SEC Spends $100K on Capitol Account News Service Subscription Through Sole-Source Contract

Contract Overview

Contract Amount: $100,000 ($100.0K)

Contractor: Capitol Account Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-06-01

End Date: 2027-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $68/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSCRIPTION: ACCESS TO CAPITOL ACCOUNT (NEWS SERVICE)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $100,000 to CAPITOL ACCOUNT INC for work described as: SUBSCRIPTION: ACCESS TO CAPITOL ACCOUNT (NEWS SERVICE) Key points: 1. The Securities and Exchange Commission (SEC) is purchasing a news service subscription for $100,000. 2. The contract was not competed under the Simplified Acquisition Procedures (SAP), raising questions about competition. 3. The service falls under 'Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers'. 4. The contract duration is 4 years, ending May 31, 2027.

Value Assessment

Rating: questionable

The $100,000 price for a 4-year news subscription is difficult to benchmark without specific service details. However, given the lack of competition, it's unclear if this represents a fair market price compared to similar government or commercial offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this news service.

Public Impact

Taxpayers may be overpaying for a news subscription due to the absence of competitive bidding. The SEC's reliance on a sole-source provider for essential news could be a vulnerability. Transparency in government procurement is reduced when contracts are not openly competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Unclear value for money

Positive Signals

Firm fixed price contract provides cost certainty

Sector Analysis

The 'Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers' sector is broad. Government spending in this area can vary widely, but typically competitive bidding is expected for services like news subscriptions to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement. The sole-source nature of the award likely precluded any opportunity for small business participation.

Oversight & Accountability

The SEC is responsible for overseeing financial markets. The procurement process for its own operational needs, especially when sole-sourced, warrants scrutiny to ensure accountability and responsible use of funds.

Related Government Programs

Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Lack of competition
Sole-source award
Potential for overpayment
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $100,000 to CAPITOL ACCOUNT INC. SUBSCRIPTION: ACCESS TO CAPITOL ACCOUNT (NEWS SERVICE)

Who is the contractor on this award?

The obligated recipient is CAPITOL ACCOUNT 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 $100,000.

What is the period of performance?

Start: 2023-06-01. End: 2027-05-31.

What specific features and data does Capitol Account Inc. provide that justify a sole-source award and the $100,000 price tag?

The provided data does not detail the specific features or data provided by Capitol Account Inc. A sole-source justification would typically require documentation outlining unique capabilities, proprietary technology, or an inability to obtain the service from other sources. Without this, the $100,000 price for a 4-year subscription remains difficult to validate against market alternatives.

What is the risk of overpaying for this news service due to the lack of competition?

The primary risk is overpayment. When a contract is awarded sole-source, the government loses the benefit of competitive bidding, which typically drives down prices and ensures fair market value. Without competing offers, Capitol Account Inc. may have charged a premium, leading to a less efficient use of taxpayer funds for this subscription.

How effective is this news service in supporting the SEC's mission, and could similar services be obtained more cost-effectively?

The effectiveness of the service in supporting the SEC's mission is not detailed in the provided data. However, the lack of competition raises concerns about cost-effectiveness. It is plausible that similar news aggregation or market intelligence services could be procured through competitive means at a lower cost, potentially offering comparable or superior value.

Industry Classification

NAICS: Information › Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers › Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4540 46TH ST NW, WASHINGTON, DC, 20016

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

Financial Breakdown

Contract Ceiling: $100,000

Exercised Options: $100,000

Current Obligation: $100,000

Actual Outlays: $80,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline