Economic Analysis

SOURCES SOUGHT This sources sought notice is issued for information purposes. The Securities and Exchange Commission (SEC) does not intend to award a contract solely on the basis of this notice. This is not a Request for Proposal (RFP) and does not commit the SEC to solicit or award a contract now or in the future or otherwise pay for the information solicited. Respondents shall be responsible for all costs associated with the information submitted in response to this notice. PURPOSE The purpose of this notice is to identify sources with the required experience and skill relevant to the requirement. When responding, please provide any Federal Schedules this service is available under (if applicable). BACKGROUND Current Guidance on Economic Analysis in SEC Rulemakings On March 16, 2012, the Office of the General Counsel and the Division of Risk, Strategy, and Financial Innovation (RFSI) circulated the memorandum "Current Guidance on Economic Analysis in SEC Rulemakings" (Current Guidance). The Current Guidance contains a number of reforms that were advocated by the House Committee on Oversight and Government Reform (Committee), the SEC Office of Inspector General (OIG), and other commentators. On Apri1 17, 2012, and again on June 28, 2012, SEC Chairman Mary Schapiro testified before the Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs. In her testimonies, the Chairman endorsed the Current Guidance and assured the subcommittee that the guidance would govern all SEC rulemaking. The Committee stated it was encouraged by the promulgation of the policies contained in the Current Guidance. Nonetheless, the Committee is concerned that a combination of institutional, cultural, and experiential factors may impede the satisfactory implementation of needed reform. Furthermore, practical implementation of the Current Guidance will require Commission staff to be well-versed in econometric modeling and analysis. Further, the Committee is concerned the Commission does not have a sufficient number of economists to meet these requirements. The Chairman informed the Committee there are currently 23 economists in RSFI who are assigned to rulemaking and the Commission is further in the process of hiring 16 additional economists. The Chairman further testified that many of the new economists will be tasked to conduct data analysis as well as retrospective reviews of rules that were issued pursuant to the Sarbanes-Oxley Act. The Committee has requested OIG to evaluate the implementation of the Current Guidance and examine the degree to which the economic analysis in newly-proposed and final Commission rules complies with the principles and policies of the Current Guidance. Further, the Committee wants OIG to examine the degree to which the Commission has ensured that the principles and policies of the Current Guidance are incorporated into the economic analyses of rulemakings of the Public Company Accounting Oversight Board (PCAOB), Financial Industry Regulatory Authority (FINRA), and other Self-Regulatory Organizations (SRO) under the Commission's jurisdiction. Finally, the Committee welcomes recommendations for further improvements to the cost-benefit analysis associated with Commission and SRO rulemaking. OBJECTIVES The primary objective of the evaluation is to determine the degree to which SEC's rule-writing divisions and offices are complying with the Current Guidance. Further, the objective of the evaluation is to assess the degree to which the Commission has ensured that the principles and policies of the Current Guidance are incorporated into the economic analysis of rulemakings for PCAOB, FINRA, and other SROs under the Commission's jurisdiction. Finally, where appropriate, recommendations should be developed to address improvements the SEC needs for cost-benefit analysis that are associated with Commission and SRO rulemakings. SCOPE The scope of the evaluation will include proposed and final rules released March 1, 2012 to September 30, 2012, by SEC's rule-writing divisions and offices and SROs under SEC's jurisdiction. The scope further consists of the Current Guidance and rulemakings associated with PCAOB and FINRA. APPLICABLE GOVERNMENT LAWS, DIRECTIVES, REGULATIONS AND PUBLICATIONS: - SEC's "Current Guidance on Economic Analysis in SEC Rulemakings," issued March 16, 2012. - 5 U.S.C. - 501 - Administrative Procedures Act of 1946. - Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law No.111-203, July 21, 2010. - National Securities Markets Improvement Act of 1996. - Gramm-Leach-Bliley Act of 1999. - 44 U.S.C. - 3501, Paperwork Reduction Act 1980. - 15 U.S.C. - 78w(a)(2) - Section 23(a)(2) of the Securities Exchange Act of 1934. - 5 U.S.C. - 601 - Regulatory Flexibility Act of 1980. - Executive Order 12866, Regulatory Planning and Review, 55 Fed. Reg. 51735, Sept. 30, 1993. - Executive Order 13563, Improving Regulation and Regulatory Review, 76 Fed. Reg. 3821, Jan. 18, 2011. - OMB Circular A-4, Regulatory Analysis, Sept. 17, 2003. - OMB Circular A-123, Management's Responsibility for Internal Controls. - Standards for Internal Control in the Federal Government, GAO/AIMD-00-21.3.1 (Washington, D.C.: November 1999). - Internal Control Management and Evaluation Tool, GAO-01-1008G (Washington, D.C.: August 2001). REQUIREMENT Based on a Congressional request OIG received from the House Committee on Oversight and Government Reform, the Office of Audit (AUD) is seeking an experienced contractor with expertise in economic analysis who is well-versed in econometric modeling and possibly SEC's rulemakings, to conduct an evaluation of the SEC's implementation of the "Current Guidance on Economic Analysis in SEC Rulemakings," March 16, 2012. The purpose of this evaluation is to determine the degree to which the SEC's rule-writing divisions and offices have complied with the Current Guidance in conducting economic analysis for proposed and final Commission rules. The contractor will be required to review applicable federal laws, guidance, policy, and reports SEC OIG has issued related to economic analysis in rulemaking. The contractor will further obtain an understanding of the Commission's rulemaking policies and procedures, conduct analysis on rulemakings, to include rulemakings drafted by the Commission and SROs under the SEC's jurisdiction, and determine the rules' compliance with the Current Guidance.