SEC Spends $2.2M on CCH Legal Research Platform, Lacking Competition

Contract Overview

Contract Amount: $2,212,081 ($2.2M)

Contractor: CCH Incorporated

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB-BASED LEGAL RESEARCH PLATFORM SUBSCRIPTION.

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 $2.2 million to CCH INCORPORATED for work described as: WEB-BASED LEGAL RESEARCH PLATFORM SUBSCRIPTION. Key points: 1. High contract value for a specialized research tool. 2. Sole reliance on CCH Inc. raises competition concerns. 3. Potential for overpayment due to limited price discovery. 4. IT services sector, information access is critical.

Value Assessment

Rating: questionable

The $2.2M price tag for a 4-year subscription is difficult to benchmark without competitive bids. Given the lack of competition, it's unclear if this represents a fair market price compared to similar legal research platforms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a potential lack of full and open competition. This limited competition likely hindered price discovery and may have led to a higher cost for the government.

Taxpayer Impact: Taxpayers may be overpaying for this subscription due to the absence of competitive bidding, which typically drives down prices.

Public Impact

Limited access to alternative legal research tools for SEC staff. Potential for higher operational costs for the SEC. Reduced transparency in government procurement for information services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential overpricing
Limited vendor options

Positive Signals

Essential service for agency operations
Long-term contract provides stability

Sector Analysis

This contract falls within the IT and professional services sector, specifically information services. Benchmarking is challenging without competitive data, but similar large-scale information subscriptions can range from hundreds of thousands to millions annually.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this procurement. The sole source nature of the award suggests it was not structured to encourage small business participation.

Oversight & Accountability

The lack of competition raises questions about the oversight of this procurement. Further review is needed to understand why full and open competition was not pursued for this significant expenditure.

Related Government Programs

Web Search Portals and All Other Information Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Sole source award
Lack of documented justification for sole source
Potential for inflated pricing
Limited market research evident

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $2.2 million to CCH INCORPORATED. WEB-BASED LEGAL RESEARCH PLATFORM SUBSCRIPTION.

Who is the contractor on this award?

The obligated recipient is CCH INCORPORATED.

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 $2.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?

The justification for not competing this contract is not provided in the data. Typically, agencies must demonstrate specific circumstances, such as the existence of a sole-source provider or urgent need, to bypass full and open competition. Without this justification, it's difficult to assess the fairness of the pricing, as competitive pressure is a key driver of cost-effectiveness.

What are the risks associated with relying on a single vendor for critical legal research services?

Relying on a single vendor like CCH Inc. poses several risks. These include potential price increases without competitive alternatives, vendor lock-in making future transitions difficult and costly, and a lack of incentive for the vendor to innovate or improve services. It also limits the agency's ability to leverage diverse research methodologies or specialized databases offered by competitors.

How does this sole-source award impact the SEC's ability to achieve value for taxpayer money in its information technology procurements?

This sole-source award likely hinders the SEC's ability to achieve optimal value. Competitive bidding processes are designed to foster price discovery and encourage vendors to offer their best pricing and terms. By foregoing competition, the SEC misses out on potential cost savings and may end up paying a premium for the CCH legal research platform, thus not maximizing the value of taxpayer funds.

Industry Classification

NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 50310223Q0025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wolters Kluwer N.V.

Address: 2700 LAKE COOK RD, RIVERWOODS, IL, 60015

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: $2,850,469

Exercised Options: $2,212,081

Current Obligation: $2,212,081

Actual Outlays: $1,609,828

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline