Regency Consulting Inc. secures $1.3M IT services contract from CFTC for computer-related support

Contract Overview

Contract Amount: $130,584 ($130.6K)

Contractor: Regency Consulting Inc

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2025-04-13

End Date: 2027-04-12

Contract Duration: 729 days

Daily Burn Rate: $179/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOLARWINDS RENEWAL

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 $130,583.88 to REGENCY CONSULTING INC for work described as: SOLARWINDS RENEWAL Key points: 1. Contract awarded for IT services, specifically 'Other Computer Related Services', indicating a need for specialized technical support. 2. The contract duration of 729 days suggests a medium-term engagement for ongoing IT needs. 3. Awarded under 'Full and Open Competition After Exclusion of Sources', this implies a competitive process with specific justifications for excluding other potential bidders. 4. The firm fixed-price contract type helps manage cost certainty for the agency. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The Commodity Futures Trading Commission (CFTC) is the contracting and funding agency, highlighting its reliance on external IT expertise.

Value Assessment

Rating: fair

Benchmarking the value of this $1.3 million contract for 'Other Computer Related Services' is challenging without specific service details or comparable contract data. However, the firm fixed-price structure suggests an attempt to control costs. The duration of nearly two years indicates a significant investment. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This designation suggests that while the competition was intended to be open, specific circumstances led to the exclusion of certain sources. The exact reasons for exclusion are not detailed here but typically involve unique capabilities, prior performance, or specific technical requirements that only a limited number of vendors could meet. This approach can sometimes limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: While a competitive process was employed, the exclusion of sources may mean taxpayers did not benefit from the widest possible range of bids, potentially leading to a higher price than if all qualified vendors had been allowed to compete.

Public Impact

The Commodity Futures Trading Commission (CFTC) benefits from specialized IT support to maintain its operational infrastructure. Services delivered likely include IT system maintenance, troubleshooting, and potentially project-specific technical assistance. The geographic impact is centered in the District of Columbia, where the CFTC is headquartered. The contract supports the agency's mission to regulate derivatives markets, ensuring the stability and integrity of these financial systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service descriptions makes it difficult to assess the true value for money.
The 'exclusion of sources' clause warrants further investigation into the justification and its impact on competition.
Potential for vendor lock-in if the services are highly specialized and critical to ongoing operations.

Positive Signals

Firm fixed-price contract provides cost predictability for the agency.
Awarded by a regulatory body (CFTC) suggests a need for reliable and compliant IT services.
The contract is a delivery order, implying it leverages an existing, potentially pre-vetted, contract vehicle.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of specializations. 'Other Computer Related Services' (NAICS 541519) covers a broad spectrum of IT support, from system integration to technical consulting. The market size for such services globally runs into hundreds of billions of dollars annually. This contract fits within the government's ongoing need for specialized IT support to manage complex digital infrastructures and ensure cybersecurity.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of IT services and the potential for specialized requirements, it's possible that larger, established firms are more likely to bid or be considered. Further review of the contract details and any associated subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Commodity Futures Trading Commission's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by public contract databases, though detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

IT Professional Services
Computer Systems Design and Related Services
IT Support Services
Commodity Futures Trading Commission IT Procurement

Risk Flags

Competition Level: 'Full and Open Competition After Exclusion of Sources' requires scrutiny.
Service Specificity: Lack of detailed service description hinders value assessment.
Contract Duration: Nearly two-year term necessitates careful performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $130,583.88 to REGENCY CONSULTING INC. SOLARWINDS RENEWAL

Who is the contractor on this award?

The obligated recipient is REGENCY CONSULTING 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 $130,583.88.

What is the period of performance?

Start: 2025-04-13. End: 2027-04-12.

What specific 'Other Computer Related Services' are being provided under this contract?

The provided data abbreviates the service category as 'Other Computer Related Services' (NAICS 541519). This broad classification typically encompasses a range of IT support activities beyond standard software development or hardware maintenance. Examples could include IT strategy consulting, system integration services, network design and implementation, IT project management, cybersecurity consulting, or specialized technical support for unique software or hardware systems. Without a more detailed statement of work (SOW) or contract line item numbers (CLINs), the precise nature of the services remains unspecified. However, given the agency (CFTC), it likely relates to maintaining and enhancing their IT infrastructure to support financial market regulation.

How does the $1.3 million price compare to similar IT services contracts awarded by the CFTC or other federal agencies?

Benchmarking the $1.3 million price requires comparing it against contracts for similar 'Other Computer Related Services' with comparable durations and scopes. The CFTC's IT spending history would be a relevant comparison point. Generally, federal agencies procure IT services through various contract vehicles, including IDIQs, GSA schedules, and full and open competitions. The price per year for this contract is approximately $650,000. Without specific details on the services rendered, it's difficult to definitively state if this is high or low. However, for specialized IT support requiring skilled personnel, this figure falls within a plausible range for a two-year engagement, especially if it involves critical infrastructure or specialized expertise.

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

Key risks for the CFTC include potential vendor performance issues, where Regency Consulting Inc. might fail to deliver services meeting the required quality standards or timelines. Given the 'exclusion of sources' in the competition, there's a risk that the agency may not have accessed the most cost-effective solutions available in the market. Another risk is the potential for scope creep, where the services required expand beyond the initial agreement, leading to cost overruns if not managed properly, although the firm fixed-price nature mitigates this to some extent. Finally, reliance on a single contractor for critical IT functions can create operational vulnerabilities if the contractor faces financial instability or decides to cease operations.

What is the historical spending pattern for 'Other Computer Related Services' at the CFTC?

Analyzing historical spending patterns for 'Other Computer Related Services' at the CFTC would involve reviewing past contract awards within the NAICS code 541519. This would reveal the frequency of such procurements, the typical contract values, the duration of these engagements, and the contractors most frequently awarded these types of services. Understanding this history can help identify trends, assess whether spending is increasing or decreasing, and determine if the current $1.3 million contract aligns with past investment levels. It could also highlight if the CFTC relies heavily on external vendors for these services or if there's a mix with internal capabilities.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the contractor selection process?

This designation implies that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit an offer. However, specific circumstances led to the exclusion of certain sources before the final award. This exclusion typically requires justification, such as when only one or a few sources possess the unique capability or technology required, or when prior performance on related contracts makes them the only viable option. It suggests a deliberate decision was made to limit the pool of potential bidders, possibly due to specialized needs or existing relationships, which could impact the level of competition achieved and potentially the final price compared to a truly unrestricted competition.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 508 PIERCE ST, SIOUX CITY, IA, 51101

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $289,153

Exercised Options: $130,584

Current Obligation: $130,584

Actual Outlays: $61,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD07B

IDV Type: GWAC

Timeline