Treasury's IRS awards $2.75M contract for conservation easement valuation services to RER SOLUTIONS, INC
Contract Overview
Contract Amount: $2,749,256 ($2.7M)
Contractor: RER Solutions, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2021-06-02
End Date: 2026-06-02
Contract Duration: 1,826 days
Daily Burn Rate: $1.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LB&I REQUIRES THE SERVICES OF AN OUTSIDE CONTRACTOR TO ASSIST WITH THE VALUATION OF A CONSERVATION EASEMENT FOR THE SYNDICATED CONSERVATION EASEMENT CAMPAIGN.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.7 million to RER SOLUTIONS, INC. for work described as: LB&I REQUIRES THE SERVICES OF AN OUTSIDE CONTRACTOR TO ASSIST WITH THE VALUATION OF A CONSERVATION EASEMENT FOR THE SYNDICATED CONSERVATION EASEMENT CAMPAIGN. Key points: 1. Contract aims to support the Syndicated Conservation Easement Campaign by providing expert valuation services. 2. The contract is a firm-fixed-price delivery order, indicating predictable costs for the government. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration of 1826 days (5 years) allows for sustained support. 5. Services fall under Administrative Management and General Management Consulting, a common area for federal contracting. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.
Value Assessment
Rating: fair
The contract value of $2.75 million over five years for specialized valuation services appears reasonable given the niche expertise required for conservation easements. Benchmarking against similar contracts for expert consulting services in real estate or environmental valuation would provide a clearer picture of value for money. Without specific per-unit cost data or detailed service breakdowns, a precise value assessment is challenging, but the fixed-price nature offers cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the open competition suggests that multiple firms likely participated, allowing the agency to select the most advantageous offer.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages efficiency among contractors, and increases the likelihood of securing services at competitive market rates.
Public Impact
The Internal Revenue Service (IRS) benefits by receiving expert assistance in valuing conservation easements, crucial for tax administration and compliance. The services delivered will support the IRS's efforts in managing the Syndicated Conservation Easement Campaign. The geographic impact is primarily national, as the IRS operates nationwide, though the contractor is based in Virginia. Workforce implications are minimal for the government, as an outside contractor is providing specialized skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if valuation requirements are not clearly defined and managed.
- Dependence on a single contractor for a specialized service could pose a risk if performance issues arise.
- Ensuring consistent application of valuation methodologies across different easements is critical for fairness.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive selection process.
- Long-term contract (5 years) allows for continuity and development of expertise.
- Contracting for specialized valuation services addresses a specific IRS need.
Sector Analysis
This contract falls within the professional services sector, specifically management and consulting. The market for specialized valuation services, particularly for complex financial instruments like conservation easements, is niche. Federal agencies frequently contract for such expertise to supplement internal capabilities, especially for complex tax-related matters. Benchmarks for similar consulting contracts vary widely based on the complexity and duration of the engagement.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, large businesses were eligible to compete. There is no explicit mention of small business subcontracting goals within the provided data, suggesting that subcontracting opportunities for small businesses may be limited or at the discretion of the prime contractor, RER SOLUTIONS, INC.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the IRS's LB&I division. Accountability measures are inherent in the firm-fixed-price contract structure, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Syndicated Conservation Easement Program
- IRS Tax Administration Services
- Federal Real Estate Valuation Contracts
- Professional and Management Consulting Services
Risk Flags
- Valuation Accuracy Risk
- Contractor Performance Risk
- Potential for Disputes
- Dependence on Specialized Expertise
Tags
professional-services, consulting, administrative-management, general-management, valuation-services, conservation-easement, irs, department-of-the-treasury, firm-fixed-price, delivery-order, full-and-open-competition, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.7 million to RER SOLUTIONS, INC.. LB&I REQUIRES THE SERVICES OF AN OUTSIDE CONTRACTOR TO ASSIST WITH THE VALUATION OF A CONSERVATION EASEMENT FOR THE SYNDICATED CONSERVATION EASEMENT CAMPAIGN.
Who is the contractor on this award?
The obligated recipient is RER SOLUTIONS, 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 $2.7 million.
What is the period of performance?
Start: 2021-06-02. End: 2026-06-02.
What is the track record of RER SOLUTIONS, INC. in providing similar valuation services to federal agencies?
Information regarding RER SOLUTIONS, INC.'s specific track record with federal agencies for conservation easement valuation is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government contracts. Federal procurement databases (like SAM.gov or FPDS) would be the primary source for this information. Understanding their experience with the IRS or similar tax-related valuation challenges would be key to evaluating their capability and reliability for this specific contract.
How does the awarded price compare to market rates for similar conservation easement valuation services?
The provided data does not include specific details on the pricing structure or the number of hours/resources allocated, making a direct comparison to market rates difficult. The total contract value is $2.75 million over five years. To assess value for money, one would need to compare the proposed hourly rates, the estimated effort, and the final deliverables against industry benchmarks for conservation easement appraisals. Factors such as the complexity of the easements, the required expertise (e.g., environmental, legal, financial), and the geographic location of the properties would influence market rates. Without this granular data, the assessment remains preliminary.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential inaccuracies in valuation leading to tax disputes, contractor performance issues (delays, quality), and the possibility of the Syndicated Conservation Easement Campaign's strategic direction changing. Mitigation strategies likely involve clearly defined Statement of Work (SOW) with specific valuation methodologies, performance standards, regular progress reviews by the IRS, and the firm-fixed-price structure which incentivizes contractor efficiency. The full and open competition process also mitigates risk by selecting a qualified contractor.
How effective is the IRS in managing contracts for specialized consulting services like this one?
The effectiveness of the IRS in managing such contracts is not directly measurable from this data alone. However, the agency's decision to use a long-term, firm-fixed-price contract suggests a strategy for consistent support and cost control. The IRS's extensive experience in contracting for professional services, coupled with established oversight mechanisms (contract officers, program managers), indicates a structured approach. Success would be measured by the accuracy and defensibility of the valuations provided and the overall contribution to the campaign's objectives.
What has been the historical spending pattern for conservation easement valuation services by the IRS or Treasury?
The provided data focuses on a single contract award and does not offer historical spending patterns for conservation easement valuation services by the IRS or Treasury. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying contracts with similar objectives (valuation, tax assessment, consulting) and keywords related to conservation easements. This analysis would reveal trends in contract volume, average award values, and the primary contractors utilized.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1119 12TH ST NW, WASHINGTON, DC, 20005
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $2,749,256
Exercised Options: $2,749,256
Current Obligation: $2,749,256
Actual Outlays: $2,492,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F233CA
IDV Type: FSS
Timeline
Start Date: 2021-06-02
Current End Date: 2026-06-02
Potential End Date: 2026-06-02 11:45:39
Last Modified: 2026-03-31
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