SEC's $22.1M Contract with CGI Federal for Disgorgement System Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $22,105,287 ($22.1M)

Contractor: CGI Federal Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2016-09-28

End Date: 2023-05-17

Contract Duration: 2,422 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS DISGORGEMENT AND PENALTY SYSTEM

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $22.1 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS DISGORGEMENT AND PENALTY SYSTEM Key points: 1. Contract value of $22.1 million for a specialized IT system. 2. CGI Federal Inc. is the sole contractor, indicating a specific expertise or market position. 3. The contract duration is substantial at 2422 days, suggesting a long-term project. 4. Awarded under full and open competition, implying a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 541519 points to IT services.

Value Assessment

Rating: good

The contract value of $22.1 million appears reasonable for a complex IT system development and maintenance project over several years. Benchmarking against similar government IT contracts for specialized software development and support would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process likely resulted in a fair price, maximizing taxpayer value for the IT services procured.

Public Impact

Enhances the SEC's ability to manage financial penalties and disgorgement funds. Supports regulatory enforcement and financial market integrity. Potential for improved efficiency in processing and distributing recovered funds. Impacts financial institutions subject to SEC regulations. Contributes to the overall technological infrastructure of a key federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, requiring ongoing monitoring.
Sole awardee may limit future competition if performance issues arise.
Reliance on a single vendor for critical IT infrastructure.

Positive Signals

Awarded through full and open competition.
Clear contract type (Firm Fixed Price) for cost certainty.
Contract supports a critical regulatory function.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT services and custom computer programming. Government spending on IT services is substantial, with benchmarks varying widely based on complexity, duration, and specific services required.

Small Business Impact

The data indicates the awardee is CGI Federal Inc., a large business. There is no specific information provided regarding set-asides for small businesses in this contract award.

Oversight & Accountability

The contract's long duration and critical function necessitate robust oversight from the Securities and Exchange Commission to ensure performance, adherence to scope, and effective use of taxpayer funds.

Related Government Programs

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

Risk Flags

Long contract duration increases risk of cost overruns or obsolescence.
Sole awardee may limit competitive pressure on pricing and innovation.
Complexity of IT systems can lead to performance issues.
Dependence on a single vendor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $22.1 million to CGI FEDERAL INC.. IGF::OT::IGF FOR OTHER FUNCTIONS DISGORGEMENT AND PENALTY SYSTEM

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $22.1 million.

What is the period of performance?

Start: 2016-09-28. End: 2023-05-17.

What is the specific functionality of the "Disgorgement and Penalty System" and how does it improve SEC operations?

The Disgorgement and Penalty System is designed to manage the collection, administration, and distribution of funds obtained through SEC enforcement actions, such as penalties and disgorged profits. It aims to streamline processes, improve tracking of funds, and facilitate timely return of assets to harmed investors, thereby enhancing the SEC's enforcement effectiveness and investor protection mandate.

Given the long contract duration, what are the primary risks associated with vendor lock-in and technology obsolescence?

The primary risks include potential vendor lock-in, making it difficult and costly to switch providers if performance declines or better solutions emerge. Technology obsolescence is also a concern; the system must be adaptable to evolving technological landscapes and regulatory requirements over its multi-year lifespan. Proactive contract management, clear performance metrics, and phased technology refreshes are crucial mitigation strategies.

How does this contract contribute to the SEC's overall mission effectiveness and taxpayer value?

This contract directly supports the SEC's mission by providing essential technological infrastructure for its enforcement and regulatory functions. By enabling efficient management of disgorged funds, it maximizes the recovery and return of assets to investors, demonstrating tangible value. The competitive award process aims to ensure cost-effectiveness, further enhancing taxpayer value through efficient use of resources for critical government operations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SECHQ116R0021

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $22,787,517

Exercised Options: $22,105,287

Current Obligation: $22,105,287

Actual Outlays: $14,528,526

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,578,307

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline