Treasury's IRS awards $3.5M contract for actuarial expert witness services to Garland Actuarial LLC

Contract Overview

Contract Amount: $3,500 ($3.5K)

Contractor: Garland Actuarial LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-04-15

End Date: 2026-12-31

Contract Duration: 2,086 days

Daily Burn Rate: $2/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXPERT WITNESS SERVICES

Place of Performance

Location: LOS ALTOS HILLS, SANTA CLARA County, CALIFORNIA, 94022

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $3,500 to GARLAND ACTUARIAL LLC for work described as: EXPERT WITNESS SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of over 5 years suggests a long-term need for these specialized services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The award is for administrative and management consulting services, a broad category. 5. The contract is not a small business set-aside, indicating no specific focus on small business participation.

Value Assessment

Rating: fair

The contract value of $3.5 million for expert witness services over approximately 5.5 years appears reasonable given the specialized nature of actuarial consulting. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The fixed-price nature of the award provides some cost predictability for the IRS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the IRS did not solicit bids from multiple vendors. This approach is typically used when only one vendor possesses the unique qualifications or capabilities required for the service. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher price than if multiple bids had been received.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The IRS did not have the opportunity to leverage competition to secure the most cost-effective solution.

Public Impact

The Internal Revenue Service (IRS) benefits from access to specialized actuarial expertise. These services are crucial for supporting legal cases and tax disputes requiring actuarial analysis. The contract supports the IRS's mission to enforce tax laws and ensure compliance. The geographic impact is primarily national, supporting IRS operations across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Long contract duration may indicate a lack of market alternatives or a sustained need that could be explored for competitive bidding in the future.
Lack of transparency in the sole-source justification process.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to a specialized firm (Garland Actuarial LLC) suggests access to necessary expertise.
Contract duration aligns with potential long-term litigation support needs.

Sector Analysis

The market for expert witness services, particularly in specialized fields like actuarial science, is often niche. These services are critical for government agencies involved in litigation, regulatory enforcement, and complex financial matters. While specific market size data for actuarial expert witness services is not readily available, the broader consulting services market is substantial. This contract fits within the administrative and management consulting sector, supporting the IRS's operational needs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This means that the primary contractor, Garland Actuarial LLC, is not obligated to engage small businesses for this specific award. The impact on the small business ecosystem is neutral, as there was no specific provision to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Treasury's Inspector General, as well as internal IRS management. The fixed-price nature of the contract provides a degree of financial oversight by limiting cost overruns. Transparency regarding the justification for the sole-source award is crucial for accountability, though details may be limited.

Related Government Programs

IRS Litigation Support Services
Actuarial Consulting Services
Federal Expert Witness Contracts
Administrative and General Management Consulting Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency in sole-source justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3,500 to GARLAND ACTUARIAL LLC. EXPERT WITNESS SERVICES

Who is the contractor on this award?

The obligated recipient is GARLAND ACTUARIAL 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 $3,500.

What is the period of performance?

Start: 2021-04-15. End: 2026-12-31.

What is the track record of Garland Actuarial LLC in providing expert witness services to federal agencies?

Information regarding Garland Actuarial LLC's specific track record in providing expert witness services to federal agencies is not detailed in the provided data. However, the award of this sole-source contract by the IRS suggests that the agency has identified Garland Actuarial LLC as possessing unique qualifications or capabilities deemed essential for their needs. Further investigation into public databases like SAM.gov or agency procurement histories would be necessary to ascertain the extent and nature of their prior federal engagements, including performance reviews, past contract values, and the types of cases they have supported. Without this additional context, it is difficult to fully assess their experience and reliability in this specialized domain.

How does the $3.5 million contract value compare to similar actuarial expert witness contracts awarded by the federal government?

Benchmarking the $3.5 million contract value for actuarial expert witness services is challenging without access to a comprehensive database of similar sole-source or competed contracts. Typically, expert witness services, especially in specialized fields like actuarial science, can command significant fees due to the required expertise, credentials, and the critical nature of testimony in legal proceedings. The duration of this contract (over 5 years) spreads the cost, making the annual expenditure potentially more manageable. However, the lack of competition inherent in a sole-source award means that this figure cannot be directly compared to a market-driven price. A competitive bidding process would have provided a clearer indication of fair market value.

What are the primary risks associated with a sole-source award for critical expert witness services?

The primary risk associated with a sole-source award for critical expert witness services is the potential for inflated costs due to the absence of competitive pressure. Without multiple bids, the government may not achieve the best possible price. Another risk is a potential limitation in the range of expertise or perspectives available, as the agency relies on a single provider. Furthermore, sole-source justifications must be robust; any weakness in the rationale could raise concerns about procurement integrity. Finally, if the sole-source provider experiences performance issues or becomes unavailable, the agency faces significant challenges in finding a replacement quickly, potentially disrupting ongoing legal cases.

How effective is the fixed-price contract type in managing costs for long-term expert witness services?

The fixed-price contract type can be effective in managing costs for long-term expert witness services by providing budget certainty. The IRS knows the total amount allocated for the service over the contract's life, assuming no modifications. This structure shifts the risk of cost overruns to the contractor, Garland Actuarial LLC. However, for services that might involve unforeseen complexities or scope changes, a fixed-price contract can sometimes disincentivize the contractor from going above and beyond if it impacts their profit margin, or conversely, lead to disputes if the scope is interpreted differently. For expert witness services, where the scope can be somewhat unpredictable, careful definition of deliverables and potential change order processes are crucial for effective cost management.

What are the implications of the contract's end date (December 31, 2026) for future IRS needs?

The contract's end date of December 31, 2026, implies that the IRS anticipates a continued need for actuarial expert witness services beyond that period. This provides a planning horizon for the agency to either seek extensions, re-compete the requirement, or explore alternative solutions. Given the long-term nature of litigation and tax matters, it is plausible that the IRS will require similar services in the future. The agency should begin planning for the post-2026 period well in advance to ensure continuity of essential support and to potentially leverage a competitive process to secure better value if market conditions allow.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27555 PURISSIMA RD, LOS ALTOS, CA, 94022

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $85,000

Exercised Options: $85,000

Current Obligation: $3,500

Actual Outlays: $3,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline