SEC's $49M contract for EDGAR Systems Engineering awarded to ASSYST INC. after limited competition

Contract Overview

Contract Amount: $48,964,919 ($49.0M)

Contractor: Assyst Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2014-08-22

End Date: 2019-09-30

Contract Duration: 1,865 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: EDGAR SYSTEMS ENGINEERING IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $49.0 million to ASSYST INC. for work described as: EDGAR SYSTEMS ENGINEERING IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract value of $48.96M for computer systems design services. 2. Awarded to ASSYST INC. under a full and open competition after exclusion of sources. 3. Duration of 1865 days (approx. 5 years). 4. Fixed Price Award Fee contract type. 5. Sector is IT services.

Value Assessment

Rating: fair

The contract type is Fixed Price Award Fee, which can incentivize performance but also carries risk if award fee criteria are not well-defined. Benchmarking against similar IT systems design contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting a competitive process but with specific exclusions. This method aims for fair pricing through competition while potentially allowing for specialized capabilities.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for necessary IT systems engineering services.

Public Impact

Ensures continued operation and enhancement of the EDGAR system, crucial for financial market transparency. Supports the Securities and Exchange Commission's mission to protect investors and maintain fair markets. Potential impact on market participants through system reliability and functionality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not strictly managed.
Dependence on a single contractor for critical EDGAR system functions.

Positive Signals

Award fee structure incentivizes contractor performance.
Long-term contract provides stability for system development.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar large-scale government IT systems engineering contracts can vary widely based on complexity and scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is ASSYST INC. Further analysis would be needed to determine if small business participation was incorporated as a subcontracting goal.

Oversight & Accountability

The Securities and Exchange Commission (SEC) is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, financial management, and adherence to terms would apply.

Related Government Programs

Computer Systems Design Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Potential for cost creep if award fee criteria are not rigorously managed.
Risk associated with reliance on a single vendor for critical infrastructure.
Complexity of IT systems can lead to unforeseen technical challenges and cost increases.
Ensuring continued innovation and modernization within a fixed-price framework.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $49.0 million to ASSYST INC.. EDGAR SYSTEMS ENGINEERING IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is ASSYST 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 $49.0 million.

What is the period of performance?

Start: 2014-08-22. End: 2019-09-30.

What specific performance metrics were used to determine the award fee, and how did they align with the SEC's objectives for the EDGAR system?

The award fee structure is designed to incentivize ASSYST INC. to meet or exceed specific performance standards related to the EDGAR system's functionality, reliability, and security. These metrics likely include system uptime, response times, successful implementation of new features, and adherence to cybersecurity protocols. The alignment with SEC objectives would be assessed through regular performance reviews and achievement of pre-defined key performance indicators (KPIs).

What were the primary reasons for excluding certain sources in the 'full and open competition after exclusion of sources' process, and did this exclusion potentially limit competitive pricing?

Excluding sources in a competitive bid typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of vendors possess. While intended to ensure the best fit for a specialized need, such exclusions can sometimes reduce the number of bidders, potentially impacting the intensity of price competition. The SEC would have justified these exclusions based on the critical nature of EDGAR system support.

How does the $48.96M contract value compare to the estimated total cost of ownership and operational budget for the EDGAR system over its lifecycle?

The $48.96M represents the contract award value, likely covering a significant portion of the EDGAR system's operational and development costs over its 5-year duration. To assess its true value, this figure should be compared against the SEC's overall IT budget, historical spending on EDGAR, and industry benchmarks for maintaining similar large-scale financial data platforms. A comprehensive total cost of ownership analysis would also consider indirect costs and future upgrade needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SECHQ114R0003

Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 22866 SHAW RD, STERLING, VA, 20166

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,828,462

Exercised Options: $48,964,919

Current Obligation: $48,964,919

Actual Outlays: $540,949

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SECHQ113D0041

IDV Type: IDC

Timeline