SEC Spends $130M on Enterprise Applications Management Support Services with Team Greenzone JV LLC

Contract Overview

Contract Amount: $129,962,505 ($130.0M)

Contractor: Team Greenzone JV LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-04-10

End Date: 2027-04-09

Contract Duration: 2,555 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SEC ENTERPRISE-WIDE APPLICATIONS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $130.0 million to TEAM GREENZONE JV LLC for work described as: SEC ENTERPRISE-WIDE APPLICATIONS MANAGEMENT SUPPORT SERVICES Key points: 1. The contract value is substantial at $129.96 million. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The primary risk lies in the potential for cost overruns given the long duration and labor-hour pricing. 4. The sector is IT, specifically computer systems design services.

Value Assessment

Rating: fair

The contract is priced on a labor-hour basis, which can be difficult to benchmark without detailed labor categories and rates. The total award value of $129.96 million over approximately 7 years suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method generally promotes price discovery and competition, but the specific exclusion criteria could warrant further review.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services for the SEC. The competitive award process aims to ensure value for money.

Public Impact

Ensures continued operation and maintenance of critical SEC enterprise applications. Supports the SEC's mission to protect investors and maintain fair, orderly, and efficient markets. Potential impact on market integrity if services are disrupted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost creep.
Long contract duration increases risk exposure.
Small business participation not explicitly stated.

Positive Signals

Full and open competition utilized.
Supports a critical government agency's mission.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Benchmarks for similar enterprise-wide application management support services can vary widely based on agency size, complexity, and specific service requirements.

Small Business Impact

The data indicates that the prime contractor is a joint venture, which may involve small businesses. However, there is no explicit information on the extent of small business participation or subcontracting.

Oversight & Accountability

The SEC is responsible for overseeing this contract. Accountability will depend on performance metrics, regular reporting, and the SEC's contract management capabilities.

Related Government Programs

Computer Systems Design Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Potential for cost overruns due to labor-hour pricing.
Long contract duration (approx. 7 years) increases risk.
Lack of explicit small business participation details.
Dependence on a single contractor for critical IT services.
Potential for scope creep over the contract's life.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $130.0 million to TEAM GREENZONE JV LLC. SEC ENTERPRISE-WIDE APPLICATIONS MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TEAM GREENZONE JV LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $130.0 million.

What is the period of performance?

Start: 2020-04-10. End: 2027-04-09.

What is the estimated cost per labor hour, and how does it compare to industry benchmarks for similar IT support services?

The provided data does not detail the cost per labor hour. To assess value, a comparison of the negotiated labor rates across different skill sets against industry averages for IT enterprise application management support services would be necessary. This would reveal if the SEC is paying a competitive rate for the expertise required.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' award method?

The exclusion of sources in a 'full and open competition after exclusion of sources' award method typically implies that certain potential offerors were deemed ineligible based on pre-defined criteria, such as specific technical capabilities, past performance, or security clearances. Understanding these criteria is crucial to assess if the exclusion unduly limited competition or was justified.

How will the SEC ensure effective performance and manage potential cost overruns given the labor-hour pricing and long duration of this contract?

Effective performance and cost management will rely on robust contract surveillance, clear performance work statements, defined key performance indicators (KPIs), and regular progress reviews. The SEC should implement strict oversight mechanisms to monitor labor hours, control scope creep, and ensure that the contractor meets all deliverables within the allocated budget.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3033 WILSON BLVD STE 761, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $185,526,692

Exercised Options: $129,978,639

Current Obligation: $129,962,505

Actual Outlays: $113,772,353

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0014

IDV Type: IDC

Timeline