Treasury's IRS awards $170K for environmental consulting, raising questions about competition and value
Contract Overview
Contract Amount: $169,862 ($169.9K)
Contractor: Chenier Environmental Consulting, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-02-08
End Date: 2027-12-31
Contract Duration: 1,787 days
Daily Burn Rate: $95/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: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70810
Plain-Language Summary
Department of the Treasury obligated $169,862.28 to CHENIER ENVIRONMENTAL CONSULTING, LLC for work described as: EXPERT WITNESS SERVICES Key points: 1. The contract was awarded on a sole-source basis, limiting potential cost savings through competition. 2. The duration of the contract, nearly four years, suggests a need for ongoing environmental services. 3. The use of a Time and Materials pricing structure can introduce cost uncertainty if not closely managed. 4. The specific environmental consulting services required by the IRS are not detailed, making direct performance assessment difficult. 5. The relatively small award amount may indicate a niche service or a specific project rather than a broad program.
Value Assessment
Rating: questionable
The award of $169,862.28 for expert witness services appears to be for a specific need rather than a large-scale program. Without more detailed information on the scope of work and the specific environmental consulting services provided, it is difficult to benchmark the value effectively. The Time and Materials pricing structure, while common, necessitates careful oversight to ensure costs remain reasonable and do not escalate beyond initial expectations. Comparing this to similar sole-source contracts for specialized consulting would be necessary for a more robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source purchase order, meaning it was not competed. This approach bypasses the standard competitive bidding process, which typically aims to secure the best value for the government. While sole-source awards are permissible under certain circumstances, they often result in higher prices and reduced innovation compared to fully competed contracts. The lack of competition here means taxpayers did not benefit from potential cost reductions or service enhancements that could have arisen from a bidding process.
Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these environmental consulting services. Without a competitive process, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The Internal Revenue Service (IRS) is the primary beneficiary, likely receiving specialized environmental consulting expertise. The services provided are environmental consulting, potentially related to compliance, site assessments, or expert testimony. The geographic impact is limited to Louisiana, where the contractor is based. There are no immediate indications of significant workforce implications or broad public services delivered directly through this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- Lack of detailed scope of work makes performance and value assessment challenging.
Positive Signals
- Contract awarded to a specific entity, CHENIER ENVIRONMENTAL CONSULTING, LLC, suggesting specialized expertise.
- The contract duration indicates a sustained need for these services.
- The award is a purchase order, a common mechanism for acquiring goods and services.
Sector Analysis
The environmental consulting sector is a specialized field providing expertise on environmental regulations, compliance, and impact assessments. This contract falls within the broader professional, scientific, and technical services industry. The market for environmental consulting is diverse, ranging from large engineering firms to boutique specialized consultancies. Benchmarking this specific award against broader industry spending is difficult without knowing the precise nature of the 'expert witness services' required by the IRS.
Small Business Impact
This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting plans or the potential impact on the small business ecosystem. The focus appears to be on acquiring specialized expertise directly from the awarded contractor.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. As a purchase order, it is subject to internal procurement regulations and financial controls. Transparency regarding the specific services rendered and the justification for the sole-source award would be key to assessing accountability. There is no explicit mention of an Inspector General's direct jurisdiction over this specific award, though general oversight functions may apply.
Related Government Programs
- Environmental Consulting Services
- Expert Witness Services
- Professional, Scientific, and Technical Services
- Government Procurement
- Sole Source Contracts
Risk Flags
- Sole Source Justification
- Time and Materials Pricing Risk
- Lack of Competition
- Limited Scope Transparency
Tags
expert-witness-services, environmental-consulting, department-of-the-treasury, internal-revenue-service, purchase-order, sole-source, time-and-materials, louisiana, professional-scientific-and-technical-services, small-award-value
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $169,862.28 to CHENIER ENVIRONMENTAL CONSULTING, LLC. EXPERT WITNESS SERVICES
Who is the contractor on this award?
The obligated recipient is CHENIER ENVIRONMENTAL CONSULTING, 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 $169,862.28.
What is the period of performance?
Start: 2023-02-08. End: 2027-12-31.
What specific environmental consulting services are being procured under this contract, and what is the justification for the sole-source award?
The data indicates the contract is for 'EXPERT WITNESS SERVICES' within the 'Environmental Consulting Services' NAICS code (541620). However, the precise nature of these services and the specific environmental issues requiring expert testimony are not detailed. The justification for a sole-source award typically involves circumstances such as a unique capability possessed by only one contractor, urgent and compelling needs, or specific national security requirements. Without further documentation from the agency, the exact reason for bypassing competition remains unclear. This lack of transparency makes it difficult to assess if the sole-source designation was appropriate or if competitive alternatives were genuinely unavailable.
How does the Time and Materials pricing structure compare to other contract types for similar environmental consulting services, and what are the associated risks?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. For environmental consulting, T&M can be suitable for investigations or expert witness roles where the duration and specific tasks are uncertain. However, T&M contracts carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, the total cost is not predetermined. If not closely monitored with labor hour limitations and defined ceiling prices, T&M can lead to cost overruns. Benchmarking T&M against fixed-price or cost-plus contracts for comparable services would reveal potential cost differences and risk profiles. Agencies must implement robust oversight to manage T&M contracts effectively.
What is the track record of CHENIER ENVIRONMENTAL CONSULTING, LLC in performing government contracts, particularly for the IRS or similar agencies?
Information regarding the specific track record of CHENIER ENVIRONMENTAL CONSULTING, LLC in performing government contracts is not provided in the given data. To assess their reliability and past performance, a review of their contract history, including past performance evaluations, any disputes or claims, and successful completion of similar projects, would be necessary. This would typically involve accessing government contract databases or agency performance records. Without this information, it is difficult to gauge their experience level and suitability for fulfilling the IRS's expert witness needs effectively and efficiently.
What is the historical spending pattern for environmental consulting services by the IRS, and how does this award fit into that pattern?
The provided data does not include historical spending patterns for environmental consulting services by the IRS. To analyze this, one would need to examine past contract awards for similar services over several fiscal years. This would reveal whether the IRS frequently procures such services, the typical contract values, and the prevalent contract types and award methods (competitive vs. sole-source). This $169,862.28 award appears to be a specific, relatively modest expenditure. Understanding the historical context would help determine if this is a routine need, an unusual requirement, or part of a larger, unstated initiative.
Are there any known risks associated with the specific environmental consulting services required, beyond the contract type and competition level?
Beyond the risks associated with the sole-source award and Time and Materials pricing, the specific risks depend heavily on the nature of the 'expert witness services.' If these services pertain to litigation or regulatory enforcement, risks could include the complexity of the legal or scientific issues, the potential for unfavorable expert opinions, or the need for extensive research and analysis under tight deadlines. The contractor's ability to provide credible and persuasive expert testimony is paramount. Furthermore, the IRS must ensure the contractor maintains objectivity and adheres to ethical standards throughout the engagement. The effectiveness of the expert witness could directly impact the outcome of legal or regulatory proceedings.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting 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: 537 CORSAIR DR, BATON ROUGE, LA, 70810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $248,326
Exercised Options: $248,326
Current Obligation: $169,862
Actual Outlays: $169,862
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2023-02-08
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 08:05:17
Last Modified: 2026-04-07
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)