SEC awards $6.8M IT modernization contract to Ascella Technologies for 7 years

Contract Overview

Contract Amount: $6,844,928 ($6.8M)

Contractor: Ascella Technologies, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-04-01

End Date: 2027-03-31

Contract Duration: 2,555 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OFM SYSTEMS SUPPORT (TASK 1 - INFORMATION TECHNOLOGY MODERNIZATION, BPR, AND IMPLEMENTATION)

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 $6.8 million to ASCELLA TECHNOLOGIES, INC. for work described as: OFM SYSTEMS SUPPORT (TASK 1 - INFORMATION TECHNOLOGY MODERNIZATION, BPR, AND IMPLEMENTATION) Key points: 1. Contract focuses on IT modernization, business process re-engineering, and implementation. 2. Ascella Technologies, Inc. secured this delivery order under a larger contract. 3. The contract duration is 7 years, indicating a long-term need for services. 4. Services are categorized under Computer Systems Design Services. 5. The contract was awarded through full and open competition after exclusion of sources. 6. The base contract value is $2.68M, with this delivery order adding $6.84M. 7. The contract type is labor hours, allowing flexibility in resource allocation.

Value Assessment

Rating: good

The contract value of $6.84M over 7 years for IT modernization services appears reasonable, especially considering the scope of business process re-engineering and implementation. Benchmarking against similar large-scale IT modernization efforts within federal agencies suggests that this pricing is within expected ranges. The labor hours contract type allows for adjustments based on actual effort, which can be cost-effective if managed efficiently. However, a detailed breakdown of labor categories and rates would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition framework, indicating that multiple vendors had the opportunity to bid. The 'after exclusion of sources' clause suggests that while competition was open, specific sources might have been excluded based on pre-defined criteria, which is a common practice to ensure qualified bidders. The presence of competition generally drives better pricing and service quality for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market that offers the best value. This approach minimizes the risk of overpayment and encourages innovation from contractors.

Public Impact

The Securities and Exchange Commission (SEC) benefits from modernized IT systems and improved business processes. This contract supports the delivery of essential IT modernization, BPR, and implementation services. The geographic impact is primarily within the District of Columbia, where the SEC is headquartered. Workforce implications include the potential for Ascella Technologies to utilize skilled IT professionals, and for SEC staff to benefit from enhanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and broad service categories.
Reliance on a single vendor for critical IT modernization over an extended period.
Ensuring continued alignment with evolving technological advancements throughout the 7-year term.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract provides stability and allows for deep integration of services.
Focus on modernization and BPR indicates a strategic investment in efficiency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the IT services industry. The federal government is a significant consumer of these services, investing heavily in modernizing legacy systems and improving digital infrastructure. The market for IT modernization and BPR is competitive, with numerous firms offering specialized expertise. The SEC's spending aligns with broader government initiatives to enhance cybersecurity, improve data analytics capabilities, and streamline operations through technology.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific delivery order. This suggests that the prime contractor, Ascella Technologies, Inc., is not a small business, and there is no explicit small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Securities and Exchange Commission's contracting officers and program managers. The contract's long duration and focus on critical IT systems necessitate robust oversight to ensure performance, adherence to scope, and effective use of funds. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Modernization Programs
Business Process Re-engineering Services
Computer Systems Design Services
Federal IT Services Contracts
Securities and Exchange Commission IT Spending

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for scope creep in modernization and BPR efforts.
Need for strong oversight to ensure performance and value.
Reliance on labor hours requires careful monitoring of effort.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $6.8 million to ASCELLA TECHNOLOGIES, INC.. OFM SYSTEMS SUPPORT (TASK 1 - INFORMATION TECHNOLOGY MODERNIZATION, BPR, AND IMPLEMENTATION)

Who is the contractor on this award?

The obligated recipient is ASCELLA TECHNOLOGIES, 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 $6.8 million.

What is the period of performance?

Start: 2020-04-01. End: 2027-03-31.

What is Ascella Technologies, Inc.'s track record with federal IT contracts, particularly those involving modernization and BPR?

Ascella Technologies, Inc. has a history of performing federal IT contracts. A review of their contract history reveals experience in areas such as IT support, system integration, and software development. For contracts specifically involving modernization and business process re-engineering (BPR), their past performance would need to be assessed against the specific requirements of this SEC contract. Key indicators would include successful delivery of similar projects, client satisfaction ratings, and any past performance evaluations. The SEC would have evaluated this track record during the procurement process to determine Ascella's capability to meet the contract's objectives. Further due diligence might involve examining contract close-out data and any publicly available performance reports.

How does the $6.84M value of this delivery order compare to similar IT modernization contracts awarded by the SEC or other federal agencies?

The $6.84M value for a 7-year IT modernization and BPR contract is within a moderate range for federal IT procurements. Large-scale modernization efforts can easily reach tens or hundreds of millions of dollars. For the SEC, this amount suggests a significant but not enterprise-wide overhaul. When compared to similar contracts for Computer Systems Design Services (NAICS 541512) awarded to agencies of comparable size and mission, this value appears reasonable. Factors influencing this value include the specific scope of services (modernization, BPR, implementation), the duration, and the labor categories required. Without detailed service breakdowns and labor rates, a precise benchmark is difficult, but it does not immediately appear to be an outlier for the described services.

What are the primary risks associated with a 7-year IT modernization contract, and how are they mitigated?

The primary risks associated with a 7-year IT modernization contract include technological obsolescence, scope creep, vendor lock-in, and potential performance issues. Technology can rapidly evolve, making initial modernization plans outdated before completion. Scope creep is a constant threat in long-term projects, where requirements can expand beyond the original intent. Vendor lock-in can occur if the contractor becomes indispensable, limiting future flexibility. Performance issues can arise from inadequate project management or technical challenges. Mitigation strategies typically include phased implementation with regular reviews and re-baselining, clearly defined scope and change control processes, performance-based metrics and incentives, and maintaining strong government oversight. The SEC's contracting and program management teams are responsible for actively managing these risks throughout the contract's lifecycle.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance broad market access with specific qualification requirements. By allowing full and open competition initially, it ensures a wide range of potential offerors can participate, fostering price competition and innovation. The subsequent 'exclusion of sources' clause allows the agency to narrow down the pool of bidders based on pre-defined criteria, such as technical capabilities, past performance, or specific certifications, without resorting to a sole-source justification. This can lead to a more manageable and focused competition among highly qualified vendors. For taxpayers, this approach is generally beneficial as it increases the likelihood of selecting a capable contractor at a competitive price, while ensuring that only suitable candidates are considered, thus avoiding wasted evaluation effort on unqualified bidders.

What are the historical spending patterns for IT services at the SEC, and how does this contract fit within them?

Historical spending patterns for IT services at the SEC typically reflect the agency's mission-critical needs, including data management, cybersecurity, regulatory systems, and operational efficiency. The SEC, like many large federal agencies, invests significantly in IT to support its complex regulatory and enforcement functions. This $6.84M contract for modernization and BPR fits within these patterns by addressing the need to update and improve the underlying technological infrastructure that supports these functions. It represents a strategic investment aimed at enhancing efficiency, security, and the ability to adapt to future challenges, rather than just routine IT support. Understanding the SEC's overall IT budget and its allocation across different service categories would provide further context for this contract's place within their spending strategy.

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: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ascella Technologies Inc.

Address: 205 VAN BUREN ST STE 201, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,606,570

Exercised Options: $6,844,928

Current Obligation: $6,844,928

Actual Outlays: $5,794,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0003

IDV Type: IDC

Timeline