SEC awards $21.1M contract for expert witness services to J.S. HELD LLC, citing sole-source justification

Contract Overview

Contract Amount: $21,143 ($21.1K)

Contractor: J.S. Held LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2022-11-08

End Date: 2026-03-30

Contract Duration: 1,238 days

Daily Burn Rate: $17/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT WITNESS SERVICES

Place of Performance

Location: JERICHO, NASSAU County, NEW YORK, 11753

State: New York Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $21,142.5 to J.S. HELD LLC for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Services are categorized under 'Other Scientific and Technical Consulting Services', indicating specialized expertise. 3. The contract duration extends over three years, suggesting a sustained need for these services. 4. Awarded as a Time and Materials contract, which can pose cost control challenges if not closely managed. 5. The Securities and Exchange Commission is the primary agency utilizing these expert witness services. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $21.1 million for expert witness services over approximately three years appears substantial. Without specific benchmarks for similar expert witness engagements within the SEC or comparable agencies, it is difficult to definitively assess value for money. The Time and Materials pricing structure necessitates rigorous oversight to ensure costs remain reasonable and aligned with the services rendered. The absence of competition inherently limits the ability to benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the SEC did not conduct a competitive bidding process. The justification for a sole-source award typically involves a determination that only one responsible source can provide the required services. This approach bypasses the price discovery benefits that typically arise from a competitive environment, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the competitive pressure that usually drives down prices. This can result in a less efficient use of public funds compared to a competitively procured contract.

Public Impact

The Securities and Exchange Commission benefits directly by securing specialized expertise for legal and enforcement proceedings. These services are crucial for providing expert testimony and analysis in complex financial cases. The geographic impact is primarily centered in New York, where the contractor is located. The contract supports specialized roles within the legal and financial consulting sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Time and Materials contract type can lead to cost overruns if not managed effectively.
Lack of transparency in the sole-source justification requires careful review.
Potential for contractor to bill for extended periods without clear performance metrics.

Positive Signals

Award to a single, presumably qualified, expert witness firm ensures continuity of service.
Contract duration suggests a recognized and ongoing need for these specialized services.
The SEC is a major regulatory body, implying the services are critical to its mission.

Sector Analysis

The market for expert witness services is diverse, encompassing various specialized fields including finance, accounting, and technical consulting. This contract falls within the professional services sector, specifically supporting regulatory and legal functions. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the expertise required, but large federal agencies often engage specialized consultants for complex litigation and investigations. The SEC's role in overseeing financial markets necessitates access to high-caliber expert witnesses.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to J.S. HELD LLC, a single entity, suggests that the primary focus was on securing the specialized expertise rather than promoting small business participation. This could mean missed opportunities for small businesses to contribute to critical government functions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Securities and Exchange Commission's contracting and legal departments. As a sole-source award, the justification and necessity of the services will be subject to internal review. Transparency may be limited due to the non-competitive nature, but the Inspector General's office could investigate if concerns regarding waste, fraud, or abuse arise. Performance monitoring will be crucial to ensure the Time and Materials basis does not lead to excessive billing.

Related Government Programs

Federal legal services
Expert witness consulting
Financial regulatory support
Securities enforcement services

Risk Flags

Sole-source award may limit competition and increase costs.
Time and Materials contract type requires diligent oversight to control spending.
Lack of publicly available performance data for the contractor.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $21,142.5 to J.S. HELD LLC. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is J.S. HELD 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 $21,142.5.

What is the period of performance?

Start: 2022-11-08. End: 2026-03-30.

What is the specific nature of the expert witness services required by the SEC under this contract?

The provided data categorizes the services as 'Other Scientific and Technical Consulting Services' (NAICS 541690) and identifies the contract as being for 'EXPERT WITNESS SERVICES'. While the specific technical or scientific domain is not detailed, it is reasonable to infer that these services are critical for the Securities and Exchange Commission's enforcement actions and litigation. This could involve providing expert testimony, forensic accounting analysis, market structure expertise, or other specialized knowledge to support the SEC's investigations into potential violations of securities laws and regulations. The 'NOT COMPETED' status suggests a belief that J.S. HELD LLC possesses unique qualifications or capabilities essential for these specific needs.

How does the pricing structure of this Time and Materials contract compare to industry standards for similar expert witness services?

Time and Materials (T&M) contracts, by their nature, do not have a ceiling on the total cost. While T&M can be appropriate when the scope of work is uncertain, it places a significant burden on the government to monitor labor hours and material costs closely. Benchmarking T&M rates for highly specialized expert witness services is challenging without detailed information on the specific skills, experience levels of personnel, and the complexity of the cases involved. However, industry best practices emphasize the need for robust oversight, including detailed timesheets, justification for hours billed, and comparison of rates against pre-negotiated ceilings or market data for comparable roles to prevent cost escalation and ensure fair pricing for taxpayers.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. Without competing offers, the government may overpay for the services compared to what could have been achieved in an open market. Furthermore, it limits the opportunity to discover new or more capable providers. There's also a risk that the justification for the sole-source award might be based on incomplete information or an overly narrow definition of requirements, potentially excluding qualified competitors. This approach can also raise concerns about fairness and equal opportunity for businesses seeking government contracts.

What is J.S. HELD LLC's track record with the federal government, particularly with the SEC?

The provided data indicates that J.S. HELD LLC is the contractor for this specific award. However, it does not offer details on their past performance history with the SEC or other federal agencies. A comprehensive assessment of their track record would require reviewing past contract performance evaluations (e.g., CPARS reports), any history of disputes or litigation, and the successful completion of previous engagements. Given this is a sole-source award, the SEC presumably has confidence in J.S. HELD LLC's capabilities, but an independent review of their broader federal contracting history would provide further context on their reliability and value delivery.

How does the $21.1 million contract value compare to the SEC's historical spending on expert witness services?

The provided data does not include historical spending figures for expert witness services by the SEC. To assess whether $21.1 million represents an increase, decrease, or is in line with past expenditures, a review of the SEC's budget and contract databases over several fiscal years would be necessary. Understanding the volume and complexity of cases the SEC is handling during the contract period (2022-2026) would also provide context. Without this historical data, it's impossible to determine if this award signifies a change in spending patterns or reflects the ongoing needs of the agency.

What are the key performance indicators (KPIs) that will be used to measure the success of J.S. HELD LLC's services?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. For a Time and Materials contract, especially one involving expert services, KPIs would typically focus on aspects such as the timeliness of deliverables, the quality and accuracy of expert analysis and testimony, adherence to project timelines, and effective communication with SEC staff. The SEC's contracting officers and program managers are responsible for establishing and monitoring these KPIs throughout the contract lifecycle to ensure the contractor is meeting expectations and providing value. Without explicit KPIs, performance assessment relies more heavily on qualitative judgment and adherence to the Statement of Work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 50 JERICHO QUADRANGLE STE 117, JERICHO, NY, 11753

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

Financial Breakdown

Contract Ceiling: $21,143

Exercised Options: $21,143

Current Obligation: $21,143

Actual Outlays: $21,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline