Treasury's IRS awards $7.7M sole-source contract for expert witness services to Jonathan P. Evans

Contract Overview

Contract Amount: $7,671 ($7.7K)

Contractor: Jonathan P Evans

Awarding Agency: Department of the Treasury

Start Date: 2022-06-23

End Date: 2027-12-31

Contract Duration: 2,017 days

Daily Burn Rate: $4/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT WITNESS SERVICES

Place of Performance

Location: SEWANEE, FRANKLIN County, TENNESSEE, 37375

State: Tennessee Government Spending

Plain-Language Summary

Department of the Treasury obligated $7,670.75 to JONATHAN P EVANS for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about competition and potential value. 2. The contract duration extends over five years, indicating a long-term need for these services. 3. Services are categorized under 'All Other Professional, Scientific, and Technical Services,' a broad category. 4. The award method ('NOT COMPETED UNDER SAP') suggests it may not have undergone full competitive bidding. 5. The use of a Time and Materials pricing structure can lead to cost overruns if not closely managed. 6. The single awardee suggests a lack of market research or a specific, unique capability required.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source expert witness service contracts. The Time and Materials pricing structure, while flexible, carries inherent risks for cost control. Without competitive bids, it's difficult to ascertain if the government secured the best possible price. The absence of competition suggests potential for higher-than-market rates, though the specific expertise required might justify a premium.

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. This typically occurs when a specific contractor possesses unique qualifications or capabilities essential for the requirement, or in cases of urgent need where competition is not feasible. The lack of multiple bidders means there was no price discovery through a competitive process, potentially impacting the final cost to the government.

Taxpayer Impact: Sole-source awards can limit taxpayer savings as there is no competitive pressure to drive down prices. This approach may result in paying a premium for services that could potentially be obtained at a lower cost through a competitive bidding process.

Public Impact

The Internal Revenue Service (IRS) benefits from specialized expert witness services to support its legal and enforcement activities. These services are crucial for providing technical expertise in complex tax cases, aiding in litigation and investigations. The contract's impact is primarily within the federal government's legal and compliance functions, rather than directly on the public. Workforce implications are minimal, as this contract procures external specialized expertise rather than internal staffing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Time and Materials pricing structure introduces risk of cost escalation without strict oversight.
Lack of transparency in the justification for sole-source award.
Broad service category may obscure the specific critical nature of the expertise required.
Long contract duration without clear performance metrics could lead to complacency.

Positive Signals

Ensures access to potentially specialized and critical expert witness capabilities for the IRS.
Long-term contract provides stability and continuity for ongoing legal support needs.
Focus on a specific expert suggests a tailored solution to a complex problem.

Sector Analysis

The professional, scientific, and technical services sector is vast, encompassing a wide range of specialized expertise. Expert witness services are a niche within this sector, often critical for legal proceedings, particularly in complex regulatory and financial matters. The IRS, dealing with intricate tax laws and financial transactions, frequently requires such specialized support. Comparable spending in this sub-sector can vary widely based on the complexity and duration of litigation, but sole-source awards for highly specialized expertise are not uncommon, though they warrant scrutiny.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further indicates that small businesses were likely not considered or solicited as part of a competitive process. There is no explicit information regarding subcontracting plans for small businesses. This award does not seem to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Inspector General, with specific program management and monitoring by the IRS. Accountability measures would be tied to the terms of the Time and Materials contract, requiring detailed reporting of hours and expenses. Transparency is limited due to the sole-source nature of the award, with justifications for the procurement method typically being internal.

Related Government Programs

Department of Justice Expert Witness Services
Federal Bureau of Investigation Forensic Services
Securities and Exchange Commission Investigative Support

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $7,670.75 to JONATHAN P EVANS. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is JONATHAN P EVANS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7,670.75.

What is the period of performance?

Start: 2022-06-23. End: 2027-12-31.

What is the specific expertise provided by Jonathan P. Evans that necessitates a sole-source award?

The provided data does not specify the exact nature of Jonathan P. Evans's expertise. However, expert witness services are typically required for highly specialized knowledge in areas such as accounting, economics, forensic analysis, or specific industry regulations. For a sole-source award to be justified, it implies that Mr. Evans possesses unique qualifications, a proven track record in similar IRS cases, or proprietary methodologies that cannot be replicated by other potential contractors. The IRS would have internal documentation justifying why competition was not feasible, likely citing the contractor's singular ability to meet the requirement effectively and efficiently.

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

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when the duration and effort required are uncertain, which can be the case for expert witness services in evolving litigation. Unlike fixed-price contracts, T&M pays the contractor for the actual labor hours and materials used. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government if not meticulously monitored. Competitive bidding often favors fixed-price or cost-plus-fixed-fee structures for better cost predictability. The IRS's choice of T&M suggests a need for adaptability but necessitates robust oversight to control expenditures.

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

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced value for money. Without competing bids, the government may pay more than necessary for the services. Additionally, it limits the opportunity to discover potentially more innovative or cost-effective solutions from a broader pool of contractors. There's also a risk that the chosen contractor may not be the absolute best fit if other qualified experts were not considered. Transparency can also be a concern, as the justification for not competing may not always be fully transparent to the public or even all internal stakeholders.

What is the historical spending pattern for expert witness services by the IRS or Treasury?

The provided data focuses on a single contract and does not offer historical spending patterns for expert witness services by the IRS or Treasury. To assess historical trends, one would need to analyze procurement data over several fiscal years, identifying the frequency, value, and award types (competed vs. sole-source) of similar contracts. Understanding these patterns would reveal whether the IRS consistently relies on sole-source awards for such services or if this is an outlier. It would also help benchmark current spending against past expenditures and identify any significant increases or decreases in demand or cost.

How does the $7.7 million contract value compare to typical expert witness service contracts in the federal government?

The $7.7 million value for expert witness services over a five-year period (approximately $1.54 million per year) is substantial but not necessarily outside the range for complex federal litigation support. However, without knowing the specific nature of the cases and the required expertise, a direct comparison is difficult. Contracts for expert witnesses can range from tens of thousands for short-term consultation to millions for long-term, high-profile cases requiring extensive testimony and analysis. The sole-source nature of this award, coupled with the T&M structure, warrants closer examination to ensure this value aligns with market rates for comparable specialized services.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 554 BARREL HOUSE RD, SEWANEE, TN, 37375

Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,671

Exercised Options: $7,671

Current Obligation: $7,671

Actual Outlays: $7,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline