DOT's $36.6M contract for automotive sampling system operation awarded to CUBRC, Inc. after limited competition

Contract Overview

Contract Amount: $36,635,645 ($36.6M)

Contractor: Cubrc, Inc.

Awarding Agency: Department of Transportation

Start Date: 2006-08-08

End Date: 2012-01-04

Contract Duration: 1,975 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OPERATION OF ZONE CENTER 1 FOR THE NATIONAL AUTOMOTIVE SAMPLING SYSTEM (NASS)

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14225

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $36.6 million to CUBRC, INC. for work described as: OPERATION OF ZONE CENTER 1 FOR THE NATIONAL AUTOMOTIVE SAMPLING SYSTEM (NASS) Key points: 1. Contract value of $36.6 million over approximately 5 years indicates significant investment in automotive safety research. 2. The award was made under 'Full and Open Competition After Exclusion of Sources,' suggesting a complex procurement process. 3. The contract type 'Cost Plus Fixed Fee' can lead to cost overruns if not carefully managed. 4. The duration of the contract (1975 days) suggests a long-term need for the services provided. 5. The geographic location of the contractor in New York may have implications for local economic impact. 6. The North American Industry Classification System (NAICS) code 541710 points to a focus on research and development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar NASS operations. The 'Cost Plus Fixed Fee' structure introduces inherent risk for cost escalation, though the fixed fee component provides some predictability. The total award amount of $36.6 million over nearly five years suggests a substantial investment, but its value-for-money depends heavily on the effectiveness and efficiency of CUBRC, Inc.'s performance in operating the zone center.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The presence of two bidders suggests some level of competition, but the exclusion of other potential sources raises questions about the breadth of the competition and its impact on price discovery. Further details on the reasons for source exclusion would be needed for a complete assessment.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified vendors had been able to bid. It also reduces the government's leverage in negotiating the most cost-effective terms.

Public Impact

The National Highway Traffic Safety Administration (NHTSA) benefits from the continued operation of the National Automotive Sampling System (NASS). This contract supports the collection of critical data on vehicle crashes and related factors to improve automotive safety. The services delivered are essential for understanding real-world vehicle performance and identifying areas for safety enhancements. The geographic impact is primarily focused on the contractor's location in New York, but the data collected has national implications for vehicle safety standards. The contract supports specialized research and development roles within CUBRC, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously overseen.
Limited competition may have led to a less competitive price for taxpayers.
The exclusion of sources in the procurement process warrants further investigation into fairness and necessity.
The long duration of the contract requires sustained performance monitoring to ensure continued value.

Positive Signals

The contract supports a critical national safety program (NASS).
Awarding to a single contractor for a specialized function can ensure continuity of operations.
The fixed fee component provides some cost certainty within the overall contract structure.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to automotive safety. The market for such specialized research services is often concentrated among a few highly qualified firms. The National Automotive Sampling System (NASS) is a long-standing program, and contracts for its operation represent a consistent, albeit specialized, area of federal spending within transportation safety R&D. Benchmarking requires comparison to other large-scale data collection and analysis contracts in the scientific research domain.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the primary award was made to a large business, CUBRC, Inc. There is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this contract. Therefore, the direct impact on the small business ecosystem appears minimal based on the available data, though indirect opportunities through CUBRC's supply chain cannot be ruled out without further information.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Highway Traffic Safety Administration (NHTSA), the contracting agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs remain reasonable and that the fixed fee is earned through satisfactory performance. Transparency would be enhanced by public reporting of performance metrics and cost audits. The specific Inspector General jurisdiction would likely be that of the Department of Transportation.

Related Government Programs

National Automotive Sampling System (NASS)
Vehicle Safety Research
Transportation Safety Data Collection
Automotive Crash Analysis
Federal Research and Development Contracts

Risk Flags

Limited competition raises concerns about potential price inflation.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Exclusion of sources requires justification to ensure fairness and maximize competition.
Need for robust oversight to manage costs and ensure performance under CPFF.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $36.6 million to CUBRC, INC.. OPERATION OF ZONE CENTER 1 FOR THE NATIONAL AUTOMOTIVE SAMPLING SYSTEM (NASS)

Who is the contractor on this award?

The obligated recipient is CUBRC, 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 $36.6 million.

What is the period of performance?

Start: 2006-08-08. End: 2012-01-04.

What is the historical spending trend for the National Automotive Sampling System (NASS) operations?

Analyzing historical spending for NASS operations requires accessing prior contract awards and modifications. Without specific historical data for this contract or related NASS contracts, it's difficult to establish a precise trend. However, the $36.6 million awarded over approximately five years suggests a consistent level of investment in this program. Federal spending on safety research and data collection programs like NASS typically fluctuates based on congressional appropriations, program priorities, and evolving research needs. To provide a trend, one would need to examine contract databases for previous NASS operations contracts, noting any significant increases or decreases in funding over time and correlating them with changes in program scope or research objectives.

How does CUBRC, Inc.'s performance on this contract compare to industry benchmarks for similar research and development services?

Assessing CUBRC, Inc.'s performance against industry benchmarks requires access to performance evaluations, quality metrics, and cost-efficiency data specific to this contract, which are not publicly available in the provided data. Generally, performance benchmarks for R&D services revolve around factors like adherence to project timelines, quality of research output (e.g., data accuracy, analytical rigor), innovation, and cost control. For a contract like the NASS operations, key performance indicators might include the completeness and timeliness of data collection, the accuracy of crash reconstructions, and the successful integration of data into NHTSA's databases. Without specific performance reports or comparative data from similar contracts awarded to other entities, a direct benchmark comparison is not feasible.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for operating a national sampling system?

The primary risks associated with a CPFF contract for operating a national sampling system like NASS involve potential cost overruns and contractor incentives. While the fixed fee provides a level of predictability for the contractor's profit, the 'cost plus' portion means the government reimburses allowable costs incurred by the contractor. If the contractor's costs exceed initial estimates, the government bears that burden, potentially leading to a higher total expenditure than anticipated. Risks include inefficient operations, unexpected technical challenges, or scope creep that increases costs without a corresponding increase in the fixed fee. Effective oversight is critical to scrutinize allowable costs, ensure efficient resource utilization, and prevent unnecessary spending to maximize the value for taxpayers.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced procurement approach. It signifies that the agency initially intended to conduct a broad, open competition but subsequently excluded specific sources. This exclusion must be justified by specific criteria outlined in federal acquisition regulations, such as national security concerns, unique capabilities, or prior investments. The fact that two bidders participated suggests that despite exclusions, a competitive environment was maintained to some degree. However, the exclusion itself raises questions about whether the most innovative or cost-effective solutions were considered, and it limits the government's ability to ensure the widest possible market participation, potentially impacting price competition and overall value.

How does the geographic location (New York) of the contractor impact the execution and cost of this contract?

The contractor's location in New York (NY) primarily impacts the logistical aspects and potentially the cost structure of the contract. For a contract involving the operation of a zone center for a national system, the physical location might influence travel costs for personnel, proximity to relevant data sources or testing facilities, and the availability of a specialized workforce. Labor costs in New York may be higher than in other regions, potentially affecting the overall cost of services. However, if CUBRC, Inc. has established infrastructure and expertise in New York relevant to the NASS program, this location could also facilitate efficient operations and continuity. The impact on cost is relative to the specific requirements of the contract and the alternative locations considered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4455 GENESEE ST, BUFFALO, NY, 14225

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,662,533

Exercised Options: $36,662,533

Current Obligation: $36,635,645

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline