SEC Awards $3.35M Cisco Maintenance Contract to Netsync, Ensuring IT Infrastructure Continuity

Contract Overview

Contract Amount: $3,352,219 ($3.4M)

Contractor: Netsync Network Solutions, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2024-01-19

End Date: 2027-01-22

Contract Duration: 1,099 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: CISCO SW & HW MAINTENANCE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77027

State: Texas Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $3.4 million to NETSYNC NETWORK SOLUTIONS, INC. for work described as: CISCO SW & HW MAINTENANCE Key points: 1. Contract value of $3.35M over approximately 3 years. 2. Netsync Network Solutions, Inc. is the awardee. 3. The contract aims to maintain critical Cisco hardware and software. 4. Competition method indicates a preference for open bidding after initial exclusions.

Value Assessment

Rating: good

The contract value appears reasonable for comprehensive Cisco maintenance services. Benchmarking against similar multi-year support contracts for enterprise-level IT infrastructure suggests this pricing is competitive, especially considering the inclusion of economic price adjustments.

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,' suggesting a competitive process was initiated. This method aims to ensure fair market pricing by allowing multiple vendors to bid, though the initial exclusion might warrant further scrutiny.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure essential IT services at a fair market price, ensuring the SEC's operational efficiency.

Public Impact

Ensures uninterrupted operation of critical IT systems for the Securities and Exchange Commission. Supports the agency's mission by providing reliable access to essential Cisco technologies. Maintains cybersecurity posture through up-to-date software and hardware support. Provides a predictable cost structure for IT maintenance with economic price adjustments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause.
Reliance on a single vendor for critical Cisco maintenance.

Positive Signals

Secures essential IT services for a key government agency.
Utilizes a competitive bidding process to ensure value.
Long-term contract provides stability for IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on hardware and software maintenance for networking equipment. Spending benchmarks for similar government IT maintenance contracts vary widely based on scope and vendor, but this award appears aligned with typical values for comprehensive support.

Small Business Impact

The contract was awarded to Netsync Network Solutions, Inc., a large business. There is no explicit indication of small business participation in this specific award, suggesting opportunities for subcontracting may not have been prioritized or met.

Oversight & Accountability

The contract is managed by the Securities and Exchange Commission (SEC) itself. Oversight would involve monitoring vendor performance, adherence to contract terms, and managing the economic price adjustment clause to ensure continued value for taxpayer dollars.

Related Government Programs

Other Computer Related Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Potential for price escalation due to EPA.
Dependence on a single vendor for critical IT support.
Need to verify specific Cisco products covered.
Limited visibility into small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $3.4 million to NETSYNC NETWORK SOLUTIONS, INC.. CISCO SW & HW MAINTENANCE

Who is the contractor on this award?

The obligated recipient is NETSYNC NETWORK SOLUTIONS, 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 $3.4 million.

What is the period of performance?

Start: 2024-01-19. End: 2027-01-22.

What specific Cisco products and services are covered under this maintenance contract, and how do they align with the SEC's current IT infrastructure needs?

The contract covers maintenance for Cisco software and hardware. A detailed inventory of covered assets and service level agreements (SLAs) would clarify the specific products and services. This information is crucial to assess if the contract directly addresses the SEC's evolving IT infrastructure requirements and supports its mission-critical functions effectively.

What is the historical performance of Netsync Network Solutions, Inc. in fulfilling similar government contracts, particularly regarding service delivery and cost management?

Assessing Netsync's past performance is vital. Reviewing their track record on previous government contracts, including client feedback, on-time delivery rates, and adherence to budget, would provide insight into their reliability. This helps mitigate risks associated with service disruptions or cost overruns, ensuring the SEC receives the expected value.

How will the economic price adjustment (EPA) clause be monitored and controlled to prevent excessive cost increases over the contract's duration?

The EPA clause allows for price adjustments based on economic factors. Effective oversight requires a clear methodology for calculating these adjustments, tied to specific indices or benchmarks. The SEC must actively monitor these calculations and have the authority to question or negotiate adjustments that appear excessive, safeguarding taxpayer funds.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310223Q0157

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2500 W LOOP S STE 410, HOUSTON, TX, 77027

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,950,667

Exercised Options: $3,352,219

Current Obligation: $3,352,219

Actual Outlays: $3,352,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC76B

IDV Type: GWAC

Timeline