DOJ awards $29.3M contract for expert witness services to Stout Risius Ross, LLC

Contract Overview

Contract Amount: $29,283 ($29.3K)

Contractor: Stout Risius Ross, LLC

Awarding Agency: Department of Justice

Start Date: 2024-07-08

End Date: 2026-04-08

Contract Duration: 639 days

Daily Burn Rate: $46/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: ROYAL OAK, OAKLAND County, MICHIGAN, 48067

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $29,282.5 to STOUT RISIUS ROSS, LLC for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services are critical for litigation support, impacting case outcomes. 3. Time and Materials pricing structure may pose cost control challenges. 4. Contract duration extends over 21 months, indicating ongoing need. 5. Stout Risius Ross, LLC is a known entity in financial consulting and expert witness services. 6. The award represents a significant investment in legal support infrastructure.

Value Assessment

Rating: fair

The contract value of $29.3 million for expert witness services over approximately 21 months suggests a substantial need for specialized legal support. Benchmarking this against similar contracts is challenging without more detailed service scope and duration comparisons. However, the 'Time and Materials' pricing model, while flexible, can lead to cost overruns if not closely managed, raising questions about optimal value for money compared to fixed-price arrangements. The absence of competition further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition among multiple bidders. This approach is typically used when a specific contractor possesses unique qualifications or capabilities essential for the requirement, or in urgent situations. The lack of competition means that the Department of Justice did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to lower prices. Without a competitive process, it is harder to ensure the government is receiving the best possible price for these essential expert witness services.

Public Impact

The Department of Justice benefits from specialized expertise to support its legal cases. Services will be utilized in litigation, potentially affecting case resolutions and outcomes. The geographic impact is national, supporting federal legal proceedings across the country. The contract supports a specialized professional workforce in financial consulting and expert testimony.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Time and Materials pricing can lead to unpredictable costs if not managed stringently.
Lack of transparency in the sole-source justification requires careful review.
Potential for scope creep given the flexible pricing model.

Positive Signals

Stout Risius Ross, LLC is a reputable firm with demonstrated expertise in financial consulting.
The contract addresses a critical need for specialized expert witness services within the DOJ.
Long-term contract duration suggests a stable and ongoing requirement, allowing for relationship building.

Sector Analysis

The market for expert witness services is highly specialized, often involving firms with deep expertise in niche areas such as finance, forensics, and specific scientific fields. The Department of Justice, as a major litigant, frequently requires such services to bolster its cases. Spending in this sector is driven by the volume and complexity of litigation. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the expert services required, but large federal agencies often contract for millions of dollars in such support annually.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a single, likely larger, entity suggests that the primary focus was on securing specialized expertise rather than promoting small business participation. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight of this contract will likely fall under the Department of Justice's internal procurement and legal review processes. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Legal Services
Litigation Support
Consulting Services
Financial Advisory Services

Risk Flags

Sole-source award limits competition.
Time and Materials pricing may lead to cost uncertainty.
NAICS code 621111 may not fully represent the specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29,282.5 to STOUT RISIUS ROSS, LLC. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is STOUT RISIUS ROSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $29,282.5.

What is the period of performance?

Start: 2024-07-08. End: 2026-04-08.

What is the specific nature of the expert witness services required by the Department of Justice under this contract?

The provided data indicates the contract is for 'EXPERT WITNESS SERVICES' and falls under the North American Industry Classification System (NAICS) code 621111, 'Offices of Physicians (except Mental Health Specialists)'. However, this NAICS code is a broad classification and may not fully capture the specialized nature of the expert witness services. Typically, such services for the DOJ could range from forensic accounting, economic analysis, valuation, to specialized scientific or technical expertise required to support complex litigation. Without further details on the specific tasks and deliverables, it's difficult to pinpoint the exact nature beyond general legal support.

How does the $29.3 million contract value compare to historical spending on expert witness services by the Department of Justice?

Assessing the $29.3 million contract value against historical DOJ spending requires access to detailed historical procurement data. The provided data only offers details for this specific award. Generally, the Department of Justice, being a primary federal law enforcement and litigation agency, expends significant sums on expert witness services annually due to the high volume and complexity of its cases. A $29.3 million award for a contract spanning approximately 21 months (from July 2024 to April 2026) suggests a substantial, but not necessarily unprecedented, level of expenditure for critical support services. Further analysis would necessitate a review of past contract awards for similar services over comparable periods.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of Stout Risius Ross, LLC under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. In a typical expert witness services contract, performance evaluation often focuses on the quality and timeliness of expert reports, the effectiveness of expert testimony during depositions or trials, adherence to deadlines, and the overall contribution to the legal case's strategy and outcome. The 'Time and Materials' pricing structure might also imply that performance is monitored through detailed timesheets and expense reports, ensuring that billed hours and costs are reasonable and directly related to the contracted services. Formal performance reviews would likely be conducted periodically by the contracting officer's representative (COR).

What is the track record of Stout Risius Ross, LLC in providing expert witness services to federal agencies, particularly the Department of Justice?

Stout Risius Ross, LLC is a well-established firm known for its expertise in valuation, forensic accounting, and litigation advisory services, which are directly relevant to expert witness roles. While the provided data confirms this award, it doesn't detail their specific track record with federal agencies. However, firms of this nature often secure contracts with various federal departments, including the DOJ, based on their specialized knowledge and reputation. A comprehensive assessment of their track record would involve searching federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations, and any publicly available information on their government contracting history.

Given the sole-source nature, what justification was provided for not competing this requirement?

The provided data states the contract type as 'NOT COMPETED', indicating a sole-source award. Federal procurement regulations (like the Federal Acquisition Regulation - FAR) outline specific circumstances under which a contract can be awarded without competition. Common justifications include: the existence of only one responsible source capable of providing the required service (e.g., unique intellectual property, specialized expertise), urgent and compelling needs where delay would cause significant damage, or when a previous contract was awarded competitively and the follow-on is justified under specific conditions. The exact justification for this specific award would be detailed in the contract file and potentially summarized in public award notices.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

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: 150 W 2ND ST STE 400, ROYAL OAK, MI, 48067

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

Financial Breakdown

Contract Ceiling: $29,283

Exercised Options: $29,283

Current Obligation: $29,283

Actual Outlays: $29,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline