Transportation contract for software development and maintenance awarded to North Dakota State University for over $10 million

Contract Overview

Contract Amount: $10,259,964 ($10.3M)

Contractor: North Dakota State University

Awarding Agency: Department of Transportation

Start Date: 2005-09-02

End Date: 2009-08-07

Contract Duration: 1,435 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FIELD SYSTEMS AND SOFTWARE DEVELOPMENT MAINTENANCE

Place of Performance

Location: DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $10.3 million to NORTH DAKOTA STATE UNIVERSITY for work described as: FIELD SYSTEMS AND SOFTWARE DEVELOPMENT MAINTENANCE Key points: 1. The contract value of over $10 million for software development and maintenance suggests a significant investment in IT infrastructure. 2. Awarded to an educational institution, this contract may indicate a focus on specialized research or development capabilities. 3. The duration of the contract (over 3 years) points to a long-term need for the services provided. 4. The firm-fixed-price contract type suggests that the government aimed to control costs by setting a definitive price upfront. 5. The absence of small business set-aside flags indicates this was not specifically targeted to small businesses. 6. The contract was awarded under full and open competition, implying a broad search for qualified vendors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and deliverables. However, a $10 million contract for software development and maintenance over three years is within the typical range for complex IT projects. The firm-fixed-price structure suggests an attempt to manage cost certainty. Further analysis would require comparing the specific services rendered against industry standards and similar government IT contracts to assess if the price was competitive and represented good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that only one bid was received, however, raises questions about the level of actual competition. While the process was open, the limited number of bidders could suggest potential barriers to entry, a lack of market interest, or perhaps a highly specialized requirement that only a few entities could meet. This could impact price discovery and potentially lead to less competitive pricing than if multiple bids had been submitted.

Taxpayer Impact: A single bid under a full and open competition process means taxpayers may not have benefited from the full range of competitive pricing that a more robust bidding environment could provide. This could translate to a higher overall cost for the services rendered.

Public Impact

The primary beneficiary is the Department of Transportation, specifically the Federal Motor Carrier Safety Administration, which receives essential software development and maintenance services. The services delivered likely support the agency's mission to ensure the safety of commercial motor vehicles and drivers. The contract's geographic impact is national, as the Federal Motor Carrier Safety Administration operates nationwide. Workforce implications could include employment opportunities for software developers, engineers, and IT support staff at North Dakota State University or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received despite full and open solicitation.
Award to an educational institution for IT services, which might not always align with typical commercial IT service provider structures.
The specific nature of 'All Other Business Support Services' is broad and could mask inefficiencies if not tightly managed.

Positive Signals

Awarded through full and open competition, indicating an effort to find the best value.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need for these critical IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software development and maintenance. The market for such services is vast and highly competitive, with numerous commercial firms and academic institutions offering these capabilities. The contract's value of over $10 million places it in the mid-to-large tier for IT services. Comparable spending benchmarks would typically involve analyzing IT service contracts within federal agencies for similar scope and duration, considering factors like cloud migration, data analytics, or specialized software solutions.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to North Dakota State University, a large educational institution, suggests that subcontracting opportunities for small businesses might be limited unless specifically mandated or pursued by the prime contractor. The overall impact on the small business ecosystem for IT services would be minimal for this specific contract, as it was not designed to directly benefit small businesses through a set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Federal Motor Carrier Safety Administration. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Modernization Programs
Department of Transportation IT Infrastructure
Software Development Services
IT Maintenance and Support Contracts
Research and Development Contracts

Risk Flags

Limited competition (1 bid received)
Potential for non-competitive pricing
Contract awarded to an educational institution for IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.3 million to NORTH DAKOTA STATE UNIVERSITY. FIELD SYSTEMS AND SOFTWARE DEVELOPMENT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is NORTH DAKOTA STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2005-09-02. End: 2009-08-07.

What specific software systems or applications were developed or maintained under this contract?

The provided data indicates the contract was for 'FIELD SYSTEMS AND SOFTWARE DEVELOPMENT MAINTENANCE' under NAICS code 561499 (All Other Business Support Services). However, it does not specify the exact software systems or applications. This level of detail is crucial for understanding the contract's true scope and impact. Without this information, it's difficult to assess the technical complexity, the criticality of the systems, and whether the services provided align with the Federal Motor Carrier Safety Administration's core mission of ensuring transportation safety. Further investigation into contract line item numbers (CLINs) or statements of work (SOWs) would be necessary to identify the specific software assets involved.

How does the $10.2 million contract value compare to similar IT development and maintenance contracts within the Department of Transportation?

Comparing the $10.2 million contract value requires context regarding the duration and scope. This contract spanned approximately 3 years (from September 2005 to August 2009). For its time, a $10 million contract for IT services over three years was a substantial award. To benchmark effectively, one would need to analyze other DOT contracts for similar services (software development, maintenance, field systems) awarded within the 2005-2009 timeframe. Factors like the number of bidders, the specific technologies involved, and the complexity of the systems would influence pricing. Without access to detailed historical DOT IT spending data and contract specifics, a precise comparison is difficult, but it represents a significant investment in IT capabilities for the agency.

What were the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate North Dakota State University's performance under this contract. Typically, for software development and maintenance contracts, KPIs might include system uptime, bug resolution time, adherence to development timelines, user satisfaction, and successful implementation of new features. The firm-fixed-price nature of the contract implies that meeting the defined scope and deliverables was paramount. Performance evaluations would likely be documented in contract performance reports, which are not detailed in this summary. Understanding these metrics is essential for assessing the overall success and value derived from the contract.

What is the track record of North Dakota State University as a federal contractor, particularly in IT services?

North Dakota State University (NDSU) is primarily an academic institution, and its track record as a federal contractor, especially for large-scale IT services, may differ from that of traditional IT firms. While universities often engage in research and development contracts, large software development and maintenance contracts are less common. NDSU's specific experience with federal IT contracts would need to be researched through databases like FPDS. Their success in this $10.2 million contract would depend on their internal IT capabilities, research divisions, or partnerships. The fact that they were awarded this contract suggests they met the government's requirements, but their broader federal IT contracting history would provide more context on their reliability and expertise in this domain.

Given only one bid was received, what risks might have been associated with this contract for the government?

The primary risk associated with receiving only one bid, even under a full and open competition, is the potential for reduced price competition. This could lead to the government paying a higher price than if multiple bids had been submitted. Other risks include a lack of innovative solutions that might have emerged from a more competitive environment. Furthermore, reliance on a single contractor can create dependency, making it difficult to switch providers if performance issues arise or if needs change significantly. The government might also face challenges in negotiating favorable terms in future contract renewals. This situation warrants scrutiny to ensure the price paid was indeed fair and reasonable.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1301 12TH AVE N, FARGO, ND, 58102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,491,544

Exercised Options: $10,491,544

Current Obligation: $10,259,964

Timeline