FTC awards $18.3M for e-discovery SaaS to Complete Discovery Source Inc

Contract Overview

Contract Amount: $18,288,531 ($18.3M)

Contractor: Complete Discovery Source Inc.

Awarding Agency: Federal Trade Commission

Start Date: 2024-03-26

End Date: 2027-03-25

Contract Duration: 1,094 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RELATIVITY E-DISCOVERY SAAS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $18.3 million to COMPLETE DISCOVERY SOURCE INC. for work described as: RELATIVITY E-DISCOVERY SAAS Key points: 1. Contract value represents a significant investment in critical litigation support infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Time and Materials contract type introduces cost uncertainty if not managed closely. 4. The duration of the contract (nearly 3 years) indicates a long-term need for these services. 5. This award falls within the broader category of IT services, specifically data processing and hosting. 6. The contractor, Complete Discovery Source Inc., is a key player in the e-discovery market.

Value Assessment

Rating: good

The contract value of $18.3 million over approximately three years for e-discovery SaaS appears reasonable given the specialized nature of the services. Benchmarking against similar government contracts for litigation support and data management tools is necessary for a definitive value assessment. However, the use of a Time and Materials (T&M) pricing model warrants close monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. The absence of specific performance metrics in the provided data makes a direct comparison of efficiency challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach is generally favored for maximizing competition and achieving the best possible pricing and value for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was intended and likely occurred, leading to a more informed price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure e-discovery services at the most advantageous price point, reducing the risk of overpayment for essential litigation support.

Public Impact

The Federal Trade Commission (FTC) is the primary beneficiary, gaining access to essential e-discovery capabilities. Services delivered include data processing, hosting, and related support for legal and investigative matters. The contract's impact is primarily within the District of Columbia, where the FTC is headquartered. This contract supports the FTC's mission to protect consumers and promote competition, indirectly benefiting the public through enforcement actions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to the Time and Materials pricing structure.
Potential for vendor lock-in if switching costs are high after contract completion.
Dependence on a single vendor for critical e-discovery functions.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor is an established provider in the e-discovery space.
Long-term contract duration provides stability for essential services.

Sector Analysis

The e-discovery market is a specialized segment within the broader IT and legal technology sectors. It involves software and services that help organizations manage, review, and produce electronically stored information (ESI) for legal proceedings. Government spending in this area is driven by the increasing volume of digital data and the legal requirements for its discovery. Comparable spending benchmarks would involve analyzing other federal contracts for similar SaaS solutions or managed e-discovery services, which can range from hundreds of thousands to tens of millions of dollars annually depending on scope and duration.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated directly or indirectly. However, without further information on subcontracting plans or set-aside goals, the direct impact on the small business ecosystem is unclear. Larger contracts like this often involve significant subcontracting opportunities, but the specifics would need to be detailed in the contract itself.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Trade Commission's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is generally maintained through contract award databases and agency reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Legal Support Services
Data Management Solutions
Cloud Computing Services
Information Technology Services
Litigation Support Software

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $18.3 million to COMPLETE DISCOVERY SOURCE INC.. RELATIVITY E-DISCOVERY SAAS

Who is the contractor on this award?

The obligated recipient is COMPLETE DISCOVERY SOURCE INC..

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2024-03-26. End: 2027-03-25.

What is the track record of Complete Discovery Source Inc. with federal agencies?

Complete Discovery Source Inc. (CDS) has a history of providing e-discovery services to various entities, including government agencies. While specific details of their federal contract performance are not fully detailed in this summary, their presence in the market and ability to secure this FTC contract suggest they have met federal procurement requirements. A deeper dive into their past performance ratings, any past performance issues, and the types of agencies they have served would provide a more comprehensive understanding of their reliability and capability within the federal space. Their experience likely encompasses handling large volumes of data and adhering to strict legal and security protocols required by government clients.

How does the $18.3 million contract value compare to similar e-discovery SaaS contracts awarded by the federal government?

The $18.3 million contract value for approximately three years of e-discovery SaaS is within the expected range for federal agencies requiring robust litigation support. Larger agencies or those involved in extensive investigations might award contracts in the tens of millions over similar or longer periods. Smaller or less data-intensive needs could be met with contracts in the low millions. Factors influencing this value include the scope of services (e.g., data volume, processing needs, hosting requirements, review tools), the number of users, and the specific functionalities required. Without knowing the exact scale of the FTC's e-discovery needs, a precise comparison is difficult, but the award suggests a significant operational requirement.

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

The primary risk with a Time and Materials (T&M) contract for e-discovery 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 or services used. This structure can lead to unpredictable expenses if the project scope expands, if the contractor's efficiency is low, or if the duration extends beyond initial estimates. For e-discovery, this could mean higher costs if the volume of data to be processed or reviewed is unexpectedly large, or if the legal team requires more extensive support than initially anticipated. Effective oversight, clear task definitions, and diligent monitoring of hours and expenses are crucial to mitigate these risks.

How does the 'full and open competition' award mechanism impact the value for taxpayers?

Awarding the e-discovery SaaS contract through 'full and open competition' is intended to maximize value for taxpayers by fostering a competitive environment. This process allows any responsible source to submit a bid, encouraging multiple vendors to offer their best pricing and technical solutions to win the contract. The competition drives down prices, encourages innovation, and ensures that the government selects the most cost-effective and capable solution. Taxpayers benefit from this mechanism as it reduces the likelihood of paying inflated prices and increases the probability that the government is receiving high-quality services at a fair market value, as opposed to a sole-source or limited competition award where options might be restricted.

What are the implications of this contract for the broader e-discovery market and its service providers?

This contract signifies continued federal investment in critical e-discovery infrastructure, highlighting the ongoing importance of managing and processing electronic information for legal and regulatory purposes. For Complete Discovery Source Inc., it represents a significant revenue stream and a validation of their capabilities. For the broader e-discovery market, it underscores the demand for specialized SaaS solutions and managed services. It also indicates that established players with proven federal experience are well-positioned to secure large government contracts. The 'full and open competition' aspect suggests that other vendors in the market were given a fair chance to compete, potentially spurring them to enhance their offerings and pricing strategies.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 250 PARK AVENUE, 18TH FLOOR NEW YORK, NEW YORK, NY, 10177

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

Financial Breakdown

Contract Ceiling: $45,993,246

Exercised Options: $26,417,604

Current Obligation: $18,288,531

Actual Outlays: $13,639,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 29FTC119A0013

IDV Type: BPA

Timeline