Transportation awards $8.6M for pipeline risk management IT services to Solve Technologies, LLC

Contract Overview

Contract Amount: $8,642,055 ($8.6M)

Contractor: Solve Technologies, L.L.C.

Awarding Agency: Department of Transportation

Start Date: 2023-09-01

End Date: 2026-02-28

Contract Duration: 911 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PIPELINE RISK MANAGEMENT INFORMATION SYSTEM (PRIMIS) - BPA CALL LOGICAL FOLLOW ON

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.6 million to SOLVE TECHNOLOGIES, L.L.C. for work described as: PIPELINE RISK MANAGEMENT INFORMATION SYSTEM (PRIMIS) - BPA CALL LOGICAL FOLLOW ON Key points: 1. The contract value appears reasonable for custom computer programming services in the federal IT sector. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. This contract supports critical infrastructure safety through IT services. 5. The duration of the contract is substantial, indicating a long-term need. 6. The contractor has been awarded a follow-on contract, suggesting satisfactory past performance.

Value Assessment

Rating: good

The contract value of $8.6 million over approximately three years for custom computer programming services is within a reasonable range for federal IT procurements. Benchmarking against similar contracts for IT support and development for specialized government systems would provide a more precise value-for-money assessment. However, the fixed-price nature of the award suggests that the government has negotiated a ceiling for the services, which is a positive indicator for cost control.

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 a bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach is designed to maximize taxpayer value by ensuring a wide pool of potential contractors.

Taxpayer Impact: Full and open competition is the most advantageous approach for taxpayers as it maximizes the potential for cost savings through robust price discovery and encourages a broad range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA). The services delivered will support the Pipeline Risk Management Information System (PRIMIS). This system is crucial for ensuring the safety and integrity of the nation's pipeline infrastructure. The contract supports the government's mission to prevent pipeline accidents and protect communities. The contract is based in Washington D.C., implying potential local workforce impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The long contract duration (911 days) could present risks if requirements evolve significantly.
No information is provided on small business subcontracting goals or achievements.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Fixed-price contract type helps control costs and manage financial risk.
This is a follow-on contract, implying the contractor has a track record with the agency.
The contract supports a critical safety-related function for national infrastructure.

Sector Analysis

The federal IT services sector is vast, encompassing custom software development, system integration, and IT support. This contract falls under custom computer programming services, a segment focused on developing tailored software solutions for specific agency needs. The market for such services is highly competitive, with numerous large and small businesses vying for government contracts. The $8.6 million award is a moderate-sized contract within this sector, supporting a specialized but vital government function related to infrastructure safety.

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 small business set-aside implications. However, the prime contractor, Solve Technologies, L.L.C., may engage small businesses as subcontractors to fulfill aspects of the contract, though this is not specified. The absence of a small business set-aside means the opportunity was open to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) contracting officers and program managers. The fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Pipeline Safety Management Systems
Critical Infrastructure Protection IT Services
Federal IT Development Contracts
Department of Transportation IT Support
Custom Software Development Services

Risk Flags

Follow-on contract may indicate reliance on a single vendor.
Lack of specific competition metrics limits full value assessment.
Potential for technological obsolescence over the contract's duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.6 million to SOLVE TECHNOLOGIES, L.L.C.. PIPELINE RISK MANAGEMENT INFORMATION SYSTEM (PRIMIS) - BPA CALL LOGICAL FOLLOW ON

Who is the contractor on this award?

The obligated recipient is SOLVE TECHNOLOGIES, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Pipeline and Hazardous Materials Safety Administration).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-02-28.

What is the track record of Solve Technologies, L.L.C. with the Department of Transportation and similar agencies?

Information regarding Solve Technologies, L.L.C.'s specific track record with the Department of Transportation (DOT) and other federal agencies is not detailed in the provided data. However, the fact that this is a 'BPA CALL LOGICAL FOLLOW ON' suggests that the company has previously performed work under a Blanket Purchase Agreement (BPA) or a preceding contract with the DOT for the Pipeline Risk Management Information System (PRIMIS). Follow-on contracts typically indicate a level of satisfaction with the contractor's performance on the initial work. A deeper analysis would require reviewing past performance evaluations, other contract awards, and any publicly available performance reports for Solve Technologies, L.L.C. to assess their reliability, quality of service, and adherence to timelines and budgets in previous engagements.

How does the $8.6 million contract value compare to similar federal IT contracts for risk management systems?

The $8.6 million contract value for the Pipeline Risk Management Information System (PRIMIS) IT services, awarded over approximately three years, appears to be within a reasonable range for specialized federal IT systems. Comparable contracts for developing and maintaining risk management information systems within critical infrastructure sectors (like energy, transportation, or defense) can vary significantly based on scope, complexity, and duration. However, for a system supporting national pipeline safety, this value suggests a substantial but not exceptionally high investment. Benchmarking against contracts for similar data management, analysis, and reporting systems within agencies like the Environmental Protection Agency (EPA) or the Department of Energy (DOE) would provide a more precise comparison. The fixed-price nature also suggests that the government has a defined budget expectation.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential scope creep, contractor underperformance, and technological obsolescence. Scope creep, where project requirements expand beyond the initial agreement, is a common risk in IT development. This is mitigated by the 'FIRM FIXED PRICE' contract type, which sets a ceiling on costs and incentivizes the contractor to manage scope tightly. Contractor underperformance is a risk inherent in any service contract; however, this contract being a 'LOGICAL FOLLOW ON' suggests that the contractor has a demonstrated history of performance with the agency, potentially reducing this risk. Technological obsolescence is mitigated by the contract's duration (ending Feb 2026) and the expectation that the contractor will deliver a system that meets current and near-future needs, with potential for future updates or replacements.

How effective is the Pipeline Risk Management Information System (PRIMIS) in achieving its stated goals of pipeline safety?

The effectiveness of the PRIMIS in achieving its goals of pipeline safety is not directly quantifiable from the provided contract data alone. However, the system's purpose is to support the Pipeline and Hazardous Materials Safety Administration (PHMSA) in overseeing the safety of the nation's pipeline infrastructure. This involves collecting, analyzing, and disseminating data related to pipeline operations, integrity management, and incident reporting. The fact that this is a 'LOGICAL FOLLOW ON' contract suggests that the system has been operational and deemed valuable enough by PHMSA to warrant continued investment and support. A comprehensive assessment of PRIMIS's effectiveness would require analyzing PHMSA's safety metrics, reduction in pipeline incidents, and the system's contribution to regulatory compliance and risk mitigation efforts over time.

What are the historical spending patterns for pipeline risk management IT services within the Department of Transportation?

The provided data focuses on a single contract award and does not offer historical spending patterns for pipeline risk management IT services within the Department of Transportation (DOT). To analyze historical spending, one would need access to broader contract databases or DOT budget reports that detail expenditures on similar IT systems and services over multiple fiscal years. Understanding these patterns would involve identifying all contracts related to PRIMIS or other pipeline safety IT initiatives, their values, durations, and the contractors involved. This would help determine if the current $8.6 million award represents an increase, decrease, or stable level of investment in this area compared to previous periods.

What is the role of custom computer programming services (NAICS 541511) in supporting federal agencies like PHMSA?

Custom computer programming services, classified under NAICS code 541511, are essential for federal agencies like the Pipeline and Hazardous Materials Safety Administration (PHMSA) to develop and maintain specialized IT systems that meet unique operational and regulatory requirements. Unlike off-the-shelf software, custom programming allows agencies to build solutions tailored precisely to their needs, such as the Pipeline Risk Management Information System (PRIMIS). This includes developing databases, analytical tools, reporting functionalities, and user interfaces necessary for managing complex data sets related to pipeline integrity, safety incidents, and regulatory compliance. These services enable agencies to automate processes, improve data analysis capabilities, enhance decision-making, and ultimately fulfill their mission objectives more effectively, as is critical for PHMSA's role in ensuring national pipeline safety.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 540 WAGNER WAY NE, KENNESAW, GA, 30144

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

Financial Breakdown

Contract Ceiling: $8,642,055

Exercised Options: $8,642,055

Current Obligation: $8,642,055

Actual Outlays: $8,334,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 693JK323A00005

IDV Type: BPA

Timeline