Interior's Trust System O&M Contract Awarded to SEI Investments for $190.6M Under Full and Open Competition

Contract Overview

Contract Amount: $190,613,784 ($190.6M)

Contractor: S E I Investments Management Corporation

Awarding Agency: Department of the Interior

Start Date: 2008-08-01

End Date: 2019-10-11

Contract Duration: 4,088 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATION AND MAINTENANCE OF THE TRUST FUNDS ACCOUNTING SYSTEM FOR THE OFFICE OF THE SPECIAL TRUSTEE.

Place of Performance

Location: OAKS, MONTGOMERY County, PENNSYLVANIA, 19456

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $190.6 million to S E I INVESTMENTS MANAGEMENT CORPORATION for work described as: OPERATION AND MAINTENANCE OF THE TRUST FUNDS ACCOUNTING SYSTEM FOR THE OFFICE OF THE SPECIAL TRUSTEE. Key points: 1. The contract covers the operation and maintenance of the Trust Funds Accounting System for the Office of the Special Trustee. 2. SEI Investments Management Corporation secured the award, indicating a competitive bidding process. 3. The contract duration is substantial, spanning over 11 years, raising questions about long-term value and potential for cost overruns. 4. The sector appears to be financial services/IT support for government trust management.

Value Assessment

Rating: fair

The contract value of $190.6 million over approximately 11 years suggests a significant investment. Benchmarking against similar IT O&M contracts for specialized government systems is difficult without more granular data on system complexity and user base.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and specialized nature of the system might limit the number of truly competitive bids.

Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers. The long-term nature of the contract warrants scrutiny to ensure continued cost-effectiveness.

Public Impact

Ensures the continuity of critical financial operations for the Office of the Special Trustee. Supports the management of trust funds, impacting beneficiaries of these trusts. The long contract term could lead to vendor lock-in if not managed carefully.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 11 years)
Potential for cost creep over extended period
Specialized system may limit future competition

Positive Signals

Awarded under full and open competition
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT services sector, specifically supporting financial management and accounting systems for a government agency. Benchmarks for similar long-term, specialized government IT O&M contracts are highly variable.

Small Business Impact

The data indicates the awardee is SEI Investments Management Corporation, a large firm. There is no explicit indication of small business participation in this specific contract award.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of the Interior to ensure performance standards are met and costs remain justified. Regular performance reviews and potential for contract modifications should be part of the oversight process.

Related Government Programs

Trust, Fiduciary, and Custody Activities
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Long contract duration may lead to complacency or missed opportunities for cost savings.
Potential for vendor lock-in due to specialized system knowledge.
Lack of explicit small business participation noted.
System's technological relevance over 11+ years needs continuous monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $190.6 million to S E I INVESTMENTS MANAGEMENT CORPORATION. OPERATION AND MAINTENANCE OF THE TRUST FUNDS ACCOUNTING SYSTEM FOR THE OFFICE OF THE SPECIAL TRUSTEE.

Who is the contractor on this award?

The obligated recipient is S E I INVESTMENTS MANAGEMENT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $190.6 million.

What is the period of performance?

Start: 2008-08-01. End: 2019-10-11.

What is the projected annual cost for operating and maintaining the Trust Funds Accounting System, and how does this compare to industry benchmarks for similar systems?

The total contract value is $190.6 million over approximately 4088 days (about 11.2 years), equating to roughly $17 million annually. Benchmarking is challenging due to the specialized nature of trust fund accounting for a government agency. However, this figure should be compared against internal government cost estimates and any available private sector data for comparable financial system O&M to assess value.

Given the 11-year duration, what mechanisms are in place to mitigate the risk of cost escalation and ensure the system remains technologically relevant?

The contract is Firm Fixed Price, which helps mitigate cost escalation for the defined scope. However, long-term relevance requires proactive management. The Department of the Interior should have provisions for regular technology reviews, potential for phased upgrades, and clear change order processes to address evolving needs and prevent obsolescence without significant cost overruns.

How effectively did the full and open competition process identify the most capable and cost-efficient provider for this long-term, specialized IT service?

Full and open competition is designed to maximize the chances of finding the best value. The fact that SEI Investments Management Corporation was awarded the contract suggests they met the technical requirements and offered a competitive price. However, the long-term nature means the initial competition's effectiveness will be judged by the sustained performance and value delivered over the contract's lifespan.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Trust, Fiduciary, and Custody Activities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NBCR08008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 FREEDOM VALLEY DR, OAKS, PA, 19456

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $212,705,392

Exercised Options: $190,613,784

Current Obligation: $190,613,784

Actual Outlays: $6,419,459

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline