DOT Awards $21M for Electronic Safety Datasheet System to VelocityEHS, Inc
Contract Overview
Contract Amount: $21,018 ($21.0K)
Contractor: Velocityehs, Inc
Awarding Agency: Department of Transportation
Start Date: 2024-10-22
End Date: 2027-10-02
Contract Duration: 1,075 days
Daily Burn Rate: $20/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ELECTRONIC SAFETY DATASHEET SYSTEM (ESDS). AN AUTOMATED SOLUTION THAT COMPLIES WITH INDUSTRY STANDARDS AND PROVIDES A PLATFORM TO PROPERLY AND EFFECTIVELY DOCUMENT REGULATORY COMPLIANCE.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60654
State: Illinois Government Spending
Plain-Language Summary
Department of Transportation obligated $21,018.09 to VELOCITYEHS, INC for work described as: ELECTRONIC SAFETY DATASHEET SYSTEM (ESDS). AN AUTOMATED SOLUTION THAT COMPLIES WITH INDUSTRY STANDARDS AND PROVIDES A PLATFORM TO PROPERLY AND EFFECTIVELY DOCUMENT REGULATORY COMPLIANCE. Key points: 1. The Federal Aviation Administration (FAA) is procuring an Electronic Safety Datasheet System (ESDS). 2. The contract was awarded using full and open competition. 3. The system aims to ensure compliance with industry standards for documenting regulatory compliance. 4. The total contract value is $21,018.09 over a period of approximately 3 years. 5. The contract is firm-fixed-price, indicating a defined scope and cost.
Value Assessment
Rating: fair
The contract value of $21,018.09 appears low for a system of this nature, suggesting it might be for a specific module, limited user base, or a pilot program. Benchmarking against similar enterprise-level safety management systems would be necessary for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential vendors to bid. This method is expected to yield fair market value.
Taxpayer Impact: The relatively low contract value suggests a minimal direct taxpayer impact for this specific award.
Public Impact
Enhances regulatory compliance documentation for the FAA. Provides an automated platform for safety data management. Supports industry standards for chemical and safety information. Aims to improve operational efficiency in safety management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not clearly defined.
- Dependence on vendor for system updates and maintenance.
- Integration challenges with existing FAA IT infrastructure.
Positive Signals
- Utilizes full and open competition for procurement.
- Firm-fixed-price contract provides cost certainty.
- Focus on regulatory compliance can mitigate risk.
Sector Analysis
The Software Publishers sector (NAICS 511210) encompasses companies that develop, publish, and/or distribute software. Spending in this sector can vary widely based on the complexity and scale of the software solution. This contract appears to be for a specialized compliance software.
Small Business Impact
While the contract was awarded under full and open competition, there is no indication that small businesses were specifically targeted or subcontracted. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The firm-fixed-price contract and defined delivery order structure provide a degree of oversight. However, ongoing monitoring of performance, adherence to standards, and system effectiveness will be crucial for accountability.
Related Government Programs
- Software Publishers
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Low contract value may indicate limited scope or potential for future modifications.
- Dependence on a single vendor for specialized software.
- Need for clear performance metrics to ensure effectiveness.
- Potential integration challenges with existing systems.
Tags
software-publishers, department-of-transportation, il, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $21,018.09 to VELOCITYEHS, INC. ELECTRONIC SAFETY DATASHEET SYSTEM (ESDS). AN AUTOMATED SOLUTION THAT COMPLIES WITH INDUSTRY STANDARDS AND PROVIDES A PLATFORM TO PROPERLY AND EFFECTIVELY DOCUMENT REGULATORY COMPLIANCE.
Who is the contractor on this award?
The obligated recipient is VELOCITYEHS, INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $21,018.09.
What is the period of performance?
Start: 2024-10-22. End: 2027-10-02.
What is the specific scope of the ESDS system being procured, and how does its functionality align with the $21,018.09 contract value?
The provided data indicates the ESDS is an automated solution for regulatory compliance documentation. The low contract value suggests it might be for a limited deployment, specific modules, or a pilot phase. A detailed review of the contract's statement of work and deliverables is necessary to understand the precise scope and justify the pricing against industry benchmarks for similar specialized software solutions.
What are the potential risks associated with the long-term maintenance and evolution of this specialized compliance software, given the vendor is VelocityEHS, Inc.?
Risks include vendor lock-in, potential increases in maintenance fees over time, and the possibility that the vendor may discontinue or significantly alter the product. Ensuring clear contract terms for support, updates, and data portability is crucial. The FAA should also assess the vendor's financial stability and long-term commitment to supporting this specific solution.
How will the effectiveness of the ESDS in improving regulatory compliance and operational efficiency be measured and evaluated post-implementation?
Effectiveness can be measured through key performance indicators (KPIs) such as a reduction in compliance-related incidents or citations, faster processing times for safety data, improved audit readiness, and user satisfaction surveys. Establishing baseline metrics before implementation and conducting regular post-implementation reviews will be essential to quantify the system's impact.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Velocityehs Holdings, Inc.
Address: 222 MERCHANDISE MART PLAZA STE 1750, CHICAGO, IL, 60654
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,018
Exercised Options: $21,018
Current Obligation: $21,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 6973GH22D00094
IDV Type: IDC
Timeline
Start Date: 2024-10-22
Current End Date: 2027-10-02
Potential End Date: 2027-10-02 00:00:00
Last Modified: 2026-04-08
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