SEC awards $428K sole-source contract for expert witness services to AlixPartners, LLP

Contract Overview

Contract Amount: $428,000 ($428.0K)

Contractor: Alixpartners, LLP

Awarding Agency: Securities and Exchange Commission

Start Date: 2026-04-01

End Date: 2031-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $235/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: NEW YORK, NEW YORK County, NEW YORK, 10022

State: New York Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $428,000 to ALIXPARTNERS, LLP for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of five years suggests a long-term need for specialized expertise. 3. Administrative Management and General Management Consulting Services category indicates a broad scope of potential support. 4. The 'time and materials' pricing structure can lead to cost overruns if not carefully managed. 5. Awarded to a single vendor, raising questions about market availability and alternative solutions. 6. The Securities and Exchange Commission is the sole agency involved in this procurement.

Value Assessment

Rating: questionable

Benchmarking the value of expert witness services is challenging without specific task details. However, the sole-source nature of this award and the 'time and materials' pricing structure present inherent risks to achieving optimal value for money. The Securities and Exchange Commission (SEC) has not provided a detailed justification for the sole-source award, making it difficult to assess if the pricing is competitive or if alternative, more cost-effective solutions were considered. The five-year duration also means that potential cost increases over time are a significant factor.

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. This approach is typically reserved for situations where only one vendor possesses the unique capabilities or qualifications required for the service. Without a competitive solicitation, it is impossible to determine the number of potential bidders or the range of pricing that might have emerged from a more open process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition removes the incentive for vendors to offer their lowest possible prices.

Public Impact

The Securities and Exchange Commission benefits from access to specialized expert witness services. These services are crucial for supporting litigation, investigations, and enforcement actions. The contract's impact is primarily within the federal regulatory and legal sectors. Specialized consultants will provide expertise, potentially influencing case outcomes and regulatory enforcement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and materials contract type carries risk of cost escalation.
Long contract duration (5 years) may not adapt to evolving needs or market rates.
Lack of transparency in justification for sole-source award.

Positive Signals

Award to a single, potentially highly specialized firm (AlixPartners, LLP).
Contract duration aligns with potential long-term needs of the SEC.
Services are critical for SEC's core mission of enforcement and regulation.

Sector Analysis

The market for expert witness services, particularly within the financial regulatory sector, is specialized. Firms like AlixPartners, LLP, often possess deep industry knowledge and analytical capabilities required for complex cases. While specific market size data for this niche is not readily available, the SEC's consistent need for such services indicates a stable demand. This contract fits within the broader professional services sector, specifically management consulting and legal support services.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The focus appears to be on securing specialized expertise from a particular firm, rather than fostering broader market participation.

Oversight & Accountability

Oversight for this contract will likely fall under the Securities and Exchange Commission's internal procurement and program management offices. Accountability measures would be tied to the delivery of expert witness services as defined in the contract statement of work. Transparency regarding the justification for the sole-source award and the performance metrics would be key to assessing oversight effectiveness. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Expert Witness Services
Management and Consulting Services
Legal Support Services
Securities Regulation Enforcement

Risk Flags

Sole-source award
Time and materials pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $428,000 to ALIXPARTNERS, LLP. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is ALIXPARTNERS, LLP.

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 $428,000.

What is the period of performance?

Start: 2026-04-01. End: 2031-03-31.

What specific expertise does AlixPartners, LLP bring to the SEC that justifies a sole-source award?

The provided data does not detail the specific expertise AlixPartners, LLP offers. However, for a sole-source award to be justified, the firm would typically possess unique qualifications, specialized knowledge, or proprietary methodologies directly relevant to the SEC's needs for expert witness testimony. This could include deep experience in complex financial investigations, forensic accounting, market analysis, or specific industry sectors that are critical to the SEC's enforcement actions. The SEC would need to formally document why no other vendor could provide the same level of specialized support, often citing prior successful engagements or unique intellectual property.

How does the 'time and materials' pricing structure compare to other contract types for similar expert witness services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly. For expert witness services, T&M can be advantageous if the duration and nature of the required expertise are uncertain, allowing flexibility. However, it shifts the cost risk to the government, as the final price depends on the actual hours worked and the rates charged. Fixed-price contracts, in contrast, offer greater cost certainty but require a well-defined scope. Hybrid approaches, like Time and Materials with Not-to-Exceed (NTE) clauses, can offer a balance. Without more information on the SEC's specific needs and the typical market practices for these services, it's hard to definitively say if T&M is the most cost-effective, but it does introduce a higher degree of financial uncertainty compared to fixed-price options.

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

A five-year contract for expert witness services carries several potential risks. Firstly, the market for specialized expertise can evolve rapidly; technology, methodologies, and even the nature of financial cases may change significantly over this period. A long-term commitment might lock the SEC into using a vendor whose services become less relevant or cost-effective compared to emerging alternatives. Secondly, 'time and materials' pricing over five years increases the risk of significant cost escalation if rates are not capped or if the scope of work expands unexpectedly. Finally, institutional knowledge can become concentrated within the contractor, potentially reducing the SEC's internal capacity or leverage over time. Regular performance reviews and market checks would be crucial to mitigate these risks.

What is the historical spending pattern of the SEC on expert witness services?

The provided data only includes details for this specific contract award. To assess historical spending patterns, one would need to analyze the SEC's procurement history for similar services over previous fiscal years. This would involve searching contract databases for awards categorized under expert witness services, consulting, or related legal support. Understanding past spending levels, the number of contracts awarded, the types of services procured, and the contractors utilized would provide context for the current $428,000 award. It would help determine if this represents an increase, decrease, or consistent level of investment in such services.

How does the $428,000 contract value compare to other SEC expert witness procurements?

Without access to the SEC's complete procurement history for expert witness services, a direct comparison is difficult. However, $428,000 for a five-year contract, averaging approximately $85,600 per year, suggests a need for specialized, but perhaps not continuous or extremely high-volume, expert support. Larger, more complex cases or investigations might warrant significantly higher contract values. To provide a meaningful comparison, one would need to identify similar sole-source or competitively awarded contracts for expert witness services by the SEC or other regulatory bodies, noting the duration, scope, and total value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ERF-1017

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 909 3RD AVE FL 30, NEW YORK, NY, 10022

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $428,000

Exercised Options: $428,000

Current Obligation: $428,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline