Transportation Department awards $2M contract for professional services, raising questions about competition and value

Contract Overview

Contract Amount: $2,000,000 ($2.0M)

Contractor: National Academy of Sciences

Awarding Agency: Department of Transportation

Start Date: 2022-02-24

End Date: 2023-11-30

Contract Duration: 644 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW TASK EQUITY DATA STUDY

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 $2.0 million to NATIONAL ACADEMY OF SCIENCES for work described as: NEW TASK EQUITY DATA STUDY Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Pricing appears to be time-and-materials, which can carry higher risk of cost overruns. 3. The duration of the contract (644 days) suggests a significant need for the services. 4. The specific services provided fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract was awarded to the National Academy of Sciences, a reputable but potentially high-cost provider. 6. Lack of competition makes it difficult to benchmark pricing against market alternatives.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without competitive bidding. Time and materials contracts can be less cost-effective than fixed-price agreements, especially for services with predictable scopes. Benchmarking against similar contracts for professional, scientific, and technical services is challenging due to the broad NAICS code and the unique nature of the National Academy of Sciences' role. Further analysis of the specific deliverables and labor rates would be needed to determine true value for money.

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 among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. However, it bypasses the price discovery benefits that come from a competitive bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost reductions typically achieved through competitive bidding, potentially resulting in a higher overall expenditure for these services.

Public Impact

The primary beneficiary is the Department of Transportation, which receives professional, scientific, and technical services. The services likely support policy development, research, or advisory functions within the Immediate Office of the Secretary. The geographic impact is centered in Washington D.C., where the Department of Transportation is headquartered. The contract may indirectly impact the scientific and technical workforce by engaging experts through the National Academy of Sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and materials pricing structure increases risk of cost escalation.
Broad service category makes specific performance assessment difficult without detailed task orders.
High-profile contractor may command premium pricing.
Lack of transparency in the sole-source justification could hide potential inefficiencies.

Positive Signals

Award to a highly respected institution (National Academy of Sciences) suggests a focus on quality and expertise.
The contract duration indicates a sustained need for critical services.
The Department of Transportation is a key federal agency, implying the services are of strategic importance.
The contract is a delivery order, suggesting it's part of a larger framework or existing relationship.

Sector Analysis

The professional, scientific, and technical services sector is vast and diverse, encompassing a wide range of activities from research and development to consulting and specialized technical support. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a catch-all category for establishments not classified elsewhere. Spending in this sector is significant across government agencies, often supporting policy analysis, program evaluation, and complex problem-solving. Benchmarking is difficult due to the heterogeneity of services within this category.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). As a sole-source award to a large, established institution, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated. The absence of set-asides means that small businesses were not prioritized for this specific procurement, potentially limiting their access to this particular federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. The Inspector General of the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited due to the sole-source nature of the award; however, contract details should be publicly available through federal procurement databases.

Related Government Programs

Department of Transportation Advisory Services
National Academy of Sciences Research Contracts
Federal Professional Services Procurement
Sole-Source Technical Services Awards

Risk Flags

Sole-source award lacks competitive justification.
Time and materials pricing increases cost risk.
Broad service category may obscure specific performance metrics.
Potential for premium pricing due to contractor's reputation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to NATIONAL ACADEMY OF SCIENCES. NEW TASK EQUITY DATA STUDY

Who is the contractor on this award?

The obligated recipient is NATIONAL ACADEMY OF SCIENCES.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2022-02-24. End: 2023-11-30.

What specific services were rendered under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the specific details are not provided in the summary data, this broad category typically includes services such as research, consulting, technical analysis, and advisory support. Given the contractor is the National Academy of Sciences and the agency is the Department of Transportation, it is highly probable that the services involved expert advice, policy analysis, or scientific review related to transportation initiatives, infrastructure, safety, or emerging technologies. Detailed task orders would specify the exact deliverables and scope of work.

How does the $2 million award compare to similar contracts for professional services within the Department of Transportation?

Direct comparison is challenging due to the sole-source nature and the broad 'All Other Professional, Scientific, and Technical Services' classification. However, $2 million is a moderate-sized award for professional services. Many federal agencies procure similar services through competitive processes, often resulting in a range of pricing based on vendor qualifications and scope. The lack of competition here prevents a direct value-for-money comparison against potential alternative providers. To assess value, one would need to analyze the specific deliverables against the cost and compare the National Academy of Sciences' standard rates for similar engagements, if publicly available.

What are the primary risks associated with a sole-source, time-and-materials contract of this duration?

The primary risks are cost overruns and a lack of optimal value. Sole-source awards eliminate competitive pressure, potentially leading to higher prices than if multiple vendors had bid. Time-and-materials contracts, by their nature, do not have a fixed ceiling on labor costs, meaning the total price can increase if more hours are worked than initially anticipated. For a contract spanning 644 days, this risk is amplified. Without strong oversight and clearly defined milestones, the government could end up paying more than necessary for the services rendered. Ensuring efficient performance and diligent monitoring of labor hours is crucial.

What is the track record of the National Academy of Sciences in performing federal contracts?

The National Academy of Sciences (NAS) has a long and distinguished history of providing independent, objective advice to the U.S. government on matters related to science and technology. They are frequently engaged by federal agencies for studies, reports, and recommendations on complex issues. Their track record is generally considered excellent in terms of the quality and rigor of their scientific and technical assessments. However, as a highly regarded institution, their services often come at a premium price point compared to standard consulting firms. Their sole-source awards are typically justified by their unique convening authority and scientific expertise.

What historical spending patterns exist for 'All Other Professional, Scientific, and Technical Services' at the Department of Transportation?

Historical spending data for the broad NAICS code 541990 at the Department of Transportation would likely show significant and consistent expenditure across various offices and administrations. Agencies frequently utilize these services for specialized research, policy analysis, and technical consulting that falls outside more defined service categories. Without specific data, it's reasonable to assume that spending in this area fluctuates based on agency priorities, research initiatives, and the need for external expertise. The trend might show an increasing reliance on external technical advice for complex, emerging issues in transportation.

How does the 'Immediate Office of the Secretary of Transportation' typically procure services?

The Immediate Office of the Secretary of Transportation, like other high-level offices within federal agencies, often procures services through a mix of contract types. This can include sole-source awards for highly specialized advisory roles or unique expertise, as well as competed contracts for more routine or broadly defined services. They may also utilize existing government-wide contract vehicles or task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts. The decision to use a sole-source award, as seen here, suggests a specific need that was believed to be uniquely met by the National Academy of Sciences.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 693JK422R800002

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2101 CONSTITUTION AVE NW, WASHINGTON, DC, 20418

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,000,000

Exercised Options: $2,000,000

Current Obligation: $2,000,000

Actual Outlays: $1,216,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 693JK418D800002

IDV Type: IDC

Timeline