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SEC Posts IT Solicitation Valued at $2.5 Billion

This analysis was first available to Bloomberg Government subscribers.

The U.S. Securities and Exchange Commission’s Office of Information Technology released a final request for proposal on Feb. 1 for a $2.5 billion contract known as One OIT.

One OIT will be a single agency-wide information technology services contract intended to streamline the SEC’s IT processes by reducing hundreds of contracts into one and providing integrated solutions to fulfill emerging technology needs.

The multiple award indefinite delivery/indefinite quantity contracts will have a five-year period of performance with the option to extend it another five years, and the government estimates there will be up to 18 awards within two pools: one for small businesses and the other unrestricted. The SEC will award the 15 small business winners first, followed by an announcement for the three unrestricted awards.

The SEC isn’t using lowest-price technically acceptable or tradeoff standards and instead will follow a recent government-wide trend on major IT contracts that pick winners through use of a self-scoring method. Contractors who bid with the highest technically rated offer combined with fair and reasonable pricing will have the best chance of getting an award.

There are seven tracks, or “service channels,” under the vehicle:

  • Application management and development;
  • Business solutions delivery;
  • IT infrastructure and operations management;
  • Information security;
  • Data management;
  • IT governance; and
  • Technology business management.

All service channels will include a project management support requirement. Small business proposals must have past performance in all seven tracks, and unrestricted must show experience in all except IT infrastructure and operations management.

The winners will provide “any and all components of an integrated IT services-based solution,” according to the solicitation. That includes components that fit both the SEC’s current and emerging needs, including big data, digital services, cybersecurity, IT helpdesk, data center consolidation, and mobile security.

All projects are expected to fall into the SEC’s “Technology Bricks Platform Standards,” but that and the service channels could evolve over time to incorporate new technologies and meet the evolving needs of the SEC.

BGOV’s Take

One OIT is important because it’s almost certain to immediately become the SEC’s single-largest contract, IT or otherwise. If it runs the full 10-year period of performance, there could be up to $250 million in contract obligations annually, a figure that surpasses SEC’s largest contracts’ annual obligations almost tenfold.

About two-thirds of SEC contract obligations go to IT contracts. At fiscal 2013 through fiscal 2017 IT contract spending levels, $2.5 billion over 10 years would include all of the SEC’s more than 400 IT contracts and narrow the competition to 18 vendors from more than 350.

The leading SEC IT contractors in fiscals 2013 to 2017, and potentially those best suited to compete for the One OIT contract, include AECOM ($122 million), CACI International Inc. ($61 million), and CSRA Inc. ($61 million). The top small businesses doing IT work during the same time period include Attain LLC ($51 million), Advanced Software Systems Inc. ($47 million), and Alvarez & Associates LLC ($47 million).

What’s Ahead

Bidders that don’t win one of the 18 slots on One OIT won’t be able to use a merger or acquisition to buy their way onto the vehicle. Any M&A activity requires notice to the SEC within 14 days. One OIT comes with the condition that the SEC can on- and off-ramp contract holders at any time, including due to loss of small business status due to M&A.

Other off-ramp reasons include failure to meet small business subcontracting goals, failure to meet performance standards, or a contract reaches its contract ceiling.

On the other hand, the on-ramps may offer opportunities for contractors who don’t win a spot on the vehicle. The events won’t happen on a set schedule; instead, they could take place because small businesses grow out of their small business status, a lack of or low quality task order proposal submissions, or the pool of contractors can’t meet emerging technology needs. The SEC will announce the on-ramp at least 15 days ahead of posting the solicitation.

Submit questions about the RFP by Feb. 8. Proposals are due on Feb. 20.

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The post SEC Posts IT Solicitation Valued at $2.5 Billion appeared first on Bloomberg Government.

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