VA awards $9M task order for special needs transportation in Massachusetts

Contract Overview

Contract Amount: $8,999,638 ($9.0M)

Contractor: Alternative Transportation Systems, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BEDFORD & BOSTON SPECIAL MODE TRANSPORT OY3 TASK ORDER

Place of Performance

Location: JAMAICA PLAIN, SUFFOLK County, MASSACHUSETTS, 02130

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.0 million to ALTERNATIVE TRANSPORTATION SYSTEMS, LLC for work described as: BEDFORD & BOSTON SPECIAL MODE TRANSPORT OY3 TASK ORDER Key points: 1. Contract value represents a significant investment in specialized transport services. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of one year indicates a need for ongoing, consistent service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award is managed by the VA, a large federal agency with extensive procurement needs. 6. Special needs transportation is a critical service for beneficiaries requiring assistance.

Value Assessment

Rating: good

The contract value of approximately $9 million for a one-year period for special needs transportation appears reasonable given the specialized nature of the service. Benchmarking against similar contracts is challenging without more specific service details, but the VA's consistent need for such services suggests this is within a typical range for large-scale operations. The firm fixed-price structure provides cost certainty for the government, assuming the contractor can manage operational costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific details of the exclusion of sources are not provided, but the 'full and open' designation generally implies a robust competitive process. The number of bidders is not specified, but the open competition is a positive sign for price discovery and value for taxpayers.

Taxpayer Impact: A full and open competition process is expected to yield competitive pricing, ensuring that taxpayer dollars are used efficiently for essential services like special needs transportation.

Public Impact

Veterans and other eligible beneficiaries with special needs requiring transportation assistance will benefit from this contract. The services delivered will ensure timely and safe transport to medical appointments, rehabilitation, and other essential locations. The geographic impact is focused on Massachusetts, ensuring local beneficiaries receive necessary support. This contract supports a workforce of drivers and support staff within the transportation sector in Massachusetts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor faces operational challenges.
Ensuring consistent quality of care and driver professionalism across all services.

Positive Signals

Award to a single vendor for a defined period provides service continuity.
Firm fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a market-driven price.

Sector Analysis

The special needs transportation sector is a vital component of the broader healthcare and social services industry. It involves specialized vehicles, trained personnel, and adherence to strict safety and accessibility regulations. Federal spending in this area often supports vulnerable populations, including veterans, through agencies like the Department of Veterans Affairs. Market size is substantial, driven by demographic needs and government mandates for accessible services. This contract fits within the VA's broader mission to provide comprehensive care and support to its beneficiaries.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a full and open competition, it's possible that small businesses were eligible to compete directly or participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and addressing any issues that arise. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
TRICARE Medical Transportation
Community Care Network (CCN)
Federal Transit Administration Grants

Risk Flags

Potential for service gaps if contractor faces operational issues.
Ensuring consistent quality and safety standards across all services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.0 million to ALTERNATIVE TRANSPORTATION SYSTEMS, LLC. BEDFORD & BOSTON SPECIAL MODE TRANSPORT OY3 TASK ORDER

Who is the contractor on this award?

The obligated recipient is ALTERNATIVE TRANSPORTATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the historical spending pattern for special needs transportation by the Department of Veterans Affairs?

Historical spending data for special needs transportation by the VA reveals a consistent and significant investment in these services over the years. While specific figures fluctuate based on demand, geographic coverage, and contract vehicles, the VA has historically allocated substantial resources to ensure beneficiaries can access necessary medical care and support. For instance, in recent fiscal years, VA spending on non-emergency medical transportation, which often encompasses special needs, has been in the hundreds of millions of dollars annually. This particular $9 million task order represents a portion of that broader commitment. Analyzing trends over multiple years would show whether spending is increasing, decreasing, or remaining stable, potentially influenced by factors like veteran population growth, healthcare policy changes, and the expansion of VA services.

How does the per-unit cost of this special needs transportation contract compare to similar VA contracts or industry benchmarks?

A precise per-unit cost comparison for this specific $9 million task order is challenging without detailed breakdowns of service units (e.g., per mile, per trip, per hour) and the specific types of special needs addressed. However, the VA generally aims to secure competitive rates through its contracting processes. For special needs transportation, costs are typically higher than standard transport due to the requirement for specialized vehicles (e.g., wheelchair accessible), trained personnel, and potentially longer transit times for safety. Industry benchmarks for specialized medical transportation can range significantly, but rates often fall between $50-$150 per trip or $3-$7 per mile, depending on the level of service and geographic location. The VA's procurement strategy, including full and open competition, is designed to achieve rates that are both fair and reasonable, balancing cost with the critical need for reliable service delivery to beneficiaries.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this task order?

Key Performance Indicators (KPIs) for a special needs transportation contract like this typically focus on service reliability, safety, beneficiary satisfaction, and compliance. Common KPIs include on-time performance rates (e.g., percentage of appointments met within a specified window), vehicle availability and maintenance records, incident/accident rates, patient complaint resolution times, and adherence to safety protocols and accessibility standards. The VA contracting officer and quality assurance personnel would monitor these metrics throughout the contract period. Performance against these KPIs directly influences contractor payment and potential future contract awards. Failure to meet critical KPIs could result in corrective action plans or even contract termination.

What is the track record of ALTERNATIVE TRANSPORTATION SYSTEMS, LLC with federal contracts, particularly with the Department of Veterans Affairs?

Assessing the track record of ALTERNATIVE TRANSPORTATION SYSTEMS, LLC requires a review of their past federal contract awards and performance history. Information available through federal procurement databases (like SAM.gov or FPDS) can indicate the types of contracts they have held, their value, and their duration. For VA contracts specifically, performance evaluations (Contractor Performance Assessment Reporting System - CPARS) might be available, offering insights into their reliability, quality of service, and overall performance. A history of successful contract completion, particularly in similar service areas like transportation or support for vulnerable populations, would be a positive indicator. Conversely, a record of significant performance issues, disputes, or contract terminations could raise concerns about their capacity to fulfill this new task order effectively.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this special needs transportation contract include service disruptions due to vehicle breakdowns, driver shortages, or unforeseen operational challenges. There's also a risk related to maintaining consistent service quality and ensuring the safety and well-being of beneficiaries. Furthermore, cost overruns could occur if the contractor mismanages expenses under the firm fixed-price structure. Mitigation strategies typically involve robust contract oversight by the VA, including regular performance monitoring against KPIs, clear communication channels with the contractor, and contingency planning requirements within the contract itself. The contractor is incentivized to mitigate risks due to the fixed-price nature, as they bear the financial burden of cost overruns. The VA may also maintain relationships with backup providers or have procedures for rapid re-solicitation if service failures are severe.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › Special Needs Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 DUDLEY CT, ARLINGTON, MA, 02476

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,999,638

Exercised Options: $8,999,638

Current Obligation: $8,999,638

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24121D0022

IDV Type: IDC

Timeline