Transportation contract for professional services awarded to Iteris, Inc. for over $7.7 million

Contract Overview

Contract Amount: $7,715,897 ($7.7M)

Contractor: Iteris, Inc

Awarding Agency: Department of Transportation

Start Date: 2018-06-14

End Date: 2021-08-11

Contract Duration: 1,154 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS TASK ORDER IS ISSUED TO PROVIDE AND OBLIGATE THE MINIMUM GUARANTEE IN ACCORDANCE WITH SECTION B.1 OF THE BASE CONTRACT.

Place of Performance

Location: SANTA ANA, ORANGE County, CALIFORNIA, 92705

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $7.7 million to ITERIS, INC for work described as: THIS TASK ORDER IS ISSUED TO PROVIDE AND OBLIGATE THE MINIMUM GUARANTEE IN ACCORDANCE WITH SECTION B.1 OF THE BASE CONTRACT. Key points: 1. Contract value appears reasonable for the duration and scope of professional services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is limited, but the contract duration suggests a substantial project. 5. This contract falls within the professional, scientific, and technical services sector.

Value Assessment

Rating: good

The contract value of $7.7 million over approximately three years for professional services is within a reasonable range for similar government contracts. Without specific details on the services rendered, a direct comparison is challenging. However, the firm-fixed-price contract type suggests that the government has a clear understanding of the scope and cost, which can lead to better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of qualified contractors and potentially more competitive pricing. The data does not specify the number of bidders, but the method of competition suggests a healthy market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Federal Highway Administration is the primary beneficiary, receiving professional services. Services likely support the administration's mission in transportation infrastructure and management. The geographic impact is likely national, given the agency's scope, though specific project locations are not detailed. Workforce implications would involve specialized technical and professional staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type can provide cost certainty.
Contract duration of over three years allows for project continuity.

Sector Analysis

This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This broad sector encompasses a wide range of specialized services supporting government operations. The Federal Highway Administration's spending in this area is typical for agencies requiring expert analysis, research, and technical support for their programs and infrastructure projects.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. Subcontracting opportunities for small businesses would depend on the prime contractor's internal policies and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Federal Highway Administration Contracts
Professional and Technical Services
Transportation Sector Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.7 million to ITERIS, INC. THIS TASK ORDER IS ISSUED TO PROVIDE AND OBLIGATE THE MINIMUM GUARANTEE IN ACCORDANCE WITH SECTION B.1 OF THE BASE CONTRACT.

Who is the contractor on this award?

The obligated recipient is ITERIS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2018-06-14. End: 2021-08-11.

What specific professional, scientific, or technical services were rendered under this delivery order?

The provided data indicates that this task order was issued to provide and obligate the minimum guarantee in accordance with Section B.1 of the base contract. However, the specific nature of the professional, scientific, or technical services is not detailed. Typically, for the Federal Highway Administration, such services could include research, data analysis, policy development, engineering consulting, environmental assessments, or program management support related to transportation infrastructure and operations. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is very broad and encompasses a wide array of specialized support functions.

How does the contract value of $7.7 million compare to similar contracts for professional services within the Department of Transportation?

Comparing the $7.7 million contract value requires a detailed analysis of similar contracts within the Department of Transportation, specifically those awarded under NAICS code 541990 or for comparable professional services over a similar duration (approximately three years). Without access to a comprehensive database of all DOT contracts and their specific scopes of work, a precise benchmark is difficult. However, for a multi-year contract of this size, it suggests a significant project or ongoing support requirement. The firm-fixed-price nature implies that the scope was well-defined, which can be a positive indicator for value if the services delivered meet expectations.

What are the potential risks associated with a firm-fixed-price contract of this duration?

Firm-fixed-price (FFP) contracts, while offering cost certainty to the government, can introduce risks for both parties. For the contractor (Iteris, Inc.), the primary risk is performing the work within the fixed price. If costs escalate beyond projections due to unforeseen issues, scope creep not properly managed, or inefficient performance, the contractor's profit margin will decrease, or they could incur a loss. For the government, the risk lies in the potential for the contractor to cut corners on quality or scope to protect their profit margin if the contract is not adequately monitored. Given the contract's duration of over three years, the risk of cost escalation for the contractor is higher, and robust oversight by the Federal Highway Administration is crucial to ensure quality and adherence to the original scope.

What is the historical spending pattern for Iteris, Inc. with the Federal Highway Administration or the Department of Transportation?

To assess the historical spending pattern of Iteris, Inc. with the Federal Highway Administration (FHA) or the Department of Transportation (DOT), one would need to access historical federal procurement data. This would involve searching databases like USAspending.gov or FPDS for all contracts awarded to Iteris, Inc. by these agencies. Analyzing this data would reveal the volume, types, and values of previous contracts, as well as their performance history. Without this specific historical data, it's impossible to determine if this $7.7 million contract represents a significant increase, a continuation of a long-standing relationship, or a new venture for the contractor with the FHA.

How does the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) typically perform in terms of cost and competition?

The NAICS code 541990 is extremely broad, encompassing a vast array of services. Consequently, performance in terms of cost and competition can vary significantly. Generally, professional, scientific, and technical services often require specialized expertise, which can lead to higher per-unit costs compared to more commoditized services. Competition levels depend heavily on the specific niche within this category. For highly specialized or unique services, competition might be limited, potentially leading to higher prices. Conversely, for more general professional support, full and open competition is often feasible, driving down costs. The fact that this specific contract was awarded under full and open competition suggests that the market for these particular services was sufficiently robust.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 CARNEGIE AVE STE 100, SANTA ANA, CA, 92705

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,715,897

Exercised Options: $7,715,897

Current Obligation: $7,715,897

Actual Outlays: $4,189,391

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JJ318D000015

IDV Type: IDC

Timeline