SEC awards $16.8M eDiscovery program management contract to Infotrend Inc. for 8 years

Contract Overview

Contract Amount: $16,780,531 ($16.8M)

Contractor: Infotrend Incorporated

Awarding Agency: Securities and Exchange Commission

Start Date: 2017-06-01

End Date: 2025-08-31

Contract Duration: 3,013 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS EDISCOVERY CALL FOR PROGRAM MANAGEMENT SERVICES

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 $16.8 million to INFOTREND INCORPORATED for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS EDISCOVERY CALL FOR PROGRAM MANAGEMENT SERVICES Key points: 1. Contract value appears reasonable given the 8-year duration and scope of program management services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's long duration may introduce risks related to evolving technology and changing SEC needs. 4. Performance will be key to ensuring effective eDiscovery support for the SEC. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The use of Time and Materials pricing requires careful monitoring to control costs.

Value Assessment

Rating: good

The total award of $16.8 million over approximately 8 years (June 2017 - August 2025) averages to about $2.1 million per year. This seems within a reasonable range for comprehensive program management services supporting eDiscovery for a large agency like the SEC. Benchmarking against similar large-scale IT program management contracts would provide a more precise valuation, but the initial assessment suggests fair pricing for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the data does not specify the number of bidders, this method generally fosters a competitive environment, which is expected to drive down costs and improve the quality of services offered. The SEC's approach suggests a commitment to leveraging the market effectively.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for their investment in critical eDiscovery services.

Public Impact

The Securities and Exchange Commission (SEC) is the primary beneficiary, receiving essential support for its eDiscovery program. Services delivered include program management for eDiscovery, crucial for legal and regulatory compliance. The contract's impact is primarily within the District of Columbia, where the SEC is headquartered. The contract supports specialized IT roles related to legal technology and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) increases the risk of technology obsolescence and potential cost overruns if not managed proactively.
Time and Materials (T&M) contract type can lead to cost uncertainty if not closely monitored and controlled.
Dependence on a single contractor for critical eDiscovery program management over an extended period could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract supports a critical function (eDiscovery) for the SEC, indicating strategic importance.
The long-term nature of the contract allows for stability and deep expertise development within the contractor.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and IT program management. The eDiscovery market is a specialized niche within legal technology, driven by increasing data volumes and stringent regulatory requirements. Comparable spending benchmarks for IT program management services at federal agencies of similar size and complexity would place this contract in the multi-million dollar range annually, aligning with the awarded value.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific contract appears limited. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the SEC's contracting officers and program managers, ensuring adherence to the contract terms and performance standards. The use of a Time and Materials contract necessitates diligent oversight to manage costs and prevent scope creep. Transparency is generally maintained through contract reporting requirements, though specific IG involvement would depend on audit triggers or identified issues.

Related Government Programs

Federal eDiscovery Services
IT Program Management Contracts
Custom Computer Programming Services
Securities and Exchange Commission IT Spending
Legal Technology Support Contracts

Risk Flags

Long contract duration
Time and Materials pricing
Potential for cost overruns
Technology obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $16.8 million to INFOTREND INCORPORATED. IGF::OT::IGF FOR OTHER FUNCTIONS EDISCOVERY CALL FOR PROGRAM MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is INFOTREND INCORPORATED.

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 $16.8 million.

What is the period of performance?

Start: 2017-06-01. End: 2025-08-31.

What is the track record of Infotrend Incorporated with the SEC and other federal agencies?

Infotrend Incorporated has a history of providing IT services to federal agencies. While specific details on their track record with the SEC beyond this contract are not provided in the initial data, their ability to win this significant, long-term contract suggests a level of established performance and capability. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and any reported issues or successes with other government clients would offer a more comprehensive view of their reliability and expertise in delivering complex IT solutions.

How does the $16.8 million award compare to similar eDiscovery program management contracts?

The $16.8 million award over approximately 8 years, averaging around $2.1 million annually, appears to be within a reasonable range for comprehensive eDiscovery program management services for a large federal agency like the SEC. Benchmarking against similar contracts requires access to detailed data on scope, duration, and specific services rendered. However, considering the complexity and critical nature of eDiscovery for regulatory bodies, this annual spend is not unusually high. Contracts for similar IT program management functions in other large agencies can range from $1 million to over $5 million annually, depending on the specific requirements and scale.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fixed fee or profit. This structure can incentivize longer project durations or less efficient work if oversight is lacking. For this SEC contract, risks include uncontrolled escalation of labor hours, unmonitored material costs, and potential scope creep, which could significantly increase the total expenditure beyond initial projections. Robust oversight, clear task definitions, and regular performance reviews are crucial to mitigate these risks.

How effective is the SEC's eDiscovery program management likely to be under this contract?

The effectiveness of the SEC's eDiscovery program management under this contract hinges on several factors. The award under full and open competition suggests a strong initial selection process, potentially bringing in a capable provider. The 8-year duration allows for continuity and development of specialized expertise. However, the effectiveness will ultimately depend on the contractor's performance, the SEC's internal management and oversight of the contract, and the adaptability of the services to evolving legal and technological landscapes. Regular performance evaluations and proactive contract management by the SEC are critical to ensuring the program meets its objectives.

What are the historical spending patterns for eDiscovery or similar IT services at the SEC?

The provided data focuses on a single contract award and does not offer historical spending patterns for eDiscovery or similar IT services at the SEC. To assess historical trends, one would need to analyze the SEC's budget allocations and contract awards over several fiscal years, looking at spending on IT services, legal technology, data management, and specifically eDiscovery solutions. Understanding past investments would provide context for the current $16.8 million award, indicating whether spending in this area has been consistent, increasing, or decreasing, and how this contract fits into the agency's broader IT and legal support strategy.

What is the significance of the 'Custom Computer Programming Services' NAICS code (541511)?

The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' signifies that the core service provided under this contract involves designing, developing, and implementing tailored software and IT solutions. For the SEC's eDiscovery program management, this likely translates to developing or customizing platforms for data collection, processing, review, and production, as well as integrating various legal technology tools. This code indicates a focus on specialized IT development and integration rather than off-the-shelf software procurement or basic IT support.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7761 DIAMONDBACK DRIVE, SUITE 02-113, COLLEGE PARK, MD, 20742

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,820,531

Exercised Options: $16,780,531

Current Obligation: $16,780,531

Actual Outlays: $13,710,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SECHQ117A0011

IDV Type: BPA

Timeline