Department of Transportation awards $940M IT contract to CHANGEIS, INC. for computer systems design

Contract Overview

Contract Amount: $9,408,298 ($9.4M)

Contractor: Changeis, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-10-20

End Date: 2025-12-31

Contract Duration: 803 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNIFIED REGISTRATION SYSTEM (URS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $9.4 million to CHANGEIS, INC. for work described as: UNIFIED REGISTRATION SYSTEM (URS) Key points: 1. Contract value significantly exceeds typical IT services spending, warranting close scrutiny of performance and pricing. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract duration of over two years indicates a substantial, long-term commitment. 4. The fixed-price contract type shifts performance risk to the contractor. 5. This award represents a significant portion of the agency's IT services budget. 6. The contractor, CHANGEIS, INC., will be responsible for critical computer systems design.

Value Assessment

Rating: fair

The total contract value of $940,829,800 is substantial for computer systems design services. Benchmarking this against similar large-scale IT contracts within the federal government is crucial. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the sheer scale suggests that efficient execution and cost control will be paramount to ensure taxpayer funds are used effectively. The fixed-price nature of the contract provides some cost certainty, but the overall price point requires ongoing performance monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded prior to the final award. The number of bids received (10) suggests a reasonable level of interest, but the exclusion of sources could potentially limit the breadth of competition. This approach aims to balance broad market participation with specific agency needs or capabilities.

Taxpayer Impact: A full and open competition generally promotes price discovery and can lead to more competitive pricing for taxpayers. However, the exclusion of sources warrants further investigation to ensure no potentially lower-cost or more innovative solutions were overlooked.

Public Impact

The primary beneficiary is the Department of Transportation, which will receive enhanced computer systems design services. This contract supports the modernization and efficiency of the agency's IT infrastructure. The services delivered are critical for the operational effectiveness of the Federal Motor Carrier Safety Administration. The contract is geographically focused on the District of Columbia, where the agency is headquartered. It will likely involve a workforce of IT professionals and system designers, potentially creating or sustaining jobs in the tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the large contract value and duration.
Ensuring the selected vendor possesses the most advanced and cost-effective technological solutions.
Monitoring contractor performance to ensure delivery meets or exceeds expectations within the fixed-price structure.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market capabilities.
The fixed-price contract type aligns incentives for the contractor to manage costs efficiently.
The substantial award indicates the contractor has likely demonstrated significant capability and capacity.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. This contract falls within the broader category of professional, scientific, and technical services. The federal government is a major consumer of these services, with spending often concentrated on large, complex projects that require specialized expertise. Comparable spending benchmarks would typically involve analyzing other large IT system design and integration contracts awarded across various agencies, often in the hundreds of millions of dollars range.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the focus was on securing the most capable vendor through broad competition, rather than specifically targeting small businesses. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for them to participate in this large contract. The impact on the small business ecosystem may be minimal unless specific subcontracting plans are later implemented.

Oversight & Accountability

Oversight will likely be managed by the Federal Motor Carrier Safety Administration's contracting officers and program managers. Accountability measures will be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would typically extend to investigating fraud, waste, and abuse related to this contract.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Modernization
Department of Transportation IT Procurement
Large-Scale IT Contracts

Risk Flags

Large contract value requires diligent performance monitoring.
Potential for limited competition due to source exclusion.
Need to verify contractor's past performance on similar scale projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.4 million to CHANGEIS, INC.. UNIFIED REGISTRATION SYSTEM (URS)

Who is the contractor on this award?

The obligated recipient is CHANGEIS, INC..

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 $9.4 million.

What is the period of performance?

Start: 2023-10-20. End: 2025-12-31.

What is the track record of CHANGEIS, INC. in delivering large-scale IT contracts for federal agencies?

Assessing the track record of CHANGEIS, INC. requires a review of their past performance on similar federal contracts. Key indicators include their history of meeting deadlines, staying within budget (especially on fixed-price contracts), and the quality of deliverables. Information on past performance can often be found in federal contract databases, agency performance reports, and through sources like the Contractor Performance Assessment Reporting System (CPARS). A history of successful, large-scale IT projects would indicate a lower risk for this significant award, while a pattern of issues could raise concerns about the agency's due diligence in the selection process.

How does the $940 million contract value compare to similar IT system design contracts awarded by the Department of Transportation or other agencies?

The $940 million value is substantial and places this contract among the larger IT procurements within the federal government. To benchmark its value, one would compare it to other contracts for computer systems design, software development, and IT infrastructure modernization awarded by agencies of similar size and scope, such as the Department of Defense, GSA, or HHS. Analyzing the average cost per year or per deliverable for comparable services can provide context. If this contract's total cost or unit costs are significantly higher than benchmarks, it could indicate potential overpricing or a less competitive bidding environment than anticipated.

What are the primary risks associated with a contract of this magnitude and duration?

Contracts of this scale and duration (over two years) carry inherent risks. These include the potential for scope creep, where project requirements expand beyond the original agreement, leading to cost overruns or delays. There's also the risk of technological obsolescence if the chosen systems are not future-proof. Contractor performance risk is significant; if CHANGEIS, INC. underperforms, it could disrupt critical agency operations. Furthermore, the large financial commitment makes the agency vulnerable to market shifts or unforeseen economic factors impacting the contractor's stability. Robust oversight and clear performance metrics are essential to mitigate these risks.

What specific IT systems or services will CHANGEIS, INC. be designing or developing under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). This broad category typically encompasses the design of computer hardware and software, integration of hardware and software, and planning and designing computer systems that integrate computer hardware, software, and communication technologies. For the Federal Motor Carrier Safety Administration (FMCSA), this could involve systems for data management, regulatory compliance tracking, safety analysis, public information portals, or internal operational support systems. The specific deliverables would be detailed in the contract's Statement of Work (SOW).

What has been the historical spending trend for computer systems design services at the Department of Transportation?

Analyzing historical spending on computer systems design services at the Department of Transportation (DOT) would reveal trends in IT investment. This includes understanding the typical contract sizes, the number of awards, and the primary contractors. If DOT's spending in this area has been steadily increasing, it might indicate a growing reliance on external IT expertise or a strategic push for IT modernization. Conversely, a fluctuating or decreasing trend could suggest shifts in priorities or internal capability development. This contract's value should be viewed in the context of these historical patterns to assess its significance.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for cost and innovation?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (CT) award type suggests that while the competition was intended to be broad, certain potential bidders were excluded prior to the final solicitation. This exclusion could be based on specific technical requirements, past performance issues, or other criteria deemed necessary by the agency. While it aims to ensure qualified bidders, it might limit the range of solutions and potentially reduce competitive pressure on pricing compared to a truly unrestricted full and open competition. The impact on innovation depends on whether the excluded sources represented unique or potentially disruptive approaches.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 693JJ423R000004

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 WILSON BLVD 700, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,408,298

Exercised Options: $9,408,298

Current Obligation: $9,408,298

Actual Outlays: $7,645,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0075

IDV Type: GWAC

Timeline