SEC's $32.3M Storage Buy Awarded to ALVAREZ LLC Under Full and Open Competition

Contract Overview

Contract Amount: $32,339,614 ($32.3M)

Contractor: Alvarez LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2015-09-22

End Date: 2023-04-30

Contract Duration: 2,777 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STORAGE BUY

Place of Performance

Location: HOPKINTON, MIDDLESEX County, MASSACHUSETTS, 01748

State: Massachusetts Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $32.3 million to ALVAREZ LLC for work described as: STORAGE BUY Key points: 1. The Securities and Exchange Commission (SEC) spent $32.3 million on storage services. 2. The contract was awarded to ALVAREZ LLC, indicating potential competition among IT service providers. 3. The contract's duration of 2777 days (over 7 years) suggests a long-term need for storage solutions. 4. The 'Other Computer Related Services' NAICS code points to a broad category of IT support.

Value Assessment

Rating: fair

The total award amount of $32.3 million over approximately 7.5 years averages to about $4.3 million annually. Without specific benchmarks for storage services of this scale and type, it's difficult to definitively assess pricing. However, the duration suggests a negotiated price over a significant period.

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,' which implies a competitive process was initiated but potentially narrowed down. This method aims for fair pricing through competition, but the exclusion of sources might limit the full breadth of competitive pressure.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by seeking the best value and price. However, the specifics of the exclusion of sources could impact the ultimate cost-effectiveness.

Public Impact

Ensures the SEC has necessary data storage infrastructure to support its operations. ALVAREZ LLC benefits from a significant government contract award. The long-term nature of the contract provides stability for the vendor and predictable service for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of transparency due to 'exclusion of sources' in competition.
Long contract duration may not reflect evolving storage technologies or pricing.
Limited information on specific storage services provided.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term contract can ensure service continuity.

Sector Analysis

The IT services sector, particularly data storage, is critical for government agencies. Spending benchmarks vary widely based on capacity, technology, and service level agreements. This contract falls under 'Other Computer Related Services,' a broad category that can encompass various IT support functions.

Small Business Impact

The data does not indicate whether ALVAREZ LLC is a small business. The contract was awarded under full and open competition, which does not inherently favor or disfavor small businesses unless specific set-asides were applied, which is not indicated here.

Oversight & Accountability

The contract was awarded by the Securities and Exchange Commission (SEC) to ALVAREZ LLC. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability by the SEC's contracting officers.

Related Government Programs

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

Risk Flags

Lack of detailed service description.
Ambiguity in 'exclusion of sources' rationale.
Potential for technology obsolescence over the contract's long duration.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $32.3 million to ALVAREZ LLC. STORAGE BUY

Who is the contractor on this award?

The obligated recipient is ALVAREZ 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 $32.3 million.

What is the period of performance?

Start: 2015-09-22. End: 2023-04-30.

What specific storage services were procured, and how do they align with the SEC's mission needs?

The provided data categorizes the service under NAICS 541519 (Other Computer Related Services) and identifies it as 'STORAGE BUY.' Without further details, it's unclear if this refers to hardware acquisition, cloud storage solutions, data management services, or a combination. Understanding the specifics is crucial to assess if the procurement directly supports the SEC's regulatory and enforcement functions effectively.

What was the rationale for excluding certain sources during the competitive bidding process?

The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while the competition was open, specific vendors or types of vendors were intentionally excluded. The justification for this exclusion is critical for understanding potential limitations on competition and ensuring fair market access, as well as verifying that the exclusion was based on legitimate technical or programmatic reasons rather than arbitrary selection.

How does the annual cost of this storage solution compare to industry benchmarks for similar government contracts?

The total award of $32.3 million over 2777 days (approximately 7.6 years) equates to an average annual cost of roughly $4.25 million. To assess value, this figure needs comparison against industry benchmarks for comparable government storage contracts, considering factors like capacity (TB/PB), performance (IOPS, latency), redundancy, security requirements, and service level agreements. Without these specifics, a precise value assessment is challenging.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SECHQ115Q0202

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $57,876,628

Exercised Options: $32,339,614

Current Obligation: $32,339,614

Actual Outlays: $7,722,869

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD19B

IDV Type: GWAC

Timeline