Export-Import Bank awards $5.25M for legal services, with competition indicating potential value

Contract Overview

Contract Amount: $5,250,000 ($5.3M)

Contractor: Allen Overy Shearman Sterling US LLP

Awarding Agency: Export-Import Bank of the United States

Start Date: 2021-07-23

End Date: 2027-01-26

Contract Duration: 2,013 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LEGAL REPRESENTATION

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10020

State: New York Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $5.3 million to ALLEN OVERY SHEARMAN STERLING US LLP for work described as: LEGAL REPRESENTATION Key points: 1. Legal services are essential for complex government operations, but high costs warrant scrutiny. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. The duration of the contract (over 2000 days) indicates a long-term need for legal counsel. 4. The specific NAICS code (541110) points to a standard professional service category. 5. The award was a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The contract value of $5.25 million for legal representation over approximately five years appears reasonable given the nature of government legal services. Benchmarking against similar contracts for legal counsel at federal agencies is challenging due to the bespoke nature of legal work. However, the pricing structure, likely based on hourly rates, needs to be monitored to ensure it remains competitive and does not exceed market norms for experienced legal professionals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified firms were likely solicited and allowed to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of a single award suggests that one firm, ALLEN OVERY SHEARMAN STERLING US LLP, best met the government's requirements and pricing expectations.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the selected legal services are procured at a fair and reasonable price.

Public Impact

The Export-Import Bank of the United States benefits from access to specialized legal expertise. Services provided likely include counsel on international trade law, regulatory compliance, and litigation. The geographic impact is primarily national, supporting the Ex-Im Bank's mission across the US. The contract supports highly skilled legal professionals, contributing to the legal services sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if hourly rates are not closely managed.
Risk of scope creep in legal services, leading to increased expenditures.
Dependence on a single contractor for critical legal functions.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor is a well-established legal firm with recognized expertise.
Clear contract period with defined end date provides budget predictability.

Sector Analysis

The legal services sector is a critical support industry for all government functions. This contract falls within the professional, scientific, and technical services sector, specifically legal services (NAICS 541110). The market for high-end legal representation is often dominated by large, specialized firms capable of handling complex international and regulatory matters, as exemplified by the awardee.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. Given the specialized nature of the legal services required by the Export-Import Bank, it is unlikely that small businesses would be primary bidders for such a large-scale engagement. Subcontracting opportunities for small businesses are not explicitly detailed but are generally limited in this type of professional legal service contract.

Oversight & Accountability

Oversight of this contract would typically be managed by contracting officers and legal counsel within the Export-Import Bank. Performance reviews, adherence to billing guidelines, and scope management are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

General Legal Services Contracts
Professional Services Contracts
International Trade Legal Support
Export-Import Bank Operations

Risk Flags

Potential for cost overruns
Scope creep risk
Contractor performance monitoring needed

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $5.3 million to ALLEN OVERY SHEARMAN STERLING US LLP. LEGAL REPRESENTATION

Who is the contractor on this award?

The obligated recipient is ALLEN OVERY SHEARMAN STERLING US LLP.

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2021-07-23. End: 2027-01-26.

What is the track record of ALLEN OVERY SHEARMAN STERLING US LLP with the federal government?

ALLEN OVERY SHEARMAN STERLING US LLP is a prominent international law firm with a significant presence in the United States. While specific data on their federal contract history is not detailed here, major law firms of this caliber frequently engage with government agencies on complex legal matters, including regulatory compliance, international trade, litigation, and transactional work. Their track record with the federal government would likely involve numerous engagements, often as prime contractors or through task orders under larger vehicles, reflecting their expertise in specialized legal fields relevant to agency missions. A deeper analysis would require examining federal procurement databases for specific contract awards, performance evaluations, and payment histories.

How does the value of this contract compare to similar legal services procured by other federal agencies?

Comparing the $5.25 million value directly is difficult without knowing the specific services rendered and the duration. However, federal agencies frequently procure legal services, with contract values ranging from tens of thousands for specific advice to millions for comprehensive representation. Large agencies with complex international or regulatory mandates, such as the Department of Justice, Treasury, or State, often award multi-million dollar contracts for legal counsel. The Export-Import Bank's mission necessitates specialized international trade and finance legal expertise, justifying a significant contract value. Benchmarking would require analyzing contracts for similar legal specializations (e.g., international finance law, trade compliance) across agencies of comparable size and mission scope.

What are the primary risks associated with this type of legal services contract?

The primary risks associated with this legal services contract include potential cost overruns due to the hourly billing nature, where actual costs can exceed initial estimates if legal matters are more complex or protracted than anticipated. Scope creep is another significant risk, where the services provided expand beyond the original agreement, leading to increased costs and potential delays. There's also a risk of over-reliance on a single contractor, which could reduce flexibility and potentially lead to complacency. Furthermore, ensuring the quality and effectiveness of the legal advice provided, especially in highly specialized areas of international trade law, is crucial. Finally, maintaining confidentiality and data security for sensitive government information handled by the law firm is paramount.

How effective is full and open competition in ensuring value for money for legal services?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for legal services. By allowing all responsible sources to submit bids, it creates a competitive environment that incentivizes contractors to offer their best pricing and most advantageous terms. This process helps the government identify the most qualified bidder at the most reasonable price. For legal services, competition can drive down hourly rates, encourage efficient service delivery, and ensure that the chosen firm possesses the specific expertise required. However, the effectiveness can be moderated by the complexity of the legal requirements, which might limit the number of truly capable bidders, and the need to balance price with the critical factor of legal expertise and past performance.

What is the historical spending pattern for legal representation at the Export-Import Bank?

Analyzing the historical spending pattern for legal representation at the Export-Import Bank would require access to detailed historical procurement data. Federal agencies typically have ongoing needs for legal services related to their operations, regulatory functions, and potential litigation. Spending can fluctuate based on the volume of international trade transactions, the complexity of financing deals, changes in international regulations, and the occurrence of legal disputes. It is common for agencies like the Ex-Im Bank to utilize both in-house counsel and external law firms, often through indefinite-delivery/indefinite-quantity (IDIQ) contracts or specific task orders like this one. A review of past years' spending would reveal trends in contract values, types of legal services procured, and the primary contractors utilized.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › Offices of Lawyers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 599 LEXINGTON AVE, NEW YORK, NY, 10022

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

Financial Breakdown

Contract Ceiling: $5,250,000

Exercised Options: $5,250,000

Current Obligation: $5,250,000

Actual Outlays: $4,086,567

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 83310120D0001

IDV Type: IDC

Timeline