Transportation research and analysis contract awarded to MACROSYS, LLC for over $72.5 million

Contract Overview

Contract Amount: $72,537,208 ($72.5M)

Contractor: Macrosys, LLC

Awarding Agency: Department of Transportation

Start Date: 2009-02-18

End Date: 2014-01-31

Contract Duration: 1,808 days

Daily Burn Rate: $40.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TASK ORDER DTRTV-T9001 - VOLPE TRANSPORTATION OPERATIONS RESEARCH ANALYSIS AND COMMUNICATIONS (V-TRAC) SUPPORT SERVICES

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $72.5 million to MACROSYS, LLC for work described as: TASK ORDER DTRTV-T9001 - VOLPE TRANSPORTATION OPERATIONS RESEARCH ANALYSIS AND COMMUNICATIONS (V-TRAC) SUPPORT SERVICES Key points: 1. The contract's cost-plus award fee structure incentivizes performance but requires careful oversight to ensure value. 2. Competition dynamics for this delivery order were competitive, suggesting potential for fair pricing. 3. The contract duration of nearly five years presents long-term performance and cost management risks. 4. This contract supports critical research and communications functions within the Department of Transportation. 5. The specific professional, scientific, and technical services provided are broad, encompassing 'All Other' such services.

Value Assessment

Rating: fair

The contract's total value of over $72.5 million over approximately five years averages around $14.5 million annually. Without specific benchmarks for V-TRAC support services, it's difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure means the final cost is tied to performance, which can lead to higher costs if not managed tightly, but also rewards exceptional service. Comparison to similar broad technical support contracts within DOT or other agencies would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of competition is generally positive for price discovery and ensuring the government receives a fair market price. The number of bidders is not specified, but the 'competitive' designation suggests a reasonable level of market interest.

Taxpayer Impact: Competitive bidding helps ensure taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance.

Public Impact

The Department of Transportation's Immediate Office of the Secretary benefits from enhanced research, analysis, and communication capabilities. Services delivered likely support policy development, strategic planning, and public outreach initiatives. The geographic impact is primarily national, given the scope of federal transportation policy. Workforce implications may include the need for specialized researchers, analysts, and communication professionals, potentially both within the contractor and government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to cost overruns if performance metrics are not rigorously defined and monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not managed effectively.
Long contract duration increases the risk of the services becoming outdated or less efficient over time.

Positive Signals

The competitive award process suggests a healthy market and potential for good value.
The award fee component incentivizes contractor performance, which can lead to higher quality services.
The contract is for essential support functions within a key federal agency.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under 'All Other' such services (NAICS 541990). This broad category includes a wide range of specialized consulting and support activities. The federal market for these services is substantial, with agencies frequently outsourcing complex analytical and research tasks. Benchmarking would require comparing this contract's value and scope to other DOT or agency-wide contracts for similar research, analysis, and communication support.

Small Business Impact

The contract indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was not targeted towards small businesses, and subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the specific requirements of the task orders issued under this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's contracting officers and program managers. As a Cost Plus Award Fee contract, performance monitoring and evaluation are critical to ensure the award fee is justified and that the government receives good value. Transparency would be enhanced through regular reporting requirements and potentially through public contract databases, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

Transportation Research and Development
Federal Agency Support Services
Professional and Technical Consulting Services
Government Communications Support

Risk Flags

Broad service category may lead to scope creep.
Cost-plus award fee requires diligent oversight to ensure value.
Long contract duration increases risk of obsolescence or inefficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $72.5 million to MACROSYS, LLC. TASK ORDER DTRTV-T9001 - VOLPE TRANSPORTATION OPERATIONS RESEARCH ANALYSIS AND COMMUNICATIONS (V-TRAC) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MACROSYS, 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 $72.5 million.

What is the period of performance?

Start: 2009-02-18. End: 2014-01-31.

What is the historical spending pattern for V-TRAC support services within the Department of Transportation?

The provided data represents a single task order (DTRTV-T9001) valued at over $72.5 million, awarded in 2009 and ending in 2014. This suggests a significant, multi-year investment in V-TRAC support. To understand the broader historical spending pattern, one would need to examine previous contracts for similar V-TRAC support, as well as other contracts awarded to MACROSYS, LLC by the Department of Transportation. Analyzing trends in annual spending, contract types (e.g., fixed-price vs. cost-plus), and the number of competing vendors over time would provide a more comprehensive view of DOT's investment in these services.

How does the pricing structure (Cost Plus Award Fee) compare to other similar contracts for transportation research and analysis?

Cost Plus Award Fee (CPAF) contracts are common in government contracting, particularly for services where performance outcomes are critical and can vary. This structure allows for flexibility in costs while incentivizing the contractor to exceed performance expectations through award fees. Compared to fixed-price contracts, CPAF can potentially lead to higher overall costs if the contractor performs exceptionally well or if cost controls are weak. However, it can also yield better results than a poorly defined fixed-price contract. For transportation research and analysis, CPAF is often used when the scope is not fully defined at the outset or when innovation and high-quality deliverables are paramount. A direct comparison would require analyzing the specific performance metrics and award fee criteria used in this contract against those of similar contracts.

What is MACROSYS, LLC's track record with Department of Transportation contracts, particularly in research and analysis?

The provided data indicates that MACROSYS, LLC was awarded this specific task order (DTRTV-T9001) for V-TRAC support services. To assess their track record, a broader review of their contract history with the Department of Transportation would be necessary. This would include examining the number of contracts awarded, their total value, the types of services provided, performance ratings (if available), and any past performance issues or awards. Understanding their experience specifically in research, analysis, and communications support for DOT would be key to evaluating their capability and reliability for this type of work.

What are the key performance indicators (KPIs) used to determine the award fee for MACROSYS, LLC under this contract?

The provided data does not specify the key performance indicators (KPIs) or the criteria used to determine the award fee for MACROSYS, LLC. In a Cost Plus Award Fee (CPAF) contract, these KPIs are crucial for assessing contractor performance and justifying the additional award fee beyond the cost reimbursement. Typically, KPIs for research, analysis, and communications support might include factors such as the quality and timeliness of deliverables, adherence to project milestones, effectiveness of communication strategies, innovation in research methodologies, and overall client satisfaction. Without access to the contract's Statement of Work (SOW) and the specific award fee plan, a detailed assessment of these KPIs is not possible.

What is the potential risk associated with the broad 'All Other Professional, Scientific, and Technical Services' classification for this contract?

The classification 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is very broad and can encompass a wide array of activities. The primary risk associated with such a broad classification is the potential for scope creep, where the services performed expand beyond the original intent of the contract without adequate adjustments to cost and schedule. It can also make it challenging to benchmark performance and pricing against more narrowly defined service categories. Effective contract management, clear definition of tasks within individual delivery orders, and robust oversight are essential to mitigate these risks and ensure the contract delivers specific, valuable outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1901 N MOORE ST STE 509, ARLINGTON, VA, 22209

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $75,237,209

Exercised Options: $75,237,209

Current Obligation: $72,537,208

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTRT5709D30002

IDV Type: IDC

Timeline