SEC awards $19M contract for security-based swaps data analytics to ITS Agile, LLC

Contract Overview

Contract Amount: $19,004,199 ($19.0M)

Contractor: ITS Agile, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-09-29

End Date: 2025-09-29

Contract Duration: 1,461 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SECURITY-BASED SWAPS (SBS) DATA ANALYTICS AND REPORTING

Place of Performance

Location: ELLICOTT CITY, HOWARD County, MARYLAND, 21043

State: Maryland Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $19.0 million to ITS AGILE, LLC for work described as: SECURITY-BASED SWAPS (SBS) DATA ANALYTICS AND REPORTING Key points: 1. Contract focuses on critical data analytics for financial markets. 2. ITS Agile, LLC, a single awardee, will provide services over three years. 3. The contract type is Time and Materials, which can pose cost control risks. 4. Performance is concentrated in Maryland. 5. This award is part of the agency's broader IT modernization efforts.

Value Assessment

Rating: fair

The contract value of $19 million over three years for data analytics services appears within a reasonable range for specialized IT support. However, the Time and Materials pricing structure warrants close monitoring to ensure costs do not escalate beyond initial projections. Benchmarking against similar data analytics contracts within the federal government would provide a clearer picture of value for money, but specific comparable data is not readily available.

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 initially broad, specific sources may have been excluded later in the process. The number of bidders is not specified, but the designation suggests a competitive process was intended. The effectiveness of this competition in driving down price and ensuring the best value is difficult to assess without knowing the number of actual proposals received.

Taxpayer Impact: The competitive nature of the award, even with potential exclusions, aims to secure a fair market price for taxpayers. However, the specifics of the exclusion could impact the final price achieved.

Public Impact

The Securities and Exchange Commission (SEC) benefits from enhanced data analytics capabilities. Services delivered will support the monitoring and analysis of security-based swaps. The primary geographic impact is within Maryland, where the contractor will perform services. The contract supports IT professionals and data analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
The 'After Exclusion of Sources' clause requires scrutiny to ensure fair competition was maintained.

Positive Signals

The contract addresses a critical need for data analytics in financial market oversight.
The three-year duration allows for sustained support and development of expertise.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically focusing on data analytics and reporting for financial markets. The market for such specialized services is competitive, with numerous firms offering expertise in data science, cybersecurity, and regulatory compliance. The SEC's spending in this area is crucial for maintaining market integrity and investor protection, aligning with government-wide efforts to leverage technology for regulatory functions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. As this was a full and open competition, the primary focus was likely on large business capabilities. Further analysis would be needed to determine if small businesses had opportunities to participate either directly or indirectly.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the SEC, responsible for monitoring performance and expenditures. The contract's performance metrics and reporting requirements will serve as key accountability measures. Transparency is facilitated through public contract databases, though detailed performance reports are typically internal.

Related Government Programs

Financial Market Data Analysis
Regulatory Technology Services
IT Professional Services
Data Analytics and Reporting

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for clear performance metrics and oversight for data analytics services.
Scrutiny of 'Exclusion of Sources' clause to ensure fair competition.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $19.0 million to ITS AGILE, LLC. SECURITY-BASED SWAPS (SBS) DATA ANALYTICS AND REPORTING

Who is the contractor on this award?

The obligated recipient is ITS AGILE, 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 $19.0 million.

What is the period of performance?

Start: 2021-09-29. End: 2025-09-29.

What is the track record of ITS Agile, LLC with the SEC or similar agencies?

A review of federal procurement data indicates that ITS Agile, LLC has received multiple federal contracts, primarily with the Securities and Exchange Commission (SEC). These contracts often involve IT services, including data analytics, software development, and system design. While specific performance details for each contract are not publicly detailed, the consistent award of contracts suggests a satisfactory performance history with the agency. Further investigation into past performance evaluations and any reported issues would be necessary for a comprehensive assessment of their track record.

How does the $19 million contract value compare to similar data analytics contracts awarded by the SEC?

Comparing the $19 million value for three years of data analytics services requires context. The SEC procures a range of IT and data-related services, with contract values varying significantly based on scope, duration, and complexity. Contracts for specialized data analytics, particularly those involving sensitive financial market data and regulatory compliance, can command substantial funding. Without specific details on the exact deliverables and the competitive landscape for this particular service, a direct comparison is challenging. However, $19 million over three years for dedicated analytics support is not unusual for a federal agency like the SEC, which relies heavily on data for its mission.

What are the primary risks associated with a Time and Materials (T&M) contract for data analytics?

The primary risk with a Time and Materials (T&M) contract, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure provides flexibility but offers less incentive for the contractor to control costs efficiently. For the government, it necessitates robust oversight to ensure that hours billed are reasonable and necessary, and that material costs are fair. Scope creep can also be a significant issue, as changes or additions to the work can directly increase costs without a formal change order process, making diligent monitoring by the government crucial.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad competition with specific agency needs. Initially, the solicitation is open to all responsible sources. However, the agency reserves the right to exclude certain sources based on predefined criteria, which could relate to security, capability, or specific program requirements. While this approach can ensure that the selected contractor meets stringent requirements, the exclusion of potential bidders might limit the overall competitive pressure, potentially impacting price discovery and the ultimate value for taxpayers. The effectiveness hinges on whether the exclusions were justified and if sufficient competition remained.

What is the historical spending trend for data analytics services at the SEC?

Analyzing historical spending trends for data analytics at the SEC requires access to detailed procurement data over several fiscal years. Generally, federal agencies, including the SEC, have seen increasing investment in data analytics capabilities to support their missions. This trend is driven by the growing volume of data, the need for advanced insights, and the push for digital transformation. The SEC, in particular, deals with vast amounts of financial data, making robust analytics essential for market surveillance, enforcement, and policy-making. Therefore, it is plausible that spending in this area has been consistent or growing, reflecting the agency's reliance on data-driven decision-making.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8013 HIGH CASTLE RD, ELLICOTT CITY, MD, 21043

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,004,199

Exercised Options: $19,004,199

Current Obligation: $19,004,199

Actual Outlays: $19,004,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310220D0014

IDV Type: IDC

Timeline