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This is a Sole Source Justification document from the Department of Transportation Federal Highway Administration (FHWA) for a contract modification with Iteris, Inc.

The FHWA is issuing a non-competitive, out-of-scope modification to increase the ceiling of an existing Time and Material (T&M) task order (693JJ323F00273N) by $450,000, from $9,499,385 to $9,949,385. The original task order, awarded September 21, 2023, with a period of performance through September 24, 2026 (extended to March 24, 2027 via modification P00004), provides system architecture services for Intelligent Transportation Standardization, Deployment, and Evolution. The modification funds continued support while a successor task order is being prepared, with $8,201,170.70 already paid against the original ceiling and $1,298,814.30 remaining obligated. The work supports the National ITS Reference Architecture (ARC-IT), which FHWA is legislatively mandated to maintain under 23 U.S.C. § 517, and addresses transportation sector-specific customized system architecture reference and architecture description needs supporting the Digital Corridors Initiative championed by the Office of Science and Technology Policy.

The sole source authority is GSAR 538.7104-3(b)(1)(iii), justified as a logical follow-on to an FSS order awarded on a competitive basis. Only one contractor, Iteris, submitted a quote to the original competitive Request for Quote solicited through the GSA Multiple Award Schedule (MAS), Professional Services - Technical and Engineering Services. The justification states that introducing a new contractor would be technically infeasible due to the required lengthy transition and onboarding period and unacceptable technical risks to federally mandated deployment support. Labor categories, hourly rates, and travel structures remain identical to the fixed GSA Schedule pricing previously determined fair and reasonable. The contracting officer will attempt to convert remaining work to a Firm-Fixed-Price arrangement prior to modification execution, with a formal Determination and Findings to be processed if conversion is unsuccessful.

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