Innovative Contracting Practices for ITS

Task E- Final Report, prepared for the Federal Highway Administration

This report presents the results of research on procurement-related legal and non-technical issues which may be constraining the deployment of Intelligent Transportation Systems (ITS). The report’s focus is on State and local procurement practices when Federal funds are involved. Issues arising in early ITS operational tests were researched, with focus on the following topics: types of contracts, methods of award, combined or coordinated procurements, pricing and cost sharing allowability of costs, cost accounting standards and principles, auditing, intellectual property, organizational conflicts of interest, and liability.

The report provides findings on each of the above topics and discusses their effects on implementing ITS. Practical procurement techniques, available under existing law, are provided to remove or mitigate potential barriers to deployment. The report is targeted at program managers, contracting officers, and attorneys, and contains many examples and extensive citations for further research to assist both novice and expert practitioners.

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