IRS Secures Expert Witness Services for Litigation, Awarding $1.32M to Real Estate Valuation Advisors LLC

Contract Overview

Contract Amount: $132,189 ($132.2K)

Contractor: Real Estate Valuation Advisors LLC

Awarding Agency: Department of the Treasury

Start Date: 2026-04-02

End Date: 2031-04-01

Contract Duration: 1,825 days

Daily Burn Rate: $72/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL.

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35213

State: Alabama Government Spending

Plain-Language Summary

Department of the Treasury obligated $132,189 to REAL ESTATE VALUATION ADVISORS LLC for work described as: EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL. Key points: 1. High value contract for specialized litigation support. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (10 years) requires careful monitoring. 4. Focus on real estate valuation indicates a niche, high-stakes area.

Value Assessment

Rating: questionable

The contract value of $1.32M over 10 years for expert witness services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized litigation support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition for this significant contract could lead to taxpayer funds being used inefficiently if the price is not benchmarked against market alternatives.

Public Impact

Taxpayers may bear higher costs due to the sole-source nature of the award. The IRS relies on specialized expertise for critical litigation, impacting case outcomes. Long-term engagement suggests ongoing legal needs within the IRS.

Waste & Efficiency Indicators

Waste Risk Score: 72 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within professional services, specifically expert witness testimony for real estate valuation in legal cases. Benchmarks for such specialized services are highly variable and depend on expertise and case complexity.

Small Business Impact

The awardee is Real Estate Valuation Advisors LLC. Analysis is needed to determine if this is a small business and if opportunities were missed to engage small businesses for ancillary services.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the IRS is receiving fair value and that the services are critical and cannot be competitively procured.

Related Government Programs

Risk Flags

Tags

offices-of-real-estate-appraisers, department-of-the-treasury, al, purchase-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $132,189 to REAL ESTATE VALUATION ADVISORS LLC. EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL.

Who is the contractor on this award?

The obligated recipient is REAL ESTATE VALUATION ADVISORS 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 $132,189.

What is the period of performance?

Start: 2026-04-02. End: 2031-04-01.

What is the justification for the sole-source award, and has the IRS explored any competitive alternatives, even for parts of the requirement?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The IRS should provide documentation detailing why Real Estate Valuation Advisors LLC is the only viable option and if any market research was conducted to confirm this exclusivity. Exploring competitive options, even for specific phases or related services, could ensure better value and taxpayer savings.

How will the IRS ensure cost-effectiveness and performance quality over the 10-year duration of this contract, given the lack of initial competition?

To ensure cost-effectiveness and quality, the IRS should implement robust performance metrics and regular reviews. Establishing clear deliverables, milestones, and payment schedules tied to performance is crucial. Periodic market scans for comparable services and renegotiation clauses could also help mitigate risks associated with a long-term, non-competed contract.

What is the potential impact on IRS litigation outcomes and taxpayer burden if the selected expert witness services are not optimal or become outdated?

Suboptimal expert witness services can lead to unfavorable litigation outcomes, potentially costing the government (and taxpayers) significantly more in lost revenue or settlements. If services become outdated, the IRS's ability to effectively argue its cases, particularly in complex real estate valuation disputes, could be compromised, leading to prolonged legal battles and increased costs.

Industry Classification

NAICS: Real Estate and Rental and LeasingActivities Related to Real EstateOffices 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: 101 PINE RIDGE CIR, MOUNTAIN BRK, AL, 35213

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $228,719

Exercised Options: $132,189

Current Obligation: $132,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2026-04-02

Current End Date: 2031-04-01

Potential End Date: 2031-04-01 13:17:08

Last Modified: 2026-04-02

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