DOJ's $31.8M FTI Consulting contract for expert witness services shows long duration and sole-source award

Contract Overview

Contract Amount: $31,805,829 ($31.8M)

Contractor: FTI Consulting, Inc.

Awarding Agency: Department of Justice

Start Date: 2011-10-12

End Date: 2024-02-22

Contract Duration: 4,516 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT WITNESS FINANCE/DATA ANALYSIS SYSTEMS

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33401

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $31.8 million to FTI CONSULTING, INC. for work described as: EXPERT WITNESS FINANCE/DATA ANALYSIS SYSTEMS Key points: 1. Contract duration of over 12 years suggests sustained need for specialized financial and data analysis expertise. 2. Sole-source award indicates potential limitations in market competition or unique contractor qualifications. 3. Time and Materials pricing structure may pose cost control challenges if not closely managed. 4. Significant contract value points to critical support functions for the Department of Justice. 5. Geographic focus on Florida for services rendered. 6. Contract completion date extends well into the future, implying ongoing requirements.

Value Assessment

Rating: fair

The contract's value of $31.8 million over more than 12 years for expert witness services is substantial. Benchmarking this against similar contracts for specialized financial and data analysis support is challenging without more specific service details. However, the long duration and sole-source nature raise questions about whether the government consistently achieved the best possible value. The Time and Materials pricing model, while flexible, can lead to cost overruns if not meticulously monitored, potentially impacting overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, qualifications, or when circumstances prevent a competitive process. The lack of competition means there was no direct price comparison with other potential providers, which could limit the government's ability to secure the most favorable pricing.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from competitive pricing that could have driven down costs. It also suggests that the government may have paid a premium due to the absence of market pressure.

Public Impact

The Department of Justice benefits from specialized financial and data analysis expertise for legal proceedings. Services likely support litigation, investigations, and case preparation requiring expert testimony. The contract's primary geographic impact is in Florida, where services are rendered. The contract supports legal professionals and potentially data analysts within the DOJ. The duration of the contract suggests a long-term reliance on these critical support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials contract type can lead to cost uncertainty.
Long contract duration (over 12 years) may indicate a lack of market exploration for better value.
Lack of detailed service description makes value assessment difficult.

Positive Signals

Contract provides essential expert witness services to the DOJ.
Long-term award suggests contractor reliability and sustained performance.
Contract supports critical legal functions of the government.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically legal services and data analysis. This sector is characterized by highly specialized expertise. The market for expert witness services is often fragmented, with firms specializing in niche areas like financial analysis, forensic accounting, and data forensics. The value of this contract, while significant, is within the range for large, long-term support contracts in this domain, though direct spending benchmarks are difficult without more granular data on the specific services provided.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The nature of the specialized services required likely favors larger, established firms with extensive resources and expertise. There is no indication of subcontracting requirements for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Justice's Offices, Boards and Divisions, which is the contracting activity. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is limited by the sole-source nature and the proprietary aspects of expert witness services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Legal Services
Expert Witness Services
Financial Analysis Support
Data Analysis Services
Department of Justice Contracts
Professional Services Contracts

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31.8 million to FTI CONSULTING, INC.. EXPERT WITNESS FINANCE/DATA ANALYSIS SYSTEMS

Who is the contractor on this award?

The obligated recipient is FTI CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2011-10-12. End: 2024-02-22.

What specific types of financial and data analysis are provided under this contract?

The provided data indicates the contract is for 'EXPERT WITNESS FINANCE/DATA ANALYSIS SYSTEMS' under the NAICS code '541199 - All Other Legal Services'. This suggests the services are highly specialized and likely involve providing expert testimony, analysis, and support in legal proceedings that require financial or data-related expertise. This could encompass areas such as forensic accounting, economic damages calculations, data forensics, e-discovery analysis, and other complex financial or data-driven litigation support. The exact scope would be detailed in the contract's statement of work, which is not publicly available in this data extract.

How does the $31.8 million contract value compare to similar expert witness contracts within the DOJ or other agencies?

Direct comparison of the $31.8 million contract value is difficult without knowing the precise services rendered and the duration over which this total value is expected to be spent. However, for long-term, sole-source contracts providing specialized expert witness services, particularly those involving complex financial and data analysis for a major federal agency like the DOJ, this value is substantial but not necessarily outside the norm. Contracts for high-level consulting and expert support can easily reach tens of millions of dollars over many years. Benchmarking would require access to similar sole-source contracts for comparable services across different agencies or competitive contracts for similar services to assess price efficiency.

What are the primary risks associated with a sole-source, Time and Materials contract of this magnitude and duration?

The primary risks associated with this contract are twofold. Firstly, the sole-source nature means the DOJ did not benefit from competitive bidding, potentially leading to higher costs than if multiple vendors had competed. There's a risk that FTI Consulting's pricing is not as competitive as it could be in a market scenario. Secondly, the Time and Materials (T&M) pricing structure carries inherent risks of cost escalation. Without strict oversight and defined labor categories with capped rates, the total cost can exceed initial estimates as more hours are logged. The long duration (over 12 years) amplifies these risks, as market conditions and project needs can change significantly over such a period, making cost control more challenging.

What is the track record of FTI Consulting in providing similar services to the federal government?

FTI Consulting is a well-established global business advisory firm known for its expertise in areas such as corporate finance, restructuring, litigation, and investigations. They frequently serve government agencies, including the Department of Justice, providing a range of consulting and expert services. Their track record with the federal government generally includes handling complex cases and providing specialized analysis. However, specific performance metrics or past issues related to this particular contract or similar sole-source awards would require a deeper dive into contract performance reports and any available Inspector General findings.

How does the contract's duration of over 12 years impact its overall value and risk profile?

A contract duration exceeding 12 years significantly impacts both value and risk. On the positive side, it suggests a high degree of satisfaction and reliability from the contractor, FTI Consulting, and a sustained, critical need for their specialized services within the DOJ. This long-term relationship can foster efficiency and deep institutional knowledge. However, it also increases risk. The prolonged T&M engagement heightens the potential for cost overruns over time. Furthermore, the extended period without re-competition raises concerns about whether the government is consistently receiving the best available market rates and if alternative solutions or contractors might offer better value or innovation if explored periodically.

What oversight mechanisms are in place to manage the costs and performance of this sole-source contract?

While specific oversight mechanisms are not detailed in the provided data, standard government contracting practices would apply. The Department of Justice's contracting officers and program managers are responsible for overseeing contract performance, ensuring adherence to the statement of work, and monitoring expenditures. For a Time and Materials contract, rigorous tracking of labor hours, rates, and direct costs is crucial. Regular performance reviews, status meetings, and audits (potentially by the DOJ's own audit division or the Inspector General) would be expected to ensure accountability and manage risks associated with cost and quality. The sole-source nature necessitates even more diligent oversight to ensure fair pricing and effective service delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 777 S FLAGLER DR STE 1500, WEST PALM BEACH, FL, 33401

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

Financial Breakdown

Contract Ceiling: $31,805,829

Exercised Options: $31,805,829

Current Obligation: $31,805,829

Actual Outlays: $9,932,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline