Agriculture Department awards $329M contract for appraisal services to ITTEL APPRAISAL SERVICE, INC

Contract Overview

Contract Amount: $3,290 ($3.3K)

Contractor: Ittel Appraisal Service, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-03

End Date: 2029-09-30

Contract Duration: 1,276 days

Daily Burn Rate: $3/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: APPRAISAL ARNOLD TRUST 5

Place of Performance

Location: BISMARCK, BURLEIGH County, NORTH DAKOTA, 58501

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3,290 to ITTEL APPRAISAL SERVICE, INC for work described as: APPRAISAL ARNOLD TRUST 5 Key points: 1. Contract awarded through Best Practices Acquisition (BPA) Call, indicating a streamlined procurement process. 2. The contract duration spans over four years, suggesting a need for sustained appraisal services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North Dakota location for the service delivery may indicate a focus on specific regional needs. 5. The North American Industry Classification System (NAICS) code 531320 points to specialized real estate appraisal services. 6. The award value of $329 million represents a significant investment in appraisal capabilities.

Value Assessment

Rating: good

The contract value of $329 million for over four years of appraisal services appears reasonable given the scope. Benchmarking against similar large-scale appraisal contracts would provide further insight into value for money. The Firm Fixed Price structure offers cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The procurement method is described as 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically implies competition among a smaller pool of vendors or for smaller dollar values than full and open competition. The specific number of bidders or the extent of competition within SAP is not detailed here, making a definitive assessment of competition level challenging.

Taxpayer Impact: While SAP can lead to faster awards, the limited transparency on the number of bidders means taxpayers may not always be assured of the most competitive pricing achievable through broader competition.

Public Impact

The primary beneficiaries are likely the Department of Agriculture and its various programs requiring real estate appraisals. Services delivered include professional real estate appraisal, crucial for land management, acquisitions, and program compliance. The geographic impact is specified as North Dakota, suggesting a focus on appraisal needs within that state. The contract supports the workforce of ITTEL APPRAISAL SERVICE, INC., potentially creating or sustaining jobs in the appraisal sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information within SAP could limit price discovery.
The long contract duration might require careful performance monitoring to ensure continued value.
Geographic concentration in North Dakota might not address appraisal needs in other regions.

Positive Signals

Firm Fixed Price contract provides cost certainty.
BPA Call award suggests an efficient procurement process.
The contract supports a specialized service essential for agricultural land management.

Sector Analysis

This contract falls within the professional services sector, specifically real estate appraisal. The market for appraisal services is driven by real estate transactions, regulatory requirements, and financial institution needs. Government contracts for appraisal services are common across various agencies for land acquisition, environmental assessments, and program evaluations. The $329 million award is substantial and indicates a significant demand for these specialized services within the Department of Agriculture.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in the provided information, but typically large contracts may include provisions for small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's contracting officers and program managers. The specific oversight mechanisms, such as performance reviews, quality assurance checks, and reporting requirements, are not detailed in the provided data. Transparency is generally facilitated through contract award databases, but detailed performance data may be internal.

Related Government Programs

Real Estate Appraisal Services
Department of Agriculture Procurement
Professional Services Contracts
Simplified Acquisition Procedures
Firm Fixed Price Contracts

Risk Flags

Potential for limited competition under SAP
Long contract duration may introduce performance risks
Geographic concentration might not meet all agency needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3,290 to ITTEL APPRAISAL SERVICE, INC. APPRAISAL ARNOLD TRUST 5

Who is the contractor on this award?

The obligated recipient is ITTEL APPRAISAL SERVICE, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $3,290.

What is the period of performance?

Start: 2026-04-03. End: 2029-09-30.

What is the historical spending pattern for appraisal services by the Department of Agriculture?

Analyzing historical spending for appraisal services by the Department of Agriculture would involve reviewing past contract awards for similar services over several fiscal years. This would help establish a baseline for current spending and identify trends in contract values, durations, and awarded contractors. For instance, if previous contracts were significantly smaller or awarded to different entities, the current $329 million award might represent an increase in demand or a shift in procurement strategy. Understanding this history provides context for the scale and potential necessity of the current contract, allowing for a more informed assessment of its value and appropriateness.

How does the per-unit cost of appraisal services under this contract compare to market rates or similar government contracts?

Determining the per-unit cost requires defining what constitutes a 'unit' in this context – perhaps a per-appraisal fee or a cost per acre appraised. Without this definition and specific pricing breakdowns from the contract, a direct per-unit cost comparison is challenging. However, the overall contract value of $329 million over approximately four years suggests an average annual spend of roughly $82 million. If the volume of appraisals is known, this average annual spend can be divided by the number of appraisals to estimate an average cost per appraisal. This estimated cost could then be benchmarked against publicly available data for similar appraisal services procured by other federal agencies or by state and local governments, as well as against rates charged by private appraisal firms for comparable services.

What are the specific risks associated with a Firm Fixed Price contract for appraisal services of this magnitude?

A Firm Fixed Price (FFP) contract aims to provide cost certainty by fixing the price regardless of the contractor's actual costs. For appraisal services, risks associated with an FFP contract of this magnitude include potential for the contractor to cut corners on quality to maintain profitability if their costs exceed estimates, or conversely, if the fixed price was set too high due to inadequate market research, the government might overpay. Another risk is scope creep; if the government requires additional services beyond the original scope, managing changes and ensuring fair pricing can become complex. The long duration also increases the risk of unforeseen market changes affecting the contractor's costs, potentially leading to requests for equitable adjustments or performance issues if the price becomes unsustainable for the contractor.

What is the track record of ITTEL APPRAISAL SERVICE, INC. with federal contracts, particularly with the Department of Agriculture?

Assessing the track record of ITTEL APPRAISAL SERVICE, INC. would involve reviewing their past performance on federal contracts. This includes examining the number and value of previous awards, the types of services rendered, and any documented performance issues or successes. Specifically looking at their history with the Department of Agriculture would reveal their familiarity with the agency's specific needs and processes. Information on contract completion timeliness, quality of deliverables, and any disputes or contract terminations would be crucial. A positive history with similar large-scale contracts would increase confidence in their ability to successfully execute this $329 million award, while a history of issues might raise concerns about performance and value.

How does the competition level (or lack thereof) for this contract potentially impact the final price paid by taxpayers?

The contract is noted as 'COMPETED UNDER SAP' (Simplified Acquisition Procedures). SAP is generally used for acquisitions below certain thresholds and often involves fewer bidders than full and open competition. If the competition within SAP was limited, meaning only a few or even just one qualified bidder responded, there is a higher risk that the price achieved is not the most competitive possible. Taxpayers benefit most from robust competition, which drives down prices as contractors vie for the award. A less competitive environment can lead to higher prices than might otherwise be obtained, as the awarded contractor faces less pressure to offer their best possible pricing.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Offices of Real Estate Appraisers

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 807 STARLIGHT DR, SARTELL, MN, 56377

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,290

Exercised Options: $3,290

Current Obligation: $3,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12FPC124A0019

IDV Type: BPA

Timeline