Justice Department awards $5.15M contract for expert witness services to R2 Resource Consultants, Inc

Contract Overview

Contract Amount: $515,083 ($515.1K)

Contractor: R2 Resource Consultants, Inc

Awarding Agency: Department of Justice

Start Date: 2020-08-04

End Date: 2029-03-31

Contract Duration: 3,161 days

Daily Burn Rate: $163/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT WITNESS

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $515,083 to R2 RESOURCE CONSULTANTS, INC for work described as: EXPERT WITNESS Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Long-term contract duration (nearly 9 years) suggests a sustained need for these services. 3. Time and Materials pricing structure can lead to cost overruns if not closely managed. 4. The specific legal services category (All Other Legal Services) is broad, requiring detailed oversight. 5. Small business participation is not explicitly mandated, potentially impacting small business engagement.

Value Assessment

Rating: fair

The contract value of $5.15 million over nearly nine years averages to approximately $572,000 annually. Without comparable contract data for similar expert witness services within the Department of Justice or other agencies, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking against industry standards for expert witness fees would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique qualifications or capabilities essential for the requirement, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong internal justification and oversight to ensure the selected vendor's pricing is fair and reasonable.

Public Impact

The Department of Justice benefits from specialized expertise to support its legal proceedings. Legal cases requiring expert testimony in areas covered by 'All Other Legal Services' will be supported. The services are primarily delivered within Washington D.C., indicated by the 'ST' and 'SN' codes. The contract supports legal professionals and potentially administrative staff within the DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Time and Materials contract type poses a risk of cost escalation.
The broad NAICS code '541199' lacks specificity, making performance monitoring potentially difficult.
Long contract duration without clear performance metrics could reduce vendor incentive for efficiency.

Positive Signals

Contract awarded to a single entity suggests specialized expertise is available.
Long duration indicates a stable, ongoing need for these critical legal support services.
The contract is for essential expert witness services, directly supporting the DOJ's mission.

Sector Analysis

The legal services sector is diverse, encompassing a wide range of specialized support functions for government agencies. Expert witness services fall under professional, scientific, and technical services, often requiring deep domain knowledge. The NAICS code 541199, 'All Other Legal Services,' is a broad category. Government spending in this area supports litigation, regulatory compliance, and policy development. Comparable spending benchmarks are difficult to establish due to the specialized nature of expert witness testimony and the variability in case complexity and required expertise.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, this award does not appear to directly benefit the small business ecosystem. Further investigation would be needed to determine if R2 Resource Consultants, Inc. is itself a small business or if any subcontracting opportunities were voluntarily pursued.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's contracting and program offices responsible for managing legal support services. The 'Purchase Order' designation suggests a potentially less formal oversight structure compared to a full-fledged contract, though the long duration and value warrant diligent management. Transparency would depend on the DOJ's internal reporting practices and any public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Legal Services
Professional Services
Expert Witness Services
Department of Justice Contracts
Time and Materials Contracts

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration
Broad NAICS code

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $515,083 to R2 RESOURCE CONSULTANTS, INC. EXPERT WITNESS

Who is the contractor on this award?

The obligated recipient is R2 RESOURCE CONSULTANTS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $515,083.

What is the period of performance?

Start: 2020-08-04. End: 2029-03-31.

What is the specific nature of the expert witness services R2 Resource Consultants, Inc. provides to the Department of Justice?

The provided data indicates the contract falls under NAICS code 541199, 'All Other Legal Services.' This is a broad classification. To understand the specific services, one would need to examine the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This document would detail the types of cases, the subject matter expertise required (e.g., forensic accounting, scientific analysis, economic damages, technical consulting), the expected deliverables (e.g., reports, depositions, trial testimony), and the qualifications of the experts provided by R2 Resource Consultants, Inc. Without the SOW, the exact nature of the 'expert witness' services remains generalized.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar expert witness services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently, which can be the case in litigation. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts because the final cost is directly tied to the hours worked and the materials used. For expert witness services, fixed-price contracts or cost-plus-fixed-fee contracts might be considered if the scope of testimony or analysis can be reasonably estimated. The T&M structure necessitates robust government oversight to monitor labor hours, direct costs, and ensure the rates are fair and reasonable to mitigate potential cost escalations.

What is the historical spending pattern for expert witness services within the Department of Justice?

Analyzing historical spending patterns for expert witness services within the Department of Justice (DOJ) would require access to comprehensive federal procurement data, such as from USASpending.gov or agency-specific contract databases. This analysis would involve identifying all contracts awarded for 'expert witness' or related legal support services over several fiscal years, noting the total dollar amounts, contract types, and awardees. Understanding these patterns can reveal trends in spending, identify key contractors, highlight periods of increased or decreased demand for such services, and provide context for the current $5.15 million award to R2 Resource Consultants, Inc. It would also help determine if this award represents a significant increase or is in line with previous expenditures.

What are the potential risks associated with a sole-source award for expert witness services lasting nearly nine years?

A sole-source award for expert witness services over a nearly nine-year period presents several risks. Firstly, the lack of competition means the Department of Justice (DOJ) may not be achieving the best possible pricing, as there's no market pressure to drive down costs. Secondly, the long duration could lead to complacency from the contractor, potentially impacting the quality or efficiency of services over time if performance is not rigorously monitored. Thirdly, if the DOJ's needs evolve significantly over this period, a sole-source contract might lack the flexibility to adapt without costly modifications or renegotiations. Finally, it limits opportunities for other qualified vendors, including small businesses, to compete for this work.

Are there specific performance metrics or key performance indicators (KPIs) associated with this contract to ensure R2 Resource Consultants, Inc. delivers effective expert witness services?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for expert witness services, performance would be evaluated based on factors such as the clarity and accuracy of expert reports and testimony, the ability to meet deadlines, the qualifications and experience of the assigned experts, and the overall contribution to the successful resolution of legal cases. The effectiveness of oversight would depend heavily on the presence and enforcement of these KPIs within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without explicit performance standards, it is difficult to objectively assess the contractor's value and effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

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: 15250 NE 95TH ST, REDMOND, WA, 98052

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $515,083

Exercised Options: $515,083

Current Obligation: $515,083

Actual Outlays: $293,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline