draft PWS - JOBMOD 4.0 - 6.10.2026.docx

PERFORMANCE WORK STATEMENT (PWS)

DEPARTMENT OF TRANSPORTATION (DOT) FEDERAL HIGHWAY ADMINISTRATION (FHWA)

OFFICE OF TRANSPORTATION POLICY STUDIES (HPL)

“UPDATE AND ENHANCE JOBMOD 4.0 TOOL”

PART 1: GENERAL INFORMATION

1. General: This is a non-personal services task order to provide program level and technical support to the Federal Highway Administration (FHWA), Office of Transportation Policy Studies to Update & Enhance the JOBMOD Tool.

1.1 Description of Services/Introduction: The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the update and enhancement of the JOBMOD 4.0 tool as defined in this Performance Work Statement. The Contractor shall perform to the standards in this contract.

1.2 Background: FHWA has a long history of developing methodologies, such as the JOBMOD input-output economic model, to assess the employment impacts of highway construction spending.

JOBMOD is designed to estimate employment vacancies supported by federal-aid highway construction spending. It is based on the U.S. Commerce Department’s Benchmark Input-Output Accounts, modified to reflect labor and material usage specific to highway construction projects. The original model operates as a national-level spreadsheet tool, offering industry-specific employment estimates and illustrating key relationships between highway investment and job support, assuming sufficient labor supply and constant input costs, as is standard in input-output analysis.

In 2003, FHWA introduced JOBMOD 1, an enhanced employment estimation model that provided more detailed insights into the relationships between federal-aid highway construction spending and employment support. The model categorized employment impacts into three key components:

· Direct Employment – Jobs directly involved in highway construction projects, including workers in construction, transportation, warehousing, business services, and materials supply industries (e.g., stone and clay products, petroleum refining, and metal fabrication).

· Indirect Employment – Jobs supported in supplier industries that provide materials and services for highway projects, such as structural steel, guardrails, aggregates, finance, insurance, and accounting services. These workers do not work on-site but depend on the project for employment.

· Induced Employment – Jobs supported in consumer goods and service industries created as direct and indirect employees spend their wages. These include positions in retail, healthcare, restaurants, education, financial services, and manufacturing sectors.

In 2005 and 2007, FHWA further refined the methodology with JOBMOD 2, incorporating updated wage data from 1997 to 2004, using Bureau of Labor Statistics (BLS) employment cost indices. This update accounted for wage inflation, leading to lower estimates of employment numbers supported than JOBMOD 1. JOBMOD 2 also introduced a more precise definition of a “job” as a full-time equivalent (FTE) of 40 hours per week. This adjustment ensured a better representation of labor demand across projects by distinguishing between standard wages and overtime hours.

Building on these refinements, a third iteration of the model was developed in 2009 in collaboration with the University of Windsor’s Cross-Border Institute and Battelle Memorial Institute. This version, referred to as JOBMOD (ARRA), was specifically designed to assess employment vacancies supported by projects funded under the American Recovery and Reinvestment Act of 2009 (ARRA). Given the economic downturn at the time, JOBMOD (ARRA) estimated that between 11,200 and 15,300 additional jobs were supported per $1 billion spent, reflecting higher labor availability due to increased slack in the job market. This version underwent extensive review within the U.S. federal government, making it the most rigorously evaluated model in the JOBMOD series.

The latest iteration, JOBMOD 3.1, builds upon JOBMOD (ARRA) by integrating updated data and introducing two new functionalities:

1. Import penetration analysis – This feature estimates the impact of “Buy American” provisions on domestic employment support, helping assess how import restrictions affect indirect employment.

2. Estimation of first-year employment realization – This functionality provides insights into how quickly employment vacancies are supported by highway infrastructure expenditures, an essential factor in evaluating short-term fiscal stimulus impacts.

There are two prominent policy applications for JOBMOD 3.1:

1. Estimating the employment effect of highway expenditures as economic stimulus. This application is most relevant during recessions, when highway expenditures are used as part of a fiscal stimulus program to support employment by absorbing excess labor supply.

2. Identifying projects likely to encounter workforce shortfalls. By estimating employment requirements associated with highway expenditures, JOBMOD 3.1 can help assess which projects may face labor constraints during periods when the economy is near full employment.

JOBMOD 3.1, the latest iteration, operates as a spreadsheet tool but faces challenges due to hard-coded data, limited transparency, and a lack of automation for updating calculation with new I-O tables and construction cost data. FHWA aims to move this workflow into a Python environment using Py-Shiny to automate analysis and reduce manual calculation errors.

1.3 Objectives: Since JOBMOD 3.1 spreadsheet relies on strict rule sets and large population datasets, spreadsheets can quickly become "black boxes" of hidden formulas and broken links. FHWA aims to move our JOBMOD workflow into a Python environment using Py-Shiny for web framework. This shift will automate the most labor-intensive parts of the analysis, reduce our processing time while significantly lower the risk of manual calculation errors.

The main objectives of JOBMOD 4.0 are as follows:

· The Contractor shall update input-output accounts to the latest available version, ensuring seamless integration into JOBMOD.

· The Contractor shall review and refine technical coefficients for each highway improvement category, incorporating updated cost breakdowns based on BidTabs data and other relevant data sources.

· The Contractor shall implement FHWA-approved improvements, ensuring consistency with JOBMOD’s employment estimation framework. The improvement types will be provided by FHWA based on Financial Management Information System (FMIS).

· The Contractor shall develop a transparent, Python-based model with centralized input sheets for easy data updates.

· The Contractor shall integrate harmonized construction cost data (e.g., BidTabs) to refine technical coefficients.

· The Contractor shall implement a user-friendly Py-Shiny dashboard for data visualization and parameter adjustment.

· The Contractor shall deliver comprehensive documentation to ensure FHWA staff can operate and maintain the model independently.

1.4 Scope: The Contractor shall develop JOBMOD 4.0, a transparent tool that uses the latest Bureau of Economic Analysis (BEA) I-O tables, BLS National Compensation Survey data, and highway construction cost data. Services include system engineering from first principles, data acquisition, employment estimation, comparative analysis, and technical documentation.

1.5 Period of Performance: The period of performance shall be for twelve (12) months from the date of award.

PART 2: SPECIFIC TASKS

2.1 Task 1 – Project Management:

2.1. Project Kick-Off Meeting

The Contractor shall coordinate and conduct a project Kick-Off Meeting within two (2) weeks of the task order award date, unless otherwise approved by the Task Order Contracting Officer’s Representative (TOCOR).

Participants: The meeting will include the Contracting Officer (CO), Contracting Officer’s Representative (COR), TOCOR, and other relevant Government personnel.

Format: At the TOCOR's discretion and in consultation with the Contractor, the meeting may be held in person in Washington, D.C. (with remote access available), via conference call, or virtually.

Objectives: The Contractor shall use the meeting to:

· Present the Draft Work Plan to the TOCOR and Government team.

· Receive guidance and feedback from the TOCOR to finalize the scope, specifics, and deliverables of the project.

· Deliverables: * Draft Work Plan: Must be submitted to the TOCOR for review at least two (2) business days prior to the Kick-Off Meeting.

· Kick-Off Meeting Minutes: Must be submitted within one (1) week following the meeting.

2.1.1 Work Plan Requirements

The Contractor shall develop a structured Draft Work Plan and refine it into a Final Work Plan based on Government feedback.

Content Requirements: The Work Plan must include, but is not limited to:

· Full descriptions of all tasks and deliverables.

· Expected methodology and technical approach.

· Comprehensive project schedule (e.g., Gantt chart) with clear deliverable due dates.

· Management and staffing plan, including labor and cost distribution by task.

· Established channels of communication.

· Risk assessment, mitigation strategies, and project assumptions.

Final Work Plan Submission: The Contractor shall incorporate all TOCOR comments and submit the Final Work Plan within four (4) weeks after the Kick-Off Meeting.

2.1.2 Biweekly Status Meetings & Progress Reviews

Frequency and Attendance: Following the Kick-Off Meeting, the Contractor shall coordinate and attend regular biweekly status meetings with the TOCOR and other Federal Highway Administration (FHWA) staff.

Periodic Reviews: The CO, COR, and other Government personnel may meet periodically with the Contractor to review performance, apprise the Contractor of the Government's assessment, and discuss any identified challenges.

Issue Resolution: The Contractor and Government will collaboratively resolve any outstanding project issues during these meetings. These reviews will be conducted at no additional cost to the Government.

Meeting Minutes: The Contractor shall submit formal meeting minutes to the TOCOR within two (2) business days after each biweekly status meeting. Minutes must accurately document topics discussed, decisions made and assigned action items.

2.1.3 Monthly Progress Reports

The Contractor shall submit a Monthly Progress Report to the TOCOR by the 10th of each month throughout the duration of the project. Each report must comprehensively document:

· Project progress and milestones achieved.

· Technical findings and data updates.

· Upcoming scheduled tasks and next steps.

· Identified problems, project risks, and recommended corrective actions.

2.2 Task 2 – JOBMOD Modernization and Estimation

The Contractor shall design and build a new, Python-based JOBMOD (Job Modeling) system from the ground up, replacing outdated spreadsheets with a high-performance program. The new system will pull in the latest data from the Bureau of Economic Analysis (BEA), the Bureau of Labor Statistics (BLS), and BidTabs. It will also include an easy-to-use Py-Shiny web interface for testing different scenarios and viewing visual trends.

Detailed Technical Requirements The Contractor shall submit a complete technical plan detailing how the system will be built, developed, and tested. The plan must cover these three main areas:

2.2.1. Fresh Data Collection & Preparation Framework

Moving Away from Legacy Files: Design a new, adaptable process to automatically gather, clean, and verify the latest BEA, BLS, and BidTabs data.

Automation: Replace manual data entry with automated workflows that format the data, check for errors, and save it directly into the system for immediate use.

2.2.2. New Model Design & Methodology

New Methodological Design: Create an entirely new math and calculation framework from scratch, completely leaving behind the old formulas and legacy spreadsheets.

Coefficient Engineering: Develop and calculate a new set of up-to-date economic variables (coefficients) based entirely on the new methodology and the latest economic data.

Dynamic Adjustments: Build in the ability to change core variables in real time, such as adjusting for inflation or converting to current dollar values.

2.2.3 Modern Py-Shiny Interface Development

User-Friendly Dashboard: Build a modern, highly accessible web interface using Py-Shiny to fully replace the old spreadsheet setup.

Interactive Features: Allow users to select different datasets, adjust project settings (like inflation rates), and immediately see the results.

Visual Tools: Include interactive charts, trend graphs, and downloadable tables to make it easy for users to analyze the data.

2.3 Task 3 – JOBMOD Results Documentation and Communication

The Contractor shall develop and deliver comprehensive documentation of the JOBMOD improvements and estimation results generated in Task 2. This documentation is intended for Federal Highway Administration (FHWA) distribution and will be tailored to two distinct audiences: technical analysts/researchers, and policymakers/the general public.

Detailed Technical Requirements The Contractor shall deliver the documentation in two distinct formats, both written to professional publication standards to minimize the need for FHWA revision:

2.3.1. Technical Report

· Target Audience: Economic analysts, data scientists, and researchers.

· Content and Scope: A comprehensive, highly detailed technical document describing the new methodology, core assumptions, data sources, variables, and computational processes established in the modernized JOBMOD framework.

· Replication Standard: The report must provide sufficient technical detail, mathematical formulas, and algorithmic descriptions to allow a qualified third-party analyst to fully replicate the employment estimates produced in Task 2.

· External Validation: The methodology and documentation must be written to a rigorous standard suitable for independent peer review. It must include comparisons with Council of Economic Advisers (CEA) estimation methods and other relevant external economic research.

2.3.2. Policy Brief

· Target Audience: Policymakers, industry stakeholders, and the general public.

· Format & Length constraint: A concise, non-technical summary of no more than two (2) pages, incorporating high-quality visual tools, charts, and graphics where appropriate. Content and Scope: This brief will translate the technical findings into accessible language, highlighting the direct, indirect, and induced employment estimates. It will provide a clear, plain-English explanation of how the FHWA assesses employment impacts from Federal-aid highway expenditures.

2.3.3 Content Standards for Both Deliverables

Both the Technical Report and the Policy Brief must incorporate the following elements:

· Data and Methodology Summaries: Clear descriptions of the data ingested, the new calculation methods, and the resulting estimates.

· Analytical Discussion: Narrative commentary accompanying each estimate or category of estimates, explicitly outlining any limitations of the data and any methodology challenges encountered during the estimation process.

· Comparative Analysis: Benchmarking against external research and CEA estimation methodologies.

2.3.4 Format and Review Process

· Document Formats: Draft documents shall be delivered in editable Microsoft Word or Google Docs format to allow for collaborative review and tracking of comments. Final documents shall be delivered in both an editable format and as a Section 508-compliant PDF for publication.

· Review Cycles: For planning purposes, the Contractor shall assume that the Task Order Contracting Officer’s Representative (TOCOR) will take two (2) weeks to review and return comments on each draft document.

· Revisions: The final versions must incorporate all comments, suggestions, and corrections provided by FHWA staff.

2.4 Task 4 – JOBMOD Technical Support:

The Contractor shall provide technical support by developing technical memorandums and written responses to inquiries related to data, methodology, and estimation results associated with JOBMOD 4.0, as directed by the Task Manager.

· The Contractor shall respond to ad hoc technical inquiries regarding JOBMOD 4.0’s framework, assumptions, and outputs, ensuring clarity and accuracy in all communications. The Contractor shall anticipate an average of 10 total hours per month across all contractor personnel for ad hoc technical inquiries throughout the task order base period.

· For each technical memorandum or written request, the Task Manager will provide the Contractor with specific instructions, including the required due date.

PART 3 – CONTRACT INFORMATION

3.1 Contracting Officer Representative (COR): The COR/TOCOR will monitor technical aspects, perform necessary inspections, and notify the Contractor of any performance deficiencies.

3.1.1 Identification of Contractor Employees: All contract personnel must identify themselves as such in meetings and on documents to avoid being mistaken for Government officials.

3.1.2 Key Personnel: Key personnel shall include the Project Manager and technical staff capable of satisfying PWS requirements. The Contractor shall identify these individuals in accordance with TAR 1252.237-73, Key Personnel. Resumes are required for all proposed key personnel and are limited to two pages each.

3.1.3 Organizational Conflict of Interest: The Contractor must notify the CO immediately of any actual or potential OCI and submit a mitigation plan if necessary.

3.1.4 Place of Performance: The work to be performed under this task order must be performed at the Contractor’s facility.

3.1.5 Quality Control: The Contractor shall develop and maintain an effective quality control program to ensure services are performed in accordance with this PWS. The Contractor representative / staff editor must review all written products to eliminate redundancy and ensure proper grammar, punctuation, and Government Publishing Office (GPO) Style Manual compliance prior to submission.

3.1.6 Quality Assurance: The government shall evaluate the Contractor’s performance under this contract to ensure technical requirements are met. Acceptance of Firm Fixed Price CLINs will be made by the TOCOR upon successful completion of tasks.

3.1.7 Type of Contract: The Government will issue a Firm-Fixed-Price (FFP) task order.

3.1.8 Contractor Travel: The Contractor is not expected to travel during the performance of this Task Order.

3.1.9 Data Rights: The Government has unlimited rights to all documents, materials, and digital products produced under this contract, including the source code of any software, in accordance with RFO FAR 52.227-14, Rights in Data—General , RFO FAR 52.227-16 Additional Data Requirements, and RFO FAR 52.227-17, Rights in Data—Special Works. All such deliverables shall be the exclusive property of the Government. The Contractor shall deliver all source code and documentation in a format specified by the COR.

PART 4: DEFINITIONS & ACRONYMS

4.1 DEFINITIONS

· Job: Equivalent to 2,080 hours.

· Direct, Indirect, and Induced Employment: Traditionally defined terms used in input-output employment estimation models.

· Deliverable: Anything that can be physically delivered, such as meeting minutes, reports, or software code.

4.1.1. CONTRACTOR. A supplier or vendor awarded a contract to provide specific supplies or service to the government. The term used in this contract refers to the prime.

4.1.2. CONTRACTING OFFICER. A person with authority to enter into, administer, or terminate contracts, and make related determinations and findings on behalf of the government. Note: The only individual who can legally bind the government.

4.1.3. TECHNICAL ORDER CONTRACTING OFFICER'S REPRESENTATIVE (TOCOR). An employee of the U.S. Government appointed by the contracting officer to administer the contract. Such appointment shall be in writing and shall state the scope of authority and limitations. This individual has authority to provide technical direction to the Contractor as long as that direction is within the scope of the contract, does not constitute a change, and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

4.1.4. DELIVERABLE. Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

4.1.5. SUBCONTRACTOR. One that enters into a contract with a prime contractor. The Government does not have privity of contract with the subcontractor.

PART 5: APPLICABLE PUBLICATIONS

5.1 Standards and Accessibility

5.1.1 Technical Report Specifications

The Contractor shall ensure that all technical reports, policy briefs, and accompanying deliverables meet professional publication and Federal reporting standards. Documents must be clear, well-structured, and tailored specifically to their intended audiences.

5.1.2 Section 508 Compliance Requirements

All electronic and information technology products developed, authored, or delivered under this task order must conform fully to Section 508 of the Rehabilitation Act (29 U.S.C. § 794d).

· Deliverable Formats: Any final reports, policy briefs, user manuals, and digital products (including PDF, Word, and web-based files) must be fully accessible to individuals with disabilities.

· Testing and Verification: The Contractor is responsible for testing all digital deliverables to ensure compliance with Section 508 standards prior to final submission to the Government.

PART 6: ATTACHMENT/TECHNICAL EXHIBIT LISTING

6.1. Technical Exhibit 1 – Performance Requirements Summary

6.2. Technical Exhibit 2 – Deliverables Schedule

6.3 Technical Exhibit 3 – Estimated Workload Data

TECHNICAL EXHIBIT 1: PERFORMANCE REQUIREMENTS SUMMARY

The contractor service requirements are summarized into performance objectives that relate directly to mission essential items. The performance threshold briefly describes the minimum acceptable levels of service required for each requirement. These thresholds are critical to mission success.

PRS # 1. Project Management

The Contractor shall provide a Draft Work Plan, conduct a Kick-Off Meeting, attend regular biweekly status meetings, and submit accurate, timely progress reports (PWS Paragraph 5.1).

PRS # 2. JOBMOD Modernization and Estimation

The Contractor shall design and build a new, Python-based JOBMOD system from the ground up, integrating BEA, BLS, and BidTabs data with a Py-Shiny user interface (PWS Paragraph 5.2). The Contractor shall obtain and integrate additional datasets such as RS Means as needed to ensure the accuracy and completeness of JOBMOD 4.0.

PRS # 3. Results Documentation and Communication

The Contractor shall deliver a comprehensive Technical Report and a concise Policy Brief detailing the JOBMOD 4.0 methodology and estimates (PWS Paragraph 5.3).

PRS # 4. Technical Support

The Contractor shall provide technical support, including technical memorandums and ad hoc written responses to inquiries related to JOBMOD 4.0 (PWS Paragraph 5.4).

PRS # 5. Standards and Accessibility

The Contractor shall ensure all final reports, policy briefs, and electronic deliverables conform to accessibility requirements (PWS Paragraph 6.1).

TECHNICAL EXHIBIT 2 - DELIVERABLES SCHEDULE

Unless stated elsewhere in this task order, the COR/TOCOR will have 14 calendar days to review draft deliverables and make comments. The Contractor must make corrections and return the corrected draft deliverable to the Government within 14 calendar days. This is considered “turn” 1, turn 1 a primary turn by default is 14 calendar days per side, subsequent secondary “turns” will be limited to 7 calendar days per side. If accepted, the Contractor will have 14 calendar days to prepare the draft final for review (PDF version of the actual document).

If an adjustment to the schedule is advantageous to both the Government and the Contractor, the COR may agree to a request by the Contractor to alter the deadlines in this milestone schedule so long as this does not impact the project funding or period of performance. Any changes to milestone dates must be documented in updates to the approved work plan.

Task 1 – Project Management

Task 2 – JOBMOD Improvement and Estimation

Task 3 – Results Documentation and Communication

Task 4 – Technical Support for JOBMOD 4.0

TECHNICAL EXHIBIT 3 - ESTIMATED WORKLOAD DATA

Workload Allocation Overview Total hours are expected to range between 1135-1235 labor hours. The Contractor shall ensure that all personnel assigned to this effort possess the professional credentials, technical skills, and experience necessary to fulfill the requirements of this PWS. The project team must have at least one personnel member who has documented experience in economic analysis, specifically regarding the application and execution of Input-Output (I-O) models. Additionally, the team shall include at least a computer programmer/developer with a proven track record of designing, developing, and deploying Python tools and interactive dashboards using the Shiny for Python framework. The Offeror must clearly demonstrate compliance with these experience requirements within its written proposal.