SEC awards $2.58M IT services contract to Ascella Technologies, Inc. under full and open competition

Contract Overview

Contract Amount: $2,576,749 ($2.6M)

Contractor: Ascella Technologies, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-09-16

End Date: 2026-05-10

Contract Duration: 1,697 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: QUANTITATIVE ANALYSIS SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $2.6 million to ASCELLA TECHNOLOGIES, INC. for work described as: QUANTITATIVE ANALYSIS SUPPORT Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Time and Materials pricing structure may pose cost control challenges. 3. Contract duration of nearly 1700 days suggests a long-term need for services. 4. No small business set-aside, raising questions about broader economic impact. 5. Services align with custom computer programming, a critical IT function. 6. Agency and Servicing Agency are the same, suggesting internal alignment.

Value Assessment

Rating: fair

The contract value of $2.58 million over approximately 4.7 years (1697 days) translates to an average annual value of roughly $548,000. Without specific benchmarks for custom computer programming services of this nature, it's difficult to definitively assess value for money. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. Comparing this to similar contracts for custom programming at the SEC or other financial regulatory bodies would provide better context for pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The award was made via a Blanket Purchase Agreement (BPA) Call, which implies that the underlying BPA was already established through a competitive process. This method generally promotes price discovery and allows the government to leverage pre-negotiated terms. The specific number of bidders for this BPA Call is not provided, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to more competitive pricing and better value. It ensures that the government is not limited to a select few providers.

Public Impact

The Securities and Exchange Commission (SEC) benefits from this contract by receiving custom computer programming services. These services are crucial for the development and maintenance of IT systems supporting the SEC's mission. The primary impact is on the SEC's internal operations and its ability to fulfill its regulatory and enforcement functions. Workforce implications are primarily for the contractor's employees providing the programming services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to unpredictable costs if not closely monitored.
The long contract duration (1697 days) necessitates robust performance management to ensure continued value.
Lack of specific competition details for the BPA Call limits understanding of price pressures.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
Utilizes a BPA Call, suggesting a pre-vetted and potentially efficient procurement vehicle.
Contract aligns with critical IT needs for a major federal agency.

Sector Analysis

The Information Technology sector, specifically custom computer programming services, is a significant area of federal spending. This contract falls under the broader category of IT services, which includes software development, system integration, and IT support. The federal government is a major consumer of these services, with spending often benchmarked against industry standards for IT consulting and development. The market for custom programming is competitive, with numerous firms offering specialized skills.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). This means that the competition was open to all eligible businesses, including large corporations. While this maximizes the pool of potential offerors, it may limit opportunities for small businesses to secure prime contracts of this size and duration. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but are a common practice in larger federal IT contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. The contract's performance will be monitored against the terms and conditions, including deliverables and service levels. As a Time and Materials contract, rigorous oversight of labor hours and rates is essential to control costs. Transparency is facilitated by the contract being publicly awarded, and any Inspector General involvement would depend on specific performance issues or allegations of fraud, waste, or abuse.

Related Government Programs

Custom Computer Programming Services
IT Services
Blanket Purchase Agreements (BPAs)
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for strong contract oversight to manage performance and costs.
Limited visibility into specific competition details for the BPA Call.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $2.6 million to ASCELLA TECHNOLOGIES, INC.. QUANTITATIVE ANALYSIS SUPPORT

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 $2.6 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-05-10.

What is the track record of Ascella Technologies, Inc. with federal contracts, particularly with the SEC?

Ascella Technologies, Inc. has a history of performing federal contracts. While the provided data indicates this specific contract with the SEC, a comprehensive review would involve examining their past performance ratings, contract history across various agencies, and any reported issues or successes. For instance, checking the Federal Procurement Data System (FPDS) or similar databases would reveal the number and value of previous awards, the types of services rendered, and client agencies. Understanding their performance on prior IT services contracts, especially those involving custom programming and similar contract types (like Time and Materials), would provide insight into their reliability and capability to meet the SEC's needs.

How does the annual value of this contract compare to typical IT services contracts awarded by the SEC?

The annual value of this contract is approximately $548,000 ($2.58M / 4.7 years). To benchmark this, one would need to analyze historical SEC IT spending data. This involves identifying similar contracts for custom computer programming or related IT services awarded by the SEC in recent years. Key comparison points would include the contract type (e.g., T&M vs. Firm-Fixed-Price), the specific services required, and the duration. If the SEC typically awards larger, multi-year contracts for similar programming needs, this contract might represent a smaller, more focused effort. Conversely, if this value is significantly higher than comparable contracts, it could indicate a premium for specialized services or less competitive pricing.

What are the primary risks associated with a Time and Materials (T&M) contract for custom programming services?

The primary risk with Time and Materials (T&M) contracts, especially for custom programming, is the potential for cost escalation and lack of defined scope leading to "scope creep." Unlike fixed-price contracts, T&M agreements pay the contractor for the actual labor hours and materials used. This can incentivize longer project durations or less efficient work if not managed stringently. For the government, this means less predictability in final costs. Effective risk mitigation requires robust oversight, detailed tracking of hours and expenses, clear definition of tasks, and strong communication channels to manage any changes in requirements promptly and negotiate fair adjustments.

How effective is the BPA Call mechanism in ensuring competitive pricing for IT services?

The Blanket Purchase Agreement (BPA) Call mechanism is generally effective in ensuring competitive pricing, provided the underlying BPA was established through robust competition. A BPA is a simplified way to fill anticipated repetitive needs for supplies or services. When a BPA is created, it's typically competed among multiple vendors. Subsequent "calls" or orders against that BPA can then be placed, often with pre-negotiated pricing or through a mini-competition among the BPA holders. This process streamlines procurement while still leveraging competition. The effectiveness hinges on the initial BPA competition and the terms negotiated within it, as well as whether subsequent calls involve further price comparisons or are simply placed with a single BPA holder based on established terms.

What are the implications of this contract not being a small business set-aside for the broader small business IT ecosystem?

When a federal contract is not set aside for small businesses, it opens the competition to all eligible firms, including large businesses. This can mean that large companies are more likely to win these prime contracts, potentially reducing the direct opportunities for small businesses to secure prime contract awards of this size and scope. While large prime contractors often engage small businesses as subcontractors, the primary benefit of a large prime contract award goes to the larger entity. For the small business IT ecosystem, this means that opportunities might be more concentrated in subcontracting roles rather than direct prime contract revenue, which can impact their growth and ability to build a direct federal client base.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310221Q0074

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ascella Technologies Inc.

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

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

Financial Breakdown

Contract Ceiling: $2,576,749

Exercised Options: $2,576,749

Current Obligation: $2,576,749

Actual Outlays: $2,408,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SECHQ117A0008

IDV Type: BPA

Timeline