Labor Department's $6.65M Transit Subsidy Contract Awarded to WMATA with No Competition

Contract Overview

Contract Amount: $6,654,532 ($6.7M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Labor

Start Date: 2020-09-01

End Date: 2026-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSIT SUBSIDY BENEFIT PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $6.7 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: TRANSIT SUBSIDY BENEFIT PROGRAM. Key points: 1. The contract's value of $6.65 million over its period of performance raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and potentially increases the risk of overpayment. 3. Performance risk appears moderate, as the contract is for a well-defined service (transit subsidies). 4. The contract is positioned within the administrative support services sector, specifically for employee benefits. 5. The long duration (over 5 years) suggests a need for stable, ongoing service, but also warrants scrutiny of long-term value. 6. The absence of small business set-asides or subcontracting plans indicates limited direct impact on the small business ecosystem for this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for transit subsidies. The firm-fixed-price structure provides some cost certainty for the government. However, the lack of competition means there's no direct comparison to assess if the pricing is at market rates or if a better value could have been achieved through a competitive process. The total value of $6.65 million over approximately 5.5 years averages around $1.2 million annually, which needs to be evaluated against the scope and number of employees benefiting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED' and 'DEFINITIVE CONTRACT', suggesting that the Department of Labor identified Washington Metropolitan Area Transit Authority (WMATA) as the only viable source or that a competitive process was deemed impractical or unnecessary. The lack of competition prevents a robust price discovery mechanism and limits the government's ability to secure the best possible pricing through market forces.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there's less assurance that the negotiated price reflects the most economical option available.

Public Impact

Employees of the Department of Labor, particularly those within the Office of the Assistant Secretary for Administration and Management, are the primary beneficiaries through subsidized transit. The service delivered is the provision of transit subsidies, facilitating employee commuting. The geographic impact is concentrated in the Washington D.C. metropolitan area, where WMATA operates. There are no direct workforce implications beyond the employees receiving the transit benefit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and missed opportunities for better value.
The sole-source nature limits transparency in how the price was determined.
The long contract duration could lock the government into a potentially suboptimal arrangement if market conditions or needs change.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract is for a defined service (transit subsidies), reducing performance risk.
WMATA is a well-established transit authority in the region, suggesting reliability in service delivery.

Sector Analysis

This contract falls within the administrative services and employee benefits sector, specifically related to transportation. While not a large-scale procurement in the context of major federal IT or defense contracts, it represents a consistent expenditure for employee welfare. Comparable spending benchmarks would typically involve other agencies providing similar transit subsidy programs or employee benefit management contracts. The market for transit subsidies is often localized, with established transit authorities like WMATA being natural providers in their service areas.

Small Business Impact

This contract does not appear to involve any small business set-asides, as indicated by 'ss': false and 'sb': false. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a direct service provision from a large regional authority, WMATA, rather than leveraging the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would involve ensuring WMATA fulfills the terms of the subsidy agreement and that funds are disbursed appropriately. Transparency is limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases. There is no specific mention of an Inspector General's jurisdiction for this particular contract, though the DOL IG oversees departmental operations.

Related Government Programs

Federal Employee Transit Benefit Programs
Employee Commuting Assistance Programs
Government Employee Benefits Administration
Washington Metropolitan Area Transit Authority Contracts

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for above-market rates due to lack of competition.
Limited transparency on the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $6.7 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. TRANSIT SUBSIDY 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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2020-09-01. End: 2026-02-28.

What is the historical spending pattern for transit subsidies by the Department of Labor?

Historical spending data for transit subsidies by the Department of Labor prior to this contract award is not detailed in the provided information. However, the duration of the contract (2020-2026) suggests a continuation or establishment of a program. To assess historical patterns, one would need to examine prior fiscal years' obligations for similar services or employee benefit programs. The fact that this is a 'DEFINITIVE CONTRACT' awarded in 2020, with a potential start date around September 2020 and an end date in February 2026, indicates a planned expenditure over several years. Without prior contract numbers or detailed financial reports from the DOL, a comprehensive historical analysis is not possible from this data alone. Further investigation into DOL's budget allocations for employee services would be required.

How does the annual cost of this contract compare to the number of employees receiving subsidies?

The total contract value is $6,654,531.91, with an estimated period of performance from September 1, 2020, to February 28, 2026. This is approximately 5.4 years. The average annual cost is roughly $1,232,320.72 ($6,654,531.91 / 5.4 years). To compare this to the number of employees, we would need data on how many Department of Labor employees are eligible for and utilize these transit subsidies. If, for example, 2,000 employees utilize the subsidy, the average annual cost per employee would be approximately $616. This figure needs to be benchmarked against the average cost of transit passes in the DC metropolitan area and the typical subsidy levels offered by other federal agencies to determine if it represents good value. Without the employee count, a definitive assessment of per-employee cost-effectiveness is not possible.

What are the specific services WMATA is providing under this contract?

Under this contract, the Washington Metropolitan Area Transit Authority (WMATA) is providing transit subsidy benefits to Department of Labor employees. This likely involves facilitating the purchase or reimbursement of transit passes, fare cards, or other means of subsidizing public transportation costs for eligible employees commuting within WMATA's service area. The 'TRANSIT SUBSIDY BENEFIT PROGRAM' designation suggests a structured program rather than ad-hoc reimbursements. The exact mechanism (e.g., direct provision of passes, bulk purchase discounts, or reimbursement processing) would be detailed in the contract's statement of work, which is not provided here. The firm-fixed-price nature implies WMATA is responsible for delivering the agreed-upon subsidy value.

What is the track record of WMATA in delivering similar transit subsidy services to federal agencies?

WMATA is the primary public transit provider for the Washington D.C. metropolitan area, serving millions of riders daily. It has a long-standing history of operating extensive bus and rail networks. While WMATA's core business is providing transit services, its experience in administering specific subsidy programs for large employers, including federal agencies, is a key factor. Federal agencies often partner with WMATA for employee transit benefits. WMATA's established infrastructure and experience in managing fare systems and passenger services suggest a capable provider for subsidy administration. However, specific details on their track record with *sole-source* subsidy contracts for federal agencies would require further investigation beyond this contract's basic data.

Are there any performance metrics or Service Level Agreements (SLAs) associated with this contract?

The provided data does not explicitly detail performance metrics or Service Level Agreements (SLAs) for this contract. However, as a firm-fixed-price contract for a defined service, there are likely implicit expectations regarding the reliable and accurate provision of transit subsidies. The contract's success would likely be measured by the seamless delivery of benefits to employees and adherence to the terms of the subsidy program. Specific SLAs might cover aspects like timely distribution of benefits, accuracy of subsidy amounts, and responsiveness to employee inquiries related to the program. Without the full contract document or associated performance reports, it's impossible to confirm the presence or stringency of such metrics.

What is the rationale for awarding this contract on a sole-source basis?

The rationale for awarding this contract on a sole-source basis ('NOT COMPETED') is not provided in the summary data. Common reasons for sole-source procurements include that only one responsible source is available or capable of providing the required service, or that there is an urgent, compelling need that cannot be met through competition. Given that WMATA is the dominant transit provider in the DC metro area, it's plausible that the agency determined WMATA was the only entity capable of fulfilling the specific requirements of the transit subsidy program for its employees in that region, or that the administrative burden of competition was deemed excessive for the contract value. A formal justification for other than full and open competition would typically be documented by the agency.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Mixed Mode Transit Systems

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605C3-20-R-00001

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: $44,808,429

Exercised Options: $44,808,429

Current Obligation: $6,654,532

Actual Outlays: $6,529,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline