Treasury's IRS awards $63.4M sole-source contract for expert witness services to Global Economics Group, LLC
Contract Overview
Contract Amount: $63,423 ($63.4K)
Contractor: Global Economics Group, LLC
Awarding Agency: Department of the Treasury
Start Date: 2020-12-08
End Date: 2025-12-07
Contract Duration: 1,825 days
Daily Burn Rate: $35/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EXPERT WITNESS SERVICES CYRBYME-C
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60603
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $63,422.5 to GLOBAL ECONOMICS GROUP, LLC for work described as: EXPERT WITNESS SERVICES CYRBYME-C Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant contract value for specialized expert witness services. 3. Long duration (5 years) suggests ongoing need or strategic partnership. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract value of $63.4M over five years for expert witness services appears high, especially given the sole-source nature. Benchmarking against similar specialized professional services is difficult without more data on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these expert witness services.
Public Impact
Taxpayers may be overpaying for essential expert witness services due to a lack of competition. The IRS relies on a single provider for critical litigation support, potentially creating vendor lock-in. Transparency in the justification for sole-source procurement is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 35 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may indicate a lack of market research or strategic vendor selection.
- High contract value warrants scrutiny for cost-effectiveness.
Positive Signals
- Services are essential for IRS litigation and enforcement.
- Firm fixed-price contract provides cost certainty once negotiated.
Sector Analysis
This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). Spending in this broad category can vary widely, but specialized expert witness services are typically high-value and require unique expertise.
Small Business Impact
The contract was awarded to Global Economics Group, LLC, a firm. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this sole-source award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the IRS and potentially the Treasury Inspector General to ensure the services are necessary, performed effectively, and priced reasonably.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Vendor lock-in risk
- Limited transparency in procurement justification
Tags
all-other-professional-scientific-and-te, department-of-the-treasury, il, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $63,422.5 to GLOBAL ECONOMICS GROUP, LLC. EXPERT WITNESS SERVICES CYRBYME-C
Who is the contractor on this award?
The obligated recipient is GLOBAL ECONOMICS GROUP, 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 $63,422.5.
What is the period of performance?
Start: 2020-12-08. End: 2025-12-07.
What specific criteria justified the sole-source award for these expert witness services, and was a thorough market analysis conducted to confirm no other capable vendors could meet the need?
The justification for a sole-source award typically rests on unique capabilities, specialized knowledge, or urgent requirements that only one vendor can fulfill. A thorough market analysis is crucial to validate these claims and demonstrate that competition was genuinely not feasible. Without this documentation, the award raises concerns about potential missed opportunities for better pricing and innovation.
How does the per-unit cost or hourly rate for these expert witness services compare to industry benchmarks for similar litigation support, considering the specialized nature of the work?
Benchmarking specialized expert witness services is challenging due to the unique expertise and case-specific demands. However, comparing rates against publicly available data for similar high-stakes litigation support, or against rates charged to other federal agencies for comparable services, can provide an indication of reasonableness. Significant deviations from established benchmarks, especially in a sole-source context, warrant further investigation into the necessity and efficiency of the pricing.
What metrics are in place to measure the effectiveness and value delivered by Global Economics Group, LLC, beyond simply fulfilling the contract requirements?
Measuring the effectiveness of expert witness services often involves assessing the impact on case outcomes, the clarity and persuasiveness of testimony, and the overall contribution to the IRS's litigation strategy. Key performance indicators could include successful case resolutions attributed to the expert's input, positive judicial feedback, and the efficiency with which the expert assists in discovery and trial preparation. Regular performance reviews should focus on these value-driven outcomes.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 140 S DEARBORN ST STE 1000, CHICAGO, IL, 60603
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,423
Exercised Options: $63,423
Current Obligation: $63,423
Actual Outlays: $63,423
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2020-12-08
Current End Date: 2025-12-07
Potential End Date: 2025-12-07 09:14:06
Last Modified: 2026-04-02
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