SEC awards $7.16M for Cisco maintenance, with 2 bidders competing under full and open process

Contract Overview

Contract Amount: $7,159,792 ($7.2M)

Contractor: Netsync Network Solutions, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2024-01-19

End Date: 2027-01-22

Contract Duration: 1,099 days

Daily Burn Rate: $6.5K/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: CISCO SW & HW MAINTENANCE

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 $7.2 million to NETSYNC NETWORK SOLUTIONS, INC. for work described as: CISCO SW & HW MAINTENANCE Key points: 1. Value for money appears reasonable given the scope of network maintenance services. 2. Competition dynamics indicate a healthy bidding environment for this type of IT support. 3. Risk indicators are low, with a firm fixed-price contract and established vendor. 4. Performance context suggests ongoing need for critical network infrastructure support. 5. Sector positioning places this contract within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract value of $7.16 million over approximately three years for Cisco hardware and software maintenance is within a reasonable range for federal IT support. Benchmarking against similar contracts for network infrastructure maintenance reveals comparable pricing structures. The firm fixed-price nature of the award provides cost certainty for the Securities and Exchange Commission (SEC).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. The presence of two bidders suggests a moderate level of competition for this specific requirement. While not a large number of bidders, it demonstrates that the market is responsive to this type of solicitation.

Taxpayer Impact: The competitive process, even with two bidders, helps ensure that taxpayer funds are used efficiently by driving a more favorable price compared to a sole-source award.

Public Impact

The Securities and Exchange Commission benefits from uninterrupted network operations, crucial for its regulatory functions. Services delivered include maintenance and support for essential Cisco networking hardware and software. Geographic impact is primarily within the District of Columbia, where the SEC's main operations are located. Workforce implications are minimal, as this contract supports existing infrastructure rather than requiring new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not considered in future procurements.
Reliance on a single vendor for critical network components could pose a risk if support quality degrades.

Positive Signals

Firm fixed-price contract provides budget predictability.
Award to an established vendor with a track record in network solutions.
Competition, even if limited, suggests a degree of market responsiveness.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on network hardware and software maintenance. The federal government is a significant consumer of such services, with spending in this category often driven by the need to maintain aging infrastructure and adopt new technologies. Comparable spending benchmarks for IT maintenance contracts of this size typically range from several million to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary focus was on securing the most capable vendor for the IT maintenance services, rather than prioritizing small business participation. The impact on the small business ecosystem is therefore likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Securities and Exchange Commission. Accountability measures are embedded in the firm fixed-price contract terms, requiring the vendor to deliver specified services. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Network Maintenance
Cisco Systems Support
Federal IT Infrastructure
Agency Network Operations

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $7.2 million to NETSYNC NETWORK SOLUTIONS, INC.. CISCO SW & HW MAINTENANCE

Who is the contractor on this award?

The obligated recipient is NETSYNC NETWORK SOLUTIONS, 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 $7.2 million.

What is the period of performance?

Start: 2024-01-19. End: 2027-01-22.

What is Netsync Network Solutions, Inc.'s track record with the federal government, particularly for similar IT maintenance contracts?

Netsync Network Solutions, Inc. has a history of receiving federal contracts, primarily for IT services and equipment. A review of federal procurement data indicates multiple awards to Netsync across various agencies, including those for network hardware, software, and maintenance. Their performance on these contracts would need to be assessed through contract performance reports (e.g., CPARS) to fully understand their reliability and quality of service. For this specific contract with the SEC, the award suggests a positive assessment of their capabilities and past performance, though detailed CPARS data would provide a more granular view of their execution.

How does the awarded price of $7.16 million compare to the estimated value or independent government cost estimate for this Cisco maintenance contract?

Without access to the government's independent cost estimate or the specific details of the solicitation's pricing structure, a direct comparison is challenging. However, the contract is a firm fixed-price award resulting from a competitive process with two bidders. This suggests that the awarded price is likely within a range considered acceptable by the government, reflecting market rates and the negotiated terms. The fact that it was competed indicates that the SEC likely had internal benchmarks or market research to ensure the price was fair and reasonable. Further analysis would require access to pre-award cost data or post-award performance metrics.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential vendor lock-in, where the SEC becomes overly reliant on Netsync for Cisco maintenance, making future transitions difficult or costly. Another risk is the degradation of service quality over the contract period, impacting network performance. Mitigation strategies include the firm fixed-price structure, which incentivizes the vendor to perform efficiently. The competitive nature of the award also provides some leverage. Furthermore, the SEC likely has internal IT management and oversight processes to monitor vendor performance and address any issues proactively. Periodic reviews and clear performance standards within the contract are crucial for risk mitigation.

How effective is the current Cisco maintenance contract in ensuring the SEC's network infrastructure reliability and security?

The effectiveness of the current contract in ensuring network reliability and security is primarily measured by the SEC's operational uptime and the absence of significant network disruptions attributed to maintenance failures. As this is a new award (or recent award), its long-term effectiveness is yet to be fully determined. However, the selection of an established vendor like Netsync, coupled with a firm fixed-price contract, suggests an intention to maintain a high level of service. The SEC's internal IT security and operations teams would be responsible for monitoring network performance, security posture, and the vendor's adherence to service level agreements (SLAs) to gauge effectiveness.

What has been the historical spending pattern for Cisco maintenance and support at the SEC over the past five years?

Analyzing historical spending patterns for Cisco maintenance at the SEC would require access to detailed historical contract data. Typically, agencies maintain ongoing support contracts for critical network infrastructure. Spending can fluctuate based on the lifecycle of network equipment, upgrades, and changes in IT strategy. If the SEC has consistently used Cisco products, it's probable they have had similar maintenance contracts in place. The current $7.16 million award over three years suggests an average annual spend of approximately $2.39 million for this specific scope. Historical data would reveal if this represents an increase, decrease, or stable level of investment in network maintenance.

What specific Cisco hardware and software versions are covered under this maintenance contract?

The provided data does not specify the exact Cisco hardware and software versions covered under this maintenance contract. Typically, such details are enumerated in the contract's statement of work (SOW) or associated exhibits. The contract likely covers a range of Cisco routers, switches, firewalls, and potentially network management software that are currently deployed within the SEC's infrastructure. The maintenance agreement would outline the support levels (e.g., 8x5, 24x7), response times, and whether it includes software updates, patches, and hardware replacement for the covered assets.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 2500 W LOOP S STE 410, HOUSTON, TX, 77027

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,251,535

Exercised Options: $7,159,792

Current Obligation: $7,159,792

Actual Outlays: $7,068,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC76B

IDV Type: GWAC

Timeline