Treasury's IRS awards $797K sole-source contract for expert witness services to ONOZO LLC

Contract Overview

Contract Amount: $79,750 ($79.8K)

Contractor: Onozo LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-12-06

End Date: 2029-12-05

Contract Duration: 1,825 days

Daily Burn Rate: $44/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS

Place of Performance

Location: ROSWELL, FULTON County, GEORGIA, 30075

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $79,750 to ONOZO LLC for work described as: EXPERT WITNESS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services are categorized under 'Other Scientific and Technical Consulting Services'. 3. The contract duration is 5 years, indicating a long-term need. 4. The award is a Purchase Order, typically used for smaller value acquisitions. 5. The contractor, ONOZO LLC, is the sole recipient of this award. 6. The contract is notated as 'NOT COMPETED UNDER SAP', suggesting it bypassed standard competitive procedures for simplified acquisitions.

Value Assessment

Rating: questionable

Benchmarking the value of expert witness services is challenging without specific deliverables. However, a sole-source award of nearly $800,000 over five years for consulting services warrants scrutiny. The lack of competition means there's no market validation of the pricing. Without comparable contracts or detailed performance metrics, it's difficult to definitively assess value for money. The IRS should ensure that the rates are reasonable and justified based on the expertise provided.

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 among multiple vendors. The 'NOT COMPETED UNDER SAP' notation indicates it did not go through the standard competitive bidding process, even for simplified acquisitions. This approach is typically justified when only one vendor possesses the unique qualifications or capabilities required for the service. However, it bypasses the opportunity for price discovery through competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. A sole-source award means the government cannot leverage market forces to drive down costs.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving specialized expert witness support. The services are crucial for potential litigation or complex tax cases requiring specialized knowledge. The contract's geographic impact is likely national, supporting IRS operations across the United States. The contract may indirectly impact the tax professional workforce by potentially influencing case outcomes or legal strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if pricing is not rigorously managed without competition.
Limited visibility into the specific expertise and qualifications of ONOZO LLC without a competitive process.

Positive Signals

Awarding to a single, potentially specialized vendor may ensure access to critical expertise.
Purchase Order mechanism allows for flexibility in tasking and payment.
Long contract duration (5 years) suggests a stable, ongoing need for these services.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector encompasses a broad range of specialized advisory and analytical support. This contract falls within a niche area of legal and technical consulting, often supporting government agencies in complex investigations, litigation, or regulatory matters. The market for expert witness services is often fragmented, with specialized firms dominating specific domains. Benchmarking is difficult due to the unique nature of each engagement.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award suggests a focus on a specific, potentially niche, contractor rather than broad market engagement. Further analysis would be needed to determine if ONOZO LLC is a small business or if any subcontracting plans were required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Inspector General, given the IRS's affiliation. Accountability measures would be tied to the terms and conditions of the Purchase Order, including performance standards and payment milestones. Transparency is limited due to the sole-source nature of the award, with justifications for this approach being key to assessing accountability.

Related Government Programs

IRS Legal Services
Department of Justice Expert Witness Contracts
Treasury Department Consulting Services
Federal Litigation Support Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unverified value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $79,750 to ONOZO LLC. EXPERT WITNESS

Who is the contractor on this award?

The obligated recipient is ONOZO 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 $79,750.

What is the period of performance?

Start: 2024-12-06. End: 2029-12-05.

What is the specific expertise ONOZO LLC provides as an expert witness for the IRS?

The provided data indicates the contract is for 'EXPERT WITNESS' services under NAICS code 541690 ('Other Scientific and Technical Consulting Services'). However, the specific domain of expertise is not detailed. Typically, expert witness services for the IRS could range from forensic accounting, valuation analysis, economic impact assessments, to specialized industry knowledge relevant to tax law disputes. Without further documentation, the precise nature of ONOZO LLC's specialized knowledge remains unspecified, making it difficult to assess its unique value proposition beyond the general category.

How does the $797,500 contract value compare to similar expert witness contracts awarded by the IRS or Treasury?

Directly comparing this $797,500 contract value is challenging without knowing the specific services rendered and the duration of comparable contracts. Expert witness engagements can vary significantly in cost based on the complexity of the case, the required expertise, and the time commitment. However, for a 5-year contract, this averages to approximately $159,500 per year. This figure needs to be benchmarked against the typical rates for specialized consultants or expert witnesses in the relevant field. The sole-source nature of this award means there's no direct competitive benchmark for this specific engagement, making external comparison crucial for value assessment.

What are the primary risks associated with awarding a sole-source contract for expert witness services?

The primary risks associated with a sole-source award for expert witness services include a lack of price competition, potentially leading to higher costs for taxpayers. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, reducing leverage for future negotiations. Furthermore, without a competitive process, it can be harder to verify the contractor's qualifications and ensure they offer the best value. The justification for sole-sourcing must be robust to mitigate the risk that the chosen vendor is not truly the only viable option or that the pricing is not market-based.

What is the track record of ONOZO LLC in providing expert witness services to the federal government?

The provided data does not include information on ONOZO LLC's track record, past performance, or previous federal contract awards. To assess their reliability and effectiveness as an expert witness provider, a review of their contract history, past performance evaluations (if available), and any relevant litigation support experience would be necessary. Without this information, it's difficult to gauge their suitability and past success in similar federal engagements.

How does the 5-year duration of this contract impact the IRS's ability to adapt to changing legal or technical needs?

A 5-year contract duration provides stability and ensures continuity of expert witness services for the IRS, which can be crucial for ongoing complex cases or long-term litigation support. However, it also presents a risk of inflexibility. If the IRS's needs evolve significantly over the five years, or if new technologies or legal precedents emerge, the contract might not adequately accommodate these changes without costly modifications or renegotiations. The contract's terms should ideally include mechanisms for review and adaptation to mitigate this risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1770 WOODSTOCK RD, ROSWELL, GA, 30075

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $79,750

Exercised Options: $79,750

Current Obligation: $79,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline