SEC awards $6.4M contract for IT services to FINRA, raising questions about competition

Contract Overview

Contract Amount: $6,413,916 ($6.4M)

Contractor: Financial Industry Regulatory Authority Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-08-11

End Date: 2026-12-31

Contract Duration: 1,968 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EFOCUS

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 $6.4 million to FINANCIAL INDUSTRY REGULATORY AUTHORITY INC for work described as: EFOCUS Key points: 1. Contract value of $6.4M for IT services. 2. Sole-source award to FINANCIAL INDUSTRY REGULATORY AUTHORITY INC. 3. Potential risk due to lack of competitive bidding. 4. IT services sector with a focus on 'Other Computer Related Services'.

Value Assessment

Rating: questionable

The contract value of $6.4M for 'Other Computer Related Services' is difficult to benchmark without specific service details. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This method limits price discovery and may not ensure the best value for taxpayers.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Taxpayers may be paying more than necessary due to the sole-source award. Lack of transparency in the procurement process. Potential for reduced innovation by not engaging a wider market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract awarded to a known entity
Clear contract end date

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Benchmarking spending in this area is challenging without more granular data on the services provided.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the SEC obtained fair value and that the justification for not competing the contract was sound.

Related Government Programs

Other Computer Related Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in procurement.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $6.4 million to FINANCIAL INDUSTRY REGULATORY AUTHORITY INC. EFOCUS

Who is the contractor on this award?

The obligated recipient is FINANCIAL INDUSTRY REGULATORY AUTHORITY INC.

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 $6.4 million.

What is the period of performance?

Start: 2021-08-11. End: 2026-12-31.

What specific services are included under 'Other Computer Related Services' for this $6.4M contract?

The provided data does not specify the exact services. 'Other Computer Related Services' is a broad NAICS code that can encompass a wide range of IT support, consulting, and maintenance. Further details from the SEC would be needed to understand the scope and justify the contract's value.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided. Typically, agencies must demonstrate that only one responsible source can satisfy the agency's needs. Without this justification, it's difficult to assess the necessity of bypassing the competitive bidding process.

How does the $6.4M contract value compare to similar IT service contracts awarded by the SEC or other federal agencies?

Direct comparison is difficult due to the sole-source nature and broad service category. Competitively procured contracts for similar IT services often yield lower prices. A detailed analysis of the contract's deliverables against market rates would be required for a meaningful comparison.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1735 K ST NW, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $10,372,266

Exercised Options: $7,007,916

Current Obligation: $6,413,916

Actual Outlays: $5,896,717

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline