VA awards $3.2M contract for non-emergency wheelchair van transport in Tennessee

Contract Overview

Contract Amount: $3,247,830 ($3.2M)

Contractor: Govtranz, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $8.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NON-EMERGENCY TRANSPORTATION (WHEELCHAIR VAN)

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to GOVTRANZ, LLC for work described as: NON-EMERGENCY TRANSPORTATION (WHEELCHAIR VAN) Key points: 1. Contract aims to ensure access to essential medical appointments for veterans. 2. Competition was conducted under Simplified Acquisition Procedures, suggesting a focus on efficiency for smaller dollar values. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. Performance period spans one year, aligning with annual budget cycles. 5. The awardee, GovTranz, LLC, will provide specialized transportation services. 6. Geographic focus on Tennessee ensures localized support for veterans in the state.

Value Assessment

Rating: good

The contract value of $3.2 million for a one-year period for specialized transportation services appears reasonable given the nature of the service. Benchmarking against similar contracts for non-emergency medical transportation, especially for specialized needs like wheelchair vans, would provide a clearer picture of value. The firm-fixed-price structure helps manage cost fluctuations. Without specific per-mile rates or detailed service level agreements, a precise value-for-money assessment is challenging, but the contract appears to address a critical need with a defined budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for purchases below the threshold for full and open competition. While the specific details of the solicitation are not provided, SAP generally allows for a broader range of potential offerors than sole-source or limited competition. The fact that it was competed suggests that multiple vendors were likely aware of and had the opportunity to bid on the requirement, contributing to price discovery.

Taxpayer Impact: Competing the contract, even under SAP, helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Veterans in Tennessee requiring non-emergency medical transportation, particularly those with mobility challenges, will benefit from reliable access to healthcare appointments. The service ensures that veterans can attend crucial medical treatments, check-ups, and therapy sessions, contributing to their overall health and well-being. The geographic impact is focused on the state of Tennessee, providing localized support for the veteran population within that region. This contract supports the healthcare access mission of the Department of Veterans Affairs, reinforcing its commitment to serving those who have served.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor faces operational challenges.
Ensuring consistent quality of care and vehicle maintenance across all services provided.
Monitoring adherence to schedules and patient safety protocols.

Positive Signals

Firm-fixed-price contract provides budget certainty.
One-year duration allows for annual review and potential re-competition.
Focus on a specific geographic area (Tennessee) allows for tailored service delivery.

Sector Analysis

The healthcare transportation sector is a critical component of the broader healthcare delivery system, ensuring patient access to services. This contract falls within the specialized transportation services market, which is often characterized by specific vehicle requirements (e.g., wheelchair accessibility) and regulatory compliance. The Department of Veterans Affairs is a significant purchaser of such services to support its healthcare mission for veterans nationwide. Spending in this area is driven by the need to provide comprehensive care, including logistical support for patients.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures and does not specify a small business set-aside. Therefore, it is unclear if small businesses were specifically targeted or had opportunities to participate as prime contractors. However, the prime contractor, GovTranz, LLC, may itself be a small business, or there could be subcontracting opportunities for small businesses within the scope of this contract, depending on GovTranz's business structure and subcontracting plans.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA). The VA's contract officers and program managers are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying that services meet established quality and safety standards. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Non-Emergency Medical Transportation (NEMT)
Veteran Healthcare Services
Specialized Transportation Contracts
Department of Veterans Affairs Medical Services

Risk Flags

Potential for service disruptions due to contractor operational issues.
Ensuring consistent quality and safety standards across all provided services.
Monitoring adherence to schedules and patient transport protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to GOVTRANZ, LLC. NON-EMERGENCY TRANSPORTATION (WHEELCHAIR VAN)

Who is the contractor on this award?

The obligated recipient is GOVTRANZ, 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 $3.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of GovTranz, LLC in providing similar transportation services to the federal government?

A review of federal procurement data indicates that GovTranz, LLC has been awarded contracts for transportation services, including non-emergency medical transportation, by various federal agencies. For instance, data may show prior awards from the Department of Defense or other components of the VA. Analyzing the value, duration, and performance history of these previous contracts would provide insight into GovTranz's experience and reliability. Specific details regarding past performance, such as on-time delivery rates, customer satisfaction, and any past disputes or corrective actions, would be crucial for a comprehensive assessment of their track record.

How does the awarded price compare to market rates for wheelchair van transportation in Tennessee?

To assess the value for money, the awarded contract price needs to be benchmarked against prevailing market rates for similar wheelchair van transportation services in Tennessee. This would involve researching rates charged by private providers in the region, considering factors such as per-mile charges, hourly rates, and any additional fees for specialized equipment or services. If the VA has internal cost estimates or historical data for comparable services, that would also serve as a valuable benchmark. A significant deviation from market rates, either higher or lower, would warrant further investigation into the underlying cost structure and service scope.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs), typical metrics for non-emergency medical transportation contracts include on-time performance (percentage of trips completed within scheduled windows), patient satisfaction scores, vehicle maintenance and safety compliance, and adherence to specific service protocols (e.g., driver training, patient assistance). The Department of Veterans Affairs likely has a performance work statement (PWS) outlining these requirements and the methods for measuring contractor performance. Successful contract management hinges on diligent monitoring of these KPIs to ensure service quality and reliability.

What is the historical spending trend for non-emergency transportation services by the Department of Veterans Affairs?

Analyzing historical spending data for non-emergency transportation services by the Department of Veterans Affairs (VA) would reveal trends in demand, contract values, and the types of services procured. This could show an increasing or decreasing reliance on such services, shifts in contracting strategies (e.g., more competed vs. sole-source awards), and average contract values over time. Understanding these patterns can help contextualize the current $3.2 million award, indicating whether it represents a typical investment or a significant change in spending. It also helps in forecasting future budgetary needs for these essential services.

Are there any specific risks associated with providing wheelchair van transportation in Tennessee that this contract addresses?

Providing wheelchair van transportation in Tennessee may involve specific risks related to geographic coverage, traffic conditions, weather events, and the availability of qualified drivers and accessible vehicles. This contract likely addresses these by specifying service areas within Tennessee, setting response time requirements, and outlining vehicle maintenance standards. The firm-fixed-price structure helps mitigate financial risks for the government related to fluctuating operational costs. The VA's oversight is crucial to ensure the contractor effectively manages these operational risks to maintain reliable service delivery for veterans.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 78 E 300 N, SALT LAKE CITY, UT, 84103

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,247,830

Exercised Options: $3,247,830

Current Obligation: $3,247,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24924D0031

IDV Type: IDC

Timeline