DOT awards $2.47M for asset management system, raising questions on competition and value

Contract Overview

Contract Amount: $2,471,464 ($2.5M)

Contractor: Chenega Analytic Business Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-10-01

End Date: 2024-12-31

Contract Duration: 1,552 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ACQUIRE AN ASSET MANAGEMENT SYSTEM FOR OST.

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 $2.5 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC for work described as: ACQUIRE AN ASSET MANAGEMENT SYSTEM FOR OST. Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Significant duration of contract (over 4 years) warrants close performance monitoring. 3. Asset management system acquisition is critical for optimizing DOT's infrastructure investments. 4. Contract type (Time and Materials) can lead to cost overruns if not managed tightly. 5. The specific IT services category (Custom Computer Programming) is broad and requires detailed scope management. 6. Geographic concentration in Washington D.C. may limit broader applicability or local economic impact.

Value Assessment

Rating: questionable

The contract's total value of $2.47 million over approximately 4 years for an asset management system is difficult to benchmark without more specific details on system scope and features. However, the Time and Materials pricing structure, coupled with a lack of competitive bidding, raises concerns about potential overspending. Without comparable contracts or a competitive process, assessing true value for money is challenging. The absence of a fixed price or performance-based elements further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating a sole-source procurement. This means that only one vendor, Chenega Analytic Business Solutions, LLC, was solicited. While sole-source awards can be justified in specific circumstances (e.g., urgent needs, unique capabilities), they inherently reduce competitive pressure, potentially leading to higher prices and less innovation compared to an open competition. The lack of multiple bidders means the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government had limited leverage to negotiate the best possible price and terms.

Public Impact

The Office of the Secretary of Transportation (OST) is the primary beneficiary, gaining a system to manage its assets. The delivered service is the development and implementation of a custom asset management system. The geographic impact is concentrated in Washington D.C., where the Department of Transportation is headquartered. The contract supports IT professionals and potentially asset management specialists within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Time and Materials contract type poses a risk of cost escalation without strict oversight.
The broad nature of 'Custom Computer Programming Services' requires diligent scope management to prevent scope creep.
Limited transparency into the justification for sole-source award.

Positive Signals

Acquisition of a critical asset management system supports DOT's operational efficiency.
The contractor, Chenega Analytic Business Solutions, LLC, is performing the work.
The contract has a defined period of performance, allowing for structured delivery.

Sector Analysis

The IT services sector, specifically custom computer programming, is a significant area of federal spending. This contract falls under the broader category of software development and IT solutions. Federal agencies increasingly rely on sophisticated IT systems for managing vast amounts of data and operational functions. Comparable spending benchmarks for asset management systems vary widely based on complexity, but multi-year contracts in the millions are common for enterprise-level solutions. The market includes numerous providers, making competitive procurement a standard expectation for achieving best value.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contract was awarded sole-source, which typically limits opportunities for small businesses to participate as prime contractors. While the prime contractor, Chenega Analytic Business Solutions, LLC, may engage small businesses as subcontractors, there is no explicit requirement or set-aside noted in the provided data. This limits the direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. The contract's Time and Materials nature necessitates rigorous monitoring of labor hours and costs to prevent overruns. Transparency is limited by the sole-source award, but contract performance reports and payment data should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Procurement
Custom Software Development
Asset Management Systems
Department of Transportation IT Contracts
Sole-Source IT Awards

Risk Flags

Sole-source award lacks competitive pricing.
Time and Materials contract type increases cost overrun risk.
Potential for scope creep in custom programming.
Limited public justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC. ACQUIRE AN ASSET MANAGEMENT SYSTEM FOR OST.

Who is the contractor on this award?

The obligated recipient is CHENEGA ANALYTIC BUSINESS SOLUTIONS, 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 $2.5 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-12-31.

What is the specific functionality and scope of the asset management system being acquired?

The provided data indicates the contract is for 'ACQUIRE AN ASSET MANAGEMENT SYSTEM FOR OST' under NAICS code 541511 (Custom Computer Programming Services). However, the specific functionalities, modules, and detailed scope of work are not detailed in the summary data. An asset management system typically includes modules for tracking assets, managing maintenance schedules, monitoring depreciation, and ensuring compliance. The 'custom computer programming' aspect suggests it may be tailored to the unique needs of the Immediate Office of the Secretary of Transportation (OST), potentially involving integration with existing DOT systems. Further details would likely be found in the contract's Statement of Work (SOW).

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states 'CT: NOT AVAILABLE FOR COMPETITION', which signifies a sole-source or limited-competition award. Federal procurement regulations (like the FAR) allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without access to the contract file or justification documents, the precise reason for this sole-source award remains unknown. Agencies must publicly justify such awards, often through sources sought notices or justifications for other than full and open competition (JOFOC).

How does the $2.47 million cost compare to similar asset management system procurements within the federal government?

Benchmarking this $2.47 million contract requires comparing it to similar asset management system procurements, considering factors like system complexity, user base, customization level, and contract duration. Given this is a custom development effort over approximately 4 years (October 2020 - December 2024), the cost seems plausible for an enterprise-level solution. However, without detailed scope information, direct comparisons are difficult. Other federal agencies have procured asset management solutions ranging from COTS (Commercial Off-The-Shelf) implementations costing hundreds of thousands to highly customized systems costing millions. The lack of competition here prevents a direct value-for-money comparison against potential alternatives.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided summary data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for a custom computer programming services contract like this, deliverables would include software design documents, code, testing reports, user manuals, training materials, and the fully functional asset management system itself. Performance indicators would likely focus on meeting project milestones, system performance (e.g., uptime, response time), defect rates, and user acceptance. These details would be outlined in the contract's Statement of Work (SOW) and any associated Performance Work Statement (PWS).

What is Chenega Analytic Business Solutions, LLC's track record with the Department of Transportation or similar IT projects?

Chenega Analytic Business Solutions, LLC has a history of performing various services for government agencies, including IT and professional services. To assess their track record specifically with the Department of Transportation (DOT) and for similar asset management system projects, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would show past performance information, including contract awards, performance ratings (if available), and potentially past disputes or terminations. A review of their contract history would reveal their experience level and success rate in delivering complex IT solutions.

What is the potential risk associated with the Time and Materials (T&M) contract type for this acquisition?

The Time and Materials (T&M) contract type carries inherent risks, particularly for custom development projects. With T&M, the government pays the contractor for direct labor hours at specified fixed hourly rates, plus actual costs for materials. The primary risk is cost overrun, as there is less incentive for the contractor to control costs or complete the work efficiently compared to fixed-price contracts. Without robust oversight, detailed tracking of hours, and a well-defined ceiling price, T&M contracts can become significantly more expensive than initially anticipated. For this $2.47 million contract, diligent monitoring by DOT contracting officers is crucial to manage this risk.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10505 FURNACE RD STE 205, LORTON, VA, 22079

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,013,598

Exercised Options: $3,013,598

Current Obligation: $2,471,464

Actual Outlays: $2,471,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline