JA_2022-45 Redacted.pdf

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

STATION PLACE

100 F STREET, NE

WASHINGTON, DC 20549

OFFICE OF

AQUISITIONS

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

J&A Number: 2022-45

Upon the basis of the following justification, I, as Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 41 U.S.C.§ 3304(a)(1).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Securities and Exchange Commission (SEC) Office of Acquisitions 100 F Street, NE Washington, D.C. 20549

2. NATURE/DESCRIPTION OF ACTION(S):

The SEC intends to award a Time-and-Materials contract for worldwide deposition reporting and transcription services to Gradillas Court Reporters Inc., 400 N Brand Blvd, Suite 950, Glendale, CA 91203-2369. This is a new contract action. As noted in paragraph 8 below, this short-term interim bridge action is being executed to ensure the continued provision of certain essential deposition reporting and transcription services while additional research for an acquisition for long-term services, which has been delayed, is completed.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The SEC requires the contractor to provide worldwide (domestic and international) in-person and/or virtual deposition reporting and transcription services. The agency anticipates awarding the resulting contract with one 12 month base period. The proposed base period is reasonable based on the likelihood that it will take additional time to (1) continue research on suitable platforms to fulfill the virtual requirement, (2) gather more research on the possible effects of COVID on pricing, (3) develop, evaluate, and award a contract based on competition and (4) allow for a transition period, providing the incumbent with adequate time to complete outstanding services.

The estimated value is $2.5M.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The proposed action will be awarded on a sole source basis under the authority of FAR 6.302-1 – Only one source and no other supplies or services will satisfy agency requirements.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

Only the incumbent contractor is capable of providing the services necessary to ensure the SEC’s Division of Enforcement is can continue, uninterrupted, to perform mission critical activities until the new contract is awarded. Failure to award a bridge contract will result in mission failure.

The SEC oversees the key participants in the securities markets, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. The SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud. Crucial to the SEC's effectiveness in each of these areas is its enforcement authority. Each year the SEC brings hundreds of civil enforcement actions against individuals and companies for violation of the securities laws. Typical infractions include insider trading, accounting fraud, and providing false or misleading information about securities and the companies that issue them. Without deposition services SEC investigators and trial attorneys would not be able to obtain critical depositions and resultant testimony for cases under investigation or for those currently in litigation. Gradillas Court Reporters, Inc., as the currently performing incumbent, is the only contractor that can provide the required services on an ongoing basis without the risk of unacceptable delay and disruption, and resulting significant adverse impact to the agency’s mission. The services required are urgently needed based on current case matters and those that may require scheduling with as little as 24 hours’ notice. Although the SEC is located in 12 offices across the nation, any number of deposition reporting and transcription services may be required in any city, state or country at any time.

The agency has a continued need for in-person and virtual deposition reporting and transcription services, and has carefully evaluated Gradillas Court Reporters’ current services to ensure that it is capable of continually meeting these requirements. Based on the agency’s market research for these services and the response to the notice of intent to sole source this requirement (discussed further below) Gradillas Court Reporters is the only vendor capable of providing continued support until a competitive procurement can be developed and awarded.

The services required are critical to the agency since they are to support ongoing Enforcement cases and/or investigations, which are central to the Agency’s mission of enforcing the securities laws. The agency continually has pending cases under investigation and in litigation, with very tight deadlines by which depositions must be completed. The agency estimates that it conducts approximately 30 depositions per month, across the globe, and will likely maintain this number in the upcoming months. Failing to move forward with depositions immediately and succinctly would jeopardize the agency’s ability to succeed in its litigation and mission to enforce the securities laws. Therefore it is essential that the bridge contract be in place with Gradillas Court Reporters providing continued services, to avoid a potential gap in critical support, until a follow-on procurement can be developed and awarded.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT:

A notice of intent to sole source this requirement, in accordance with FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy the government’s requirement, was posted to the System for Award Management at www.sam.gov on April 15, 2022 with a closing date and time of April 30, 2022 at 3:00pm EST. Two vendors ( and )