Transportation Dept. awarded $12M for Delphi/Prism support, a sole-source contract with unclear value

Contract Overview

Contract Amount: $11,992,860 ($12.0M)

Contractor: Transportation, United States Dept of

Awarding Agency: Government Accountability Office

Start Date: 2007-10-04

End Date: 2011-06-30

Contract Duration: 1,365 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT SERVICES FOR THE DELPHI/PRISM IMPLEMENTATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20548

State: District of Columbia Government Spending

Plain-Language Summary

Government Accountability Office obligated $12.0 million to TRANSPORTATION, UNITED STATES DEPT OF for work described as: SUPPORT SERVICES FOR THE DELPHI/PRISM IMPLEMENTATION Key points: 1. Contract awarded without competition, raising questions about price discovery and potential overpayment. 2. Long duration of 1365 days suggests a significant, ongoing need for these support services. 3. The contract's fixed-price nature aims to control costs, but initial pricing is unbenchmarked. 4. Sole-source award limits opportunities for small businesses to participate in this service area. 5. Geographic concentration in Washington D.C. may indicate a focus on federal agency operations. 6. The specific nature of 'DELPHI/PRISM implementation' requires further clarity on its impact and necessity.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $11.99 million awarded represents fair market value. The lack of comparable contracts or benchmark data makes a direct value-for-money assessment challenging. The fixed-price contract type suggests an attempt to cap costs, but the initial negotiated price cannot be validated against market alternatives. Further analysis would require understanding the specific services provided and their criticality to the agency's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which can limit price negotiation and potentially lead to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding process. The government may have paid more than it would have if multiple vendors had competed for the contract.

Public Impact

The primary beneficiaries are likely the internal operations of the Department of Transportation, specifically those related to the DELPHI/PRISM systems. The services delivered are crucial for the implementation and ongoing support of these specific IT systems. The contract's impact is geographically concentrated in the District of Columbia, where the Department of Transportation is headquartered. Workforce implications are likely internal to the contractor, with potential for specialized IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for other firms, including small businesses.
Sole-source awards can sometimes mask inefficiencies or inflated pricing.
The specific nature of 'DELPHI/PRISM' is not detailed, making it hard to assess the true value and necessity of the services.

Positive Signals

Fixed-price contract type helps to control costs once awarded.
The contract duration suggests a sustained need, implying the services are important to agency functions.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on system implementation and support. The market for such services is vast and competitive, with numerous firms capable of providing specialized IT support. However, the sole-source nature of this award bypasses typical market dynamics. Comparable spending benchmarks for similar large-scale IT implementation support contracts can vary widely based on system complexity, duration, and required expertise.

Small Business Impact

As a sole-source award, this contract did not include a small business set-aside. There is no indication of subcontracting requirements for small businesses. This limits the direct participation of small businesses in this specific contract, potentially impacting the small business ecosystem that relies on government contracting opportunities.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. Accountability measures are inherent in the contract terms, particularly the fixed-price structure. Transparency is limited due to the sole-source nature and lack of publicly available detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government IT Support Services
System Implementation Contracts
Department of Transportation IT Spending
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competition
Limited transparency on system necessity and value
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $12.0 million to TRANSPORTATION, UNITED STATES DEPT OF. SUPPORT SERVICES FOR THE DELPHI/PRISM IMPLEMENTATION

Who is the contractor on this award?

The obligated recipient is TRANSPORTATION, UNITED STATES DEPT OF.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2007-10-04. End: 2011-06-30.

What specific functions does the DELPHI/PRISM system perform, and why was it deemed necessary to procure support services on a sole-source basis?

The provided data does not specify the functions of the DELPHI/PRISM system. However, sole-source procurements are typically justified when a unique capability, proprietary technology, or specialized expertise is required that cannot be obtained from multiple sources. For IT systems, this could involve support for legacy software with limited vendor knowledge, integration with highly specialized existing infrastructure, or a critical, time-sensitive implementation where only one vendor possesses the necessary skills and resources. The justification for this sole-source award would be detailed in the contract's Justification for Other Than Full and Open Competition (JOFOC) document, which is not publicly available in this dataset. Without this documentation, the precise reasons remain speculative.

How does the $11.99 million contract value compare to industry benchmarks for similar IT support services, considering its duration?

Benchmarking this contract's value is challenging without more specific details on the services provided and the complexity of the DELPHI/PRISM system. The total value of $11.99 million over 1365 days (approximately 3.7 years) averages to roughly $3.25 million per year. This annual figure needs to be contextualized by the type of support (e.g., maintenance, development, integration, help desk), the number of users or systems supported, and the required skill sets (e.g., cybersecurity, database administration, software engineering). General IT support services can range from tens of thousands to millions of dollars annually per contract. Given the sole-source nature and lack of competitive bids, it's impossible to definitively state if this price is aligned with market rates without a competitive process or more granular service details.

What are the potential risks associated with awarding a long-term, sole-source IT support contract like this one?

The primary risks associated with long-term, sole-source IT support contracts include potential cost overruns and reduced quality due to a lack of competitive pressure. Without competing bids, the government may not be getting the best possible price, and the contractor may have less incentive to innovate or improve service quality. There's also a risk of vendor lock-in, where the agency becomes heavily reliant on the sole provider, making it difficult and costly to switch vendors in the future. Furthermore, if the contractor's performance declines or their pricing becomes unreasonable, the government has limited leverage. The lack of transparency inherent in sole-source awards also increases the risk of undetected inefficiencies or mismanagement.

What is the historical spending pattern for DELPHI/PRISM support services within the Department of Transportation?

The provided data only includes this single contract award for DELPHI/PRISM support services, valued at $11.99 million, with an award date of October 4, 2007, and an end date of June 30, 2011. There is no historical spending data available within this dataset to establish a pattern. To understand historical spending, one would need to access broader federal procurement databases (like USASpending.gov or FPDS) and search for previous or subsequent contracts related to 'DELPHI' or 'PRISM' systems within the Department of Transportation or its sub-agencies. Without such data, it's impossible to determine if this contract represents a new initiative, a continuation of prior efforts, or an anomaly in spending.

What accountability measures are in place to ensure the contractor delivers effective support for the DELPHI/PRISM implementation?

Accountability for this contract is primarily driven by the terms outlined in the Firm Fixed Price (FFP) contract itself. The FFP structure means the contractor is responsible for delivering the specified support services within the agreed-upon price. Failure to meet contract requirements could lead to penalties, contract termination, or non-payment, depending on the severity of the breach. The Department of Transportation's contracting officer and assigned contract specialists are responsible for monitoring contractor performance, ensuring deliverables meet quality standards, and managing the contract lifecycle. While specific performance metrics or Service Level Agreements (SLAs) are not detailed in the provided data, they would typically be included in the contract's Statement of Work (SOW) to define expectations and provide a basis for performance evaluation.

Industry Classification

NAICS: Public Administration › Executive, Legislative, and Other General Government Support › Other General Government Support

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of the United States (UEI: 161906193)

Address: 6500 MCARTHUR BLVD RM 168A, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,992,860

Exercised Options: $11,992,860

Current Obligation: $11,992,860

Timeline