Treasury's IRS awards $1.7M for expert witness services over 5 years, citing sole-source procurement

Contract Overview

Contract Amount: $169,573 ($169.6K)

Contractor: Pritchett, Ball & Wise, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-04-13

End Date: 2031-04-12

Contract Duration: 1,825 days

Daily Burn Rate: $93/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS SERVICES. EXPERT NEEDED TO TESTIFY IN TRIAL. PERIOD OF PERFORMANCE: 04/13/2026 - 04/12/2031.

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $169,572.75 to PRITCHETT, BALL & WISE, INC. for work described as: EXPERT WITNESS SERVICES. EXPERT NEEDED TO TESTIFY IN TRIAL. PERIOD OF PERFORMANCE: 04/13/2026 - 04/12/2031. Key points: 1. The contract's value of $1.7 million over five years suggests a significant need for specialized expertise. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. The long performance period indicates a potentially ongoing or complex legal matter requiring sustained support. 4. The specific NAICS code (531320) points to services related to real estate appraisal, suggesting the expert's role. 5. The contract type as a Purchase Order under SAP implies a streamlined procurement process, potentially for smaller value contracts, though the total value here is substantial.

Value Assessment

Rating: fair

Benchmarking the value of expert witness services is challenging without specific details on the expertise required and the complexity of the legal cases. However, an average annual cost of approximately $340,000 for specialized legal support could be considered moderate to high depending on the scope. Comparing this to similar sole-source procurements for expert testimony would be necessary for a more precise value assessment. The absence of competition makes it difficult to ascertain if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not provided, but it typically means the agency identified a single source believed to be uniquely capable of meeting the requirement. Without a competitive process, it's difficult to assess the range of potential bidders or the impact on price discovery. The lack of competition raises questions about whether alternative providers were considered or if specific circumstances necessitated this approach.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity for multiple vendors to bid, potentially leading to higher costs than if the contract had been competed. This limits the government's ability to leverage market forces to secure the best possible price and value.

Public Impact

The primary beneficiaries are the Department of the Treasury's Internal Revenue Service, which will receive critical expert testimony for legal proceedings. The services delivered will support the IRS in its litigation efforts, potentially impacting tax enforcement and revenue collection. The geographic impact is likely national, as IRS litigation can arise from cases across the United States. The contract may have implications for the legal and appraisal professions by engaging specific experts, though direct workforce creation is unlikely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Sole-source justification needs thorough review to ensure necessity and prevent potential impropriety.
Long contract duration could lead to cost overruns if not managed effectively.
Specific expertise required is not detailed, making it hard to assess the true value proposition.

Positive Signals

Procurement under SAP suggests an attempt at efficient acquisition, though the value is substantial.
The award to a specific firm implies they possess unique qualifications deemed essential by the agency.
A clear performance period and end date provide defined accountability boundaries.

Sector Analysis

The market for expert witness services is diverse, encompassing various specialized fields including legal, financial, and technical consulting. This contract falls within the professional services sector, specifically supporting government litigation needs. The IRS, like other federal agencies, frequently requires expert testimony to support its cases, particularly in complex financial and tax-related disputes. Benchmarking this contract's value is difficult without knowing the specific area of expertise, but the annual spend suggests a significant role in high-stakes litigation.

Small Business Impact

This contract was awarded as a sole-source purchase order and does not indicate any specific small business set-aside provisions. Therefore, it is unlikely to directly benefit small businesses through set-asides. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is presumed to be minimal unless the prime contractor voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Inspector General, who is responsible for auditing and investigating fraud, waste, and abuse within the department. The IRS contracting officers and program managers will also provide oversight through performance monitoring and contract administration. Transparency is limited due to the sole-source nature and the typical confidentiality surrounding litigation support, but contract award data is publicly available.

Related Government Programs

Department of Justice Expert Witness Services
Federal Bureau of Investigation Expert Witness Contracts
General Services Administration Professional Services Schedules
IRS Litigation Support Services

Risk Flags

Sole-source procurement lacks transparency and competitive pricing.
Long-term contract duration increases risk of cost escalation and vendor lock-in.
Specific expertise and justification for sole-source award are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $169,572.75 to PRITCHETT, BALL & WISE, INC.. EXPERT WITNESS SERVICES. EXPERT NEEDED TO TESTIFY IN TRIAL. PERIOD OF PERFORMANCE: 04/13/2026 - 04/12/2031.

Who is the contractor on this award?

The obligated recipient is PRITCHETT, BALL & WISE, 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 $169,572.75.

What is the period of performance?

Start: 2026-04-13. End: 2031-04-12.

What specific legal or appraisal expertise does Pritchett, Ball & Wise, Inc. possess that justifies a sole-source award for the IRS?

The provided data does not detail the specific expertise of Pritchett, Ball & Wise, Inc. or the precise nature of the legal cases requiring their services. A sole-source award typically implies that the agency has identified unique capabilities, specialized knowledge, or an exclusive relationship that makes this contractor the only viable option. To fully assess this, one would need to review the agency's justification for other than full and open competition (JOFOC), which would outline the specific skills, experience, or proprietary information that sets this contractor apart. Without this documentation, it is difficult to validate the necessity of the sole-source approach beyond the agency's stated need.

How does the $1.7 million contract value compare to historical IRS spending on expert witness services?

The provided data does not include historical spending patterns for IRS expert witness services, making a direct comparison impossible. However, the contract's value of $1.7 million over five years, averaging $340,000 annually, suggests a significant investment. Federal agencies, particularly those involved in complex litigation like the IRS, often procure expert witness services for high-stakes cases. To establish a benchmark, one would need to analyze historical contract awards for similar services by the IRS and other agencies, considering factors like the type of expertise, duration, and complexity of the litigation involved. This would help determine if the current award is within a typical spending range or represents an outlier.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this expert witness services contract. Typically, for such services, KPIs might include the quality and timeliness of expert reports, the effectiveness of testimony during depositions and trials, and adherence to legal procedural requirements. Deliverables would likely involve written reports, deposition testimony, trial testimony, and potentially expert consultations. The contract's performance work statement (PWS) or statement of work (SOW) would contain these details, which are not included in the summary data. Effective contract management would involve monitoring these aspects to ensure the IRS receives the intended value.

What is the risk associated with relying on a single source for critical expert testimony?

Relying on a single source for critical expert testimony carries several risks. Firstly, it eliminates the competitive pressure that typically drives down costs and improves service quality, potentially leading to higher prices and less optimal performance. Secondly, it creates a dependency on one contractor, which can be problematic if the contractor experiences financial difficulties, personnel changes, or ethical issues. The agency may also miss out on innovative approaches or specialized knowledge offered by other potential providers. For the IRS, this risk is amplified if the expert's testimony is crucial to a significant legal outcome, as any disruption or inadequacy in service could have substantial financial or legal repercussions.

What is the agency's process for ensuring the quality and objectivity of the expert witness services provided?

The agency's process for ensuring quality and objectivity typically involves several layers of oversight. Contract officers and program managers are responsible for monitoring the contractor's performance against the terms of the contract, including adherence to the statement of work and any specified quality standards. For expert witnesses, objectivity is paramount and is often managed through the legal team overseeing the case, who will vet the expert's findings and testimony. While the contract itself may not dictate objectivity, the legal framework and professional ethics governing expert witnesses are critical. The IRS likely relies on its legal counsel and the judicial system's rules of evidence and expert testimony to ensure the quality and impartiality of the services rendered.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Offices of Real Estate Appraisers

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

Parent Company: Pritchett Ball & Wise Inc.

Address: 2970 CLAIRMONT RD NE STE 935, BROOKHAVEN, GA, 30329

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

Financial Breakdown

Contract Ceiling: $173,073

Exercised Options: $169,573

Current Obligation: $169,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline