IRS Taps Bates White for $3.3M Expert Witness & Forensic Accounting Services
Contract Overview
Contract Amount: $3,355,637 ($3.4M)
Contractor: Bates White, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-03-13
End Date: 2029-03-12
Contract Duration: 1,825 days
Daily Burn Rate: $1.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IRS EXPERT WITNESSES THAT IS CAPABLE OF PROVIDING LITIGATION SUPPORT FOR CASES INVOLVING IRS AUDIT DEFENSE, PERFORM FORENSIC ACCOUNTING SERVICES, AND/OR ASSIST IN TAX ABATEMENT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of the Treasury obligated $3.4 million to BATES WHITE, LLC for work described as: IRS EXPERT WITNESSES THAT IS CAPABLE OF PROVIDING LITIGATION SUPPORT FOR CASES INVOLVING IRS AUDIT DEFENSE, PERFORM FORENSIC ACCOUNTING SERVICES, AND/OR ASSIST IN TAX ABATEMENT. Key points: 1. Contract awarded to Bates White, LLC for specialized IRS litigation support. 2. Services include audit defense, forensic accounting, and tax abatement assistance. 3. This is a definitive contract with a 5-year duration. 4. The contract was not competed, raising potential concerns about price discovery.
Value Assessment
Rating: fair
The contract's value of $3.3M over 5 years appears reasonable for specialized expert witness and forensic accounting services. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This limits the opportunity for price discovery and potentially higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple firms had bid on the contract.
Public Impact
Taxpayers facing IRS audits may benefit from specialized legal and accounting expertise. The IRS utilizes external experts for complex litigation, ensuring robust defense. Forensic accounting services can uncover financial irregularities and support tax abatement claims.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Access to specialized expertise
- Long-term engagement for consistent support
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Spending in this broad category can vary significantly, but specialized litigation support is a niche requiring specific expertise.
Small Business Impact
This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The IRS is responsible for overseeing this contract to ensure the services provided by Bates White, LLC meet the required standards and deliver value. The definitive contract structure allows for clear tasking and oversight.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs to taxpayers.
- Lack of transparency in price negotiation.
- No small business participation noted.
Tags
all-other-professional-scientific-and-te, department-of-the-treasury, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $3.4 million to BATES WHITE, LLC. IRS EXPERT WITNESSES THAT IS CAPABLE OF PROVIDING LITIGATION SUPPORT FOR CASES INVOLVING IRS AUDIT DEFENSE, PERFORM FORENSIC ACCOUNTING SERVICES, AND/OR ASSIST IN TAX ABATEMENT.
Who is the contractor on this award?
The obligated recipient is BATES WHITE, 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 $3.4 million.
What is the period of performance?
Start: 2024-03-13. End: 2029-03-12.
What is the typical hourly rate for expert witnesses and forensic accountants in similar IRS litigation support cases?
Hourly rates for expert witnesses and forensic accountants in IRS litigation support can range widely based on experience, specialization, and firm reputation. Rates can vary from $300-$1000+ per hour. Without a competitive bid, it's challenging to benchmark this contract's specific rates against market averages, but the IRS likely has internal benchmarks for such services.
What are the risks associated with a sole-source award for essential IRS litigation support services?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. It can also limit the government's access to a wider pool of innovative solutions or specialized skills that might be offered by other firms. Ensuring fair pricing and performance requires robust internal justification and oversight.
How effective is Bates White, LLC in providing litigation support and forensic accounting for the IRS?
The effectiveness of Bates White, LLC can be assessed through past performance reviews, client testimonials, and the successful outcomes of cases they have supported. As a definitive contract, the IRS has likely established performance metrics and will monitor the quality and timeliness of their services throughout the contract period to ensure effectiveness.
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
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 2001 K ST NW N BUILDING STE 500, WASHINGTON, DC, 20006
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: $3,355,637
Exercised Options: $3,355,637
Current Obligation: $3,355,637
Actual Outlays: $471,173
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-13
Current End Date: 2029-03-12
Potential End Date: 2029-03-12 13:17:40
Last Modified: 2026-02-09
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