over 9 years) of this contract?

The primary risks associated with a contract duration exceeding nine years, such as this SEC IT services contract, are multifaceted. Firstly, technological obsolescence is a significant concern; IT landscapes evolve rapidly, and software or hardware solutions implemented early in the contract could be outdated by its end, requiring costly upgrades or replacements. Secondly, price escalation is a risk, as T&M contracts may not fully account for future market inflation in labor rates or material costs, potentially leading to higher-than-anticipated expenditures. Thirdly, the long duration can reduce flexibility for the agency to adapt to changing mission requirements or adopt newer, more cost-effective technologies that emerge during the contract period. Finally, there's a risk of contractor complacency or reduced innovation over such an extended period, potentially impacting service quality or efficiency if not actively managed through performance metrics and oversight.

How effective are the oversight mechanisms in place for this Time and Materials contract?

The effectiveness of oversight for this Time and Materials (T&M) contract hinges on the rigor of the Securities and Exchange Commission's (SEC) contract management processes. T&M contracts inherently require robust oversight due to their open-ended nature regarding cost. Key oversight mechanisms would include detailed review and approval of all labor hours charged, justification for materials used, and regular audits of contractor records. The SEC's contracting officer representatives (CORs) play a critical role in monitoring daily activities, ensuring work aligns with task orders, and verifying that resources are used efficiently and appropriately. Performance metrics, regular progress reports, and potentially independent cost analyses are vital to ensure value for money. The SEC's Office of Inspector General (OIG) provides an additional layer of oversight, focusing on preventing and detecting fraud, waste, and abuse. The effectiveness is ultimately determined by the resources, expertise, and diligence applied by the SEC's oversight personnel.

What is the potential impact of this contract on the small business IT ecosystem?

This contract, awarded through full and open competition without specific small business set-aside provisions, has a limited direct positive impact on the small business IT ecosystem in terms of prime contracting opportunities. Ascella Technologies, Inc. is the sole prime awardee. However, the indirect impact could be positive if Ascella actively seeks out small businesses for subcontracting roles. Small businesses often possess specialized niche capabilities that larger prime contractors utilize. The extent of this subcontracting would depend on Ascella's procurement strategy and any contractual requirements or goals set by the SEC regarding small business participation. If subcontracting opportunities are limited or not pursued, the direct economic benefit to the small business sector from this specific $76M+ contract would be minimal, though it doesn't preclude Ascella from engaging small businesses on other contracts or the small businesses from competing for future prime contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ascella Technologies Inc.

Address: 205 VAN BUREN ST, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,098,872

Exercised Options: $76,088,872

Current Obligation: $76,088,872

Actual Outlays: $57,781,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SECHQ117A0008

IDV Type: BPA

Timeline