Transportation awards $2.4M for logistics software support, focusing on business process validation

Contract Overview

Contract Amount: $2,437,330 ($2.4M)

Contractor: Changeis, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-04-07

End Date: 2026-05-12

Contract Duration: 400 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: LOGISTICS CENTER SUPPORT SYSTEM (LCSS) SOFTWARE DEVELOPMENT SUPPORT TASK 3: BUSINESS PROCESS VALIDATION (BPV) / FIX ISSUES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73121

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to CHANGEIS, INC. for work described as: LOGISTICS CENTER SUPPORT SYSTEM (LCSS) SOFTWARE DEVELOPMENT SUPPORT TASK 3: BUSINESS PROCESS VALIDATION (BPV) / FIX ISSUES Key points: 1. Value for money assessed through comparison to similar IT services contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through task order performance and contractor responsiveness. 4. Performance context is tied to ongoing logistics system development and issue resolution. 5. Sector positioning is within IT services, specifically software development and support for government systems.

Value Assessment

Rating: good

The contract value of $2.4 million for a 13-month period appears reasonable for specialized software development support. Benchmarking against similar IT services contracts for business process validation and issue resolution suggests this pricing is within expected ranges. The Time and Materials (T&M) contract type allows for flexibility but requires careful monitoring of labor hours and rates to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach aims to ensure the government receives the best value by leveraging the widest possible pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is designed to secure the most cost-effective solution for essential logistics software support.

Public Impact

The Federal Aviation Administration (FAA) benefits from improved logistics system functionality. Services delivered include business process validation and issue resolution for the LCSS. The geographic impact is primarily within the FAA's operational centers, potentially nationwide. Workforce implications include support for IT professionals involved in software development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in T&M contracts if not managed tightly.
Reliance on contractor expertise for critical system validation tasks.
Ensuring continued system performance post-validation requires ongoing vigilance.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Focus on critical business process validation suggests a proactive approach to system improvement.
Contract duration allows for thorough task completion and issue resolution.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software development and support for government systems. The market for such services is highly competitive, with numerous firms offering specialized expertise. The value of this contract, at $2.4 million, is moderate within the context of large-scale government IT projects, but significant for specialized task orders. Comparable spending benchmarks for similar software support and validation services vary widely based on complexity and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the Time and Materials contract type, which requires detailed tracking of labor and costs. Transparency is facilitated through contract reporting mechanisms, and while specific Inspector General jurisdiction isn't detailed here, the DOT OIG would have oversight over potential fraud, waste, or abuse.

Related Government Programs

Logistics Management Systems
Software Development Services
IT Support Services
Federal Aviation Administration IT Contracts
Department of Transportation IT Spending

Risk Flags

Potential for cost overruns due to T&M contract type.
Risk of scope creep if requirements are not tightly managed.
Dependence on contractor for critical system validation and issue resolution.
Ensuring long-term system stability after issue fixes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to CHANGEIS, INC.. LOGISTICS CENTER SUPPORT SYSTEM (LCSS) SOFTWARE DEVELOPMENT SUPPORT TASK 3: BUSINESS PROCESS VALIDATION (BPV) / FIX ISSUES

Who is the contractor on this award?

The obligated recipient is CHANGEIS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-04-07. End: 2026-05-12.

What is the track record of CHANGEIS, INC. with the Department of Transportation and similar agencies?

CHANGEIS, INC. has a history of performing IT services for various government agencies, including the Department of Transportation. Their past performance typically involves providing technical support, software development, and system integration services. Analyzing their contract history with DOT and other federal entities can reveal patterns in project delivery, cost management, and client satisfaction. Specific details on past performance metrics, such as on-time delivery rates and adherence to budget, would provide further insight into their reliability for this current logistics support task.

How does the $2.4 million value compare to similar logistics software support contracts?

The $2.4 million contract value for 13 months of logistics software support, specifically for business process validation and issue fixing, is considered moderate. Benchmarking against similar contracts requires analyzing the scope, complexity, and duration. Contracts for enterprise-level logistics software development or full system overhauls can range from tens to hundreds of millions of dollars. However, for a specific task order focused on validation and issue resolution within an existing system like LCSS, this value appears reasonable, especially given the specialized nature of the work. It suggests a focused effort rather than a complete system rebuild.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns if not managed diligently. Since payment is based on actual labor hours and material costs, there's an inherent risk of the contractor accumulating excessive hours or using higher-than-necessary material costs. Scope creep is another significant risk, where the project's requirements expand beyond the initial agreement without a corresponding adjustment in funding or oversight. Effective risk mitigation involves robust monitoring of hours, strict adherence to defined tasks, clear communication channels, and proactive management by the government contracting officer to ensure the work remains within scope and budget.

How effective is the LCSS system in supporting the FAA's logistics operations?

The effectiveness of the Logistics Center Support System (LCSS) is crucial for the FAA's operational efficiency. While this specific contract focuses on validation and issue resolution, it implies that the LCSS is an active and important system. Its effectiveness would be measured by its ability to streamline logistics processes, improve inventory management, track assets, and support decision-making. Improvements stemming from this contract's work, such as validated business processes and resolved issues, should directly contribute to the LCSS's overall performance and its capacity to meet the FAA's evolving logistics needs.

What are historical spending patterns for logistics software support within the FAA?

Historical spending patterns for logistics software support within the FAA reveal a consistent investment in maintaining and upgrading critical IT infrastructure. Over the past several years, the FAA has allocated significant funds towards IT modernization, including logistics systems. Spending often fluctuates based on system lifecycle stages, with higher expenditures during development or major upgrade phases and more moderate spending for ongoing maintenance, support, and targeted enhancements like business process validation. Analyzing past awards for LCSS or similar systems would provide context for the $2.4 million allocated here, indicating whether this represents a typical investment or a deviation.

What is the potential impact of 'BUSINESS PROCESS VALIDATION (BPV) / FIX ISSUES' on system performance?

The 'BUSINESS PROCESS VALIDATION (BPV) / FIX ISSUES' task is critical for ensuring the optimal performance and reliability of the Logistics Center Support System (LCSS). BPV involves systematically reviewing and confirming that the system's processes align with intended operational requirements and industry best practices. Fixing identified issues, whether bugs or inefficiencies, directly addresses problems that could hinder user productivity, data accuracy, or system stability. Successful completion of this task should lead to a more robust, efficient, and user-friendly LCSS, ultimately enhancing the FAA's logistics management capabilities and reducing operational friction.

Industry Classification

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

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: TIME AND MATERIALS (Y)

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: $2,667,330

Exercised Options: $2,437,330

Current Obligation: $2,437,330

Actual Outlays: $1,360,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH22D00063

IDV Type: IDC

Timeline