DOT Awards $13.1M for Highway Research Engineering Services to Professional Service Industries, Inc

Contract Overview

Contract Amount: $13,165,916 ($13.2M)

Contractor: Professional Service Industries, Inc

Awarding Agency: Department of Transportation

Start Date: 2004-08-01

End Date: 2010-08-31

Contract Duration: 2,221 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Transportation

Official Description: ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RESEARCH ACTIVITIES IN THE STRUCTURES LABORATORIES AT THE TURNER-FAIRBANK HIGHWAY RESEARCH CENTER.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $13.2 million to PROFESSIONAL SERVICE INDUSTRIES, INC for work described as: ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RESEARCH ACTIVITIES IN THE STRUCTURES LABORATORIES AT THE TURNER-FAIRBANK HIGHWAY RESEARCH CENTER. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans over 6 years, indicating a long-term need for these services. 3. The use of a Cost Plus Award Fee (CPAF) contract type can incentivize performance but requires careful oversight. 4. The sector is Transportation, specifically highway research and development.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to costs exceeding initial estimates if not managed tightly. Benchmarking against similar long-term engineering support contracts is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPAF structure means the final price is influenced by performance incentives.

Taxpayer Impact: Taxpayer funds are utilized for essential highway research, aiming for improved infrastructure. The effectiveness of the CPAF structure in controlling costs will determine the ultimate taxpayer impact.

Public Impact

Supports critical research for the nation's highway infrastructure. Ensures continued development and testing of new materials and designs for roads. Potential for advancements in transportation safety and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Cost Plus Award Fee contract type requires robust oversight to manage costs and incentives.
Long contract duration (6 years) may not fully capture evolving research needs or market changes.
Lack of specific performance metrics in the provided data makes it hard to assess award fee effectiveness.

Positive Signals

Awarded through full and open competition, indicating market engagement.
Supports vital research for national infrastructure improvement.
Contract has a clear objective: supporting structures laboratories.

Sector Analysis

This contract falls within the Transportation sector, specifically supporting research and development for highway infrastructure. Spending benchmarks in this area often focus on the efficiency of research outcomes and the cost-effectiveness of testing services.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or subcontracted.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates strong government oversight to ensure that award fees are justified by performance and that costs remain reasonable. Monitoring the contractor's progress and adherence to research objectives is crucial.

Related Government Programs

Testing Laboratories and Services
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost overruns due to CPAF structure.
Risk of contractor lock-in and lack of agility with long-term contract.
Need for robust government oversight to ensure performance and cost control.
Limited visibility into specific performance metrics and award fee justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.2 million to PROFESSIONAL SERVICE INDUSTRIES, INC. ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RESEARCH ACTIVITIES IN THE STRUCTURES LABORATORIES AT THE TURNER-FAIRBANK HIGHWAY RESEARCH CENTER.

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL SERVICE INDUSTRIES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2004-08-01. End: 2010-08-31.

How effectively does the Cost Plus Award Fee structure incentivize desired research outcomes while controlling overall costs for the taxpayer?

The CPAF structure aims to balance contractor profit with government objectives by providing a base fee plus an award amount tied to performance metrics. Effective implementation requires clearly defined, measurable performance standards and diligent government monitoring. Without these, there's a risk of inflated costs or misaligned incentives, potentially leading to suboptimal value for taxpayer investment.

What are the key performance indicators (KPIs) used to determine award fees, and how are they audited?

Specific KPIs are not detailed in the provided data. Typically, for research support contracts, KPIs might include timely completion of research phases, quality of technical reports, adherence to safety protocols, and innovation in problem-solving. Robust auditing processes are essential to verify the contractor's achievement against these KPIs before any award fees are disbursed, ensuring accountability.

Does the long-term nature of this contract potentially limit the adoption of newer, more cost-effective technologies or methodologies in highway research?

A fixed, long-term contract can indeed pose a risk of inertia, potentially delaying the integration of cutting-edge technologies or more efficient research methods if the contract scope isn't regularly reviewed or updated. Agencies must actively manage such contracts, incorporating flexibility clauses or periodic reviews to ensure alignment with the latest advancements and maintain cost-effectiveness.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › TRANSPORTATION (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olympus Partners, L.P. (UEI: 614746998)

Address: 1901 S MEYERS RD STE 400, VILLA PARK, IL, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,800,808

Exercised Options: $13,666,433

Current Obligation: $13,165,916

Contract Characteristics

Multi-Year Contract: Yes

Timeline