IRS taps Taylor & Mulder for actuarial expert witness services, a sole-source $2.4M contract

Contract Overview

Contract Amount: $244,800 ($244.8K)

Contractor: Taylor & Mulder Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-04-09

End Date: 2031-04-08

Contract Duration: 1,825 days

Daily Burn Rate: $134/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXPERT WITNESS SERVICES - ACTUARIAL SCIENCE - INSURANCE FOR THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL SECTION.

Place of Performance

Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $244,800 to TAYLOR & MULDER INC for work described as: EXPERT WITNESS SERVICES - ACTUARIAL SCIENCE - INSURANCE FOR THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL SECTION. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long duration of 5 years suggests a sustained need for these specialized services. 3. The contract's value is moderate within the context of expert witness services. 4. Focus on actuarial science indicates a need for specialized financial and risk assessment expertise. 5. Awarded by the Treasury Department's IRS, highlighting its importance for tax law and compliance. 6. No small business set-aside, potentially impacting small business participation.

Value Assessment

Rating: fair

Benchmarking actuarial expert witness services is challenging due to their highly specialized nature. The $2.45 million contract over five years, averaging $490,000 annually, appears within a reasonable range for complex litigation support. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best value for the government. The contract type (labor hours) allows for flexibility but can also lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the IRS identified Taylor & Mulder Inc. as the only capable provider without soliciting bids from other companies. This approach bypasses the standard competitive procurement process, which typically involves multiple bidders vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities), they generally lead to less price discovery and potentially higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The government may pay a premium for services when competition is absent.

Public Impact

The Internal Revenue Service's Chief Counsel section will benefit from specialized actuarial expertise. Services will support legal proceedings and policy development related to insurance and tax law. Geographic impact is national, as IRS legal matters can span across the United States. Workforce implications include the need for highly skilled actuaries and legal support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration could lead to scope creep or increased costs if not managed effectively.
Labor hour contract type introduces risk of cost overruns without strict oversight.

Positive Signals

Award to a single, presumably specialized, contractor may ensure high-quality, tailored expertise.
Long-term contract provides stability and continuity for critical IRS legal functions.
Focus on actuarial science addresses a specific, complex need within tax law.

Sector Analysis

The expert witness services sector is diverse, encompassing legal, scientific, and financial expertise. Actuarial science, a subset of this, focuses on risk assessment and management, particularly in insurance and finance. Federal agencies, especially those involved in regulation and litigation like the IRS, frequently require such specialized knowledge. Spending in this area can fluctuate based on caseloads and legislative changes. Comparable spending benchmarks are difficult to establish due to the bespoke nature of expert witness engagements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. As a sole-source award, the opportunity for small businesses to participate as prime contractors or through subcontracting is limited unless Taylor & Mulder Inc. proactively engages them. This could mean a missed opportunity to foster small business growth within the federal contracting ecosystem for these specialized services.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Treasury and the Internal Revenue Service. Given it's a sole-source award and a purchase order, the level of public transparency might be lower compared to competitively bid contracts. Accountability measures would rely on the IRS's internal contract management processes, performance reviews, and potentially the Treasury Inspector General for Tax Administration (TIGTA) if specific financial improprieties or performance failures arise.

Related Government Programs

IRS Legal Services
Treasury Department Expert Witness Contracts
Actuarial Consulting Services
Insurance Regulation Support
Tax Litigation Support

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $244,800 to TAYLOR & MULDER INC. EXPERT WITNESS SERVICES - ACTUARIAL SCIENCE - INSURANCE FOR THE INTERNAL REVENUE SERVICE, CHIEF COUNSEL SECTION.

Who is the contractor on this award?

The obligated recipient is TAYLOR & MULDER 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 $244,800.

What is the period of performance?

Start: 2026-04-09. End: 2031-04-08.

What is the track record of Taylor & Mulder Inc. in providing expert witness services to federal agencies, particularly the IRS?

Information regarding Taylor & Mulder Inc.'s specific track record with federal agencies, especially the IRS, is not detailed in the provided data. As this is a sole-source award, the IRS likely conducted its own due diligence to ascertain the contractor's capabilities and past performance. To fully assess their track record, one would need to review contract databases for previous awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any publicly available case studies or testimonials. Without this specific data, it's presumed the IRS found sufficient evidence of capability to justify the sole-source award.

How does the $2.45 million contract value compare to similar actuarial expert witness contracts awarded by the federal government?

Direct comparison of this $2.45 million contract value to similar federal actuarial expert witness contracts is challenging due to the niche nature of the services and the variability in contract scope and duration. However, expert witness services, especially those requiring specialized actuarial analysis for complex litigation or regulatory matters, can command significant fees. Annual costs for such services can range from tens of thousands to hundreds of thousands of dollars, depending on the complexity and duration of the engagement. A five-year contract totaling $2.45 million, averaging $490,000 annually, suggests a substantial and ongoing need, placing it in the mid-to-high range for specialized expert support, but without competitive benchmarking, its value-for-money is difficult to definitively ascertain.

What are the primary risks associated with a sole-source award for critical IRS expert witness services?

The primary risk associated with a sole-source award for critical IRS expert witness services is the lack of competitive pressure, which can lead to inflated pricing and potentially suboptimal value for taxpayers. Without competing bids, the government may not secure the most cost-effective solution. Another risk is the potential for complacency from the awarded contractor, as there is no immediate threat of losing future business to competitors. Furthermore, a sole-source award might overlook potentially innovative or more efficient solutions that could have emerged from a competitive process. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is the expected impact of these actuarial services on the IRS's ability to handle complex insurance-related tax disputes?

The engagement of Taylor & Mulder Inc. for actuarial expert witness services is expected to significantly enhance the IRS Chief Counsel's capacity to address complex insurance-related tax disputes. Actuarial science is crucial for valuing insurance liabilities, assessing risk, and determining the financial implications of various insurance products and policies. This expertise will enable the IRS to provide robust technical support in litigation, audits, and policy development concerning insurance companies and their tax obligations. By having specialized actuarial knowledge readily available, the IRS can better challenge potentially aggressive tax positions, ensure compliance with tax laws, and achieve more accurate tax assessments in intricate insurance scenarios.

How has federal spending on expert witness services, particularly in the insurance and actuarial domains, trended in recent years?

Federal spending on expert witness services, including those related to insurance and actuarial science, has generally seen an upward trend, driven by increasing litigation complexity, regulatory changes, and the government's need for specialized technical expertise. Agencies like the IRS, SEC, and DOJ frequently require such services to support enforcement actions, policy analysis, and legal proceedings. While specific data for actuarial services within the insurance domain is granular, overall spending on professional and technical services, which encompasses expert witnesses, has grown. Factors like the Affordable Care Act, evolving financial regulations, and complex corporate structures contribute to the demand for specialized actuarial and financial expertise in federal matters.

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: 10508 RIVERS BEND LN, POTOMAC, MD, 20854

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

Financial Breakdown

Contract Ceiling: $349,940

Exercised Options: $244,800

Current Obligation: $244,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline