SEC awards $1.99M contract for Drupal website hosting, emphasizing full and open competition

Contract Overview

Contract Amount: $1,991,683 ($2.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-06-28

End Date: 2026-06-30

Contract Duration: 1,828 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HOSTING SERVICES OF INTERNAL AND EXTERNAL SEC WEBSITES ON THE DRUPAL CONTENT MANAGEMENT FRAMEWORK

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $2.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: HOSTING SERVICES OF INTERNAL AND EXTERNAL SEC WEBSITES ON THE DRUPAL CONTENT MANAGEMENT FRAMEWORK Key points: 1. Contract value of $1.99M over approximately 5 years suggests a moderate investment in essential web infrastructure. 2. The use of Drupal CMS indicates a preference for a robust, open-source platform for managing SEC websites. 3. Full and open competition was utilized, signaling a commitment to maximizing taxpayer value and exploring the broadest market. 4. The contract is a delivery order under a larger agreement, suggesting potential for future task orders and flexibility. 5. Fixed-price contract type helps mitigate cost overruns and provides budget certainty for the SEC. 6. The award to Carahsoft Technology Corp, a reseller, implies a distribution channel that may involve multiple software vendors.

Value Assessment

Rating: good

The contract value of approximately $2 million over five years for website hosting services appears reasonable, especially considering the need for secure and reliable hosting for a federal agency like the SEC. Benchmarking against similar government contracts for CMS hosting and support would provide a clearer picture of value for money. The fixed-price nature of the contract is a positive indicator for cost control. Without specific details on the scope of services (e.g., uptime guarantees, support levels, data volume), a precise value assessment is challenging, but the overall investment seems aligned with typical federal IT infrastructure needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach is generally favored for government contracts as it promotes a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the use of this procurement method suggests that the SEC sought to leverage the widest possible market to meet its requirements. This process aims to ensure that the government receives the best possible value by considering all qualified vendors.

Taxpayer Impact: Full and open competition maximizes the chances of securing competitive pricing, which directly benefits taxpayers by ensuring federal funds are used efficiently for essential services like website hosting.

Public Impact

The public benefits from reliable and accessible SEC websites, which provide crucial information on securities markets, investor protection, and corporate filings. The services delivered include hosting and maintenance for internal and external SEC websites, ensuring their availability and functionality. The geographic impact is national, as SEC websites serve a nationwide audience of investors, businesses, and the general public. Workforce implications are minimal for the public, but the contract supports IT professionals within the SEC and potentially at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a reseller (Carahsoft) could introduce an additional layer in the supply chain, potentially impacting direct communication or support.
The specific scope of 'hosting services' needs clear definition to ensure all critical aspects of website availability and performance are covered.
Long-term contract duration (up to 2026) requires ongoing monitoring to ensure continued alignment with evolving technological needs and security standards.

Positive Signals

Awarding under full and open competition suggests a thorough evaluation process and a commitment to achieving best value.
The use of a fixed-price contract type provides cost certainty and helps manage the federal budget effectively.
The selection of Drupal CMS indicates a strategic choice for a flexible and widely supported content management system.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on web hosting and content management for a federal agency. The market for government IT services, including web hosting and CMS solutions, is substantial and competitive. Agencies often leverage platforms like Drupal due to its flexibility, scalability, and open-source nature, which can reduce licensing costs compared to proprietary solutions. Comparable spending benchmarks for federal website hosting can vary widely based on traffic, security requirements, and support levels, but a contract of this size over five years is typical for maintaining critical public-facing digital infrastructure.

Small Business Impact

This contract does not appear to be a small business set-aside, as indicated by the 'ss' field being false. Carahsoft Technology Corp, the awardee, is a large business reseller. While this specific contract may not directly benefit small businesses through a set-aside, Carahsoft often partners with small businesses for subcontracting opportunities on larger contracts. The impact on the small business ecosystem would depend on whether Carahsoft utilizes small business partners for any part of the service delivery or support related to this hosting contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. As a federal contract, it is subject to standard government oversight mechanisms, including performance reviews and audits. The contract's adherence to terms, conditions, and service level agreements would be monitored. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Federal IT Infrastructure Modernization
Government Website Hosting Services
Content Management System (CMS) Procurement
Cloud Computing Services for Government
Cybersecurity for Federal Websites

Risk Flags

Potential for scope creep if not clearly defined.
Dependence on reseller could impact direct support.
Cybersecurity vulnerabilities inherent in web hosting.
Ensuring long-term platform relevance and updates.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $2.0 million to CARAHSOFT TECHNOLOGY CORP. HOSTING SERVICES OF INTERNAL AND EXTERNAL SEC WEBSITES ON THE DRUPAL CONTENT MANAGEMENT FRAMEWORK

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

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 $2.0 million.

What is the period of performance?

Start: 2021-06-28. End: 2026-06-30.

What is the specific nature of the Drupal CMS services being provided under this contract?

The contract specifies 'HOSTING SERVICES OF INTERNAL AND EXTERNAL SEC WEBSITES ON THE DRUPAL CONTENT MANAGEMENT FRAMEWORK.' This indicates that the core service is providing the infrastructure and environment necessary to host websites built using the Drupal CMS. This likely includes server space, network connectivity, security measures, and potentially maintenance of the hosting environment itself. It may also encompass support for the Drupal platform's operational aspects, ensuring uptime and performance. However, the contract does not detail specific Drupal development, customization, or content creation services, focusing primarily on the hosting aspect.

How does the pricing of this contract compare to similar federal website hosting contracts?

Direct comparison of pricing is difficult without detailed service level agreements (SLAs) and specific performance metrics for this contract. However, the approximate annual cost is around $400,000 ($1.99M / 5 years). This figure needs to be evaluated against the scale of the SEC's web presence, expected traffic, security requirements, and the level of support included. Federal contracts for IT hosting can range significantly. For instance, basic shared hosting might be much cheaper, while dedicated, high-availability, secure hosting for a major agency could easily reach or exceed this annual cost. The fixed-price nature suggests a defined scope, which aids in predictable budgeting.

What are the key risks associated with this contract and how are they being mitigated?

Key risks include potential vendor lock-in if the hosting environment becomes highly customized, performance issues affecting website availability, and cybersecurity threats. Mitigation strategies are likely embedded within the contract's terms and the SEC's oversight. The use of Drupal, an open-source platform, can reduce vendor lock-in compared to proprietary CMS. The fixed-price contract and defined delivery order structure imply clear performance expectations. Cybersecurity risks are inherent and would be managed through SEC security protocols, contractor compliance, and potentially specific security clauses within the contract. Regular performance monitoring and adherence to SLAs are crucial.

What is the track record of Carahsoft Technology Corp in providing similar IT services to the federal government?

Carahsoft Technology Corp is a well-established government IT solutions provider and reseller. They have a long history of contracting with various federal agencies, including the SEC. Carahsoft typically acts as a reseller, partnering with numerous technology manufacturers to provide software, hardware, and cloud solutions. Their track record is generally strong in terms of contract fulfillment and navigating federal procurement processes. They are known for offering a wide range of IT products and services, often through pre-negotiated government contracts and schedules, which can streamline procurement for agencies. Their experience suggests a reliable partner for delivering IT services.

How does this contract align with the SEC's overall IT spending and strategic goals?

This contract aligns with the SEC's strategic goal of maintaining a robust and accessible digital presence for public information dissemination and regulatory functions. Federal agencies consistently invest in IT infrastructure, including website hosting, to ensure operational continuity and effective communication. The approximate $2 million expenditure over five years represents a moderate portion of the SEC's overall IT budget, which likely encompasses a broader range of systems and services. The choice of Drupal suggests a strategic decision to utilize a flexible, cost-effective CMS, potentially supporting modernization efforts and efficient content management.

What is the historical spending pattern for website hosting services at the SEC?

Historical spending data for the SEC's website hosting services would provide valuable context. Without access to specific historical data, it's difficult to establish a precise pattern. However, federal agencies typically have ongoing needs for website hosting, often renewing or re-competing contracts every few years. Spending can fluctuate based on website redesigns, increased traffic, or the adoption of new technologies. The current $1.99M contract over approximately five years suggests a stable, long-term requirement for these services. Analyzing past contracts for similar services would reveal trends in cost, duration, and vendor choices.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310221Q0044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $1,991,683

Exercised Options: $1,991,683

Current Obligation: $1,991,683

Actual Outlays: $1,953,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline