DOL Awards $1.4M Sole Source Contract to WMATA for Transit Subsidy Program
Contract Overview
Contract Amount: $1,400,000 ($1.4M)
Contractor: Washington Metropolitan Area Transit Authority
Awarding Agency: Department of Labor
Start Date: 2026-03-01
End Date: 2027-02-28
Contract Duration: 364 days
Daily Burn Rate: $3.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: NEW SOLE SOURCE CONTRACT FOR DOL TRANSIT SUBSIDY BENEFIT PROGRAM.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Labor obligated $1.4 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: NEW SOLE SOURCE CONTRACT FOR DOL TRANSIT SUBSIDY BENEFIT PROGRAM. Key points: 1. The Department of Labor (DOL) has awarded a $1.4 million contract to the Washington Metropolitan Area Transit Authority (WMATA). 2. This contract is for the DOL Transit Subsidy Benefit Program. 3. The contract was not competed, raising questions about potential price discovery. 4. The program supports mixed-mode transit systems, indicating a focus on employee transportation benefits.
Value Assessment
Rating: fair
The contract value of $1.4 million for a 364-day period appears reasonable for transit subsidies, but without competition, it's difficult to benchmark against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This limits the government's ability to ensure the best possible price and terms through market competition.
Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the lack of competitive bidding.
Public Impact
Employees of the Department of Labor will benefit from subsidized transit. The contract supports the operational costs of transit services. This award could set a precedent for future transit subsidy contracts. The use of a sole-source award may limit opportunities for other transit providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for overpayment without competitive bidding
- Lack of transparency in pricing
Positive Signals
- Supports employee benefits program
- Ensures continued transit access for employees
Sector Analysis
The IT sector is not directly applicable here, as this contract falls under administrative services supporting employee benefits. Spending benchmarks for transit subsidies are highly localized and dependent on the specific services provided.
Small Business Impact
There is no indication that small businesses were considered or involved in this sole-source award, potentially missing opportunities for small business participation.
Oversight & Accountability
Oversight of this sole-source contract will be crucial to ensure the funds are used appropriately and that the services provided meet the intended objectives of the DOL Transit Subsidy Benefit Program.
Related Government Programs
- Mixed Mode Transit Systems
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- No small business consideration
Tags
mixed-mode-transit-systems, department-of-labor, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $1.4 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. NEW SOLE SOURCE CONTRACT FOR DOL 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 $1.4 million.
What is the period of performance?
Start: 2026-03-01. End: 2027-02-28.
What is the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves a unique capability or circumstance where only one source can fulfill the requirement. For this DOL transit subsidy, it's unclear if WMATA possesses such unique attributes or if there were other factors, like urgency or a pre-existing relationship, that led to this decision. Further documentation would be needed to fully assess the validity of the sole-source justification.
What is the risk of inflated costs due to the lack of competition?
The primary risk of a sole-source contract is the potential for inflated costs because there is no competitive pressure to drive down prices. Without comparing bids from multiple providers, the government may end up paying more than necessary. The fixed-price with economic price adjustment structure could also lead to cost increases over the contract term.
How effective is this contract in meeting the DOL's transit subsidy goals?
The effectiveness of this contract hinges on whether it successfully provides the intended transit subsidies to DOL employees at a reasonable value. While the contract ensures a provider is in place, the lack of competition makes it difficult to independently verify if the terms are optimal or if alternative, more cost-effective solutions might exist. Performance metrics within the contract will be key to assessing effectiveness.
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: 1605C3-26-R-00003
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 300 7TH ST SW, WASHINGTON, DC, 20024
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: $53,874,905
Exercised Options: $9,750,000
Current Obligation: $1,400,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2026-03-01
Current End Date: 2027-02-28
Potential End Date: 2031-02-28 00:00:00
Last Modified: 2026-04-07
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