SEC awards $2.7M for data science support to Peregrine Advisors, highlighting a need for specialized IT services

Contract Overview

Contract Amount: $2,724,211 ($2.7M)

Contractor: Peregrine Advisors Benefit Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2024-11-01

End Date: 2026-09-30

Contract Duration: 698 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OCDO DATA SCIENCE, ENGINEERING, USE AND TRAINING SERVICES SUPPORT CALL ORDER

Place of Performance

Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854

State: Maryland Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $2.7 million to PEREGRINE ADVISORS BENEFIT INC. for work described as: OCDO DATA SCIENCE, ENGINEERING, USE AND TRAINING SERVICES SUPPORT CALL ORDER Key points: 1. Contract value of $2.7M over approximately two years suggests a moderate investment in specialized data science capabilities. 2. Full and open competition indicates a healthy market for these services, potentially leading to competitive pricing. 3. The contract type (Time and Materials) carries inherent risk of cost overruns if not closely managed. 4. Performance period of nearly two years allows for sustained support but requires ongoing monitoring. 5. The award falls within the IT sector, specifically supporting data science, engineering, use, and training. 6. Focus on data science and training implies a need for advanced analytical skills and knowledge transfer within the SEC.

Value Assessment

Rating: good

The contract value of $2.7M for approximately two years of data science support appears reasonable given the specialized nature of the services. Benchmarking against similar IT support contracts for federal agencies suggests that pricing for data science expertise can vary significantly. However, without specific details on the scope of work and the labor categories involved, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type, while flexible, necessitates diligent oversight to ensure costs remain aligned with the delivered value and do not escalate beyond initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders (no=4) suggests a competitive environment for these specialized data science services. A competitive process generally benefits the government by fostering price discovery and encouraging vendors to offer their best terms. The SEC's approach to full and open competition for this requirement is a positive indicator of seeking optimal value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces. This process ensures that the government is not overpaying for essential services and that funds are used efficiently.

Public Impact

The Securities and Exchange Commission (SEC) will benefit from enhanced data science capabilities, leading to improved analysis and decision-making. Services delivered include data science, engineering, use, and training, aiming to bolster the SEC's analytical infrastructure. The geographic impact is primarily within the SEC's operational centers, likely in Maryland (st=MD). Workforce implications include potential upskilling of SEC personnel through training and the engagement of specialized external expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type poses a risk of cost escalation if not meticulously managed and monitored.
The specific deliverables and performance metrics are not detailed, making it difficult to assess the contractor's performance objectively.
Reliance on external contractors for core data science functions could create knowledge gaps if not coupled with robust internal training and knowledge transfer.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration of nearly two years allows for sustained support and project continuity.
Focus on training indicates a commitment to building internal capabilities within the SEC.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under the category of professional, scientific, and technical services, specifically focusing on data science and IT support. The market for data science expertise is growing rapidly, driven by increasing data volumes and the need for advanced analytics across all industries, including government. Comparable spending benchmarks for similar IT support contracts within federal agencies often range from hundreds of thousands to millions of dollars, depending on the scope, duration, and specialization required.

Small Business Impact

This contract was not set aside for small businesses (ss=false, sb=false). As a result, large businesses were eligible to compete, and the primary contractor, Peregrine Advisors Benefit Inc., is likely a large business given the contract value. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means the direct impact on the small business ecosystem for this specific award is minimal, and opportunities for small business participation would depend on Peregrine Advisors' own subcontracting decisions.

Oversight & Accountability

Oversight for this contract will be managed by the Securities and Exchange Commission (SEC). As a Time and Materials contract, diligent oversight of labor hours, rates, and the necessity of tasks performed will be crucial to ensure cost control and value for money. The SEC's contracting officers and program managers will be responsible for monitoring performance against the statement of work and ensuring compliance with contract terms. Transparency will be facilitated through standard government reporting mechanisms for contract awards and expenditures.

Related Government Programs

IT Professional Services
Data Science Support
Contracting Vehicles (BPA Call)
Information Technology Management

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Definition Clarity
Performance Measurement Metrics

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $2.7 million to PEREGRINE ADVISORS BENEFIT INC.. OCDO DATA SCIENCE, ENGINEERING, USE AND TRAINING SERVICES SUPPORT CALL ORDER

Who is the contractor on this award?

The obligated recipient is PEREGRINE ADVISORS BENEFIT 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 $2.7 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-09-30.

What is the track record of Peregrine Advisors Benefit Inc. in performing similar data science and IT support services for federal agencies?

Information regarding the specific track record of Peregrine Advisors Benefit Inc. in performing similar data science and IT support services for federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback. Federal procurement systems often contain past performance information that can be accessed by authorized personnel. Without this data, it is difficult to definitively assess their experience and capability in this specialized domain. However, their selection through a full and open competition suggests they met the minimum qualifications and presented a competitive proposal.

How does the awarded amount of $2.7M compare to the typical cost of similar data science support contracts at the SEC or other federal agencies?

The awarded amount of $2.7M for approximately two years of data science, engineering, use, and training support is within a moderate range for specialized IT services in the federal government. The Securities and Exchange Commission (SEC) often procures IT services, and costs can vary widely based on the complexity of the tasks, the level of expertise required, and the contract vehicle used. For instance, contracts for basic IT support might be significantly lower, while those involving advanced cybersecurity or large-scale data analytics could be substantially higher. This contract's value suggests a focused effort on specific data science needs rather than broad IT infrastructure management. Benchmarking against similar 'full and open competition' awards for specialized data science support at agencies of similar size and mission could provide a more precise comparison, but generally, this figure appears reasonable for the described services.

What are the primary risks associated with the Time and Materials (T&M) contract type for this data science support requirement?

The primary risk associated with the Time and Materials (T&M) contract type for this data science support requirement is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. If the scope of work is not clearly defined, or if project management is weak on either the government or contractor side, the hours and materials consumed can exceed initial estimates, leading to a higher final cost than anticipated. This necessitates robust government oversight to ensure that all hours billed are necessary, reasonable, and allocable to the contract's objectives. Without stringent monitoring, the 'value for money' can be compromised as costs escalate.

What specific data science capabilities or services are expected to be delivered under this contract?

The provided data indicates that the contract is for 'OCDO DATA SCIENCE, ENGINEERING, USE AND TRAINING SERVICES SUPPORT CALL ORDER.' This suggests a broad scope encompassing the development and application of data science methodologies, engineering solutions related to data, the practical use of data-driven insights, and training for SEC personnel. Specific services could include data analysis, predictive modeling, machine learning implementation, data visualization, development of data infrastructure, and user training on data tools and techniques. The 'OCDO' likely refers to a specific office or initiative within the SEC that requires these advanced data capabilities to fulfill its mission, such as enhancing regulatory oversight, detecting fraud, or improving market analysis.

How does the competition level (4 bidders) influence the pricing and quality of services obtained by the SEC?

A competition level of four bidders for this contract indicates a moderately competitive environment. With four distinct offers, the SEC likely received a range of pricing and technical approaches, allowing for effective price discovery and the selection of a vendor offering good value. This level of competition generally pressures bidders to offer competitive pricing and demonstrate strong technical capabilities to win the award. It suggests that the market for these specialized data science services is sufficiently robust to attract multiple capable firms. While more bidders could potentially drive prices lower, four offers are typically sufficient to ensure a fair and competitive outcome, mitigating the risk of paying an inflated price due to limited options.

What is the expected duration and impact of this contract on the SEC's data science initiatives?

The contract has an estimated start date of November 1, 2024, and an end date of September 30, 2026, providing a performance period of approximately 23 months (698 days). This duration allows for sustained support and the potential for significant progress on the SEC's data science initiatives. The impact is expected to be positive, enhancing the agency's ability to leverage data for its core mission, whether that involves market surveillance, enforcement, or policy development. The inclusion of 'use and training' suggests a focus on not only developing solutions but also ensuring their adoption and effective utilization by SEC staff, thereby building long-term internal capacity.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10721 BALANTRE LN, POTOMAC, MD, 20854

Business Categories: 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: $6,905,490

Exercised Options: $2,734,211

Current Obligation: $2,724,211

Actual Outlays: $1,707,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 50310223A0013

IDV Type: BPA

Timeline