DOJ awards $2.7M sole-source contract for litigious financial analysis to AlixPartners, LLP

Contract Overview

Contract Amount: $2,745,500 ($2.7M)

Contractor: Alixpartners, LLP

Awarding Agency: Department of Justice

Start Date: 2025-10-31

End Date: 2026-10-30

Contract Duration: 364 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LITIGATIVE CONSULTANT - FINANCIAL ANALYSIS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10022

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $2.7 million to ALIXPARTNERS, LLP for work described as: LITIGATIVE CONSULTANT - FINANCIAL ANALYSIS Key points: 1. High contract value for specialized legal consulting. 2. Sole-source award limits competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. Legal services sector, specifically financial analysis for litigation.

Value Assessment

Rating: questionable

The contract is a Time and Materials award with a ceiling of $2.7M. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar litigation support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds for these essential legal services.

Public Impact

Taxpayers may be paying a premium for legal consulting due to the absence of competitive bidding. The Department of Justice relies on specialized expertise, but the procurement method limits transparency. The duration of the contract suggests ongoing or significant litigation support needs.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for cost overruns

Positive Signals

Specialized expertise secured
Clear contract duration

Sector Analysis

This contract falls within the legal services sector, specifically focusing on financial analysis for litigation. Benchmarks for such specialized services are highly variable and depend on case complexity.

Small Business Impact

The awardee, AlixPartners, LLP, is a large firm, and there is no indication that small businesses were involved in this procurement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services provided are necessary and the costs are justified.

Related Government Programs

All Other Legal Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price discovery.
High contract value for specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.7 million to ALIXPARTNERS, LLP. LITIGATIVE CONSULTANT - FINANCIAL ANALYSIS

Who is the contractor on this award?

The obligated recipient is ALIXPARTNERS, LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2025-10-31. End: 2026-10-30.

What specific litigation support is required that necessitates a sole-source award?

The data indicates 'LITIGATIVE CONSULTANT - FINANCIAL ANALYSIS' as the service. This suggests the need for expert financial analysis in legal proceedings, potentially involving complex financial data, fraud investigations, or economic damages calculations. The specific nature of the litigation would dictate the exact requirements.

How can the Department of Justice ensure cost-effectiveness without competition?

The DOJ can implement rigorous monitoring of hours and rates, establish clear performance metrics, and conduct post-award reviews to benchmark costs against industry standards. Regular reporting and justification of expenses will be crucial to ensure value for money.

What is the potential impact on future procurements if this sole-source award is not adequately justified?

If this sole-source award is perceived as unjustified or excessively costly, it could lead to increased scrutiny from oversight bodies and potentially stricter requirements for future sole-source justifications. This could also impact the agency's reputation for efficient procurement practices.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 909 3RD AVE FL 30, NEW YORK, NY, 10022

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,745,500

Exercised Options: $2,745,500

Current Obligation: $2,745,500

Actual Outlays: $521,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline