DOD Transportation Benefit Program contract awarded to WMATA for $18.25M, highlighting commuter rail systems

Contract Overview

Contract Amount: $18,249,604 ($18.2M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Defense

Start Date: 2011-11-01

End Date: 2012-10-31

Contract Duration: 365 days

Daily Burn Rate: $50.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: DOD TRANSPORTATION BENEFIT PROGRAM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: DOD TRANSPORTATION BENEFIT PROGRAM Key points: 1. Contract value of $18.25M for commuter rail systems suggests significant investment in employee transit. 2. Awarded to a single entity, raising questions about competitive pricing and potential for cost efficiencies. 3. The fixed-price nature of the contract provides cost certainty for the government. 4. Duration of one year indicates a need for ongoing, potentially recurring, transportation services. 5. The contract falls under the Department of Defense, suggesting a focus on military personnel or civilian employees. 6. The specific service category 'Commuter Rail Systems' points to a specialized transportation need.

Value Assessment

Rating: fair

The contract value of $18.25M for a one-year duration for commuter rail systems is substantial. Without comparable contract data for similar services provided to other government agencies or large organizations, it is difficult to definitively benchmark the value for money. The fixed-price nature offers predictability, but the lack of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require understanding the scope of services and the number of beneficiaries.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures, indicating a sole-source award. The absence of a competitive bidding process means that multiple vendors were not evaluated, which could limit price discovery and potentially lead to higher costs than if the contract had been competed. The rationale for a sole-source award would need further investigation to understand if it was due to unique capabilities or other specific circumstances.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process. This could result in a higher overall expenditure for the government.

Public Impact

Benefits military personnel and civilian employees of the Department of Defense by providing access to commuter rail services. Ensures reliable and accessible transportation options for a significant number of government employees in the Washington D.C. metropolitan area. Supports the operational readiness and morale of the DoD workforce by facilitating easier commutes. Contributes to reduced traffic congestion and environmental impact by encouraging the use of public transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than a competed contract.
Sole-source award raises concerns about transparency and potential for contractor lock-in.
Limited data available on the specific performance metrics and outcomes of this contract.
The contract's value is significant, necessitating robust oversight to ensure proper utilization of funds.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to a known transit authority suggests a reliable service provider.
Focus on commuter rail aligns with goals of promoting public transportation and reducing environmental impact.

Sector Analysis

The transportation sector, particularly public transit, is a critical component of urban infrastructure and employee mobility. Contracts for commuter rail systems often involve significant financial commitments due to the operational costs and scale of such services. The Washington Metropolitan Area Transit Authority (WMATA) is a major provider in the region, and government agencies frequently contract with such entities to provide transit benefits to their employees. Benchmarking this contract would involve comparing its per-passenger costs or overall value against similar agreements WMATA may have with other large organizations or against the cost of alternative transportation solutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to a large transit authority like WMATA suggests that the primary focus is on the direct provision of services rather than engaging a network of smaller businesses for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Washington Headquarters Services (WHS) within the Department of Defense. As a sole-source award, scrutiny on the justification and pricing is particularly important. Transparency regarding the contract's performance metrics, service delivery, and financial expenditures would be key oversight elements. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DoD IG generally oversees all DoD spending to ensure accountability and prevent waste, fraud, and abuse.

Related Government Programs

Department of Defense Employee Commuter Benefits
Washington Metropolitan Area Transit Authority Services
Federal Transit Subsidies
Commuter Rail Transportation Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns if contractor underestimated expenses.
Limited transparency on service delivery metrics.
Need for strong oversight due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. DOD TRANSPORTATION BENEFIT PROGRAM

Who is the contractor on this award?

The obligated recipient is WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2011-11-01. End: 2012-10-31.

What is the specific scope of services provided under this contract for commuter rail systems?

The provided data indicates the contract is for 'Commuter Rail Systems' awarded to the Washington Metropolitan Area Transit Authority (WMATA). While the exact scope is not detailed, it likely encompasses the provision or facilitation of access to commuter rail services for Department of Defense personnel in the Washington Metropolitan Area. This could include fare subsidies, bulk ticket purchases, or specific route arrangements. The contract's duration of one year and fixed-price nature suggest a defined service period with pre-determined costs. Further details on the specific services would typically be found in the contract's statement of work (SOW) or performance work statement (PWS).

How does the $18.25M contract value compare to other federal spending on commuter benefits or transit services?

The $18.25 million contract value for commuter rail systems is a significant sum, reflecting the scale of transportation needs for a large organization like the Department of Defense in a major metropolitan area. To benchmark this, one would need to compare it against similar contracts awarded by other federal agencies for employee transit benefits or against WMATA's contracts with other large public or private sector employers. Without access to a broader dataset of federal transit spending or specific per-employee cost data for this program, a direct comparison is challenging. However, it indicates a substantial investment in ensuring employee mobility and potentially reducing the agency's environmental footprint.

What are the potential risks associated with a sole-source award for this transportation service?

A primary risk of a sole-source award is the potential for inflated pricing, as there is no competitive pressure to drive costs down. Taxpayers may end up paying more than necessary compared to a scenario where multiple vendors vied for the contract. Another risk is a lack of innovation or service improvement, as the contractor may have less incentive to enhance services when they are guaranteed the business. Furthermore, sole-source contracts can sometimes indicate a lack of market research or a failure to identify potential alternative providers, which could represent a missed opportunity for better value or more specialized services. Ensuring robust oversight and justification for the sole-source nature is crucial to mitigate these risks.

What is the track record of the Washington Metropolitan Area Transit Authority (WMATA) in fulfilling federal contracts?

WMATA, as a major public transit authority, has extensive experience in providing transportation services to a large and diverse population, including government employees. While specific performance data on federal contracts is not provided here, WMATA's operational history involves managing complex rail and bus networks, fare collection systems, and large-scale infrastructure. Federal agencies often contract with established transit providers like WMATA for employee benefit programs due to their existing infrastructure and service reach. However, like any large public entity, WMATA may face challenges related to service reliability, funding, and operational efficiency, which could indirectly impact contract performance. A thorough review would involve examining past performance evaluations and any reported issues.

How does the fixed-price contract type impact the government's financial exposure and risk?

A Firm Fixed Price (FFP) contract type, as indicated by 'pt': 'FIRM FIXED PRICE', is generally favorable to the government in terms of cost certainty. Under an FFP contract, the contractor agrees to a set price for the goods or services, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For the government, this means the total expenditure is known upfront, simplifying budgeting and financial planning. However, if the contractor significantly underestimates costs, they may cut corners on quality or service delivery to maintain profitability, which could be a risk to performance. Conversely, if the contractor accurately estimates or underestimates, the government benefits from a predictable cost.

What are the implications of this contract being awarded under 'NOT COMPETED UNDER SAP'?

The designation 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) suggests that this contract was not procured through the streamlined processes typically used for purchases below the simplified acquisition threshold (currently $250,000). This implies that the contract value likely exceeded this threshold, and therefore, a more formal procurement process might have been expected. However, the 'ct': 'NOT COMPETED UNDER SAP' combined with 'aw': 'BPA CALL' and 'no': 1 (number of offers) strongly indicates a sole-source award, possibly made under specific exceptions or justifications that allowed it to bypass full and open competition, even if it exceeded SAP thresholds. This reinforces the concern about the lack of competitive bidding and its potential impact on price and value.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Commuter Rail Systems

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 5TH ST NW, WASHINGTON, DC, 20001

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $18,249,604

Exercised Options: $18,249,604

Current Obligation: $18,249,604

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003412A0001

IDV Type: BPA

Timeline