Transportation contract for ITS architecture support awarded to Iteris, Inc. for $818,204

Contract Overview

Contract Amount: $8,182,042 ($8.2M)

Contractor: Iteris, Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Transportation

Official Description: INTELLIGENT TRANSPORTATION SYSTEMS (ITS) ARCHITECTURE REFERENCE DEVELOPMENT, EVOLUTION, AND DEPLOYMENT SUPPORT

Place of Performance

Location: SANTA ANA, ORANGE County, CALIFORNIA, 92705

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $8.2 million to ITERIS, INC for work described as: INTELLIGENT TRANSPORTATION SYSTEMS (ITS) ARCHITECTURE REFERENCE DEVELOPMENT, EVOLUTION, AND DEPLOYMENT SUPPORT Key points: 1. Contract focuses on intelligent transportation systems (ITS) architecture, a critical component for modernizing transportation infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 4. The duration of the contract is three years, indicating a medium-term engagement. 5. The specific North American Industry Classification System (NAICS) code is 541330 (Engineering Services), placing it within the engineering consulting sector. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $818,204 for a three-year period for ITS architecture support appears reasonable for specialized engineering services. However, without specific benchmarks for ITS architecture development and evolution support, a definitive value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure necessitates close monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. Comparing this to similar contracts for ITS architecture support would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award suggests that the government sought the best value through a transparent process. This approach generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures that the government receives services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the Federal Highway Administration and potentially state and local transportation agencies that will utilize the developed ITS architecture. The services delivered will support the development, evolution, and deployment of intelligent transportation systems, aiming to improve traffic flow, safety, and efficiency. The geographic impact is national, as ITS architecture standards and support have broad applicability across the United States. The contract supports the engineering and technical workforce involved in transportation technology and infrastructure development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored for efficiency.
The specific deliverables and performance metrics are not detailed, making it difficult to assess the contractor's performance outcomes proactively.
Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the prime contractor faces issues.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Iteris, Inc., has a stated focus on intelligent mobility infrastructure, aligning with the contract's objectives.
The contract duration of three years allows for sustained effort and development in a complex technical area.

Sector Analysis

The Intelligent Transportation Systems (ITS) sector is a growing segment within the broader transportation and technology industries. It encompasses technologies and services aimed at improving transportation efficiency, safety, and sustainability. Spending in this area is driven by federal and state initiatives to modernize infrastructure and integrate advanced technologies. Comparable spending benchmarks would typically involve contracts for ITS planning, software development, system integration, and data analytics, often awarded to engineering and IT consulting firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside. However, the prime contractor, Iteris, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Highway Administration (FHWA) within the Department of Transportation. Mechanisms likely include regular progress reports, performance reviews, and potentially site visits. Accountability is managed through the contract terms, including adherence to schedules, quality standards, and budget. Transparency is facilitated by the contract award process being under full and open competition. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Research and Development Programs
National Highway Traffic Safety Administration (NHTSA) Initiatives
Department of Transportation Advanced Transportation Technologies
ITS Joint Program Office Activities

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage scope creep and ensure efficiency.
Importance of clearly defined deliverables and performance metrics for effective evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.2 million to ITERIS, INC. INTELLIGENT TRANSPORTATION SYSTEMS (ITS) ARCHITECTURE REFERENCE DEVELOPMENT, EVOLUTION, AND DEPLOYMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is ITERIS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is Iteris, Inc.'s track record with the Federal Highway Administration and in ITS architecture development?

Iteris, Inc. has a history of working with transportation agencies, including the Federal Highway Administration (FHWA). Their business focus is on intelligent mobility infrastructure, which directly aligns with the contract's objective of supporting ITS architecture. While specific details on past FHWA contracts for ITS architecture are not provided in this data snippet, Iteris's stated specialization suggests relevant experience. A deeper dive into their contract history with FHWA and other transportation entities would reveal the extent and success of their prior work in this specific domain, including performance ratings and any past issues or commendations.

How does the $818,204 contract value compare to similar ITS architecture support contracts?

Assessing the value requires comparison with similar contracts for ITS architecture reference development, evolution, and deployment support. Without access to a comprehensive database of federal contracts or specific market data for ITS architecture services, a direct benchmark is difficult. However, the contract value of approximately $818,000 over three years suggests a focused effort rather than a large-scale program implementation. Typical costs for such specialized engineering and technical support can vary significantly based on scope, duration, and the specific expertise required. Further analysis would involve identifying comparable contracts awarded by the FHWA or other agencies for similar services to establish a more robust comparison.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If not managed diligently, this structure can incentivize longer project durations or less efficient work, as the contractor is paid for time spent. For this contract, risks include scope creep (uncontrolled changes or growth in project scope), inefficient use of labor hours, and difficulty in accurately forecasting the total project cost. Robust oversight, clear task definitions, and regular performance monitoring are crucial to mitigate these risks and ensure the project stays within budget and delivers the intended value.

How effective is the 'full and open competition' approach for ensuring value in specialized engineering services like ITS architecture?

The 'full and open competition' approach is generally considered highly effective for ensuring value in specialized engineering services. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages contractors to offer their best technical solutions and value propositions. This process increases the likelihood that the government will select a contractor that not only meets the technical requirements but also offers the most cost-effective solution. For ITS architecture support, this means the Federal Highway Administration can benefit from a wider pool of expertise and potentially better pricing than through sole-source or limited competition methods.

What is the historical spending trend for ITS architecture support by the Federal Highway Administration?

Historical spending data for ITS architecture support by the Federal Highway Administration (FHWA) is not directly available in the provided snippet. However, the broader trend in federal transportation spending shows a consistent and increasing investment in intelligent transportation systems (ITS) over the past decade. This is driven by national goals to improve safety, reduce congestion, and enhance the efficiency of the transportation network through technology. Contracts related to ITS architecture development, evolution, and deployment are a component of this larger investment. Analyzing FHWA's budget allocations and contract awards over several fiscal years would reveal specific spending patterns and the relative importance of ITS architecture support within their overall R&D and program execution.

What are the potential performance implications of a 3-year duration for ITS architecture evolution?

A three-year duration for ITS architecture evolution and deployment support is a reasonable timeframe for developing and refining complex technical frameworks. It allows for iterative development, testing, and adaptation to emerging technologies and changing transportation needs. This duration provides stability for the contractor and allows for deeper engagement with stakeholders. However, it also necessitates careful management to ensure progress is consistently made and that the architecture remains relevant throughout its lifecycle. The risk is that the architecture could become outdated if the evolution process is slow or if the underlying technologies advance rapidly beyond the contract's scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1700 CARNEGIE AVE STE 100, SANTA ANA, CA, 92705

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

Financial Breakdown

Contract Ceiling: $9,499,385

Exercised Options: $9,499,385

Current Obligation: $8,182,042

Actual Outlays: $7,197,617

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA22D00BT

IDV Type: FSS

Timeline