Transportation contract for safety pilot model deployment awarded to University of Michigan for over $24.8 million

Contract Overview

Contract Amount: $24,841,513 ($24.8M)

Contractor: Regents of the University of Michigan

Awarding Agency: Department of Transportation

Start Date: 2011-08-18

End Date: 2014-08-31

Contract Duration: 1,109 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST SHARING

Sector: Transportation

Official Description: SAFETY PILOT MODEL DEPLOYMENT OF VEHICLE TO VEHICLE AND VEHICLE TO INFRASTRUCTURE SAFETY APPLICATIONS

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48109, UNITED STATES OF AMERICA

State: Michigan Government Spending

Plain-Language Summary

Department of Transportation obligated $24.8 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: SAFETY PILOT MODEL DEPLOYMENT OF VEHICLE TO VEHICLE AND VEHICLE TO INFRASTRUCTURE SAFETY APPLICATIONS Key points: 1. Contract focuses on vehicle safety applications, aiming to reduce accidents and improve traffic flow. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 4. The contract duration of over three years indicates a significant project scope. 5. Performance is tied to a cost-sharing model, implying shared investment and risk. 6. The project is geographically focused on Michigan, potentially serving as a testbed for national deployment.

Value Assessment

Rating: good

The contract value of over $24.8 million for a three-year R&D project in vehicle safety appears reasonable given the scope. Benchmarking against similar large-scale pilot deployments for advanced transportation technologies is difficult due to the novelty of V2V and V2I applications. However, the cost-sharing aspect suggests the government is not bearing the full financial burden, which can be a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a competitive environment, which typically leads to better pricing and innovation for the government. This level of competition is ideal for ensuring fair market value is achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of innovative solutions.

Public Impact

The primary beneficiaries are the public through potential improvements in road safety and traffic efficiency. The project delivers advanced safety applications for vehicles and infrastructure, aiming to prevent accidents. The geographic impact is initially focused on Michigan, serving as a testing ground for new technologies. Workforce implications include potential job creation in research, engineering, and technology development within the automotive and transportation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader transportation technology and R&D sector, specifically focusing on intelligent transportation systems (ITS). The market for V2V and V2I technology is nascent but growing rapidly, driven by advancements in autonomous driving and connected vehicle initiatives. Comparable spending benchmarks are scarce for such specific pilot deployments, but significant government investment in ITS research is evident across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Given the nature of the research and the awardee, it is likely that larger firms or specialized research institutions were the primary focus of competition. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the Federal Highway Administration (FHWA) through contract milestones, performance reviews, and financial reporting. The cost-sharing agreement provides an inherent accountability mechanism. Transparency is generally maintained through public contract databases, though specific project details and data may be proprietary.

Related Government Programs

Risk Flags

Tags

transportation, research-and-development, federal-highway-administration, department-of-transportation, connected-vehicles, safety-applications, cost-sharing, full-and-open-competition, university-research, pilot-program, michigan, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.8 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. SAFETY PILOT MODEL DEPLOYMENT OF VEHICLE TO VEHICLE AND VEHICLE TO INFRASTRUCTURE SAFETY APPLICATIONS

Who is the contractor on this award?

The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2011-08-18. End: 2014-08-31.

What is the track record of the Regents of the University of Michigan in managing large federal research contracts, particularly in transportation technology?

The Regents of the University of Michigan, as the governing body for the University of Michigan, have a long and extensive history of managing large, complex federal research grants and contracts across numerous disciplines, including engineering and transportation. The University of Michigan's Transportation Research Institute (UMTRI) is a world-renowned center with decades of experience in automotive safety, intelligent transportation systems, and vehicle dynamics. They have successfully managed numerous multi-million dollar projects funded by agencies like the Department of Transportation (DOT), National Highway Traffic Safety Administration (NHTSA), and the National Science Foundation (NSF). Their track record generally indicates strong project management capabilities, scientific rigor, and successful delivery of research outcomes, making them a reliable recipient for significant federal R&D funding in this domain.

How does the $24.8 million contract value compare to similar federal investments in connected vehicle technology pilot programs?

The $24.8 million contract value for the SAFETY PILOT MODEL DEPLOYMENT is substantial and reflects the complexity and scope of deploying vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) safety applications. While direct comparisons are challenging due to the evolving nature of this technology and varying program designs, this figure aligns with other significant federal investments in connected vehicle research and pilot programs initiated around the same period. For instance, the DOT's broader Connected Vehicle Safety Pilot program, which this contract was part of, involved substantial funding across multiple phases and locations. The cost-sharing component also differentiates it, suggesting a leveraged investment rather than a sole federal outlay. Overall, the amount is consistent with the high cost of developing, testing, and deploying cutting-edge transportation safety technologies on a pilot scale.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract likely included technological immaturity, potential for cost overruns in a research-intensive project, data security and privacy concerns related to vehicle communications, and challenges in achieving widespread adoption or integration of the tested technologies. Mitigation strategies would have involved rigorous testing protocols, phased deployment, strong cybersecurity measures, clear data governance policies, and the cost-sharing agreement with the University of Michigan, which incentivized efficient resource management. Furthermore, the selection of a reputable research institution with deep expertise in the field inherently reduces technical and execution risks. The contract's duration and specific performance metrics would also serve as risk management tools, allowing for adjustments based on progress.

How effective is the cost-sharing model in ensuring value for taxpayer money in this R&D contract?

The cost-sharing model employed in this contract is a significant mechanism for ensuring value for taxpayer money in R&D. By requiring the University of Michigan to contribute a portion of the project costs, the government ensures that the awardee has a vested financial interest in the project's success and efficient execution. This shared risk incentivizes the contractor to manage resources effectively, control costs, and prioritize outcomes that yield the greatest return on investment. It also serves as a validation of the project's perceived value and potential impact by the performing institution. While the exact cost-sharing ratio is not detailed here, such arrangements generally lead to more prudent spending and a stronger focus on achieving defined objectives compared to fully funded contracts.

What are the historical spending patterns for the Federal Highway Administration (FHWA) in the area of connected vehicle research and deployment?

The Federal Highway Administration (FHWA), as part of the Department of Transportation, has consistently invested in research and development for Intelligent Transportation Systems (ITS), including connected vehicle technologies. Historical spending patterns show a gradual increase in funding allocated to V2X (Vehicle-to-Everything) communications, safety applications, and pilot deployments over the past decade. Early investments focused on foundational research and standards development, followed by larger-scale pilot programs like the SAFETY PILOT MODEL DEPLOYMENT to test real-world applications and gather data. Funding often comes through specific R&D appropriations, ITS Joint Program Office initiatives, and sometimes through competitive grant programs. While specific annual figures fluctuate based on program priorities and budget cycles, the FHWA's commitment to advancing connected vehicle technology has been a sustained effort, reflecting its importance for future transportation safety and efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTTRANSPORTATION (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109

Business Categories: Category Business, Educational Institution, Government, Higher Education, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,519,223

Exercised Options: $25,519,223

Current Obligation: $24,841,513

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $12,163,232

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline

Start Date: 2011-08-18

Current End Date: 2014-08-31

Potential End Date: 2014-08-31 00:00:00

Last Modified: 2015-03-13

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