Can someone explain to me exactly what this is?

The sear itself is considered to be a machinegun and can be used to make pretty much any H&K rifle into a full auto weapon.

Why is it so expensive?

Because there will be no more made thanks to Ronald Reagan.
 
This is somewhat of a guess but I'd say it's an autosear for the pin-and-block style H&K trigger groups for the HK91, HK93, HK94, SP89, and PSG1, all basically the same trigger pack and normally semiauto-only.
 
Wow, I'm sure that it's illegal, but are there individuals out there that are making them themselves? Has anyone heard of them surfacing?
 
Sure they come to the surface. Generally it's in the District Court when the gubmint catches them. Then it's several years of free housing, food and health care at Club Fed.
 
A registered auto sear is legal, and in much demand. Once transfered to the owner of a legally posessed H&K, the H&K can have the sear installed an be shot full auto. Lots of folks have H&K rifles, and want the legal auto sear so they can rock & roll.

Or, as my home builder was fond of saying, "With money, anyth9ing is possible."
 
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