VA awards $6M patient transport contract to Govtraz, LLC for special needs services in Mississippi

Contract Overview

Contract Amount: $6,000,153 ($6.0M)

Contractor: Govtranz, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-01

End Date: 2026-03-31

Contract Duration: 973 days

Daily Burn Rate: $6.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PATIENT GROUNDS TRANSPORTATION

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39531

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.0 million to GOVTRANZ, LLC for work described as: PATIENT GROUNDS TRANSPORTATION Key points: 1. Contract aims to ensure reliable transportation for veterans, particularly those with special needs. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Competition under SAP (Simplified Acquisition Procedures) indicates a focus on smaller value procurements. 4. The contract duration of 973 days (approx. 2.6 years) provides a stable service period. 5. Geographic focus on Mississippi ensures localized support for veterans in that region. 6. The award to Govtraz, LLC warrants a review of their past performance and capacity.

Value Assessment

Rating: fair

The contract value of $6,001,553.11 over approximately 2.6 years averages to about $2.3 million annually. Benchmarking this against similar patient transportation contracts is challenging without more specific service details (e.g., number of trips, mileage, patient acuity). However, the award was made under Simplified Acquisition Procedures, suggesting it was likely within a price range considered reasonable for the scope. Further analysis would require comparing per-mile or per-trip costs to industry standards for specialized transportation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the federal micro-purchase threshold. While the exact number of bidders is not specified, SAP generally encourages competition among qualified vendors. The use of SAP suggests that the agency sought competitive proposals to ensure fair pricing and value for this service.

Taxpayer Impact: Competition under SAP aims to leverage market forces to secure favorable pricing for taxpayers on procurements of this size, ensuring that the government receives good value without the extensive administrative burden of full-scale competitive bidding.

Public Impact

Veterans in Mississippi, particularly those with special transportation needs, will benefit from reliable and accessible ground transport. The contract ensures the delivery of essential non-emergency medical transportation services. Services are geographically focused within Mississippi, supporting veterans in that state. Potential for local job creation within the transportation sector in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Need to verify contractor's capacity and experience with special needs transportation.
Ensure service quality meets the specific needs of vulnerable veteran populations.
Monitor contract performance to ensure timely and safe transportation.
Assess potential for price creep if service demands exceed initial estimates.

Positive Signals

Contract awarded under competitive procedures (SAP) suggests potential for good value.
Firm Fixed Price contract provides cost certainty for the government.
Clear geographic focus ensures services are delivered where needed.
Defined contract period allows for consistent service delivery.

Sector Analysis

The patient transportation services sector is a critical component of healthcare logistics, ensuring access to medical care. This contract falls within the broader professional services category, specifically supporting healthcare delivery for the Department of Veterans Affairs. The market includes numerous providers, ranging from small local operators to large national companies. Spending in this area is driven by the need to support healthcare access for beneficiaries, particularly in areas where public transportation is limited or specialized needs exist.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was competed under SAP, it's possible that small businesses were encouraged to participate. Further investigation into the solicitation details would be needed to determine if specific small business goals were established or met.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program managers within the Department of Veterans Affairs. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is generally maintained through contract databases like SAM.gov, where award details are published. Inspector General involvement would be contingent on reported issues of fraud, waste, or abuse.

Related Government Programs

Veteran Health Administration (VHA) Medical Support Contracts
Non-Emergency Medical Transportation (NEMT) Services
Department of Defense Transportation Contracts
Federal Supply Schedule (FSS) Transportation Services

Risk Flags

Contractor Performance Risk
Service Quality and Safety Risk
Geographic Service Area Adequacy
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.0 million to GOVTRANZ, LLC. PATIENT GROUNDS TRANSPORTATION

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 $6.0 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-03-31.

What is the track record of Govtraz, LLC in providing similar specialized transportation services to government agencies?

Assessing the track record of Govtraz, LLC is crucial for understanding their capability to fulfill this contract. A review of their past performance evaluations, any prior government contracts (especially with the VA or other healthcare providers), and client references would provide insight into their reliability, quality of service, and adherence to schedules and safety protocols. Specifically, experience with special needs transportation, which often involves specialized vehicles and trained personnel, is a key indicator. If Govtraz, LLC has a history of successful contract completion with positive performance reviews, it suggests a lower risk for this award. Conversely, past performance issues, such as missed deadlines, safety incidents, or client complaints, would raise concerns about their ability to meet the requirements of this new contract effectively.

How does the average annual cost of this contract compare to similar patient transportation services procured by the VA or other federal agencies?

The total award of $6,001,553.11 over 973 days (approximately 2.67 years) equates to an average annual cost of roughly $2,247,435. To benchmark this effectively, we would need to compare it against contracts for similar services, considering factors like geographic region, patient volume, types of special needs served, and service level agreements. For instance, if comparable contracts in Mississippi or surrounding states for similar patient volumes and needs average $2 million annually, this contract appears reasonably priced. However, if similar services are procured at a significantly lower annual rate elsewhere, it might indicate potential overpricing or a higher level of service expected under this contract. Accessing historical contract data and market research reports from the VA or GSA would be necessary for a precise comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential service disruptions due to contractor performance issues (e.g., vehicle breakdowns, driver shortages), inadequate quality of care impacting patient safety, and potential cost overruns if the scope of services expands beyond initial estimates. Mitigation strategies likely involve robust performance monitoring by the VA, clear service level agreements (SLAs) in the contract, requirements for background checks and training for drivers, and contingency plans for service continuity. The Firm Fixed Price nature of the contract helps mitigate cost overrun risks for the government, provided the scope remains defined. Regular communication channels between the VA and Govtraz, LLC are also essential for proactive risk management and addressing issues before they escalate.

How effective is the current contract in meeting the transportation needs of veterans with special requirements in Mississippi?

The effectiveness of this contract in meeting the needs of veterans with special requirements in Mississippi can be assessed through several metrics. These include on-time performance rates, patient satisfaction surveys, incident reports (or lack thereof), and feedback from VA case managers or healthcare providers who coordinate transportation. A high rate of successful, timely transports, coupled with positive patient feedback and minimal safety incidents, would indicate effectiveness. Conversely, frequent delays, patient complaints, or safety concerns would suggest a need for corrective action or contract modification. The VA's quality assurance personnel are responsible for monitoring these aspects throughout the contract's duration.

What has been the historical spending trend for patient ground transportation services by the Department of Veterans Affairs, particularly in Mississippi?

Analyzing historical spending trends for patient ground transportation by the VA, especially within Mississippi, provides context for this $6 million award. If VA spending in this category has been steadily increasing, it might indicate growing demand for services or inflation in transportation costs. Conversely, stable or decreasing spending could suggest optimized service delivery or shifts in veteran population needs. Understanding past spending levels helps in evaluating whether this contract represents a significant increase or decrease, and whether it aligns with broader budgetary allocations for VHA medical support services. This historical data is vital for long-term planning and budget justification.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25623Q0998

Offers Received: 3

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: $7,206,577

Exercised Options: $6,000,153

Current Obligation: $6,000,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline