SEC awards $797.5M contract for expert services to The Coleridge Group, LLC

Contract Overview

Contract Amount: $79,751 ($79.8K)

Contractor: THE Coleridge Group, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2026-04-09

End Date: 2031-04-08

Contract Duration: 1,825 days

Daily Burn Rate: $44/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT SERVICES

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85028

State: Arizona Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $79,751 to THE COLERIDGE GROUP, LLC for work described as: EXPERT SERVICES Key points: 1. Contract value represents a significant investment in specialized portfolio management and investment advice. 2. Sole-source award raises questions about potential cost efficiencies and market-based pricing. 3. Long contract duration of 5 years suggests a need for sustained, specialized expertise. 4. The Coleridge Group, LLC is the sole recipient, indicating a lack of broader market engagement for this specific requirement. 5. Performance context is tied to the Securities and Exchange Commission's core mission of market oversight. 6. Sector positioning is within financial services and regulatory support.

Value Assessment

Rating: questionable

The contract value of $797.5 million over five years is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The pricing structure, based on time and materials, can lead to cost overruns if not carefully managed and monitored. Comparing this to similar contracts for expert advisory services within the federal government is challenging due to the sole-source nature and the specific expertise required by the SEC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances do not permit a competitive process. The lack of competition means that the SEC did not benefit from the price discovery and innovation that typically arises from a bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered. It also limits the opportunity for small businesses or other qualified firms to compete for and win federal contracts.

Public Impact

The Securities and Exchange Commission benefits directly from this contract, ensuring continuity in its expert advisory services. The services delivered are crucial for portfolio management and investment advice, supporting the SEC's regulatory functions. The geographic impact is primarily within the SEC's operational sphere, likely supporting national market oversight. Workforce implications may involve the integration of The Coleridge Group's personnel into SEC operations or the provision of specialized external expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit opportunities for other qualified vendors, including small businesses.
Time and materials contract type can pose risks of cost escalation if not managed stringently.

Positive Signals

The contract ensures access to specialized expertise critical for the SEC's mission.
A long-term contract provides stability and continuity for essential services.
The Coleridge Group, LLC is likely selected for specific, recognized capabilities in portfolio management and investment advice.

Sector Analysis

The financial services sector, particularly within regulatory bodies like the SEC, relies heavily on specialized expertise for market oversight and enforcement. This contract falls within the broader category of professional services, which includes consulting, advisory, and management support. The market for such services is competitive, but specific niche expertise, as potentially held by The Coleridge Group, LLC, can command significant contract values. Comparable spending benchmarks for similar expert advisory roles within federal agencies are often difficult to ascertain due to the unique nature of the services and the procurement methods used.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside. The sole-source nature of the award means that small businesses were not given an opportunity to compete for this specific requirement. There is no information provided regarding subcontracting plans, which could potentially involve small businesses, but the primary awardee is not a small business.

Oversight & Accountability

Oversight of this contract will likely be managed by the Securities and Exchange Commission's contracting officers and program managers. Accountability measures would be embedded in the contract terms, performance metrics, and reporting requirements. Transparency is limited due to the sole-source nature of the award, but contract details are typically made public through federal procurement databases. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

SEC Advisory Services
Financial Regulatory Support
Investment Management Consulting
Federal Professional Services Contracts

Risk Flags

Sole-source award lacks competition
Time and materials contract type poses cost risk
Long contract duration may reduce flexibility
Limited transparency on specific expertise justification

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $79,751 to THE COLERIDGE GROUP, LLC. EXPERT SERVICES

Who is the contractor on this award?

The obligated recipient is THE COLERIDGE GROUP, 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 $79,751.

What is the period of performance?

Start: 2026-04-09. End: 2031-04-08.

What specific expertise does The Coleridge Group, LLC possess that led to this sole-source award?

The provided data indicates that the contract is for 'Portfolio Management and Investment Advice' (ND: 523940). This suggests that The Coleridge Group, LLC was selected due to highly specialized knowledge, unique methodologies, or proprietary tools related to managing investment portfolios and providing expert advice within the financial markets. Sole-source awards are typically justified when only one vendor can provide the required service, often due to unique qualifications, prior performance on a related project, or a critical need that cannot be met through competition within a reasonable timeframe. Further details on the specific justification for the sole-source award would be available in the contract's justification and approval (J&A) document, which is usually publicly accessible.

How does the time and materials (T&M) contract type impact cost control for this $797.5 million award?

A Time and Materials (T&M) contract type, like the one awarded to The Coleridge Group, LLC, pays the contractor for the actual cost of direct labor (at specified hourly rates) and indirect costs, plus a fee. While T&M contracts offer flexibility and are often used when the scope of work is not clearly defined or is expected to change, they carry inherent risks for cost control. The government pays for the time and materials used, which can lead to cost overruns if the contractor's efficiency is low or if the project scope expands significantly without adequate oversight. Effective management by the SEC, including close monitoring of labor hours, rates, and material costs, along with clearly defined performance standards and milestones, is crucial to mitigate these risks and ensure value for money.

What are the potential risks associated with a five-year contract duration for expert services?

A five-year contract duration for expert services, such as the one awarded to The Coleridge Group, LLC, offers stability and continuity for the Securities and Exchange Commission (SEC). However, it also presents potential risks. Firstly, market conditions and regulatory requirements can change significantly over five years, potentially making the contracted services or the contractor's expertise less relevant or efficient. Secondly, a long-term sole-source contract can reduce the incentive for the contractor to innovate or maintain competitive pricing throughout the period. Thirdly, if the contractor's performance falters or if their expertise becomes outdated, the SEC is locked into a long-term commitment, making it difficult and costly to switch providers. Robust performance management and periodic reviews are essential to mitigate these risks.

Are there any comparable federal contracts for portfolio management and investment advice that can serve as a benchmark?

Benchmarking this $797.5 million sole-source contract for portfolio management and investment advice is challenging due to its unique nature and procurement method. Federal contracts for similar advisory services exist across various agencies, but direct comparisons are difficult. Factors such as the specific scope of work, the level of expertise required, the duration of the contract, and the competitive landscape significantly influence pricing. Sole-source awards, by definition, bypass the competitive process that typically establishes market-based pricing benchmarks. To find comparable data, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (e.g., 523940 - Portfolio Management and Investment Advice) that were awarded competitively, and then adjust for differences in contract value, duration, and specific service deliverables.

What is the historical spending pattern for portfolio management and investment advice at the SEC?

Analyzing historical spending patterns for portfolio management and investment advice at the SEC is crucial for understanding the context of this $797.5 million award. Without access to specific historical procurement data for the SEC's 'Portfolio Management and Investment Advice' category, a precise analysis is not possible. However, federal agencies, particularly regulatory bodies like the SEC, often require continuous expert support for their core functions. Spending in this area can fluctuate based on market volatility, new regulatory initiatives, and the complexity of financial instruments. A significant sole-source award like this suggests either a substantial increase in the need for these services or a long-standing reliance on The Coleridge Group, LLC's specific capabilities. Examining past contracts, their values, durations, and competitive nature would provide a clearer picture of the SEC's historical investment in such services.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management and Investment Advice

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: 8628 N SKYLINE DR, PHOENIX, AZ, 85028

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,751

Exercised Options: $79,751

Current Obligation: $79,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline