SEC awards $31.3M contract for OFMW Platform Support to Maximus Federal Consulting, emphasizing IT systems design

Contract Overview

Contract Amount: $31,364,612 ($31.4M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-03-19

End Date: 2026-03-18

Contract Duration: 2,190 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OFMW PLATFORM 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 $31.4 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: OFMW PLATFORM SUPPORT SERVICES Key points: 1. Contract focuses on essential IT systems design and support, crucial for regulatory functions. 2. Maximus Federal Consulting, a significant player in government IT services, secured this award. 3. The contract duration of nearly six years suggests a need for sustained platform stability and development. 4. Competition was robust, indicating potential for competitive pricing and a wide range of technical solutions. 5. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, common for ongoing IT needs. 6. Performance is situated in Washington D.C., a hub for federal agency operations.

Value Assessment

Rating: good

The total award value of $31.3 million over approximately six years for IT platform support appears reasonable given the scope of services. Benchmarking against similar IT support contracts for federal agencies of the SEC's size and complexity suggests this falls within a typical spending range. The pricing structure, likely based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but the competitive nature of the award provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of four bidders suggests a healthy level of competition for this IT support requirement. A competitive environment generally leads to better price discovery and encourages contractors to offer their best technical solutions and pricing to win the award. The agency likely benefited from a range of proposals, allowing them to select the best value.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and higher quality services, as multiple firms vied to secure the contract by offering competitive terms.

Public Impact

The Securities and Exchange Commission (SEC) benefits directly through enhanced support for its crucial OFMW platform. Services delivered include computer systems design and related support, vital for the SEC's operational efficiency. The geographic impact is primarily within Washington D.C., where the SEC's main operations are located. The contract supports a workforce of IT professionals and consultants, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical platform support could pose risks if performance issues arise.
Ensuring continued cost-effectiveness over the multi-year duration requires ongoing monitoring of labor rates and efficiency.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and competitive pricing.
The contract duration indicates a stable requirement and the potential for long-term partnership and expertise development.
Maximus Federal Consulting has a significant track record with federal contracts, implying experience and capability.

Sector Analysis

The IT services sector, particularly computer systems design, is a large and dynamic market within federal contracting. Agencies like the SEC rely heavily on specialized IT support to manage complex data, regulatory processes, and internal operations. This contract fits within the broader category of IT modernization and sustainment efforts common across government. Comparable spending benchmarks for similar IT support services can vary widely based on the specific technologies, scope of work, and agency size, but contracts in the tens of millions over several years are typical for critical systems.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a full and open competition award, the primary contractor, Maximus Federal Consulting, is a large business. While the contract doesn't directly benefit small businesses through a set-aside, there is potential for subcontracting opportunities if Maximus chooses to engage small businesses for specialized support or services. The overall impact on the small business ecosystem would depend on Maximus's subcontracting strategy and the specific needs of the OFMW platform.

Oversight & Accountability

Oversight for this contract is likely managed by the Securities and Exchange Commission's contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement (PWS), including service level agreements (SLAs) and performance metrics. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Platform Support Services
Computer Systems Design Services
Federal IT Modernization Contracts
Securities and Exchange Commission IT Spending
MAXIMUS FEDERAL CONSULTING Contracts

Risk Flags

Potential for cost overruns if labor hours are not managed effectively.
Risk of performance issues impacting critical financial operations.
Dependency on a single vendor for a key platform.
Ensuring alignment with evolving technological standards and SEC requirements over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $31.4 million to MAXIMUS FEDERAL CONSULTING, LLC. OFMW PLATFORM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, 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 $31.4 million.

What is the period of performance?

Start: 2020-03-19. End: 2026-03-18.

What is Maximus Federal Consulting's track record with the SEC and other federal agencies for similar IT support services?

Maximus Federal Consulting, LLC has a substantial history of performing IT services for various federal agencies, including the SEC. Their portfolio often includes system design, development, integration, and ongoing support for complex platforms. For the SEC specifically, Maximus has likely engaged in prior work related to financial systems, data management, or regulatory compliance platforms. A review of federal procurement data would reveal the extent and nature of their past performance, including contract values, durations, and any reported performance issues or commendations. This extensive experience suggests a familiarity with the agency's unique requirements and operational environment, which can be a positive indicator for successful contract execution.

How does the $31.3 million contract value compare to other IT support contracts awarded by the SEC or similar regulatory agencies?

The $31.3 million contract value for approximately six years of OFMW Platform Support Services positions this award as a significant, but not extraordinary, IT investment for an agency like the SEC. When compared to other federal agencies of similar size and mission scope (e.g., other financial regulators or large civilian agencies), this contract value falls within a common range for comprehensive IT system design and support. Contracts for enterprise-level IT solutions, especially those involving critical infrastructure or data management, often reach these figures over multi-year periods. The competitive nature of the award (four bidders) suggests that this price point was deemed competitive by the market, implying reasonable value for the services rendered.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential performance deficiencies by the contractor, cost overruns due to undefined requirements or inefficient execution, and vendor lock-in if the platform becomes highly specialized. Mitigation strategies typically involve a robust Performance Work Statement (PWS) with clearly defined deliverables and Service Level Agreements (SLAs), regular performance reviews by the Contracting Officer's Representative (COR), and diligent oversight of labor hours and expenditures. The full and open competition also mitigates risk by ensuring a competitive market initially. Furthermore, the contract's multi-year nature allows for relationship building, but also necessitates proactive management to ensure continued alignment with evolving SEC needs and technological advancements.

How effective is the OFMW platform in supporting the SEC's mission, and how does this contract contribute to its effectiveness?

The OFMW (Office of Financial Management) platform is critical for the SEC's financial operations, including budgeting, accounting, and financial reporting. This contract for platform support directly contributes to its effectiveness by ensuring the system remains operational, secure, and up-to-date. Services likely include system maintenance, bug fixes, user support, and potentially enhancements or upgrades to meet new regulatory requirements or improve functionality. The effectiveness of the platform, and thus the contract's contribution, is measured by the SEC's ability to perform its financial management functions accurately and efficiently, enabling the agency to fulfill its broader mission of protecting investors and maintaining fair, orderly, and efficient markets.

What are the historical spending patterns for IT platform support at the SEC, and how does this award fit within them?

Historical spending patterns for IT platform support at the SEC typically show consistent investment in maintaining and upgrading critical systems. Agencies like the SEC require ongoing support for platforms managing sensitive financial data and regulatory processes. This $31.3 million award over nearly six years represents a sustained level of investment in IT infrastructure. It aligns with a broader trend in federal IT spending where agencies allocate significant resources to sustain existing systems while also pursuing modernization efforts. The specific amount reflects the complexity and criticality of the OFMW platform, suggesting that previous spending on similar support likely ranged in the millions annually, making this a predictable and substantial allocation for essential services.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310220R0003

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Federal Consulting LLC

Address: 1600 TYSONS BLVD, MCLEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,364,612

Exercised Options: $31,364,612

Current Obligation: $31,364,612

Actual Outlays: $30,684,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310218D0027

IDV Type: IDC

Timeline