Transportation Dept. awards $1.9M for construction standards access, raising value-for-money questions

Contract Overview

Contract Amount: $1,898,466 ($1.9M)

Contractor: Allium US Holding LLC

Awarding Agency: Department of Transportation

Start Date: 2021-02-15

End Date: 2026-02-14

Contract Duration: 1,825 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION STANDARDS- LICENSE AGREEMENT FOR ACCESS TO AASHTO, ASTM, AND ACI STANDARDS

Place of Performance

Location: VANCOUVER, CLARK County, WASHINGTON, 98661

State: Washington Government Spending

Plain-Language Summary

Department of Transportation obligated $1.9 million to ALLIUM US HOLDING LLC for work described as: CONSTRUCTION STANDARDS- LICENSE AGREEMENT FOR ACCESS TO AASHTO, ASTM, AND ACI STANDARDS Key points: 1. Contract awarded via purchase order, indicating a streamlined acquisition process. 2. The contract duration of five years suggests a long-term need for these standards. 3. The lack of competition raises concerns about potential overpayment and limited market engagement. 4. The specific standards accessed are crucial for federal highway construction and safety protocols. 5. The pricing appears high given the nature of digital access to published standards. 6. This contract represents a small portion of the Federal Highway Administration's overall budget.

Value Assessment

Rating: questionable

The value for money on this contract is questionable due to the lack of competitive bidding and the relatively high cost for access to published standards. While these standards are essential for the Federal Highway Administration, the $1.9 million price tag over five years warrants further scrutiny. Benchmarking against similar agreements for access to industry standards would be beneficial to determine if this represents a fair market price. Without competitive pricing, it is difficult to ascertain if taxpayers are receiving optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. The data provided states 'NOT COMPETED,' which suggests that the Federal Highway Administration may have directly negotiated with ALLIUM US HOLDING LLC without soliciting bids from other potential vendors. This approach bypasses the standard competitive procurement process, which typically ensures a wider range of pricing and service options.

Taxpayer Impact: A lack of competition means taxpayers may not benefit from the most cost-effective pricing, as there was no pressure from competing offers to drive down the cost of these essential standards.

Public Impact

Federal Highway Administration engineers and researchers benefit from direct access to critical construction standards. Ensures compliance with the latest safety and quality guidelines in federally funded highway projects. Supports the standardization of construction practices across the nation. Indirectly benefits the construction workforce by providing clear, authoritative guidelines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Potential for vendor lock-in due to the sole-source nature of the award.
Limited transparency in the pricing structure without competitive bids.

Positive Signals

Provides essential access to critical industry standards for federal projects.
Ensures consistency and quality in national highway construction.
Long-term contract (5 years) provides stable access to necessary resources.

Sector Analysis

This contract falls within the information services sector, specifically related to the licensing and distribution of technical standards crucial for the construction industry. The market for such standards is often dominated by professional organizations and standards-setting bodies. The Federal Highway Administration's spending here is for essential intellectual property that underpins regulatory compliance and best practices in infrastructure development. Comparable spending might involve subscriptions to other technical databases or licensing fees for specialized software used in engineering.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The nature of licensing access to standards typically involves direct agreements with the publishing bodies or their authorized distributors, which may not be structured to facilitate small business participation. Further analysis would be needed to determine if any portion of this contract could have been directed towards small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Highway Administration's contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise. Transparency is limited due to the sole-source nature, but contract award details are publicly available through federal procurement databases.

Related Government Programs

Federal Highway Administration Research and Development Programs
National Highway System Construction Projects
Transportation Infrastructure Investment Programs
AASHTO Standards Development
ASTM International Standards

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.9 million to ALLIUM US HOLDING LLC. CONSTRUCTION STANDARDS- LICENSE AGREEMENT FOR ACCESS TO AASHTO, ASTM, AND ACI STANDARDS

Who is the contractor on this award?

The obligated recipient is ALLIUM US HOLDING LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $1.9 million.

What is the period of performance?

Start: 2021-02-15. End: 2026-02-14.

What is the specific nature of the 'construction standards' being licensed, and why is direct access through this vendor necessary?

The contract specifies access to standards from AASHTO (American Association of State Highway and Transportation Officials), ASTM (American Society for Testing and Materials), and ACI (American Concrete Institute). These are foundational documents for highway design, materials testing, and concrete construction practices. Direct access is necessary for federal engineers and contractors to ensure compliance with federal regulations and to utilize the most current, authoritative guidelines. The necessity of this specific vendor, ALLIUM US HOLDING LLC, is unclear without further details on why other distributors or direct licensing from the standards bodies were not pursued or were deemed less suitable.

How does the $1.9 million cost compare to historical spending on similar standards access for the Federal Highway Administration?

Historical spending data for similar standards access agreements by the Federal Highway Administration is not readily available in the provided data. However, a $1.9 million expenditure over five years for digital access to published standards warrants a detailed cost-benefit analysis. Benchmarking against what other large government agencies or private sector entities pay for comparable standards subscriptions or licenses would be crucial. The absence of competitive bidding makes it difficult to establish a baseline for comparison and assess if this represents a fair market price or an inflated cost.

What are the risks associated with a sole-source award for essential technical standards?

The primary risk of a sole-source award for essential technical standards is the potential for inflated pricing due to the lack of competition. Without competing bids, the vendor has less incentive to offer the most cost-effective solution. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making it difficult or costly to switch vendors in the future. Furthermore, a sole-source award can reduce transparency in the procurement process, making it harder to verify that the government is receiving fair value for its investment. This can also limit opportunities for innovation or alternative solutions that might be offered by other vendors.

What performance metrics or deliverables are associated with this contract to ensure the Federal Highway Administration receives adequate value?

The provided data does not detail specific performance metrics or deliverables beyond granting access to the specified standards. As a license agreement for published standards, the primary 'deliverable' is the availability and usability of these documents. Key performance indicators would likely revolve around uptime of the access portal, the comprehensiveness and currency of the standards provided, and potentially user support. Without explicit performance clauses tied to measurable outcomes, assessing the contractor's performance and ensuring the agency receives adequate value relies heavily on the initial contract terms and ongoing monitoring by the contracting officer.

Could the Federal Highway Administration have obtained these standards through alternative, more cost-effective means, such as direct licensing or bulk purchasing agreements?

It is plausible that the Federal Highway Administration could have explored alternative, potentially more cost-effective means to obtain access to these standards. Direct licensing agreements with AASHTO, ASTM, and ACI, or negotiating bulk purchasing agreements that might offer volume discounts, could have been viable options. The decision to award a sole-source contract to ALLIUM US HOLDING LLC suggests that either these alternatives were explored and found less suitable, or the procurement process did not adequately consider them. A thorough justification for the sole-source award, detailing why other options were not pursued, would be necessary to confirm the necessity of this specific contract structure.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 69056721Q000018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15 INVERNESS WAY E, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $1,898,466

Exercised Options: $1,898,466

Current Obligation: $1,898,466

Actual Outlays: $1,898,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline