IRS awards $513K for expert witness services in conservation easement valuation
Contract Overview
Contract Amount: $513,000 ($513.0K)
Contractor: LAW Offices of Abbas Hadjian, a Professional Corporation
Awarding Agency: Department of the Treasury
Start Date: 2025-06-12
End Date: 2030-06-11
Contract Duration: 1,825 days
Daily Burn Rate: $281/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: TRACS0003289; APPROVED ON 6/10/25 EXPERT WITNESS: VALUATION/APPRAISAL OF SYNDICATED CONSERVATION EASEMENTS FOR INTERNAL REVENUE SERVICE CHIEF COUNSEL.
Place of Performance
Location: ENCINO, LOS ANGELES County, CALIFORNIA, 91436
Plain-Language Summary
Department of the Treasury obligated $513,000 to LAW OFFICES OF ABBAS HADJIAN, A PROFESSIONAL CORPORATION for work described as: TRACS0003289; APPROVED ON 6/10/25 EXPERT WITNESS: VALUATION/APPRAISAL OF SYNDICATED CONSERVATION EASEMENTS FOR INTERNAL REVENUE SERVICE CHIEF COUNSEL. Key points: 1. Contract awarded to Law Offices of Abbas Hadjian for specialized legal expertise. 2. Focus on valuation of syndicated conservation easements highlights a niche but critical area. 3. Sole-source award raises questions about competition and potential price discovery. 4. Services support IRS Chief Counsel in complex tax litigation.
Value Assessment
Rating: questionable
The contract value of $513,000 for expert witness services appears high given the limited scope and single awardee. Benchmarking against similar specialized legal services for tax valuation is difficult without more data, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers as the government did not explore alternative providers or negotiate based on multiple offers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these specialized legal services without the benefit of competitive pricing.
Public Impact
Taxpayers may bear higher costs due to the absence of competition. Ensures specialized legal expertise for IRS in complex conservation easement cases. Potential for increased scrutiny on IRS contracting practices for sole-source awards.
Waste & Efficiency Indicators
Waste Risk Score: 30 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specialized expertise secured
- Supports critical IRS function
Sector Analysis
This contract falls under legal services, specifically focusing on tax law and valuation. The spending benchmark for such specialized expert witness services can vary widely, but the $513,000 award for a 5-year period suggests a significant investment in this niche area.
Small Business Impact
The contract was awarded to a professional corporation, and there is no indication that small businesses were involved in the bidding process or as subcontractors. The specialized nature of the service may limit small business participation.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the price is fair and reasonable and that the IRS adequately justified the lack of competition. Transparency in the justification process is crucial for accountability.
Related Government Programs
- Offices of Lawyers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated costs due to no competition.
- Limited opportunity for small business participation.
- High contract value requires strong justification.
Tags
offices-of-lawyers, department-of-the-treasury, ca, definitive-contract, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $513,000 to LAW OFFICES OF ABBAS HADJIAN, A PROFESSIONAL CORPORATION. TRACS0003289; APPROVED ON 6/10/25 EXPERT WITNESS: VALUATION/APPRAISAL OF SYNDICATED CONSERVATION EASEMENTS FOR INTERNAL REVENUE SERVICE CHIEF COUNSEL.
Who is the contractor on this award?
The obligated recipient is LAW OFFICES OF ABBAS HADJIAN, A PROFESSIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $513,000.
What is the period of performance?
Start: 2025-06-12. End: 2030-06-11.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award typically involves unique capabilities, critical need, or lack of available sources. For this contract, the IRS likely cited the specialized expertise required for valuing syndicated conservation easements as the primary reason. However, a thorough review should confirm if other qualified firms were considered or if market research was conducted to ensure no other sources could meet the requirement.
How does the $513,000 contract value compare to similar expert witness services in tax litigation?
Benchmarking this contract's value is challenging without access to specific data on comparable services. However, $513,000 over five years ($102,600 annually) for specialized legal expert witness services in complex tax valuation cases might be considered reasonable if the firm possesses unique, highly sought-after expertise. A detailed cost analysis by the IRS would be necessary to validate this pricing against market rates for similar niche legal support.
What is the potential impact on tax litigation outcomes and taxpayer burden due to this specialized service?
Securing expert witness services for valuation is crucial for the IRS to effectively litigate complex tax cases involving syndicated conservation easements. High-quality expert testimony can strengthen the IRS's position, potentially leading to favorable outcomes in tax disputes. While this ensures the government has necessary resources, the cost is ultimately borne by taxpayers, underscoring the importance of ensuring the contract's value and necessity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Legal Services › Offices of Lawyers
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: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 16130 VENTURA BLVD STE 650, ENCINO, CA, 91436
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $513,000
Exercised Options: $513,000
Current Obligation: $513,000
Actual Outlays: $218,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-06-12
Current End Date: 2030-06-11
Potential End Date: 2030-06-11 07:21:16
Last Modified: 2026-04-07
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