CFTC awards $13.9M contract for market systems development to Dev Technology Group Inc

Contract Overview

Contract Amount: $13,879,846 ($13.9M)

Contractor: DEV Technology Group Inc

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2022-05-23

End Date: 2026-12-22

Contract Duration: 1,674 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MARKET & FINANCIAL SYSTEMS APPLICATION DEVELOPMENT AND OPERATIONS & MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20581

State: District of Columbia Government Spending

Plain-Language Summary

Commodity Futures Trading Commission obligated $13.9 million to DEV TECHNOLOGY GROUP INC for work described as: MARKET & FINANCIAL SYSTEMS APPLICATION DEVELOPMENT AND OPERATIONS & MAINTENANCE Key points: 1. Contract focuses on critical market data systems, indicating a need for specialized IT expertise. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of over 3 years allows for sustained development and operational support. 4. Awarded as a delivery order, this likely represents a specific task within a larger framework. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract's value is moderate within the context of large-scale federal IT procurements.

Value Assessment

Rating: good

The contract value of $13.9 million over approximately 3.5 years appears reasonable for custom application development and operations. Benchmarking against similar federal IT contracts for custom computer programming services suggests this falls within a typical range for projects of this scope and duration. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple vendors to offer their best pricing and technical solutions. The presence of 4 bidders (implied by 'no': 4) suggests a healthy level of interest and competition for this requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the most advantageous offers available.

Public Impact

The Commodity Futures Trading Commission (CFTC) benefits from enhanced and maintained market data systems. Services delivered include application development and ongoing operations and maintenance for critical financial infrastructure. The geographic impact is primarily within the District of Columbia, where the CFTC is headquartered. The contract supports a workforce of IT professionals specializing in software development and system operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical market systems could pose a risk if performance issues arise.
Ensuring continued innovation and adaptation to evolving market technologies may require proactive contract management.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
The contract duration allows for stability and continuity in supporting essential CFTC systems.
The focus on application development and O&M addresses core operational needs for market oversight.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on custom software development and IT services. The market for such services is large and competitive, with numerous firms offering expertise in application development, maintenance, and operations. Federal spending in this area is substantial, driven by the need to modernize legacy systems, develop new capabilities, and ensure the security and reliability of IT infrastructure supporting government functions. Comparable spending benchmarks would typically be assessed against other federal contracts for custom computer programming services.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, Dev Technology Group Inc., may engage small businesses as subcontractors, which would then contribute to the small business economy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Commodity Futures Trading Commission. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Application Development
Custom Computer Programming Services
IT Operations and Maintenance Contracts
Commodity Futures Trading Commission IT Spending

Risk Flags

Potential for vendor lock-in if systems become highly specialized.
Reliance on contractor for critical financial infrastructure requires strong performance monitoring.
Cybersecurity risks inherent in managing sensitive market data.

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $13.9 million to DEV TECHNOLOGY GROUP INC. MARKET & FINANCIAL SYSTEMS APPLICATION DEVELOPMENT AND OPERATIONS & MAINTENANCE

Who is the contractor on this award?

The obligated recipient is DEV TECHNOLOGY GROUP INC.

Which agency awarded this contract?

Awarding agency: Commodity Futures Trading Commission (Commodity Futures Trading Commission).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2022-05-23. End: 2026-12-22.

What is the track record of Dev Technology Group Inc. with federal contracts, particularly in IT application development and O&M?

Dev Technology Group Inc. has a history of performing federal IT contracts. A review of federal procurement data would reveal their past performance, including contract values, agencies served, and types of services rendered. For this specific contract, their ability to successfully deliver on market systems development and operations & maintenance will be crucial. Past performance on similar projects, client satisfaction, and adherence to schedules and budgets are key indicators of their capability. Examining their portfolio for experience with financial market systems or similar complex IT environments would provide further insight into their suitability for this role.

How does the $13.9 million contract value compare to similar federal IT application development contracts?

The $13.9 million contract value for custom computer programming services over approximately 3.5 years is within a moderate range for federal IT procurements. Larger, more complex system overhauls or agency-wide IT infrastructure projects can easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused development tasks or short-term support contracts would be significantly less. This contract's value suggests a substantial project, likely involving significant development effort and ongoing operational support for critical systems, but not at the scale of enterprise-wide transformations. Benchmarking against contracts with similar NAICS codes (541511) and durations would provide a more precise comparison.

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

Key risks include potential technical challenges in developing and maintaining complex market systems, the possibility of cost overruns if not managed tightly, and schedule delays impacting critical CFTC operations. Mitigation strategies likely involve robust project management, clearly defined performance metrics and service level agreements (SLAs), regular progress reviews, and contingency planning. The use of a delivery order under a potentially larger contract vehicle might also imply pre-negotiated terms and oversight that help manage risks. Furthermore, the competitive award process itself helps mitigate risks by selecting a contractor with a demonstrated capability.

How effective is the full and open competition process in ensuring value for money for this specific contract?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all eligible sources to bid, it maximizes the potential for competitive pricing and encourages innovation. For this $13.9 million contract, the fact that it was competed openly and attracted 4 bidders suggests that the market had sufficient interest and capability. This competitive pressure should drive Dev Technology Group Inc. to offer efficient solutions and maintain high performance standards to justify their pricing and retain the contract. The ultimate measure of value will be the successful delivery of reliable and effective market systems.

What is the historical spending pattern for similar IT application development and O&M services at the CFTC?

Analyzing historical spending patterns at the CFTC for IT application development and O&M services would provide context for this $13.9 million award. This would involve examining past contracts awarded under NAICS code 541511 and similar service categories. Understanding whether this award represents an increase, decrease, or stable level of investment in these areas is important. It would also reveal the typical duration and value of such contracts at the agency, and whether the CFTC frequently uses full and open competition or other methods like sole-source awards for these services. Such analysis helps in assessing the current contract's alignment with the agency's long-term IT strategy and budget.

Industry Classification

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

Solicitation ID: 9523ZY22Q0010

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11440 COMMERCE PARK DRIVE, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,204,918

Exercised Options: $13,879,846

Current Obligation: $13,879,846

Actual Outlays: $10,693,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00JT

IDV Type: FSS

Timeline