SEC awards $1.15M contract for expert witness services to Kroll, LLC, with no competition

Contract Overview

Contract Amount: $1,149,188 ($1.1M)

Contractor: Kroll, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2025-09-10

End Date: 2030-09-04

Contract Duration: 1,820 days

Daily Burn Rate: $631/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, 10007

State: New York Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $1.1 million to KROLL, LLC for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of five years suggests a long-term need for specialized expertise. 3. Services fall under Administrative Management and General Management Consulting, a broad category. 4. The award to a single vendor may limit opportunities for emerging or specialized firms. 5. Performance will be monitored by the Securities and Exchange Commission's own agency. 6. The contract type is Time and Materials, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for expert witness services. However, the $1.15 million total value over five years, averaging $230,000 annually, appears reasonable for specialized expert witness testimony. The Time and Materials pricing structure, while flexible, carries inherent risks for cost control. Without competitive bids, it's difficult to ascertain if the SEC secured the best possible price.

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 solicit bids from multiple vendors. This approach is typically used when a specific vendor possesses unique qualifications or capabilities essential for the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple firms had competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. The SEC did not leverage the potential for cost savings that typically arises from a competitive bidding process.

Public Impact

The Securities and Exchange Commission (SEC) will benefit from access to specialized expert witness services. These services are crucial for supporting litigation and enforcement actions undertaken by the SEC. The services are delivered primarily in New York, where Kroll, LLC is based. The contract supports highly skilled professionals in the fields of financial analysis and forensic accounting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Time and Materials contract type poses a risk of cost escalation if not closely monitored.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of services.
Limited opportunities for small businesses to participate in this specific contract.

Positive Signals

Award to a reputable firm (Kroll, LLC) with established expertise in financial investigations.
Long-term contract (5 years) provides stability and continuity for critical SEC functions.
Services directly support the SEC's mission of enforcing securities laws.
Clear performance period with a defined end date.

Sector Analysis

The market for expert witness services, particularly in financial and forensic accounting, is highly specialized. This contract falls within the professional services sector, supporting government regulatory functions. The SEC, as a major regulator, frequently requires such expertise for complex investigations and litigation. Comparable spending benchmarks are difficult to establish due to the bespoke nature of expert witness engagements and the prevalence of sole-source awards in this niche.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses. The award to Kroll, LLC, a large firm, suggests that the nature of the expert witness services required is beyond the typical scope or capacity of most small businesses in this specialized field. This limits direct opportunities for small businesses to engage with this specific contract.

Oversight & Accountability

Oversight will be conducted by the Securities and Exchange Commission (SEC) itself, as the awarding agency. Accountability measures are inherent in the contract's performance clauses and reporting requirements. Transparency regarding the justification for the sole-source award would be crucial for public assessment. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

SEC Enforcement Division Support Services
Financial Forensics Consulting
Litigation Support Services
Regulatory Compliance Consulting

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $1.1 million to KROLL, LLC. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is KROLL, 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 $1.1 million.

What is the period of performance?

Start: 2025-09-10. End: 2030-09-04.

What is Kroll, LLC's track record with the federal government, particularly the SEC?

Kroll, LLC has a significant history of contracting with various federal agencies, including the SEC. While specific details of past performance on similar expert witness contracts with the SEC are not publicly detailed in this award notice, Kroll is a well-established firm known for its expertise in financial forensics, investigations, and dispute resolution. Their extensive experience suggests a strong capability to fulfill the requirements of this contract. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the full scope and value of their prior federal engagements, including any performance ratings or past issues.

How does the $1.15 million value compare to similar expert witness contracts awarded by the SEC or other agencies?

Direct comparison of the $1.15 million value is difficult without knowing the specific scope and duration of services for other expert witness contracts. However, for a five-year engagement involving specialized financial expertise, this amount averages approximately $230,000 per year. This figure appears within a reasonable range for high-level expert testimony and forensic analysis, especially considering the complexity often involved in SEC enforcement actions. Sole-source awards, by their nature, lack direct competitive benchmarks, making precise value-for-money assessments challenging. However, the SEC likely considered Kroll's unique qualifications and market rates when determining this value.

What are the primary risks associated with this Time and Materials contract, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. If the contractor's hours are not efficiently managed or if the scope of work expands unexpectedly, costs can escalate beyond initial estimates. Mitigation strategies typically include establishing strong contract management by the government, setting clear ceilings on total expenditure, requiring detailed progress reports, and conducting thorough reviews of invoices. The SEC's contract officers will need to actively monitor labor hours, rates, and the necessity of all expenditures to ensure cost control.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically rests on the assertion that only one responsible source is capable of providing the required services. For specialized expert witness services, this often relates to unique expertise, proprietary methodologies, or established knowledge of a specific case or investigation that only a particular firm or individual possesses. In this instance, the SEC likely determined that Kroll, LLC holds specific, indispensable qualifications or institutional knowledge that cannot be readily replicated by other firms. This justification would need to be formally documented and approved according to federal acquisition regulations.

What is the historical spending pattern for expert witness services by the SEC?

Historical spending on expert witness services by the SEC is likely substantial and fluctuates based on the volume and complexity of enforcement actions. Agencies like the SEC frequently engage external experts for specialized knowledge in areas such as accounting, finance, economics, and digital forensics that may not be available in-house. While this specific $1.15 million contract represents a significant award, it should be viewed within the broader context of the SEC's overall budget and its consistent need for external expertise to support its regulatory and enforcement mandates. Analyzing past contract awards for similar services would provide a clearer picture of spending trends.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD TRADE CTR FL 31, NEW YORK, NY, 10007

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

Financial Breakdown

Contract Ceiling: $1,149,188

Exercised Options: $1,149,188

Current Obligation: $1,149,188

Actual Outlays: $232,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline