SEC awards $21.18M for enterprise-wide database administration, with 7 bids received

Contract Overview

Contract Amount: $21,178,422 ($21.2M)

Contractor: Incentive Technology Group LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-01-31

End Date: 2027-02-28

Contract Duration: 2,585 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE-WIDE DATABASE ADMINISTRATION SUPPORT 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 $21.2 million to INCENTIVE TECHNOLOGY GROUP LLC for work described as: ENTERPRISE-WIDE DATABASE ADMINISTRATION SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the scope of enterprise-wide support. 2. Strong competition with 7 bidders suggests a healthy market for these services. 3. Performance risk is moderate, typical for IT services requiring specialized expertise. 4. This contract supports critical IT infrastructure for the SEC. 5. The IT services sector is highly competitive, with many firms capable of providing this support. 6. The contract duration extends over several years, indicating a long-term need.

Value Assessment

Rating: good

The contract value of $21.18 million over its period of performance is within a reasonable range for enterprise-wide database administration support. Benchmarking against similar contracts for IT services of this scale suggests competitive pricing. The use of labor hours allows for flexibility, but requires careful monitoring to ensure efficient resource utilization and prevent cost overruns. The Securities and Exchange Commission (SEC) appears to be obtaining adequate value for the services rendered, assuming performance meets expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that a broad range of potential bidders were considered. The receipt of 7 bids suggests a robust level of competition for these specialized IT services. A higher number of bidders generally leads to better price discovery and can drive down costs for the government, ensuring a more competitive market.

Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers, as it likely resulted in a more favorable price than a less competitive process. It demonstrates that government funds are being used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Securities and Exchange Commission (SEC) itself, which receives essential IT support. Services delivered include database administration, ensuring the stability and performance of critical SEC systems. The geographic impact is primarily within the District of Columbia, where the SEC is headquartered. Workforce implications include the need for skilled database administrators, potentially creating opportunities for IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical database functions could pose a risk if performance falters.
Ensuring consistent service quality across the contract duration requires diligent oversight.

Positive Signals

The contract is for enterprise-wide support, indicating a comprehensive approach to database management.
Full and open competition suggests a well-structured procurement process that attracted multiple capable vendors.
The multi-year duration allows for continuity of essential IT services.

Sector Analysis

The IT services sector, particularly for specialized areas like database administration, is a significant segment of federal spending. This contract falls under computer systems design services, a category that consistently sees substantial investment. The market is characterized by a mix of large prime contractors and smaller specialized firms. The SEC's spending on such services is typical for a large federal agency managing vast amounts of data and complex IT infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, Incentive Technology Group LLC, is likely a mid-sized or large business. There is no explicit information regarding subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem. Future analysis could explore if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the SEC's IT department. Accountability measures are usually embedded in the contract through performance standards, service level agreements, and reporting requirements. Transparency is facilitated by contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

SEC IT Infrastructure Support
Federal Database Management Services
Enterprise IT Services Contracts
Computer Systems Design Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in due to reliance on a single provider.
Need for consistent oversight to ensure performance standards are met over time.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $21.2 million to INCENTIVE TECHNOLOGY GROUP LLC. ENTERPRISE-WIDE DATABASE ADMINISTRATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INCENTIVE TECHNOLOGY GROUP LLC.

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 $21.2 million.

What is the period of performance?

Start: 2020-01-31. End: 2027-02-28.

What is the historical spending trend for database administration services at the SEC?

Analyzing historical spending for database administration at the SEC requires accessing detailed procurement data over multiple fiscal years. While this specific contract award is for $21.18 million, understanding the broader trend involves looking at previous contracts for similar services, their values, durations, and the contractors involved. A consistent or increasing trend in spending on database administration could indicate growing data management needs or an aging infrastructure requiring ongoing support. Conversely, a decreasing trend might suggest consolidation of services, in-house solutions, or a shift in IT strategy. Without access to a comprehensive historical database, a precise trend analysis is not possible, but this contract represents a significant investment in maintaining critical data systems.

How does the per-unit cost of this contract compare to similar federal database administration contracts?

Directly comparing the per-unit cost is challenging without detailed breakdowns of labor categories, hours, and rates within this contract, as well as access to a comprehensive database of comparable federal contracts. The contract is awarded on a 'LABOR HOURS' (pt) basis, meaning the total cost is driven by the hours worked by personnel. To benchmark effectively, one would need to identify contracts with similar scope, complexity, and geographic location, then normalize their costs based on labor categories and hours. Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (ct) and 7 bidders (no), it suggests competitive pricing was sought. However, a definitive 'per-unit' comparison requires more granular data than is publicly available in the provided summary.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for enterprise-wide database administration support typically focus on system availability, performance, security, and response times. Specific KPIs might include database uptime percentages (e.g., 99.9% availability), query response times, data backup and recovery success rates, patch management adherence, and the number of critical security vulnerabilities identified and remediated within defined timeframes. The contract likely includes a Service Level Agreement (SLA) that outlines these KPIs, along with associated remedies or penalties for non-performance. The SEC's program managers would be responsible for monitoring these KPIs and ensuring the contractor meets the established performance standards throughout the contract's duration.

What is the track record of Incentive Technology Group LLC in performing similar federal IT contracts?

Incentive Technology Group LLC (ITG) has a track record of performing federal IT contracts, though the specifics of their performance on database administration services would require a deeper dive into contract databases like FPDS or SAM.gov. As a recipient of this $21.18 million contract from the SEC, it indicates they were deemed capable and competitive among the 7 bidders. Federal procurement systems often contain past performance information, including customer satisfaction ratings and any performance issues encountered on previous contracts. A thorough review of ITG's contract history would reveal their experience with similar agencies, contract types, and service areas to provide a more complete picture of their reliability.

What are the potential risks associated with the long duration (2020-2027) of this contract?

The extended duration of this contract, spanning from 2020 to 2027 (2585 days), presents several potential risks. Technology evolves rapidly in the IT sector, and the systems or methodologies in place at the start of the contract might become outdated by its end, potentially leading to inefficiencies or security vulnerabilities if not proactively managed. There's also the risk of vendor lock-in, where the SEC becomes heavily reliant on ITG, making transitions to new technologies or vendors more complex and costly. Furthermore, long-term contracts can sometimes lead to complacency in performance if oversight is not consistently rigorous. Ensuring that the contract includes mechanisms for adapting to technological changes and maintaining competitive pricing throughout its term is crucial.

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

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 2121 CRYSTAL DR STE 720, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $34,125,083

Exercised Options: $21,178,422

Current Obligation: $21,178,422

Actual Outlays: $18,087,980

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,607,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0005

IDV Type: IDC

Timeline