Treasury's IRS awards $28.8M contract for expert witness services to Pritchett, Ball & Wise, Inc

Contract Overview

Contract Amount: $28,840 ($28.8K)

Contractor: Pritchett, Ball & Wise, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-07-08

End Date: 2027-07-07

Contract Duration: 1,460 days

Daily Burn Rate: $20/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: ATLANTA, DEKALB County, GEORGIA, 30345

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $28,839.83 to PRITCHETT, BALL & WISE, INC. for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 4 years suggests a sustained need for these services. 3. The North American Industry Classification System (NAICS) code 541199 indicates a broad category of legal services. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The award was made under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 6. The contract is not set aside for small businesses, indicating potential opportunities missed for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of expert witness services is challenging without specific task details. However, the sole-source nature of this award raises concerns about whether the government secured the best possible price. The Time and Materials (T&M) contract type, while sometimes necessary for services with undefined scopes, can lead to cost overruns if not closely monitored. Comparing this to similar sole-source awards for specialized legal support would be necessary for a more definitive value assessment.

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. The IRS likely justified this approach by citing specific circumstances that precluded full and open competition, such as the unique qualifications of the contractor or an urgent need. The lack of competition means there was no opportunity for multiple bidders to offer their services, which typically drives down prices and encourages innovation.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding. The government's ability to negotiate favorable terms is also diminished in a sole-source scenario.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving specialized legal support. The services provided are expert witness testimony and related legal support, crucial for litigation and case preparation. The contract's geographic impact is not specified but likely supports IRS operations nationwide. The contract may have implications for the legal services workforce, particularly those specializing in tax law and litigation support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for money.
Time and Materials contract type carries inherent risks of cost escalation without stringent oversight.
Lack of small business set-aside may limit opportunities for smaller, specialized firms.
Limited public information on the specific services and performance metrics makes independent assessment difficult.

Positive Signals

Contract awarded to a specific entity, suggesting specialized expertise required by the IRS.
The contract duration indicates a stable, ongoing need for these critical legal services.
The award falls under Simplified Acquisition Procedures, potentially indicating efficient processing for a necessary service.

Sector Analysis

The legal services sector is vast, encompassing a wide range of specialized areas. Expert witness services are a critical component of litigation support, particularly in complex areas like tax law where the IRS is involved. The market for these services is competitive, but specific expertise can command premium pricing. This contract fits within the broader professional, scientific, and technical services category, which represents a significant portion of federal spending.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in providing these expert witness services were likely limited. The absence of a small business set-aside could mean that larger, established firms were the primary focus of the procurement, potentially impacting the broader small business ecosystem in this legal niche.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Internal Revenue Service contracting and legal departments. Given it's a sole-source award under SAP, the level of public transparency might be lower compared to larger, competed contracts. Accountability would be managed through contract performance reviews and adherence to the terms of the Time and Materials agreement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Legal Services Contracts
Expert Witness Services
IRS Litigation Support
Department of the Treasury Procurement
Sole-Source Legal Services Awards

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28,839.83 to PRITCHETT, BALL & WISE, INC.. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is PRITCHETT, BALL & WISE, 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 $28,839.83.

What is the period of performance?

Start: 2023-07-08. End: 2027-07-07.

What specific expertise does Pritchett, Ball & Wise, Inc. possess that justifies a sole-source award for IRS expert witness services?

The provided data does not detail the specific expertise of Pritchett, Ball & Wise, Inc. that led to this sole-source award. Typically, sole-source justifications for expert witness services are based on unique qualifications, specialized knowledge in a niche area of tax law or accounting, prior successful engagement with the IRS on similar cases, or the need for continuity with an ongoing litigation matter where changing experts would be detrimental. The IRS would have a formal justification document outlining these reasons, often citing FAR (Federal Acquisition Regulation) clauses that permit non-competitive awards under specific circumstances, such as the unique capabilities of the contractor or urgent and compelling reasons.

How does the Time and Materials (T&M) contract type compare to other contract types for expert witness services in terms of cost control?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. For expert witness services, this can be advantageous if the duration and nature of the required testimony are uncertain. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rates. Effective cost control with T&M requires robust government oversight, including detailed tracking of hours, vigilant monitoring of material usage, and clear definition of task boundaries to prevent scope creep. Without such controls, T&M can be significantly more expensive than anticipated.

What are the potential risks associated with a sole-source award for essential IRS legal services?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a higher price than if multiple vendors had bid. This reduces the government's leverage in negotiating favorable terms and potentially limits access to the most innovative or cost-effective solutions available in the market. Furthermore, sole-source awards can create a perception of favoritism or a lack of transparency, potentially undermining public trust. For the IRS, relying on a single provider for critical expert witness services could also pose a risk if that provider experiences performance issues, financial instability, or faces conflicts of interest, potentially disrupting ongoing legal proceedings.

What is the typical cost range for expert witness services procured by the federal government, and how does this award compare?

The cost range for expert witness services procured by the federal government varies dramatically based on the complexity of the case, the specialization of the expert, the duration of their involvement, and the agency procuring the services. Hourly rates for expert witnesses can range from a few hundred dollars to over a thousand dollars per hour, depending on their credentials and demand. A $28.8 million contract over four years, averaging $7.2 million annually, suggests a significant and ongoing need for these services, likely involving multiple experts or extensive case support. Without knowing the specific tasks, number of experts, and their respective rates, a direct cost comparison is difficult, but the total award value indicates a substantial procurement for specialized legal support.

What oversight mechanisms are typically in place for Time and Materials contracts awarded under Simplified Acquisition Procedures (SAP)?

Oversight for Time and Materials (T&M) contracts under Simplified Acquisition Procedures (SAP) still requires diligent management, though the procedures might be less formal than for larger contracts. Key oversight mechanisms include: establishing a clear ceiling price for the contract, requiring detailed daily or weekly reports from the contractor on hours worked and materials used, appointing a Contracting Officer's Representative (COR) to monitor performance and approve invoices, and conducting regular performance reviews. The COR plays a crucial role in ensuring that the work performed aligns with the contract's objectives and that costs are reasonable and allocable. While SAP aims for efficiency, effective oversight is paramount to prevent cost overruns and ensure value.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pritchett Ball & Wise Inc.

Address: 2200 CENTURY PKWY NE, ATLANTA, GA, 30345

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

Financial Breakdown

Contract Ceiling: $28,840

Exercised Options: $28,840

Current Obligation: $28,840

Actual Outlays: $28,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline