Treasury's IRS awards $2.58M sole-source contract for expert witness services to SEDA Experts, LLC

Contract Overview

Contract Amount: $258,195 ($258.2K)

Contractor: Seda Experts, LLC

Awarding Agency: Department of the Treasury

Start Date: 2026-04-10

End Date: 2031-04-09

Contract Duration: 1,825 days

Daily Burn Rate: $141/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS SERVICES - BROKERAGE INDUSTRY

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10023

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $258,195 to SEDA EXPERTS, LLC for work described as: EXPERT WITNESS SERVICES - BROKERAGE INDUSTRY Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of five years suggests a long-term need for these specialized services. 3. The primary contractor, SEDA Experts, LLC, is positioned to be the sole provider for this period. 4. The service category, Administrative Management and General Management Consulting Services, is broad and requires careful oversight. 5. The contract's value, while not exceptionally large, represents a significant investment in expert witness capabilities. 6. The lack of competition raises questions about price reasonableness and market alternatives.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized expertise required. Without competitive bids, it's difficult to ascertain if the $2.58 million over five years represents a fair market price. The absence of comparable contracts in the provided data makes a direct comparison impossible. However, the fixed duration and the nature of expert witness services suggest that costs could escalate if not carefully managed.

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 conduct a competitive bidding process. This approach is typically used when only one vendor possesses the unique qualifications or capabilities required for the service. While this ensures access to specialized expertise, it bypasses the price discovery mechanisms inherent in a competitive environment, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not benefit from the cost efficiencies that typically arise from a competitive bidding process. The absence of multiple bids means the government did not explore alternative pricing or service models that could have been more economical.

Public Impact

The Internal Revenue Service (IRS) will benefit from specialized expert witness services. These services are crucial for supporting legal proceedings and investigations involving complex brokerage industry matters. The contract's impact is primarily administrative and legal, supporting the IRS's enforcement and litigation functions. The workforce implications are minimal, as the contract is for external expert services rather than direct hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Long contract duration (5 years) may lock in potentially suboptimal pricing.
Lack of transparency in the sole-source justification could hide inefficiencies.
Specialized nature of services makes independent cost verification difficult.

Positive Signals

Ensures access to critical, specialized expertise for IRS legal cases.
Contractor is identified, providing a clear point of contact for services.
Defined contract period allows for budget planning.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on management consulting and expert witness services. This sector is characterized by specialized knowledge and often high billing rates. The market for expert witnesses in niche areas like the brokerage industry can be limited, potentially justifying sole-source awards in some instances. Comparable spending benchmarks are difficult to establish without more specific data on the nature of the expertise required.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there information suggesting subcontracting opportunities for small businesses. The focus is on a specialized service provider, and the sole-source nature further reduces the likelihood of small business participation.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and program managers within the IRS responsible for legal and enforcement support. Transparency is limited due to the sole-source award. Accountability measures would be tied to the delivery of expert witness services as defined in the contract statement of work. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Legal Services
Consulting Services
Expert Witness Services
Financial Services Support
Administrative Management

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Specialized service niche

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $258,195 to SEDA EXPERTS, LLC. EXPERT WITNESS SERVICES - BROKERAGE INDUSTRY

Who is the contractor on this award?

The obligated recipient is SEDA EXPERTS, 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 $258,195.

What is the period of performance?

Start: 2026-04-10. End: 2031-04-09.

What specific expertise does SEDA Experts, LLC possess that justifies a sole-source award for brokerage industry expert witness services?

The justification for a sole-source award typically rests on the unique qualifications, specialized knowledge, or proprietary capabilities of the contractor. For SEDA Experts, LLC, this likely involves deep expertise in the intricacies of the brokerage industry, including market regulations, trading practices, financial instruments, and dispute resolution mechanisms. Such specialized knowledge is often developed over years of experience and may not be readily available from multiple sources. The IRS would have had to demonstrate that SEDA Experts, LLC is the only entity capable of providing the specific type of expert testimony or analysis required for their cases, potentially related to complex financial fraud investigations or litigation where their specific insights are indispensable.

How does the $2.58 million contract value compare to historical IRS spending on similar expert witness services?

Direct comparison of this $2.58 million contract value to historical IRS spending on similar expert witness services is challenging without access to detailed historical procurement data. The provided data does not include past contract values for comparable services. Furthermore, the 'brokerage industry' specialization suggests a niche area, meaning historical data might not offer a direct parallel. Sole-source awards, by their nature, bypass competitive benchmarking, making it difficult to assess if this value is optimal. A comprehensive analysis would require reviewing past sole-source justifications and competitive procurements for expert witness services across various financial sectors to establish a broader spending pattern and identify potential outliers.

What are the primary risks associated with awarding a five-year contract on a sole-source basis for expert witness services?

The primary risks associated with a five-year sole-source contract for expert witness services include potential cost escalation, lack of innovation, and vendor lock-in. Without competition, SEDA Experts, LLC may have less incentive to control costs over the contract's lifespan, potentially leading to prices that exceed market rates. The absence of competitive pressure can also stifle innovation in service delivery or analytical approaches. Furthermore, the government becomes reliant on a single provider, making it difficult and costly to switch vendors if performance issues arise or if market conditions change, creating a 'vendor lock-in' scenario. Ensuring robust performance metrics and clear deliverables within the contract is crucial to mitigate these risks.

What is the expected impact of these expert witness services on the IRS's ability to resolve complex financial cases?

The expert witness services procured from SEDA Experts, LLC are expected to significantly enhance the IRS's capabilities in resolving complex financial cases, particularly those involving the brokerage industry. These services provide specialized knowledge and analytical support that may be beyond the internal expertise of IRS staff. This can strengthen the IRS's position in litigation, improve the accuracy of financial investigations, and facilitate the understanding of intricate market dynamics. Ultimately, access to high-caliber expert testimony can lead to more successful case resolutions, potentially recovering more assets, imposing appropriate penalties, and deterring future financial misconduct.

Are there any performance metrics or oversight mechanisms in place to ensure the value and effectiveness of SEDA Experts, LLC's services?

While specific performance metrics and oversight mechanisms are not detailed in the provided data, standard government contracting practice dictates their existence. The contract statement of work would outline specific deliverables, reporting requirements, and quality standards. The IRS contracting officer and relevant program managers are responsible for monitoring SEDA Experts, LLC's performance against these requirements. Periodic reviews, acceptance of deliverables, and adherence to timelines would be key indicators of effectiveness. The contract's duration and value suggest that regular performance evaluations would be conducted to ensure the services provided are meeting the IRS's needs and delivering value.

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 18 W 75TH ST, NEW YORK, NY, 10023

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

Financial Breakdown

Contract Ceiling: $746,495

Exercised Options: $258,195

Current Obligation: $258,195

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline