Treasury's $236K expert witness contract with Derosa Research & Trading Inc. awarded via purchase order
Contract Overview
Contract Amount: $236,082 ($236.1K)
Contractor: Derosa Research & Trading Inc
Awarding Agency: Department of the Treasury
Start Date: 2021-07-01
End Date: 2026-12-31
Contract Duration: 2,009 days
Daily Burn Rate: $118/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EXPERT WITNESS SERVICES
Place of Performance
Location: NEW CANAAN, FAIRFIELD County, CONNECTICUT, 06840
Plain-Language Summary
Department of the Treasury obligated $236,081.73 to DEROSA RESEARCH & TRADING INC for work described as: EXPERT WITNESS SERVICES Key points: 1. The contract value appears modest, suggesting a focused scope for expert witness services. 2. Awarded as a purchase order, this indicates a streamlined procurement process. 3. The contract duration extends over five years, implying a need for ongoing support. 4. The 'NOT COMPETED' status raises questions about potential cost savings from competition. 5. The North American Industry Classification System (NAICS) code 541199 points to specialized legal services. 6. The contractor, Derosa Research & Trading Inc., is the sole awardee. 7. The contract is firm fixed price, providing cost certainty for the government.
Value Assessment
Rating: questionable
Benchmarking the value of expert witness services is challenging without specific deliverables. However, the total contract value of $236,081.73 over approximately five years suggests an average annual spend of around $47,216. This is a relatively small amount for specialized legal support, which could indicate a limited scope or a specific niche service. Without comparison to similar contracts for expert witness services within the IRS or Treasury, it's difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty, but the lack of competition limits the ability to gauge if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a 'NOT COMPETED' method, indicating that a competitive bidding process was not utilized. This typically occurs when only one source is capable of meeting the requirement, or in situations where competition is deemed not to be in the government's best interest. The lack of competition means there were no other bidders to compare against, and the government did not benefit from the price discovery that typically occurs in a competitive solicitation.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This could potentially lead to higher costs than if multiple firms had vied for the contract.
Public Impact
The Internal Revenue Service (IRS) is the primary beneficiary, receiving expert witness services. These services likely support litigation or investigations requiring specialized knowledge. The geographic impact is national, as IRS legal matters can arise anywhere in the U.S. The contract supports the legal and enforcement functions of the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- The specific expertise provided by Derosa Research & Trading Inc. is not detailed, making it hard to assess necessity.
- The long contract duration without clear performance metrics could pose a risk if needs change.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- The contract is awarded to a single entity, potentially simplifying administration.
- The duration suggests a stable, ongoing need for the services.
Sector Analysis
The market for expert witness services is diverse, encompassing legal, scientific, financial, and technical fields. This contract falls under the broader legal services sector, specifically within specialized support for government agencies. The NAICS code 541199, 'All Other Legal Services,' suggests a niche area. Benchmarking this specific contract is difficult without knowing the exact nature of the expert witness services required by the IRS. However, the overall federal spending on legal and related professional services is substantial, with expert witness testimony being a critical component in many high-stakes legal proceedings.
Small Business Impact
This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it does not appear to directly benefit small businesses through this specific award. The focus is on obtaining specialized expert witness services, and the procurement method did not prioritize small business participation.
Oversight & Accountability
As a purchase order, oversight would typically be managed by the contracting officer and the program office within the IRS or Treasury. The firm fixed-price nature provides some financial oversight by capping costs. Transparency is limited due to the sole-source award; details on the justification for not competing are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Legal Services Contracts
- Expert Witness Services
- Department of the Treasury Contracts
- Internal Revenue Service Procurement
- Sole-Source Contract Awards
Risk Flags
- Lack of Competition
- Unspecified Scope of Work
- Potential for Overpricing
Tags
expert-witness-services, legal-services, department-of-the-treasury, internal-revenue-service, purchase-order, not-competed, sole-source, firm-fixed-price, connecticut, professional-services, naics-541199
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $236,081.73 to DEROSA RESEARCH & TRADING INC. EXPERT WITNESS SERVICES
Who is the contractor on this award?
The obligated recipient is DEROSA RESEARCH & TRADING INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $236,081.73.
What is the period of performance?
Start: 2021-07-01. End: 2026-12-31.
What is the specific nature of the expert witness services provided by Derosa Research & Trading Inc. under this contract?
The provided data indicates the contract is for 'EXPERT WITNESS SERVICES' under NAICS code 541199 ('All Other Legal Services'). However, the specific domain of expertise is not detailed. This could range from financial analysis for tax fraud cases, to technical expertise for complex regulatory matters, or even specialized knowledge in historical trading practices relevant to IRS investigations. Without further documentation, such as a Statement of Work (SOW) or contract award justification, the precise nature of the services remains unspecified. This lack of detail makes it challenging to fully assess the necessity and value of the contract.
How does the pricing of this contract compare to similar expert witness services procured by the IRS or other federal agencies?
Direct price comparison is difficult without knowing the specific services rendered and their complexity. The total contract value is $236,081.73 over approximately five years (July 2021 to December 2026), averaging around $47,216 annually. This appears to be a modest sum for expert witness services, which can often run into hundreds of thousands or even millions of dollars for complex cases. However, this could reflect a narrow scope of work, a specific niche expertise, or a lower volume of required support. The absence of competition means there's no benchmark from other bidders for this specific requirement. A comprehensive comparison would require access to detailed SOWs and pricing structures of comparable contracts.
What are the potential risks associated with awarding this contract on a sole-source basis?
The primary risk of a sole-source award, especially when labeled 'NOT COMPETED,' is the potential for inflated pricing and reduced value for money. Without competition, the government lacks the leverage to negotiate the best possible price, and the contractor may not feel the same pressure to optimize efficiency or innovation. There's also a risk that the government might overlook more capable or cost-effective solutions that could have emerged from a competitive process. Furthermore, a sole-source award can raise concerns about fairness and equal opportunity for other potential providers in the market, potentially limiting the pool of future contractors if not managed carefully.
What is the track record of Derosa Research & Trading Inc. in providing expert witness services to the federal government?
The provided data identifies Derosa Research & Trading Inc. as the contractor for expert witness services. However, it does not offer details on the company's specific track record, past performance evaluations, or previous federal contracts. To assess their track record, one would need to consult federal procurement databases like SAM.gov for previous awards, performance reviews (if available), and any publicly documented history of their work. Without this information, it's impossible to gauge their experience, reliability, and success in delivering similar services to government agencies.
How does the duration of this contract (over 5 years) align with typical needs for expert witness services?
Expert witness services can be required for short-term, case-specific needs or for long-term, ongoing support related to complex investigations or litigation. A contract duration extending over five years (July 1, 2021, to December 31, 2026) suggests that the IRS anticipates a sustained requirement for the specific expertise offered by Derosa Research & Trading Inc. This could be related to a large, ongoing investigation, a complex regulatory environment requiring continuous expert input, or a strategic decision to maintain a relationship with a trusted provider. While long durations can offer stability, they also necessitate careful monitoring to ensure the services remain necessary and cost-effective throughout the period.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 495 WHITE OAK SHADE RD, NEW CANAAN, CT, 06840
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $518,956
Exercised Options: $518,956
Current Obligation: $236,082
Actual Outlays: $236,082
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-07-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 13:46:58
Last Modified: 2026-04-03
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