Transportation Department awards $40.6M delivery order to WMATA for transit services in DC

Contract Overview

Contract Amount: $40,611,094 ($40.6M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2015-10-26

End Date: 2016-09-30

Contract Duration: 340 days

Daily Burn Rate: $119.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF OTHER FUNCTIONS WMATA- FY 16 NEW DELIVERY ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $40.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: IGF::OT::IGF OTHER FUNCTIONS WMATA- FY 16 NEW DELIVERY ORDER Key points: 1. Contract awarded via a sole-source mechanism, raising questions about potential cost efficiencies. 2. The contract value represents a significant investment in local transit infrastructure. 3. Performance period is relatively short, suggesting a focus on immediate operational needs. 4. The awardee, WMATA, is a well-established regional transit authority. 5. Lack of competition may limit opportunities for innovative solutions or lower pricing. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without comparable sole-source contracts for similar transit services. The $40.6 million award for a one-year period suggests a substantial operational cost. Without competitive bids, it's difficult to definitively assess if the pricing is optimal or if it reflects a fair market value. Further analysis would require understanding the specific services rendered and comparing WMATA's operational costs to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means that potential cost savings that could arise from a bidding process were not realized. It also limits the government's ability to explore a wider range of service providers and potentially innovative solutions.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and ensures that taxpayer funds are allocated efficiently.

Public Impact

The primary beneficiary is the Washington Metropolitan Area Transit Authority (WMATA), which receives significant funding. The services delivered are expected to support public transportation and transit operations within the Washington D.C. metropolitan area. The geographic impact is concentrated in the District of Columbia and surrounding transit corridors. This contract supports ongoing transit operations, potentially impacting the daily commutes of thousands of residents and visitors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for cost overruns if not closely monitored, despite fixed-price structure.

Positive Signals

Award to an established regional transit authority (WMATA) suggests operational continuity.
Fixed-price contract shifts performance risk to the contractor.
Contract supports essential public transit services in a major metropolitan area.

Sector Analysis

This contract falls within the broader transportation sector, specifically focusing on public transit operations. The market for transit services is often characterized by regional authorities and specialized providers. While large-scale infrastructure projects might see broader competition, operational contracts like this delivery order are frequently awarded to incumbent or regional entities. The value of this contract is significant within the context of annual operational budgets for transit agencies.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. As this was a sole-source award to a large transit authority, the direct impact on the small business ecosystem is likely minimal, unless WMATA itself engages small businesses for support services under this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's modal administrations responsible for transit. Accountability measures would be tied to the performance metrics outlined in the delivery order and WMATA's adherence to the terms. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Federal Transit Administration Grants
Metropolitan Planning Organizations
National Highway Traffic Safety Administration Programs

Risk Flags

Sole-source procurement
Lack of competition
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $40.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. IGF::OT::IGF OTHER FUNCTIONS WMATA- FY 16 NEW DELIVERY ORDER

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 Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2015-10-26. End: 2016-09-30.

What specific transit services are covered under this $40.6 million delivery order?

The provided data indicates the contract is for 'All Other Transit and Ground Passenger Transportation' and is associated with WMATA. While the exact breakdown of services isn't detailed, it likely encompasses operational support, maintenance, and potentially the provision of transit services within the Washington D.C. metropolitan area. This could include bus operations, rail services, or paratransit, depending on WMATA's specific role and the needs outlined in the delivery order. Further details would be found in the contract's statement of work.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is capable of providing the required service, or in cases of urgent and compelling need where competition is not feasible. For a regional transit authority like WMATA, the justification might stem from its unique operational footprint, existing infrastructure, or a specific mandate to provide services within its jurisdiction. The Department of Transportation would have had to document the rationale for not seeking competitive bids, often involving a justification that only WMATA could fulfill the requirement effectively and efficiently.

How does the $40.6 million award compare to WMATA's typical annual budget or other federal funding?

The $40.6 million represents a significant, though not necessarily dominant, portion of WMATA's overall funding. WMATA's annual operating budget typically runs into the billions of dollars, funded through a combination of federal grants, state/local contributions, and farebox revenue. This specific federal award likely supplements their existing funding streams for particular services or operational periods. Comparing it directly to their total budget provides context, but its significance also depends on what specific services this award is intended to cover.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk with a sole-source award of $40.6 million is the lack of competitive pressure, which can lead to suboptimal pricing and reduced incentive for efficiency. Taxpayers may not be receiving the best possible value for their money. Additionally, without a competitive process, there's a reduced opportunity to explore innovative solutions or alternative providers that might offer better service or technology. Oversight becomes critical to ensure the contractor performs as expected and that costs remain reasonable, even without market-based price discovery.

What is the historical spending pattern for similar transit services provided by WMATA or other agencies?

Historical spending data for similar transit services is crucial for context. Without specific historical data for this exact delivery order, we can infer that federal funding to regional transit authorities like WMATA is a recurring necessity. Past awards might show trends in contract values, durations, and the competitive nature (or lack thereof) of these procurements. Analyzing prior years' spending on transit operations in the D.C. area or similar metropolitan regions would reveal whether this $40.6 million award is an anomaly, an increase, or consistent with past federal investment in such services.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,611,094

Exercised Options: $40,611,094

Current Obligation: $40,611,094

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTOS5911D00510

IDV Type: IDC

Timeline