SEC Awards $8.95M for EA Support to Procentrix, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $8,951,247 ($9.0M)

Contractor: Procentrix, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-01-08

End Date: 2026-01-20

Contract Duration: 1,838 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS FOR EA SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $9.0 million to PROCENTRIX, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS FOR EA SUPPORT. Key points: 1. Contract value of $8.95M for Enterprise Architecture support. 2. Competition was full and open after exclusion of sources. 3. Risk appears moderate given the service type and contract duration. 4. Sector is IT services, specifically Computer Systems Design.

Value Assessment

Rating: fair

The contract's value of $8.95M over approximately 5 years suggests a moderate annual spend. Without specific deliverables or benchmarks, assessing value for money is difficult. Pricing is based on labor hours, which can lead to cost overruns if not managed effectively.

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, indicating a competitive process. This method generally promotes price discovery and potentially better pricing, although the labor hour pricing model requires careful monitoring.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services. The competitive award aims to ensure reasonable pricing, but ongoing oversight is crucial to maximize value.

Public Impact

Ensures continued operation and modernization of SEC's Enterprise Architecture. Supports critical IT infrastructure for financial regulation. Potential for improved efficiency and data management within the SEC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost uncertainty.
Long contract duration (5 years) may reduce flexibility.
Specific performance metrics not detailed.

Positive Signals

Full and open competition promotes market-based pricing.
Award to a single contractor streamlines support.
Services are essential for agency operations.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design. The benchmark for similar contracts can vary widely based on scope and complexity, but $8.95M over five years for EA support is a significant investment.

Small Business Impact

The contract was awarded to Procentrix, LLC. There is no indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small business goals were considered or met.

Oversight & Accountability

The Securities and Exchange Commission is the contracting agency. Oversight will be critical to manage the labor hour contract, ensure deliverables are met, and control costs throughout the contract's duration.

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 may limit adaptability to changing needs.
Lack of specific performance metrics in summary data.
No clear indication of small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $9.0 million to PROCENTRIX, LLC. THE PURPOSE OF THIS CONTRACT IS FOR EA SUPPORT.

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 $9.0 million.

What is the period of performance?

Start: 2021-01-08. End: 2026-01-20.

What specific EA support tasks are included, and how will their successful completion be measured to ensure value for money?

The provided data lacks specifics on the EA support tasks. A thorough review of the Statement of Work (SOW) is necessary to understand the scope. Measuring value for money will depend on clearly defined deliverables, performance metrics, and regular progress reviews by the agency to ensure the contractor meets objectives and stays within budget.

Given the labor hour pricing, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?

Mitigation strategies for labor hour contracts typically include establishing clear labor categories with pre-negotiated rates, setting spending ceilings, requiring detailed timesheets, and implementing robust project management oversight. Regular reporting on hours expended versus budget, along with performance reviews, helps identify potential overruns early.

How does this contract contribute to the SEC's overall IT modernization strategy and long-term goals?

Enterprise Architecture support is fundamental to IT modernization by providing a roadmap for technology investments, ensuring alignment with business objectives, and identifying opportunities for consolidation or improvement. This contract likely enables the SEC to maintain and evolve its technological framework, supporting its mission-critical functions and adapting to future needs.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

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: $9,070,731

Exercised Options: $8,951,247

Current Obligation: $8,951,247

Actual Outlays: $8,951,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0011

IDV Type: IDC

Timeline