Transportation Research Center Inc. awarded $9.9M contract for testing services, historically managed via task orders

Contract Overview

Contract Amount: $9,937,527 ($9.9M)

Contractor: Transportation Research Center Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-28

End Date: 2026-06-30

Contract Duration: 1,006 days

Daily Burn Rate: $9.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: **VRTC** NEW TRC TO AGAINST NEW TRC CONTRACT (TBD). SEVERABLE. POP: 5-YEAR ( BASE PERIOD WITH FOUR 1 YEAR OPTIONS.) BASE PERIOD 09/30/2023 - 09/29/2024 HISTORICALLY, INDIVIDUAL TRC TASK ORDERS WERE UTILIZED TO MEET INDIVIDUAL PROJECT GOALS. D

Place of Performance

Location: EAST LIBERTY, LOGAN County, OHIO, 43319

State: Ohio Government Spending

Plain-Language Summary

Department of Transportation obligated $9.9 million to TRANSPORTATION RESEARCH CENTER INC for work described as: **VRTC** NEW TRC TO AGAINST NEW TRC CONTRACT (TBD). SEVERABLE. POP: 5-YEAR ( BASE PERIOD WITH FOUR 1 YEAR OPTIONS.) BASE PERIOD 09/30/2023 - 09/29/2024 HISTORICALLY, INDIVIDUAL TRC TASK ORDERS WERE UTILIZED TO MEET INDIVIDUAL PROJECT GOALS. D Key points: 1. Contract awarded to Transportation Research Center Inc. for testing laboratories and services. 2. The contract has a 5-year period of performance, including a base year and four option years. 3. Historically, individual task orders were used for project goals, suggesting a shift in procurement strategy. 4. The contract was not competed, raising questions about price discovery and competition.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific task order details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for the services provided.

Public Impact

Potential for increased costs due to sole-source award. Impact on innovation and market competition by not opening the contract to other vendors. Ensuring the fixed fee is appropriate for the services rendered is crucial for taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns

Positive Signals

Established vendor with historical knowledge
Clear period of performance

Sector Analysis

This contract falls under the 'Testing Laboratories and Services' sector. Spending in this sector can vary widely based on agency needs, but competitive bidding is generally preferred to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to confirm.

Oversight & Accountability

Oversight will be critical to ensure the fixed fee is justified and that costs do not escalate under the Cost Plus Fixed Fee structure. The shift from task orders to a single contract warrants scrutiny.

Related Government Programs

Testing Laboratories and Services
Department of Transportation Contracting
National Highway Traffic Safety Administration Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.9 million to TRANSPORTATION RESEARCH CENTER INC. **VRTC** NEW TRC TO AGAINST NEW TRC CONTRACT (TBD). SEVERABLE. POP: 5-YEAR ( BASE PERIOD WITH FOUR 1 YEAR OPTIONS.) BASE PERIOD 09/30/2023 - 09/29/2024 HISTORICALLY, INDIVIDUAL TRC TASK ORDERS WERE UTILIZED TO MEET INDIVIDUAL PROJECT GOALS. D

Who is the contractor on this award?

The obligated recipient is TRANSPORTATION RESEARCH CENTER INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-06-30.

What is the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details, it's difficult to assess the validity of this decision. Agencies must demonstrate that no other responsible sources can meet the requirement. This process is crucial for ensuring fair and open competition.

How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded sole-source?

Cost control for a Cost Plus Fixed Fee contract relies heavily on robust government oversight, detailed cost accounting, and a well-defined scope of work. The fixed fee should be negotiated based on realistic cost estimates and the contractor's performance expectations. Regular audits and performance reviews are essential to prevent cost overruns and ensure the government receives fair value.

What is the potential impact on future competition and innovation in the testing services market due to this sole-source award?

Sole-source awards can stifle innovation and reduce future competition by limiting market access for other potential vendors. If Transportation Research Center Inc. is the sole provider of these specific services, it may disincentivize other companies from developing similar capabilities. This can lead to higher prices and fewer choices for the government in the long run.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10820 STATE ROUTE 347, EAST LIBERTY, OH, 43319

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

Financial Breakdown

Contract Ceiling: $18,081,340

Exercised Options: $9,937,527

Current Obligation: $9,937,527

Actual Outlays: $7,417,044

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $365,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JJ923D000057

IDV Type: IDC

Timeline