I think Kirkland is still alive. After he is arrested Reede Smith says he will be transferred to a federal detention centre "in a few days". So we know some time has passed since the time he was shot and the time he is arrested.
After he is arrested Kirkland tells Jane to visit him sometime. Maybe they knew that the tyger tyger organisation would make a move on Kirkland so they made a plan to help him escape. The van driver could be one of Kirkland's men and might have used a blank gun and blood packs to make the shots look convincing.
Kirkland knows about the tyger tyger organisation so she could have instructed the driver to say it to Smith to make it look convincing.
