Treasury's IRS awards $2.78M for expert witness services to Analysis Group Inc. for litigation support
Contract Overview
Contract Amount: $2,779,554 ($2.8M)
Contractor: Analysis Group Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-07-10
End Date: 2030-07-09
Contract Duration: 1,825 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: TRACS0003398 APPROVED 6/26/25. EXPERT WITNESS SERVICES ARE REQUIRED FOR LITIGATION OF A CASE BY IRS, CHIEF COUNSEL.
Place of Performance
Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02199
Plain-Language Summary
Department of the Treasury obligated $2.8 million to ANALYSIS GROUP INC for work described as: TRACS0003398 APPROVED 6/26/25. EXPERT WITNESS SERVICES ARE REQUIRED FOR LITIGATION OF A CASE BY IRS, CHIEF COUNSEL. Key points: 1. The IRS requires specialized expert witness services for ongoing litigation. 2. Analysis Group Inc. is the sole awardee, raising questions about competition. 3. The contract duration is 5 years, indicating a long-term need. 4. Spending in professional services for legal support is common for agencies.
Value Assessment
Rating: questionable
The contract value of $2.78M for 5 years of expert witness services needs further benchmarking against similar IRS litigation support contracts. Without competitive bids, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for market forces to drive down the price.
Taxpayer Impact: The lack of competition for these essential litigation support services may result in taxpayers bearing a higher cost than if multiple firms had bid.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. The IRS relies on external expertise for complex legal cases. The long contract duration suggests a significant ongoing legal challenge. Transparency in sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Essential service for IRS litigation
- Experienced contractor likely selected
Sector Analysis
The IRS, like other federal agencies, often procures professional services, including legal and expert witness support, to manage complex litigation. Benchmarks for such services vary widely based on expertise and case complexity.
Small Business Impact
This contract was awarded to Analysis Group Inc., a large business. There is no indication that small businesses were considered or involved in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the IRS adequately justified the lack of competition and that the pricing is reasonable. Robust internal review processes are essential.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for overpayment due to no competition
- Long contract duration may lock in unfavorable pricing
- Limited opportunity for small business participation
Tags
all-other-professional-scientific-and-te, department-of-the-treasury, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.8 million to ANALYSIS GROUP INC. TRACS0003398 APPROVED 6/26/25. EXPERT WITNESS SERVICES ARE REQUIRED FOR LITIGATION OF A CASE BY IRS, CHIEF COUNSEL.
Who is the contractor on this award?
The obligated recipient is ANALYSIS GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $2.8 million.
What is the period of performance?
Start: 2025-07-10. End: 2030-07-09.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or specific circumstances where only one vendor can meet the requirement. The IRS must provide detailed documentation supporting this decision, demonstrating that a competitive process was not feasible or would be detrimental to the government's interests. Without this justification, the award raises concerns about potential missed opportunities for better pricing and broader contractor engagement.
How does the pricing for these expert witness services compare to industry benchmarks for similar litigation support?
Assessing the value requires comparing Analysis Group Inc.'s rates and total contract cost against established benchmarks for expert witness services in complex IRS litigation. Factors like the specific expertise required, the duration of engagement, and the complexity of the case influence pricing. A thorough review should include an analysis of the contractor's proposed labor categories, hours, and rates against publicly available data or historical agency data for similar services.
What is the potential long-term financial impact on the IRS and taxpayers given the 5-year duration and lack of competition?
A 5-year contract, especially when awarded sole-source, carries a significant long-term financial implication. Taxpayers could face inflated costs over the contract's life if the initial pricing was not optimized through competition. Furthermore, the extended duration might indicate a protracted legal battle, potentially leading to unforeseen costs and resource allocation challenges for the IRS, impacting its core mission.
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: 111 HUNTINGTON AVE STE 1400, BOSTON, MA, 02199
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,779,554
Exercised Options: $2,779,554
Current Obligation: $2,779,554
Actual Outlays: $356,626
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-07-10
Current End Date: 2030-07-09
Potential End Date: 2030-07-09 12:01:56
Last Modified: 2026-01-20
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