Interior Department awards $319.6M contract to SEI Investments for financial management services
Contract Overview
Contract Amount: $31,961,133 ($32.0M)
Contractor: S E I Investments Management Corporation
Awarding Agency: Department of the Interior
Start Date: 2003-02-05
End Date: 2010-08-25
Contract Duration: 2,758 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SEI INVESTMENTS
Place of Performance
Location: OAKS, MONTGOMERY County, PENNSYLVANIA, 19456
Plain-Language Summary
Department of the Interior obligated $32.0 million to S E I INVESTMENTS MANAGEMENT CORPORATION for work described as: SEI INVESTMENTS Key points: 1. Contract awarded to SEI Investments Management Corporation for miscellaneous financial investment activities. 2. The contract spans over 7 years, indicating a long-term need for these services. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract value is substantial at $319.6 million.
Value Assessment
Rating: fair
The contract value of $319.6 million over approximately 7.5 years suggests an average annual spend of around $42.6 million. Benchmarking against similar financial investment services contracts would be necessary to fully assess pricing.
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. The existence of multiple bidders and the final negotiated price would determine the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for financial investment activities, with the efficiency of spending dependent on the competitive nature of the award and the value delivered.
Public Impact
Citizens benefit from potentially improved financial management of government assets. The use of a large, established firm like SEI Investments suggests a focus on stability and expertise. Transparency in the bidding process is indicated by the 'full and open competition' designation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Potential for vendor lock-in given the long-term nature of the contract.
Positive Signals
- Awarded through full and open competition, promoting market fairness.
- Firm fixed price contract provides cost certainty for the government.
- Long-term contract suggests a strategic partnership for critical services.
Sector Analysis
This contract falls under miscellaneous financial investment activities, a sector that requires specialized expertise. Benchmarking against similar contracts in financial services for government agencies is crucial for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
Oversight would involve monitoring SEI Investments' performance against contract requirements and ensuring adherence to financial regulations. The Department of the Interior's contracting office is responsible for this oversight.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Long contract duration may lead to price increases over time.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for vendor lock-in.
- Limited information on small business participation.
- Need for robust ongoing oversight to ensure cost-effectiveness.
Tags
miscellaneous-financial-investment-activ, department-of-the-interior, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $32.0 million to S E I INVESTMENTS MANAGEMENT CORPORATION. SEI INVESTMENTS
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 $32.0 million.
What is the period of performance?
Start: 2003-02-05. End: 2010-08-25.
What specific financial investment activities are covered under this contract, and how do they align with the Department of the Interior's mission?
The contract covers 'Miscellaneous Financial Investment Activities' under NAICS code 523999. This likely includes services related to managing, investing, or advising on government funds or assets. The specific alignment with the Department of the Interior's mission would depend on whether these funds are operational, trust funds, or other financial resources managed by the agency.
Given the 7.5-year duration and $319.6M value, what are the key performance indicators (KPIs) used to measure SEI Investments' success and ensure value for taxpayer money?
The provided data does not specify the Key Performance Indicators (KPIs). Effective oversight would require clearly defined KPIs related to investment returns, cost savings, efficiency improvements, and compliance. Without these, assessing the true value for taxpayer money is challenging and relies heavily on the initial competitive pricing.
How did the 'full and open competition' process ensure competitive pricing and prevent potential cost overruns over the contract's extended period?
Full and open competition theoretically allows any interested and qualified vendor to bid, fostering a competitive environment that drives down prices. However, the effectiveness in preventing cost overruns over a 7.5-year period depends on the contract structure (firm fixed price helps), the clarity of requirements, and ongoing government oversight to manage scope and performance.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1 FREEDOM VALLEY DR, OAKS, PA, 04
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,843,427
Exercised Options: $70,843,427
Current Obligation: $31,961,133
Timeline
Start Date: 2003-02-05
Current End Date: 2010-08-25
Potential End Date: 2010-08-25 00:00:00
Last Modified: 2012-06-27
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