Sec's Tips, Complaints, and Referrals (TCR) System Support Service Contract Awarded to Technik Inc for Over $31M

Contract Overview

Contract Amount: $31,118,246 ($31.1M)

Contractor: Technik Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-06-15

End Date: 2026-08-14

Contract Duration: 2,251 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TIPS, COMPLAINTS, AND REFERRALS (TCR) SYSTEM SUPPORT SERVICE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $31.1 million to TECHNIK INC for work described as: TIPS, COMPLAINTS, AND REFERRALS (TCR) SYSTEM SUPPORT SERVICE Key points: 1. Contract value appears reasonable for a multi-year IT support service. 2. Full and open competition after exclusion of sources suggests a competitive process. 3. Contract duration of over 6 years indicates a need for sustained support. 4. The service supports a critical function for the SEC, managing investor complaints and referrals. 5. The contract is positioned within the IT services sector, specifically focusing on system design and support.

Value Assessment

Rating: good

The contract's total value of approximately $31.1 million over its potential duration is a significant investment. Benchmarking against similar IT support contracts for federal agencies of the SEC's size and scope suggests this pricing is within a reasonable range. The contract type, labor hours, indicates flexibility in service delivery, which can be cost-effective if managed efficiently. Further analysis would require detailed task orders and labor rates to confirm optimal value.

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,' indicating that while the competition was open, certain sources may have been excluded prior to the final solicitation. This suggests a structured procurement process designed to ensure fair competition while potentially leveraging specific capabilities. The number of bidders is not specified, but the 'full and open' designation implies multiple interested parties were considered.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it aims to secure the best value by encouraging multiple vendors to offer competitive pricing and innovative solutions.

Public Impact

The primary beneficiaries are the Securities and Exchange Commission (SEC) and the investing public, who rely on the efficient functioning of the TCR system. The services delivered include crucial IT support for a system that manages tips, complaints, and referrals, directly impacting investor protection. The geographic impact is national, as the SEC operates nationwide to regulate securities markets. Workforce implications include the potential for TECHNIK INC to employ IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to labor hour contract type.
Dependence on a single contractor for critical system support could pose a risk if performance falters.

Positive Signals

Long-term contract provides stability and continuity of essential IT services.
Full and open competition suggests a robust selection process.
The contract supports a vital function for investor protection.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for such services is highly competitive, with numerous firms offering specialized support for government systems. The SEC's need for robust complaint and referral management systems is common among regulatory bodies, making this a representative contract for IT support in the public sector. Comparable spending benchmarks would typically be found in IT support contracts for other federal agencies managing large databases and public interaction systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, TECHNIK INC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside means opportunities for small businesses would primarily arise if TECHNIK INC voluntarily engages them for subcontracting, which is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would likely fall under the SEC's Office of Inspector General, which investigates fraud, waste, and abuse in the agency's programs and operations.

Related Government Programs

SEC IT Modernization Efforts
Federal IT Support Services
Investor Complaint Management Systems
Regulatory Compliance Technology

Risk Flags

Potential for cost overruns due to labor-hour pricing.
Risk of contractor performance issues impacting critical SEC operations.
Cybersecurity vulnerabilities associated with IT system support.
Long contract duration may lead to technological obsolescence if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $31.1 million to TECHNIK INC. TIPS, COMPLAINTS, AND REFERRALS (TCR) SYSTEM SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is TECHNIK 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 $31.1 million.

What is the period of performance?

Start: 2020-06-15. End: 2026-08-14.

What is the track record of TECHNIK INC in performing similar federal IT support contracts?

A review of TECHNIK INC's contract history would be necessary to assess their track record. This would involve examining past performance evaluations on similar federal contracts, particularly those involving IT system design, development, and support services for government agencies. Key indicators would include on-time delivery, adherence to budget, quality of service, and any past disputes or contract terminations. Without specific performance data, it's difficult to definitively assess their reliability for this significant SEC contract.

How does the estimated value of this contract compare to similar IT support services for federal agencies?

The total estimated value of $31.1 million over approximately 6 years for the SEC's TCR system support is substantial. To benchmark this effectively, one would compare it to IT support contracts awarded to similar-sized federal agencies (e.g., other financial regulators, law enforcement agencies) for comparable services like database management, system maintenance, and user support. Factors such as the complexity of the system, the number of users supported, and the specific technical requirements would influence the comparison. Generally, for multi-year, comprehensive IT support, this figure appears within a plausible range, but a detailed comparison with specific contract line items and labor rates would provide a more precise value assessment.

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

Key risks include potential cost overruns due to the labor-hour contract type, contractor underperformance impacting critical SEC functions, and cybersecurity vulnerabilities. Mitigation strategies likely involve robust contract management by the SEC, including detailed performance monitoring, regular progress reviews, and clear deliverables. The 'full and open competition' aspect suggests a thorough vetting of the contractor's capabilities. Cybersecurity risks would be addressed through stringent security clauses in the contract and adherence to federal information security standards. The long duration also presents a risk of technological obsolescence, which would need proactive management through contract modifications or system upgrades.

How effective is the TCR system in achieving the SEC's mission of investor protection?

The effectiveness of the TCR system is crucial for the SEC's mission. The system's ability to efficiently capture, track, and analyze investor tips, complaints, and referrals directly impacts the agency's capacity to identify potential securities law violations, initiate investigations, and ultimately protect investors. While this contract focuses on the *support* of the system, its overall effectiveness depends on the system's design, the quality of data input, and the SEC staff's utilization of the information generated. Metrics related to case initiation, resolution times, and investor restitution could serve as indicators of the TCR system's impact.

What are the historical spending patterns for IT support services at the SEC?

Analyzing historical spending patterns for IT support at the SEC would reveal trends in investment in technology infrastructure and services. This includes examining the total IT budget over several years, the proportion allocated to system maintenance and support versus new development, and the types of contracts (e.g., fixed-price, labor-hour) utilized. Understanding these patterns can help contextualize the $31.1 million award, indicating whether it represents an increase, decrease, or stable level of spending for such services. It also highlights the agency's long-term commitment to maintaining its technological capabilities.

What is the significance of the 'delivery order' contract type in this context?

A 'delivery order' typically refers to a type of contract that allows the government to order specific goods or services over a period. In this case, it implies that the $31.1 million is an estimated total value, and specific tasks or work orders will be issued incrementally. This provides flexibility for the SEC to adjust the scope and timing of services based on evolving needs and budget availability. It contrasts with a single, large upfront commitment and allows for phased implementation and payment, which can be advantageous for managing large, long-term projects.

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

Solicitation ID: 50310220R0005

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12950 WORLDGATE DR SUITE 230, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $33,361,978

Exercised Options: $31,118,246

Current Obligation: $31,118,246

Actual Outlays: $30,851,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0015

IDV Type: IDC

Timeline