SEC awards $91.3M for SharePoint support, with Procentrix, LLC securing the contract

Contract Overview

Contract Amount: $91,288,888 ($91.3M)

Contractor: Procentrix, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2020-08-23

End Date: 2026-08-22

Contract Duration: 2,190 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SEC ENTERPRISE-WIDE ENTERPRISE SHAREPOINT 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 $91.3 million to PROCENTRIX, LLC for work described as: SEC ENTERPRISE-WIDE ENTERPRISE SHAREPOINT SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in enterprise IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (2190 days) indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The services are critical for the SEC's internal operations and data management. 6. The contract's value is substantial within the IT services sector for government agencies.

Value Assessment

Rating: good

The contract value of $91.3 million over approximately six years for enterprise SharePoint support appears reasonable given the scope of services for a large federal agency like the SEC. Benchmarking against similar large-scale IT support contracts for federal entities suggests this falls within expected ranges for comprehensive system management and maintenance. The firm-fixed-price structure provides cost predictability for the government. Without specific details on the service level agreements and the exact scope of work, a precise value-for-money assessment is challenging, but the competitive award process lends confidence to the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is expected to drive competitive pricing and encourage innovative solutions. The agency's decision to use full and open competition suggests a belief that a sufficient number of qualified vendors exist in the market for these specialized IT services.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for obtaining the best value by encouraging multiple vendors to bid, thereby driving down prices and improving service quality.

Public Impact

Employees of the Securities and Exchange Commission benefit from reliable and efficient access to internal systems and data. The contract ensures the continued operation and maintenance of critical SharePoint infrastructure, supporting daily business functions. The services provided are essential for managing vast amounts of financial data and regulatory information. The contract supports IT professionals within the contractor organization, contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future requirements are heavily tied to the current SharePoint environment.
Reliance on a single vendor for critical IT infrastructure support could pose risks if the vendor experiences financial instability or performance issues.
The long contract duration might limit the agency's ability to adopt newer, potentially more cost-effective technologies if not managed proactively.

Positive Signals

The use of full and open competition suggests a healthy market and potential for competitive pricing.
The firm-fixed-price contract type provides cost certainty and incentivizes the contractor to manage performance efficiently.
The contract's focus on enterprise-wide support indicates a comprehensive approach to IT infrastructure management.
The long duration allows for stable support and potential for building deep expertise within the contractor.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under computer systems design services, a segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The market for enterprise content management and collaboration platforms like SharePoint is mature, with numerous providers offering specialized support. The SEC's spending aligns with broader federal trends of investing in robust IT infrastructure to support mission-critical operations and digital transformation initiatives.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Procentrix, LLC, may have obligations to subcontract portions of the work to small businesses, depending on their established subcontracting plan and the nature of the services required. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Securities and Exchange Commission's contracting officers and program managers. The firm-fixed-price contract type provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Specific oversight mechanisms would include performance reviews, service level agreement monitoring, and potentially audits. The Inspector General's office for the SEC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense Enterprise IT Services
NASA Solutions for Enterprise-Wide Procurement (SEWP)
Other agency-specific IT support contracts

Risk Flags

Long-term contract duration may limit flexibility.
Reliance on a single vendor for critical IT infrastructure.
Potential for vendor lock-in.
Performance monitoring is crucial for value realization.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $91.3 million to PROCENTRIX, LLC. SEC ENTERPRISE-WIDE ENTERPRISE SHAREPOINT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PROCENTRIX, 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 $91.3 million.

What is the period of performance?

Start: 2020-08-23. End: 2026-08-22.

What is the track record of Procentrix, LLC in performing similar large-scale federal IT support contracts?

Procentrix, LLC has a history of performing IT support services for federal agencies. While specific details on past performance for contracts of this exact magnitude and scope (enterprise SharePoint support) would require a deeper dive into contract databases and performance reports, their award of this significant SEC contract suggests they possess the necessary qualifications and experience. Analyzing their past performance reviews, any past performance issues or successes on similar contracts, and their financial stability would provide a more comprehensive understanding of their capabilities and reliability in executing this agreement.

How does the per-user or per-service cost of this contract compare to industry benchmarks for enterprise SharePoint support?

Calculating a precise per-user or per-service cost requires detailed information on the number of users supported and the specific services included (e.g., administration, development, maintenance, help desk). The total contract value of $91.3 million over approximately six years suggests an average annual value of around $15.2 million. Without knowing the exact user base or service breakdown, direct comparison to industry benchmarks is difficult. However, for large federal enterprises, comprehensive SharePoint support contracts can range significantly, often in the millions annually, depending on complexity and scale. The firm-fixed-price nature aims to cap these costs.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this SEC SharePoint support contract are not detailed in the provided data. Typically, such contracts would include metrics related to system uptime, response times for support requests, resolution times for issues, data backup and recovery success rates, and security compliance. These KPIs and SLAs are crucial for measuring the contractor's performance and ensuring the government receives the expected level of service. The SEC's contracting officer and program managers would be responsible for monitoring adherence to these agreed-upon metrics.

What is the historical spending trend for enterprise SharePoint support services at the SEC?

Historical spending data for enterprise SharePoint support services at the SEC prior to this contract award would provide valuable context. Understanding if this $91.3 million award represents an increase, decrease, or stable level of investment compared to previous support arrangements is important. Analyzing prior contract values, durations, and awarded vendors for similar services would reveal trends in the SEC's IT support strategy and budget allocation for collaboration platforms. This comparison helps assess whether the current investment is aligned with past patterns or signifies a strategic shift.

What are the potential risks associated with relying on a single vendor for enterprise-wide SharePoint support over a six-year period?

The primary risks associated with relying on a single vendor for enterprise-wide SharePoint support over a long duration include potential vendor lock-in, reduced flexibility in adopting new technologies, and the impact of contractor performance issues. If Procentrix, LLC faces financial difficulties, operational challenges, or fails to meet performance standards, it could significantly disrupt the SEC's operations. Furthermore, a long-term sole-vendor relationship might stifle innovation and prevent the SEC from leveraging advancements in the market. Robust contract management, clear exit strategies, and contingency planning are essential to mitigate these risks.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2551 DULLES VIEW DR STE 600, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $123,470,642

Exercised Options: $91,288,888

Current Obligation: $91,288,888

Actual Outlays: $85,361,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0011

IDV Type: IDC

Timeline