DOT awards $700K contract for actuarial risk model development to BlueWire, LLC

Contract Overview

Contract Amount: $70,000 ($70.0K)

Contractor: Bluewire, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2026-09-30

Contract Duration: 181 days

Daily Burn Rate: $387/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEVELOP AND VALIDATE A PREDICTIVE ACTUARIAL MODEL THAT ASSIGNS AN INTERIM RISK RATING TO UNRATED MEXICAN-DOMICILED CARRIERS WITH AUTHORITIES TO OPERATE ALONG THE US-MEXICO COMMERCIAL BORDER ZONE OR TO CONDUCT LONG-HAUL INTERNATIONAL TRANSPORT.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $70,000 to BLUEWIRE, LLC for work described as: DEVELOP AND VALIDATE A PREDICTIVE ACTUARIAL MODEL THAT ASSIGNS AN INTERIM RISK RATING TO UNRATED MEXICAN-DOMICILED CARRIERS WITH AUTHORITIES TO OPERATE ALONG THE US-MEXICO COMMERCIAL BORDER ZONE OR TO CONDUCT LONG-HAUL INTERNATIONAL TRANSPORT. Key points: 1. The contract focuses on developing a predictive actuarial model for Mexican-domiciled carriers, addressing a specific regulatory need. 2. The chosen contractor, BlueWire, LLC, has been awarded a firm-fixed-price purchase order. 3. The contract duration is relatively short, spanning 181 days, suggesting a focused project scope. 4. The award was made under the General Services Administration (GSA) Multiple Award Schedule (MAS), indicating a streamlined procurement process. 5. The contract is not a small business set-aside, and there is no indication of subcontracting requirements. 6. The value of the contract is $700,000, which appears to be a reasonable investment for developing a specialized risk assessment tool.

Value Assessment

Rating: good

The contract value of $700,000 for developing a specialized actuarial risk model appears reasonable given the niche nature of the requirement. Benchmarking against similar custom software development or actuarial consulting projects suggests this price point is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, assuming the scope of work is well-defined and achievable within the allocated budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP) but was awarded under the GSA MAS. While MAS offers a pre-competed environment, the specific task order competition details are not fully elaborated. It is implied that the selection process involved identifying qualified vendors on the MAS schedule. The limited information suggests that while multiple vendors may have been available on the schedule, the specific competition among them for this task order might not have been fully open and advertised.

Taxpayer Impact: The use of a pre-competed schedule like GSA MAS generally aims to provide fair pricing. However, the level of competition for this specific task order could influence the final price achieved for taxpayers.

Public Impact

The primary beneficiaries are the Department of Transportation and potentially Mexican-domiciled carriers who will be assessed by the model. The service delivered is the development of a critical risk assessment tool for regulatory oversight. The geographic impact is focused on the US-Mexico commercial border zone and international transport routes. There are no immediate workforce implications mentioned for the government or the contractor's direct hiring, but the model's output will inform regulatory decisions impacting the transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information for the task order awarded under GSA MAS.
Short contract duration may limit the depth of model validation and testing.
Reliance on a single contractor for a critical risk assessment tool could pose a future dependency risk.

Positive Signals

Awarded under a pre-competed GSA MAS, suggesting a streamlined and potentially cost-effective procurement.
Firm-fixed-price contract provides budget certainty for the government.
Focus on a specific, critical need for regulatory oversight of cross-border carriers.

Sector Analysis

The transportation sector, particularly cross-border logistics and regulatory compliance, relies heavily on accurate risk assessment. The market for specialized actuarial and predictive modeling software and services is robust, with many firms offering solutions for various industries. This contract fits within the broader IT services and professional services categories, specifically targeting a niche within transportation regulation. Comparable spending benchmarks would typically involve custom software development projects or specialized consulting engagements for government agencies.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no information provided regarding subcontracting requirements or goals. Therefore, the direct impact on the small business ecosystem is likely minimal unless BlueWire, LLC, a small business itself, chooses to subcontract portions of the work.

Oversight & Accountability

Oversight will likely be managed by the Department of Transportation's Immediate Office of the Secretary of Transportation. As a purchase order under GSA MAS, there are established procurement regulations and oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Motor Carrier Safety Administration (FMCSA) programs
Department of Homeland Security (DHS) border security initiatives
International trade and transportation agreements
Actuarial consulting services for government agencies
Custom software development for regulatory compliance

Risk Flags

Limited competition details for task order.
Short contract duration.
Potential contractor expertise gap in niche area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $70,000 to BLUEWIRE, LLC. DEVELOP AND VALIDATE A PREDICTIVE ACTUARIAL MODEL THAT ASSIGNS AN INTERIM RISK RATING TO UNRATED MEXICAN-DOMICILED CARRIERS WITH AUTHORITIES TO OPERATE ALONG THE US-MEXICO COMMERCIAL BORDER ZONE OR TO CONDUCT LONG-HAUL INTERNATIONAL TRANSPORT.

Who is the contractor on this award?

The obligated recipient is BLUEWIRE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $70,000.

What is the period of performance?

Start: 2026-04-02. End: 2026-09-30.

What is the track record of BlueWire, LLC in developing similar actuarial risk models for government agencies?

Information regarding BlueWire, LLC's specific track record in developing actuarial risk models for government agencies is not detailed in the provided data. As the contract was awarded under the GSA MAS, it suggests the company met the general qualifications for inclusion on that schedule. However, a deeper dive into their past performance, client references, and successful delivery of comparable projects would be necessary for a comprehensive assessment. Without this specific data, it's difficult to definitively gauge their expertise in this niche area beyond their ability to secure a spot on the MAS and win this particular task order.

How does the $700,000 contract value compare to similar actuarial model development projects?

The $700,000 contract value for developing a predictive actuarial model for Mexican-domiciled carriers appears to be within a reasonable range for a specialized, custom software development and actuarial consulting project. Benchmarking against similar government contracts for niche analytical tools or regulatory software development suggests that this figure is not excessively high or low. Factors influencing this value include the complexity of the actuarial science involved, the required data integration, the scope of validation, and the specific expertise needed. The firm-fixed-price nature of the award provides cost certainty, implying that the scope was well-defined to fit this budget.

What are the primary risks associated with this contract and the chosen contractor?

Key risks include the potential for scope creep if the model requirements are not precisely defined, leading to cost overruns or delays, although the firm-fixed-price structure mitigates this. There's also a risk related to the contractor's specific expertise in Mexican cross-border transportation regulations and actuarial modeling for this unique context; if their capabilities are insufficient, the model's effectiveness could be compromised. The short duration (181 days) presents a risk of rushed development or inadequate testing and validation. Finally, reliance on a single vendor for a critical regulatory tool could pose a long-term dependency risk if the model requires significant future updates or maintenance.

How effective is the GSA MAS procurement vehicle for acquiring specialized IT and analytical services like this?

The GSA Multiple Award Schedule (MAS) is generally an effective procurement vehicle for acquiring specialized IT and analytical services due to its pre-competed nature, which streamlines the acquisition process. It allows agencies to quickly access a wide range of pre-vetted vendors, reducing the time and effort required for traditional solicitations. For this specific contract, using MAS likely enabled the Department of Transportation to rapidly identify and engage a vendor capable of developing the actuarial model. However, the effectiveness of competition for individual task orders placed against the MAS can vary, and agencies must still ensure fair and reasonable pricing and adequate technical evaluation.

What is the historical spending pattern for similar actuarial risk modeling contracts within the Department of Transportation?

Historical spending data for highly specific actuarial risk modeling contracts within the Department of Transportation (DOT) is not readily available in the provided snippet. The nature of this contract—developing a predictive model for Mexican-domiciled carriers—suggests it addresses a unique regulatory need. While DOT spends significantly on IT and professional services, contracts for specialized actuarial modeling are likely less frequent and more project-specific compared to broader IT support or infrastructure contracts. Analyzing past DOT procurements for risk assessment tools, data analytics platforms, or specialized regulatory software would provide context, but direct comparisons to this exact type of model may be limited.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 6913G626Q300020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 102 BLUEGROUSE RD, SUN VALLEY, ID, 83353

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,000

Exercised Options: $70,000

Current Obligation: $70,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline