Treasury's IRS awards $3.5M expert witness contract to Bates White, LLC for technical services

Contract Overview

Contract Amount: $3,478,645 ($3.5M)

Contractor: Bates White, LLC

Awarding Agency: Department of the Treasury

Start Date: 2019-09-25

End Date: 2024-12-18

Contract Duration: 1,911 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW EXPERT WITNESS AWARD - EXECUTION OF PHASE ONE WITH T&M

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.5 million to BATES WHITE, LLC for work described as: NEW EXPERT WITNESS AWARD - EXECUTION OF PHASE ONE WITH T&M Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. The contract duration extends over 5 years, suggesting a long-term need for services. 3. Services are classified under 'All Other Professional, Scientific, and Technical Services,' a broad category. 4. The award was not competed, raising questions about potential cost efficiencies and market engagement. 5. Bates White, LLC, is the sole awardee, highlighting a specific expertise or relationship. 6. The contract is a definitive contract, typically used for complex or long-term requirements.

Value Assessment

Rating: fair

The contract value of $3.5 million over approximately 5 years for expert witness services appears moderate for specialized legal support. Without comparable contract data for similar expert witness services within the IRS or Treasury, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition limits the ability to benchmark pricing against market alternatives. Further analysis would require understanding the specific nature of the expert witness services and the complexity of the cases involved.

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 contractor possesses unique qualifications, capabilities, or when urgency dictates a direct award. The lack of competition means that the IRS did not solicit bids from other firms, potentially limiting price discovery and the opportunity to explore a wider range of service providers.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers if competitive bidding processes are not utilized to drive down prices.

Public Impact

The primary beneficiary of this contract is the Internal Revenue Service (IRS), which will receive expert witness support. The services delivered will likely involve providing specialized knowledge and testimony in legal or administrative proceedings. The geographic impact is primarily within the District of Columbia, where the IRS is headquartered and many federal legal matters are handled. The contract supports specialized professional services, potentially impacting a small number of highly skilled individuals within the expert witness field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed award.
Sole-source nature limits transparency into the selection process and alternative provider options.
The broad 'All Other Professional, Scientific, and Technical Services' NAICS code makes it difficult to assess the specific nature and necessity of the services without further detail.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need for these specialized services.
Award to a single, presumably qualified, firm can ensure continuity of expertise.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide range of specialized expertise. Within this sector, expert witness services are critical for litigation support, particularly in complex financial, scientific, or technical cases. The IRS, dealing with intricate tax laws and financial disputes, relies on such expertise. While specific market size data for expert witness services supporting government agencies is not readily available, the overall professional services market is substantial. This contract represents a small but important component of the IRS's operational support within this sector.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Bates White, LLC, is not identified as a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract were not prioritized through this mechanism.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the IRS. The firm-fixed-price nature simplifies some aspects of financial oversight. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution or performance.

Related Government Programs

Legal Services
Professional and Technical Services
Expert Witness Services
Government Contracting Support

Risk Flags

Lack of Competition
Potential for Cost Overruns
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.5 million to BATES WHITE, LLC. NEW EXPERT WITNESS AWARD - EXECUTION OF PHASE ONE WITH T&M

Who is the contractor on this award?

The obligated recipient is BATES WHITE, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2019-09-25. End: 2024-12-18.

What is the specific nature of the expert witness services Bates White, LLC is providing to the IRS under this contract?

The provided data indicates the contract is for 'NEW EXPERT WITNESS AWARD - EXECUTION OF PHASE ONE WITH T&M' under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). While the exact nature of the expert witness services is not detailed, this classification suggests support in areas requiring specialized knowledge beyond typical consulting. Given the IRS's mission, these services likely pertain to complex tax litigation, financial investigations, economic analysis, or valuation disputes where expert testimony is crucial. The 'T&M' (Time and Materials) aspect mentioned in the description, despite the overall contract being 'FIRM FIXED PRICE', might refer to how specific tasks within phases are tracked or billed, or it could indicate a slight ambiguity in the initial description versus the final contract type. Further clarification would be needed to pinpoint the exact services, such as forensic accounting, economic modeling, or industry-specific technical expertise.

How does the $3.5 million contract value compare to similar expert witness contracts awarded by the IRS or other federal agencies?

Benchmarking the $3.5 million contract value for expert witness services requires access to a database of comparable federal contracts. Without such data, a direct comparison is difficult. However, expert witness services, especially those involving complex litigation or investigations, can range significantly in cost depending on the duration, the level of expertise required, and the specific subject matter. For instance, high-profile cases involving economic damages or intricate financial fraud might command higher fees. The fact that this is a sole-source award also complicates direct comparison, as competitive bidding often drives prices down. Generally, federal agencies procure a wide spectrum of professional services, and while $3.5 million over five years is a substantial sum, its value-for-money is best assessed against the criticality and complexity of the IRS's needs and the specialized skills Bates White, LLC provides.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may not achieve the best possible pricing. There's also a risk of reduced innovation, as a competitive environment often encourages vendors to propose more efficient or novel solutions. Furthermore, a sole-source award can raise concerns about fairness and equal opportunity for other qualified firms that were not given a chance to compete. Transparency is also diminished, making it harder for oversight bodies and the public to understand why a particular contractor was chosen and if the price is justified. Finally, over-reliance on a single source can create vendor lock-in and reduce flexibility if the contractor's performance or circumstances change.

What is Bates White, LLC's track record with federal contracts, particularly with the IRS or Treasury?

Information regarding Bates White, LLC's specific track record with federal contracts, especially with the IRS or Treasury, is not detailed in the provided data. A comprehensive assessment would require querying federal procurement databases (like FPDS or SAM.gov) for their contract history, including award amounts, agencies served, contract types, and performance ratings. Bates White, LLC is known as a prominent economic consulting firm that often provides litigation and dispute consulting services, which aligns with the nature of expert witness work. Their involvement in high-stakes litigation suggests they possess the requisite expertise. However, without specific contract data, it's impossible to definitively assess their past performance, reliability, or pricing history within the federal contracting landscape.

How does the duration of this contract (nearly 5 years) align with the typical needs for expert witness services at the IRS?

The contract duration of approximately 1911 days (around 5.25 years) suggests that the IRS anticipates a long-term or recurring need for the specialized expert witness services provided by Bates White, LLC. Expert witness engagements can often span lengthy periods, especially in complex litigation or investigations that involve multiple phases, appeals, or ongoing legal proceedings. For an agency like the IRS, which frequently engages in disputes related to tax law, financial regulations, and economic matters, having a stable, long-term support contract can ensure continuity of expertise and institutional knowledge. This duration implies that the services are not for a single, short-term event but rather for a sustained requirement, potentially covering various cases or a protracted legal battle.

What is the significance of the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') in understanding this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad classification used when a more specific industry code does not accurately describe the business activity. For this contract, it indicates that the expert witness services provided by Bates White, LLC fall outside more narrowly defined categories like legal services (which might have its own code), accounting services, or specific scientific research. This broadness means the exact nature of the technical or scientific expertise is not immediately apparent from the code alone. It could encompass a wide range of specialized knowledge, from economic analysis and forensic accounting to specific industry expertise relevant to IRS cases. While useful for general categorization, further details about the contract's statement of work are necessary to understand the precise services rendered under this 'catch-all' code.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2001 K ST NW N BUILDING STE 500, WASHINGTON, DC, 20006

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: $3,478,645

Exercised Options: $3,478,645

Current Obligation: $3,478,645

Actual Outlays: $3,478,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline