CFTC awards $10.3M follow-on contract for enterprise software development to DEV TECHNOLOGY GROUP INC

Contract Overview

Contract Amount: $10,343,863 ($10.3M)

Contractor: DEV Technology Group Inc

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2022-08-29

End Date: 2026-12-28

Contract Duration: 1,582 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SOFTWARE DEVELOPMENT, INTEGRATION, AND OPERATIONS FOLLOW-ON PROCUREMENT

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 $10.3 million to DEV TECHNOLOGY GROUP INC for work described as: ENTERPRISE SOFTWARE DEVELOPMENT, INTEGRATION, AND OPERATIONS FOLLOW-ON PROCUREMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Fixed-price contract type aims to control costs and provide predictability. 4. The duration of the contract is over 4 years, indicating a long-term need for these services. 5. The agency is the Commodity Futures Trading Commission (CFTC), a key regulator in financial markets. 6. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.

Value Assessment

Rating: good

The contract value of $10.3 million over approximately 4 years suggests a moderate investment in enterprise software. Benchmarking against similar custom computer programming services contracts would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

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. The presence of 4 bids (implied by 'no': 4) suggests a reasonable level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair market price and prevent overspending on essential IT services.

Public Impact

The Commodity Futures Trading Commission (CFTC) is the primary beneficiary, receiving enterprise software development, integration, and operations support. This contract ensures the continued functionality and potential enhancement of critical IT systems supporting the CFTC's regulatory mission. The services delivered are essential for maintaining the operational integrity of the agency's software infrastructure. The contract's impact is primarily within the District of Columbia, where the CFTC is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term software development contracts if not managed rigorously.
Reliance on a single contractor for critical enterprise software operations could pose a risk if performance degrades.
The follow-on nature of the procurement might limit the introduction of new technologies or approaches if the incumbent's solutions are deeply embedded.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty for the agency.
The contract duration of over 4 years suggests a stable and predictable need for these services.
The contractor, DEV TECHNOLOGY GROUP INC, has secured this follow-on work, implying satisfactory past performance.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for enterprise software development and integration is substantial, driven by government agencies' needs for modern, secure, and efficient IT systems. The CFTC's spending aligns with broader government trends towards digital transformation and maintaining robust cybersecurity postures. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded to similar-sized agencies for custom software development.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to DEV TECHNOLOGY GROUP INC, without further context on their size, suggests it may not have been a small business set-aside. Further analysis would be needed to determine the extent of small business participation, if any, through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Commodity Futures Trading Commission. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Custom Computer Programming Services
IT Services
Enterprise Software Development
Government IT Modernization

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Contractor performance degradation
Limited innovation due to follow-on nature

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $10.3 million to DEV TECHNOLOGY GROUP INC. ENTERPRISE SOFTWARE DEVELOPMENT, INTEGRATION, AND OPERATIONS FOLLOW-ON PROCUREMENT

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 $10.3 million.

What is the period of performance?

Start: 2022-08-29. End: 2026-12-28.

What is DEV TECHNOLOGY GROUP INC's track record with the CFTC and other federal agencies?

DEV TECHNOLOGY GROUP INC has a history of securing contracts with federal agencies, including the CFTC. This specific contract is a follow-on procurement, suggesting a prior relationship and likely satisfactory performance on previous work. Analyzing their contract history across federal databases would reveal the types of services they provide, their past performance ratings (if available), and the total value of contracts awarded to them. A deeper dive into their performance on prior CFTC contracts would be crucial to understanding their reliability and expertise in delivering enterprise software development, integration, and operations.

How does the $10.3 million contract value compare to similar custom computer programming services contracts?

The $10.3 million contract value over approximately 4 years represents a moderate investment for enterprise software development and operations. To benchmark this value, one would compare it against similar contracts awarded by agencies of comparable size and mission to the CFTC, specifically for NAICS code 541511 (Custom Computer Programming Services). Factors such as contract duration, scope of work complexity, and the specific technologies involved would need to be considered. Without access to a comprehensive database of comparable contracts and their specific details, it is difficult to definitively state whether this represents excellent, fair, or questionable value for money. However, the competitive award process is a positive indicator.

What are the key risks associated with this follow-on enterprise software contract?

Key risks include potential vendor lock-in, where the agency becomes overly reliant on the incumbent contractor's specific technologies and processes, making future transitions difficult or costly. There's also the risk of scope creep if requirements are not clearly defined and managed, potentially leading to cost overruns despite the fixed-price nature. Performance degradation by the contractor is another risk, impacting the CFTC's critical operations. Finally, if the contract doesn't encourage innovation, the CFTC might miss out on adopting more efficient or secure technologies available in the market.

How effective is the firm fixed-price contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For enterprise software development, integration, and operations, FFP provides cost certainty to the agency, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to be efficient and manage resources effectively. However, if unforeseen technical challenges arise or requirements evolve substantially, the FFP structure might lead to disputes or a reluctance from the contractor to incorporate necessary changes without additional funding, potentially impacting the project's ultimate success or adaptability.

What is the historical spending pattern for enterprise software development at the CFTC?

Analyzing historical spending patterns for enterprise software development at the CFTC would involve examining contract data over several fiscal years. This would reveal trends in contract values, types of services procured (development, integration, maintenance, operations), and the primary contractors utilized. Understanding this history can help determine if the current $10.3 million follow-on contract represents an increase, decrease, or stable level of investment. It can also highlight any shifts in the CFTC's IT strategy or reliance on specific vendors over time. Without specific historical data, it's presumed this follow-on contract reflects an ongoing commitment to maintaining and evolving their enterprise software capabilities.

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: 9523ZY22Q0022

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $12,008,972

Exercised Options: $10,343,863

Current Obligation: $10,343,863

Actual Outlays: $8,027,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00JT

IDV Type: FSS

Timeline