CFTC awards $6.2M for portal development, with Sawyer Consulting LLC to provide support over 3 years

Contract Overview

Contract Amount: $6,238,742 ($6.2M)

Contractor: Sawyer Consulting LLC

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2023-03-11

End Date: 2026-03-10

Contract Duration: 1,095 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PORTAL DEVELOPMENT SUPPORT

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 $6.2 million to SAWYER CONSULTING LLC for work described as: PORTAL DEVELOPMENT SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a common need for federal agencies. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of 1095 days (3 years) indicates a need for sustained support. 5. The award amount of $6.2M falls within a moderate spending range for IT services. 6. The agency is the Commodity Futures Trading Commission, responsible for regulating derivatives markets.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty for the agency. Benchmarking against similar portal development contracts would require more detailed service descriptions. However, the per-unit cost, if calculable, would be a key metric for assessing value. The award amount appears reasonable for a three-year IT support contract of this nature, assuming the scope of work is well-defined and aligns with market rates for similar 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 a bid. The presence of 2 bids suggests a moderate level of competition for this specific requirement. While more bidders would typically lead to better price discovery, the fact that it was competed openly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible offer through an open process, rather than potentially overpaying through a non-competitive award.

Public Impact

The Commodity Futures Trading Commission (CFTC) will benefit from enhanced portal development and support. Services delivered include computer systems design, crucial for maintaining and improving agency digital infrastructure. The geographic impact is primarily within the District of Columbia, where the CFTC is headquartered. The contract supports the agency's mission to regulate derivatives markets, indirectly benefiting market participants and the broader financial system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical portal development could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps control costs and provides budget predictability.
Contract duration of three years allows for stable, long-term support.

Sector Analysis

The IT services sector is a significant area of federal spending, with agencies constantly seeking to modernize their systems and improve digital service delivery. This contract for portal development support falls within the broader category of IT consulting and systems integration. Comparable spending benchmarks for similar portal development projects can vary widely based on complexity, but agencies often allocate millions for such initiatives over multi-year periods to ensure robust and secure online platforms.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Sawyer Consulting LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to the oversight of the Commodity Futures Trading Commission. As a firm fixed-price contract, financial oversight will focus on adherence to the agreed-upon price and delivery schedule. Transparency is facilitated by the public nature of contract awards. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal IT Modernization Programs
Agency Website and Portal Development
Computer Systems Design Services Contracts

Risk Flags

Limited competition (2 bids)
Potential for scope creep
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $6.2 million to SAWYER CONSULTING LLC. PORTAL DEVELOPMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is SAWYER CONSULTING LLC.

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 $6.2 million.

What is the period of performance?

Start: 2023-03-11. End: 2026-03-10.

What is the track record of Sawyer Consulting LLC in performing similar federal IT contracts?

A review of federal contract databases would be necessary to fully assess Sawyer Consulting LLC's track record. Key indicators to examine include past performance ratings on similar contracts, any history of contract disputes or terminations, and the types and values of previous awards. Understanding their experience with portal development, specifically for regulatory agencies, would provide further insight into their capability to meet the CFTC's needs. Without specific past performance data, it is difficult to definitively assess their reliability for this particular contract.

How does the $6.2M award compare to the typical cost of similar portal development contracts?

The $6.2 million award for three years of portal development support is a moderate figure within the federal IT landscape. To benchmark effectively, one would need to compare it against contracts with similar scope, complexity, and duration. Factors such as the number of users, required functionalities, integration with other systems, and security requirements significantly influence cost. If this contract involves standard portal features and a reasonable user base, the price may be competitive. However, a detailed analysis of the Statement of Work (SOW) against industry standards for similar services is crucial for a definitive value assessment.

What are the primary risks associated with this contract for the CFTC?

The primary risks for the CFTC in this contract include potential vendor lock-in if Sawyer Consulting LLC becomes indispensable for portal maintenance and development, leading to reduced leverage in future negotiations. Another risk is the possibility of the contractor failing to deliver on time or meet performance standards, which could disrupt agency operations. Furthermore, if the scope of work is not meticulously managed, there's a risk of cost overruns, despite the firm fixed-price structure, through change orders or scope creep. Cybersecurity vulnerabilities introduced or not adequately addressed during development also represent a significant risk.

How effective is the firm fixed-price contract type in managing costs for this portal development project?

The firm fixed-price (FFP) contract type is generally effective in managing costs for projects with well-defined scopes, such as portal development, as it shifts the risk of cost overruns to the contractor. This structure incentivizes the contractor to perform efficiently to maximize profit. For the CFTC, this means greater budget certainty, as the total cost is established upfront. However, the effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). Ambiguities or unforeseen complexities could lead to change requests, potentially increasing the overall cost, though the FFP structure aims to minimize this.

What is the historical spending pattern of the CFTC on IT services, and how does this contract fit?

Analyzing the CFTC's historical spending on IT services would reveal trends in their investment in technology infrastructure, software development, and support. This $6.2 million contract for portal development appears to be a significant, but not necessarily outlier, investment in maintaining and enhancing their digital presence and operational capabilities. Understanding if this aligns with previous multi-year IT procurements or represents a new strategic focus would provide context. If the CFTC has consistently invested in similar services, this contract fits a pattern; if it's a departure, it might signal a shift in priorities or a response to specific needs.

What are the implications of awarding this contract under 'full and open competition' with only two bids received?

Awarding under 'full and open competition' signifies that the CFTC made efforts to solicit bids from all interested and capable vendors. Receiving only two bids, however, suggests that the market for this specific service might be limited, or that the solicitation process did not attract a wider range of competitors. While competition is present, a lower number of bidders could potentially reduce the downward pressure on pricing compared to a scenario with numerous offers. The CFTC should analyze why only two bids were received to ensure the solicitation was adequately publicized and the requirements were not overly restrictive.

Industry Classification

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24 ETON OVERLOOK, ROCKVILLE, MD, 20850

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,972,060

Exercised Options: $8,529,581

Current Obligation: $6,238,742

Actual Outlays: $4,472,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F398GA

IDV Type: FSS

Timeline