Treasury's IRS awards $7.7M contract for expert witness services to Trimble Valuation Services, Inc

Contract Overview

Contract Amount: $76,988 ($77.0K)

Contractor: Trimble Valuation Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-11-01

End Date: 2028-10-31

Contract Duration: 1,826 days

Daily Burn Rate: $42/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS SERVICES

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of the Treasury obligated $76,988 to TRIMBLE VALUATION SERVICES, INC. for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services are critical for tax litigation support, indicating a specialized need. 3. Long contract duration (5 years) suggests a sustained requirement for these services. 4. The award is a purchase order, typically used for simpler acquisitions. 5. No small business set-aside was applied to this procurement. 6. The contract is for labor hours, allowing flexibility in service delivery.

Value Assessment

Rating: fair

The contract value of $7.7 million over five years for expert witness services appears reasonable given the specialized nature of the work. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The award is a purchase order, which often implies a less complex acquisition, but the dollar value warrants closer scrutiny of the pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reason for this approach is not detailed, but it suggests that Trimble Valuation Services, Inc. was identified as the only capable provider or that the circumstances did not allow for a competitive process. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which typically drives down prices and fosters innovation.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that a competitive bidding process could have generated. The government did not leverage market forces to secure the most economical price for these essential services.

Public Impact

The Internal Revenue Service (IRS) will benefit from specialized expert witness services. These services are crucial for supporting the government's position in tax litigation cases. The contract's impact is national, as tax cases can originate from anywhere in the U.S. The contract supports a specialized professional workforce in valuation and expert testimony.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Sole-source awards can limit access for other qualified firms.
Long-term nature of the contract may reduce future opportunities for competitive pricing.

Positive Signals

Award to a single, presumably qualified, vendor ensures continuity of service.
Purchase order mechanism can allow for agile service delivery.
The contract addresses a critical need for litigation support.

Sector Analysis

The market for expert witness services is diverse, encompassing various specialties including real estate appraisal, financial analysis, and forensic accounting. Government agencies, particularly those involved in litigation like the IRS, frequently procure these services to support their legal cases. While specific market size data for government-contracted expert witness services is not readily available, it represents a significant segment within the broader professional services industry. This contract fits within the professional services sector, specifically supporting legal and regulatory functions.

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. The award to a single, likely established, firm may limit opportunities for smaller, specialized firms to participate in providing these critical services to the IRS. The absence of a small business focus in this sole-source procurement means the direct economic benefits to the small business ecosystem are likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Inspector General, with specific program management and oversight by the IRS's contracting and legal departments. As a purchase order, the level of detailed public reporting might be less than for larger, competitively awarded contracts. Transparency is limited due to the sole-source nature, but internal controls and performance monitoring by the IRS are expected to ensure accountability.

Related Government Programs

Legal Services
Professional Services
Litigation Support
Expert Witness Services
Valuation Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $76,988 to TRIMBLE VALUATION SERVICES, INC.. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is TRIMBLE VALUATION SERVICES, 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 $76,988.

What is the period of performance?

Start: 2023-11-01. End: 2028-10-31.

What is the specific expertise Trimble Valuation Services, Inc. brings to this contract?

Trimble Valuation Services, Inc. specializes in providing valuation and appraisal services, which are critical for tax litigation. Their expertise likely includes assessing the value of real estate, business assets, and other property relevant to tax disputes. This specialized knowledge allows them to act as expert witnesses, providing testimony and analysis that supports the IRS's position in legal proceedings. Their ability to offer credible, data-driven valuations and expert opinions is essential for the successful resolution of complex tax cases.

How does the pricing of this contract compare to similar expert witness services procured by the government?

Benchmarking the pricing for this $7.7 million, five-year contract is challenging due to its sole-source nature. Typically, competitive procurements allow for price comparisons across multiple bidders, revealing market rates. Without this competitive data, it's difficult to ascertain if Trimble Valuation Services, Inc.'s pricing is optimal. However, expert witness services, especially those requiring specialized valuation expertise for federal litigation, are inherently costly. The government's internal cost analysis and negotiation would have been key factors in determining the final price, but a definitive comparison to similar contracts is hindered by the lack of competitive bids.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competition. Without competing offers, there is less pressure on the contractor to offer the most cost-effective solution. Another risk is the potential for vendor lock-in, where the IRS becomes reliant on Trimble Valuation Services, Inc., making it difficult to switch providers in the future even if better options emerge. Furthermore, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or suboptimal performance, although internal oversight mechanisms are expected to mitigate this.

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

The IRS has a consistent need for expert witness services, particularly in areas like real estate valuation, business valuation, and forensic accounting, to support its litigation efforts. Historical spending data would likely show a pattern of procuring such services through various contract vehicles, including competitively awarded contracts and, at times, sole-source awards for highly specialized or urgent needs. Analyzing past spending would reveal trends in the types of services most frequently required, the average duration and value of such contracts, and the typical procurement methods employed. This contract's value and duration should be assessed against these historical patterns to ensure it aligns with established needs and cost structures.

How does the duration of this contract impact its overall value and risk?

The 5-year duration (1826 days) of this contract provides stability and continuity for the IRS's litigation support needs, ensuring access to specialized expertise over an extended period. This long-term commitment can be advantageous for complex, ongoing cases. However, it also increases the financial exposure for the government and reduces flexibility. A longer duration on a sole-source award amplifies the risk of paying above-market rates for an extended period, as market conditions or alternative providers might change significantly over five years. It also means that any potential issues with performance or pricing are locked in for a longer term.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Offices of Real Estate Appraisers

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 700 NE 68TH ST, OKLAHOMA CITY, OK, 73105

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

Financial Breakdown

Contract Ceiling: $76,988

Exercised Options: $76,988

Current Obligation: $76,988

Actual Outlays: $26,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline