Treasury's IRS awards $5.45M for court reporting services, with 3 bidders competing

Contract Overview

Contract Amount: $5,453 ($5.5K)

Contractor: Toby Feldman Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-12-03

End Date: 2024-12-20

Contract Duration: 17 days

Daily Burn Rate: $321/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COURT REPORTER - DEPOSITION

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92618

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $5,453 to TOBY FELDMAN INC for work described as: COURT REPORTER - DEPOSITION Key points: 1. Value for money appears reasonable given the short duration and specialized nature of the service. 2. Competition dynamics show a healthy level of interest with three bidders for this specific requirement. 3. Risk indicators are low due to the straightforward service delivery and established contractor. 4. Performance context is for immediate needs, indicated by the short contract duration. 5. Sector positioning is within professional support services for government agencies.

Value Assessment

Rating: good

The contract value of $5.45 million for 17 days of service suggests a high daily rate, which is expected for specialized court reporting services. Benchmarking against similar contracts for court reporting services indicates that pricing can vary significantly based on location, duration, and specific requirements (e.g., expedited transcripts, video conferencing). Without more granular data on the specific services rendered per day, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The presence of three bidders suggests adequate market interest and competition for these specialized court reporting services. A competitive process like this generally leads to better price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: The competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Internal Revenue Service (IRS) benefits from timely and accurate transcription of legal proceedings. Services delivered include court reporting and stenotype services essential for legal documentation. The geographic impact is primarily within California, where the services are likely rendered. Workforce implications are minimal, as this contract supports existing IRS legal operations rather than creating new roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during depositions.
Dependence on a single contractor for critical legal documentation could pose a risk if performance issues emerge.

Positive Signals

Competitive bidding process likely secured favorable pricing.
Short contract duration limits long-term financial exposure.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

The court reporting and stenotype services sector is a niche but essential part of the legal support industry. Government agencies, particularly those involved in litigation or regulatory enforcement like the IRS, rely on these services for accurate record-keeping. The market size for such specialized services is difficult to quantify broadly but is driven by the legal needs of federal, state, and local governments, as well as private law firms. This contract fits within the professional services category, supporting the administrative and legal functions of the Treasury.

Small Business Impact

This contract was awarded under Simplified Acquisition Procedures and does not appear to have a specific small business set-aside. The contractor, TOBY FELDMAN INC, is likely a small business based on its name and the nature of the service, but this is not explicitly stated. Further analysis would be needed to determine if subcontracting opportunities exist for other small businesses within this award.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and the program office within the IRS responsible for legal support services. Transparency is maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Legal Services
Professional Support Services
Court Reporting Services
Deposition Services

Risk Flags

Potential discrepancy between award value and typical SAP thresholds.
Limited performance history data available for the contractor.
High implied daily rate requires further justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5,453 to TOBY FELDMAN INC. COURT REPORTER - DEPOSITION

Who is the contractor on this award?

The obligated recipient is TOBY FELDMAN 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 $5,453.

What is the period of performance?

Start: 2024-12-03. End: 2024-12-20.

What is the typical daily rate for court reporting services in California, and how does this contract compare?

Determining a precise 'typical' daily rate for court reporting services is complex, as rates vary based on factors like location within California, the specific services required (e.g., standard reporting, expedited delivery, video conferencing, real-time transcription), and the experience level of the reporter. However, rates can range from several hundred dollars to over a thousand dollars per day for highly specialized services or rush jobs. Given the $5.45 million award for a 17-day period, the implied daily rate is approximately $320,588. This figure seems exceptionally high for standard court reporting and may reflect a misunderstanding of the data provided or include significant overhead, extensive services, or multiple reporters/support staff for complex proceedings. It is crucial to verify if the $5.45M is the total value for the entire period or if it represents a ceiling for a task order under a larger contract, and what specific services are bundled.

What is the track record of TOBY FELDMAN INC with federal contracts?

Information regarding TOBY FELDMAN INC's specific track record with federal contracts is not detailed in the provided data. A comprehensive analysis would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without this data, it's difficult to assess their past performance, reliability, and experience in fulfilling government requirements. However, the award of this contract suggests they met the basic qualifications and competitive requirements set forth by the IRS.

How does the $5.45 million value compare to historical IRS spending on court reporting services?

To compare this $5.45 million award to historical IRS spending on court reporting services, one would need to analyze past contract data for similar services. This would involve identifying previous contracts awarded by the IRS for court reporting, deposition services, and stenography, noting their values, durations, and the number of bidders. Trends in spending, average contract values, and fluctuations over time would provide context. Without access to this historical data, it's impossible to definitively state whether this award represents an increase, decrease, or is in line with previous spending patterns. The short duration (17 days) suggests this might be for a specific, intensive legal proceeding rather than ongoing needs.

What are the specific risks associated with a firm fixed-price contract for court reporting services?

Firm Fixed Price (FFP) contracts are generally preferred by the government as they provide cost certainty. For court reporting services, the primary risk with an FFP contract lies in potential underestimation of the effort required by the contractor, or unforeseen complexities during depositions that increase the time and resources needed. If the contractor significantly underestimates the scope or duration, they risk financial losses. Conversely, if the government requires additional services beyond the initial scope, change orders may be necessary, potentially increasing the total cost. For the government, the risk is ensuring the contractor can deliver the required quality and scope within the fixed price, and that the price itself was competitive for the defined scope.

What does the 'COMPETED UNDER SAP' designation imply for the procurement process and potential savings?

'COMPETED UNDER SAP' signifies that the contract was awarded using the Simplified Acquisition Procedures. SAP is designed for procurements of supplies or services expected to cost less than the simplified acquisition threshold (currently $250,000, though this can be higher for certain agencies or contract types). However, the award value here is $5.45 million, which significantly exceeds the standard SAP threshold. This suggests either the contract falls under a specific exception allowing SAP for higher values (e.g., certain types of services, specific agency policies, or micro-purchase thresholds being aggregated) or there might be a misunderstanding in the data provided. If it was indeed competed under SAP rules, it implies a streamlined process, potentially faster award, and a focus on obtaining fair and reasonable prices through simplified procedures, often involving multiple quotes or limited competition among pre-qualified vendors, rather than extensive proposal evaluations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Court Reporting and Stenotype Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3 COLUMBUS CIR STE 1526, NEW YORK, NY, 10019

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,453

Exercised Options: $5,453

Current Obligation: $5,453

Actual Outlays: $5,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline