SEC awards $4.7M for technical support and consulting, with 2 bids received

Contract Overview

Contract Amount: $4,706,955 ($4.7M)

Contractor: Quality Management International Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-05-01

End Date: 2027-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TECHNICAL SUPPORT AND CONSULTING SERVICES FOR FILING FEES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $4.7 million to QUALITY MANAGEMENT INTERNATIONAL INC for work described as: TECHNICAL SUPPORT AND CONSULTING SERVICES FOR FILING FEES Key points: 1. Value for money appears reasonable given the scope of technical support and consulting services. 2. Competition dynamics indicate a moderate level of interest with two bidders. 3. Risk indicators are low, suggesting a standard service contract with predictable outcomes. 4. Performance context is tied to SEC's filing fee operations, a critical function. 5. Sector positioning is within IT services, specifically custom computer programming. 6. The contract duration of 1460 days (4 years) provides stability for service delivery.

Value Assessment

Rating: good

The contract value of $4.7 million over four years suggests an average annual spend of approximately $1.175 million. Benchmarking this against similar IT support and consulting contracts for federal agencies of the SEC's size and complexity indicates this is within a reasonable range. The pricing structure, likely based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the overall contract value seems aligned with industry standards for specialized technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level suggests a moderate interest from the market for these services. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The agency's approach to competition appears sound, but the limited number of responses warrants attention to ensure the solicitation was widely disseminated and attractive.

Taxpayer Impact: The full and open competition, despite receiving only two bids, aims to secure the best value for taxpayers. A competitive process, even with fewer bidders, helps prevent inflated pricing and encourages contractors to offer competitive terms.

Public Impact

The Securities and Exchange Commission (SEC) benefits directly through enhanced technical support for its filing fee systems. Services delivered include crucial technical support and consulting, ensuring the smooth operation of financial filing systems. The geographic impact is primarily national, supporting the SEC's nationwide regulatory functions. Workforce implications are minimal for the government, as the contract outsources specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred to government personnel.
Reliance on a single vendor for critical technical support could pose continuity risks if not managed proactively.
Scope creep could increase costs if not carefully monitored against the defined technical support and consulting tasks.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Contract duration of four years provides service stability and allows for relationship building.
The contract supports a critical function of the SEC, indicating alignment with agency mission.

Sector Analysis

This contract falls within the Information Technology (IT) professional services sector, specifically custom computer programming and technical consulting. The market for such services is large and competitive, with numerous firms capable of providing specialized support to government agencies. The SEC's spending in this area is consistent with the need to maintain and upgrade complex financial systems. Comparable spending benchmarks would typically involve looking at other agencies' IT support contracts, which often range from hundreds of thousands to millions of dollars annually, depending on the scope and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Quality Management International Inc., is likely a large business. There is no explicit mention of subcontracting goals for small businesses within the provided data. This means that opportunities for small businesses to participate in this contract are dependent on the prime contractor's voluntary subcontracting efforts, which may limit their direct involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Securities and Exchange Commission's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
Technical Support Services
Consulting Services
Federal IT Procurement

Risk Flags

Low bidder count for full and open competition
Potential for vendor lock-in
Reliance on external expertise for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $4.7 million to QUALITY MANAGEMENT INTERNATIONAL INC. TECHNICAL SUPPORT AND CONSULTING SERVICES FOR FILING FEES

Who is the contractor on this award?

The obligated recipient is QUALITY MANAGEMENT INTERNATIONAL 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 $4.7 million.

What is the period of performance?

Start: 2023-05-01. End: 2027-04-30.

What is the track record of Quality Management International Inc. with federal contracts, particularly in IT support?

Quality Management International Inc. has a history of securing federal contracts, primarily within the IT and professional services domains. While specific details on their track record for 'technical support and consulting services for filing fees' are not provided in this data snippet, their past performance can be assessed by reviewing their contract history with various federal agencies. This would involve examining contract values, performance ratings, and any reported issues or successes. A deeper dive into their portfolio would reveal their experience with similar systems and regulatory environments, providing insight into their capability to meet the SEC's specific needs. Their ability to consistently win and perform on government contracts suggests a level of established competence and compliance with federal procurement regulations.

How does the $4.7 million contract value compare to similar IT support contracts awarded by the SEC or other financial regulatory bodies?

The $4.7 million contract value over four years, averaging approximately $1.175 million annually, is a moderate figure for specialized IT support and consulting services within a federal agency like the SEC. To benchmark effectively, one would compare this to other contracts for similar services (e.g., custom programming, system maintenance, technical consulting) awarded by the SEC, Treasury, or other financial regulators. Factors such as contract duration, scope of work, number of labor hours, and required skill sets significantly influence pricing. If comparable contracts for similar scope and duration are in the $1 million to $2 million annual range, then this award appears to be in line with market rates. Conversely, if similar contracts are substantially lower or higher, it would warrant further investigation into the specific requirements and market conditions.

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

The primary risks associated with this contract include potential vendor lock-in, where the contractor develops unique expertise that makes it difficult for the government to switch providers. Another risk is service disruption if the contractor fails to meet performance standards or experiences internal issues. Scope creep is also a concern, where the services provided expand beyond the original agreement, leading to cost overruns. Mitigation strategies typically involve clearly defined performance work statements (PWS), robust oversight by government program managers, regular performance reviews, and contract clauses that ensure knowledge transfer and data ownership. The full and open competition process itself helps mitigate risks by selecting a vendor deemed most capable and cost-effective, and the four-year duration allows for a stable but not excessively long-term commitment.

How effective is the 'full and open competition' strategy when only two bids are received for a contract of this size?

The effectiveness of 'full and open competition' when only two bids are received is debatable and depends on several factors. While it ensures that the process is open to all potential bidders, a low number of responses might indicate issues with the solicitation's clarity, reach, or attractiveness to the market. It could also suggest a niche market with few qualified providers. In this case, with two bids, the SEC likely received competitive offers, but the potential for even better pricing or innovative solutions from a larger pool of bidders may have been missed. The agency should analyze why only two bids were submitted to improve future solicitations, perhaps by increasing outreach or refining requirements. However, securing a contract with two competitive bids is generally preferable to a sole-source award.

What are the historical spending patterns for technical support and consulting services at the SEC, and how does this contract fit?

Historical spending patterns for technical support and consulting at the SEC would reveal the agency's ongoing investment in maintaining and upgrading its IT infrastructure and specialized systems. This contract, valued at $4.7 million over four years, represents a consistent, albeit not massive, allocation towards ensuring the operational integrity of its filing fee systems. Analyzing past contracts for similar services would show whether this level of spending is typical, increasing, or decreasing. It helps contextualize the current award within the SEC's broader IT budget and strategic priorities. If the SEC has historically relied on external support for these functions, this contract aligns with that pattern. Conversely, a significant increase or decrease might signal a shift in strategy, such as bringing services in-house or expanding IT operations.

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: 50310222Q0118

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 44081 PIPELINE PLZ STE 115, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $6,165,213

Exercised Options: $4,706,955

Current Obligation: $4,706,955

Actual Outlays: $3,174,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D0050

IDV Type: FSS

Timeline