SEC Awards $47.4M Contract for Cloud-Based Electronic Discovery Pilot System to Infotrend Inc

Contract Overview

Contract Amount: $47,387,982 ($47.4M)

Contractor: Infotrend Incorporated

Awarding Agency: Securities and Exchange Commission

Start Date: 2019-09-26

End Date: 2024-11-30

Contract Duration: 1,892 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE SEC SEEKS A CLOUD-BASED ELECTRONIC DISCOVERY PILOT SYSTEM. THE SCOPE OF WORK IS TO PERFORM: DESIGN, CONFIGURATION, TESTING, ELECTRONIC DOCUMENT DISCOVERY (EDD) PROCESSING, DATA AND DOCUMENT LOADING, SYSTEM ADMINISTRATION, CREATION OF ELECTRONIC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $47.4 million to INFOTREND INCORPORATED for work described as: THE SEC SEEKS A CLOUD-BASED ELECTRONIC DISCOVERY PILOT SYSTEM. THE SCOPE OF WORK IS TO PERFORM: DESIGN, CONFIGURATION, TESTING, ELECTRONIC DOCUMENT DISCOVERY (EDD) PROCESSING, DATA AND DOCUMENT LOADING, SYSTEM ADMINISTRATION, CREATION OF ELECTRONIC Key points: 1. The SEC is investing significantly in modernizing its electronic discovery capabilities with a cloud-based solution. 2. Infotrend Incorporated secured the contract, indicating potential specialization or competitive advantage in EDD processing. 3. The contract duration of over 5 years suggests a long-term need for these services. 4. The use of 'pilot system' implies potential for future expansion or refinement of the solution.

Value Assessment

Rating: good

The contract value of $47.4M over approximately 5 years appears reasonable for a cloud-based electronic discovery system, considering the complexity of EDD processing and data loading.

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 robust price discovery process and a competitive bidding environment.

Taxpayer Impact: Taxpayer funds are being used to enhance the SEC's operational efficiency in handling electronic discovery, which could lead to more effective enforcement and regulatory oversight.

Public Impact

Improved efficiency for the SEC in managing and processing electronic discovery data. Potential for faster and more accurate legal and regulatory investigations. Modernization of government IT infrastructure to support data-intensive tasks. Ensures compliance with data handling and discovery regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the pilot system becomes integral to SEC operations.
Data security and privacy concerns inherent in cloud-based solutions.
Scalability challenges if data volumes exceed initial projections.

Positive Signals

Adoption of modern cloud technology for improved performance.
Competitive bidding process likely resulted in a fair price.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on data processing and electronic discovery. Benchmarks for similar cloud-based EDD systems vary widely based on scope and provider, but this value is substantial.

Small Business Impact

The data does not indicate specific set-asides for small businesses. The primary awardee is Infotrend Incorporated, and further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract's full and open competition and the long duration suggest a need for ongoing oversight to ensure performance, cost-effectiveness, and adherence to security protocols.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Long contract duration may lead to inflexibility.
Reliance on a single vendor for critical discovery functions.
Potential for cost overruns if scope expands.
Data security and privacy in a cloud environment.
Integration challenges with existing SEC systems.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $47.4 million to INFOTREND INCORPORATED. THE SEC SEEKS A CLOUD-BASED ELECTRONIC DISCOVERY PILOT SYSTEM. THE SCOPE OF WORK IS TO PERFORM: DESIGN, CONFIGURATION, TESTING, ELECTRONIC DOCUMENT DISCOVERY (EDD) PROCESSING, DATA AND DOCUMENT LOADING, SYSTEM ADMINISTRATION, CREATION OF ELECTRONIC

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 $47.4 million.

What is the period of performance?

Start: 2019-09-26. End: 2024-11-30.

What is the specific definition of 'pilot system' in this context, and what are the criteria for its success?

The term 'pilot system' suggests this is an initial implementation or trial phase for the cloud-based electronic discovery solution. Success criteria would likely involve demonstrating the system's ability to handle the SEC's EDD processing needs efficiently, securely, and within budget. This could include metrics on processing speed, data accuracy, user adoption, and cost savings compared to previous methods.

What are the key risks associated with migrating sensitive SEC data to a cloud-based EDD system, and how are they being mitigated?

Key risks include data breaches, unauthorized access, and compliance failures. Mitigation strategies typically involve robust encryption, strict access controls, regular security audits, adherence to data privacy regulations (like GDPR or CCPA if applicable), and clear data residency policies. The contract likely specifies security requirements and incident response protocols to address these concerns.

How will the effectiveness of this cloud-based EDD pilot system be measured against the SEC's existing discovery processes?

Effectiveness will likely be measured through a combination of quantitative and qualitative metrics. Quantitative measures could include reduced processing times, lower costs per case, and increased data volume handled. Qualitative measures might involve user feedback on system usability, improved collaboration among legal teams, and enhanced accuracy in identifying relevant documents during investigations.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 50310219R0009

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8013 HIGH CASTLE RD, ELLICOTT CITY, MD, 21043

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

Financial Breakdown

Contract Ceiling: $55,362,172

Exercised Options: $47,387,982

Current Obligation: $47,387,982

Actual Outlays: $47,387,982

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline