IRS Litigation: $212.5K for Expert Witness Services, Sole-Source Awarded
Contract Overview
Contract Amount: $212,500 ($212.5K)
Contractor: Russell, David T
Awarding Agency: Department of the Treasury
Start Date: 2026-04-03
End Date: 2031-04-02
Contract Duration: 1,825 days
Daily Burn Rate: $116/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL.
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90024
Plain-Language Summary
Department of the Treasury obligated $212,500 to RUSSELL, DAVID T for work described as: EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL. Key points: 1. High value for specialized litigation support. 2. Sole-source award limits competition and potentially price discovery. 3. Long contract duration (5 years) raises concerns about sustained need and market changes. 4. Services are critical for IRS legal cases, impacting tax enforcement.
Value Assessment
Rating: questionable
The award amount of $212,500 for 5 years of expert witness services is difficult to benchmark without specific case details. However, the sole-source nature suggests potential overpricing due to lack of competitive pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and may lead to higher costs than a competitive process would yield.
Taxpayer Impact: Taxpayers may bear the cost of potentially inflated prices due to the lack of competition for these essential legal support services.
Public Impact
Ensures IRS legal representation is adequately supported by expert testimony. Potential for increased litigation costs impacting taxpayer funds. Highlights reliance on specific expertise for complex legal matters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competitive bidding
Positive Signals
- Critical service for IRS litigation
- Experienced provider likely secured
Sector Analysis
This contract falls under professional services, specifically expert witness support for legal proceedings. Benchmarks for such specialized services are highly variable and case-dependent, but competitive bidding typically drives better value.
Small Business Impact
No indication of small business participation. The sole-source nature likely precluded small businesses from competing for this contract.
Oversight & Accountability
The sole-source justification needs thorough review to ensure it was appropriate and that the price is fair and reasonable. Long-term contracts require ongoing oversight to manage scope and cost.
Related Government Programs
- All Other Insurance Related Activities
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Long contract duration may not align with evolving needs.
- Lack of transparency in price discovery.
- Limited opportunity for small business participation.
Tags
all-other-insurance-related-activities, department-of-the-treasury, ca, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $212,500 to RUSSELL, DAVID T. EXPERT WITNESS SERVICES REQUIRED FOR THE LITIGATION OF A CASE BY THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL.
Who is the contractor on this award?
The obligated recipient is RUSSELL, DAVID T.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $212,500.
What is the period of performance?
Start: 2026-04-03. End: 2031-04-02.
What is the justification for awarding this contract sole-source, and has a fair and reasonable price analysis been conducted?
The justification for a sole-source award is critical. Agencies must demonstrate that only one responsible source can provide the required services. A thorough price analysis, comparing proposed costs to historical data, market research, or independent government estimates, is essential to ensure taxpayers are not overpaying, especially when competition is absent.
How does the long contract duration impact the IRS's ability to adapt to changing litigation needs or market prices?
A five-year contract duration for expert witness services presents a risk of inflexibility. Litigation needs can evolve, and market rates for specialized expertise may fluctuate. The IRS might be locked into potentially outdated methodologies or unfavorable pricing if market conditions shift significantly over the contract's life.
What is the process for ensuring the quality and effectiveness of the expert witness services provided under this sole-source award?
Given the sole-source nature, robust performance monitoring is crucial. The IRS must establish clear performance metrics and actively track the expert's contributions to case outcomes. Regular reviews of the expert's reports, testimony, and overall impact on litigation strategy are necessary to ensure value and effectiveness.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1720 ENSLEY AVE, LOS ANGELES, CA, 90024
Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $347,375
Exercised Options: $212,500
Current Obligation: $212,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2026-04-03
Current End Date: 2031-04-02
Potential End Date: 2031-04-02 09:47:04
Last Modified: 2026-04-03
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