VA awards $380K purchase order for wheelchair transportation services to Govtranz National LLC

Contract Overview

Contract Amount: $380,000 ($380.0K)

Contractor: Govtranz National LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-05-31

Contract Duration: 58 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WHEELCHAIR TRANSPORTATION

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39531

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $380,000 to GOVTRANZ NATIONAL LLC for work described as: WHEELCHAIR TRANSPORTATION Key points: 1. The contract value of $380,000 for a 58-day period suggests a high daily rate for transportation services. 2. Limited competition due to a 'NOT COMPETED' award raises questions about potential cost savings. 3. The firm fixed-price contract type offers cost certainty but may not reflect actual service utilization. 4. Awarding to Govtranz National LLC, with no prior contract history in this specific PSC, warrants further investigation into their qualifications. 5. The short duration of the contract indicates a potential need for ongoing, recurring services. 6. The absence of small business set-aside flags a missed opportunity to support smaller enterprises in this sector.

Value Assessment

Rating: questionable

The $380,000 award for a 58-day period equates to approximately $6,552 per day. This daily rate appears exceptionally high for wheelchair transportation services, especially when considering the contract is a purchase order. Without comparable contract data for similar services in Mississippi or nationally, it is difficult to definitively benchmark the value. However, the high daily cost warrants scrutiny to ensure it aligns with market rates and the scope of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' method, indicating a sole-source or limited competition scenario. The specific justification for not competing the award is not provided in the data. This lack of competition means that the Department of Veterans Affairs did not explore potential alternative vendors or solicit bids from the broader market. Consequently, it is difficult to assess if the government received the best possible pricing and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially missing out on cost efficiencies that a competitive process could have yielded.

Public Impact

Veterans in Mississippi requiring wheelchair transportation services are the primary beneficiaries of this contract. The contract ensures the provision of essential special needs transportation for a defined period. The geographic impact is localized to Mississippi, serving the needs of veterans within that state. While not explicitly stated, the service delivery likely supports veterans' access to medical appointments and other essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost per vehicle/service raises concerns about potential overpayment.
Lack of competition limits transparency and potential for cost savings.
Short contract duration suggests potential for recurring, uncompeted awards.
No prior contract history for this vendor in this specific service area requires due diligence.
Firm fixed price may not align with actual service usage, leading to potential inefficiencies.

Positive Signals

Ensures essential transportation services are available for veterans.
Firm fixed price provides budget certainty for the agency.
Contract is for a defined period, allowing for re-evaluation of needs.

Sector Analysis

The special needs transportation sector, particularly for government contracts, involves providing specialized vehicles and trained personnel to assist individuals with mobility challenges. This contract falls within the broader transportation services industry, which is a significant component of government procurement. Benchmarking this specific award is challenging without more granular data on daily rates for similar specialized transportation services. However, the overall market for transportation services is competitive, making the sole-source nature of this award notable.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false) and there is no indication of subcontracting requirements for small businesses (sb: false). This means that opportunities for small businesses to participate in providing these essential transportation services were not actively pursued through this specific procurement action. The absence of small business involvement could limit the reach of the small business ecosystem in supporting government needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency is limited due to the sole-source award and lack of detailed justification. There is no explicit mention of an Inspector General's jurisdiction for this specific award, though the VA OIG generally oversees VA programs and contracts.

Related Government Programs

Special Needs Transportation
Medical Transportation Services
Veteran Support Services
Government Purchase Orders

Risk Flags

High Cost Per Day
Sole-Source Award
Lack of Competition
No Prior Contract History for Service
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $380,000 to GOVTRANZ NATIONAL LLC. WHEELCHAIR TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is GOVTRANZ NATIONAL 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 $380,000.

What is the period of performance?

Start: 2026-04-03. End: 2026-05-31.

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

The provided data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. However, the specific justification for this determination is not included. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required service, or in cases of urgent and compelling need. Without the official justification document, it is impossible to ascertain the precise reasons why the Department of Veterans Affairs did not conduct a competitive bidding process for these wheelchair transportation services.

How does the daily rate of approximately $6,552 compare to market rates for wheelchair transportation?

The daily rate derived from this contract ($380,000 / 58 days ≈ $6,552/day) appears exceptionally high when compared to general market rates for wheelchair transportation. Standard rates can vary significantly based on location, type of vehicle, level of care required, and duration of service, but typically range from a few hundred to perhaps a thousand dollars per day for specialized services. This high figure suggests potential overpricing or a misunderstanding of the service scope. Further investigation into the specific services included (e.g., specialized medical equipment, 24/7 availability, advanced staffing) would be necessary to validate this rate against industry benchmarks.

What is Govtranz National LLC's track record with the federal government, particularly for transportation services?

Based on the provided data, Govtranz National LLC has no prior contract history listed under the specific PSC (Product Service Code) related to 'Special Needs Transportation' or similar services. The 'br' value of 6552 might indicate a past performance rating or a different metric, but without context, it's unclear. The lack of established federal contract history for this specific service raises questions about the vendor's experience and past performance in delivering similar government contracts, especially concerning specialized transportation.

What are the potential risks associated with a short-duration, sole-source contract for essential services?

Short-duration, sole-source contracts for essential services like wheelchair transportation carry several risks. Firstly, the lack of competition can lead to inflated prices and reduced value for taxpayer money. Secondly, the short duration may indicate a recurring need, and if consistently awarded sole-source, it prevents the government from exploring potentially better or more cost-effective solutions over time. Thirdly, it limits opportunities for new or small businesses to enter the market and demonstrate their capabilities. Finally, it can create a dependency on a single vendor, potentially impacting service continuity if issues arise.

How does this contract align with the Department of Veterans Affairs' broader mission to support veterans' healthcare access?

This contract directly supports the VA's mission by providing essential transportation for veterans who require wheelchair assistance, likely to access medical appointments and other healthcare services. Ensuring veterans can reach their healthcare providers is a critical component of comprehensive veteran care. However, the manner of award (sole-source) and the high apparent cost raise questions about the efficiency and effectiveness of this specific procurement in fulfilling that mission. While the service is necessary, the procurement process could potentially be optimized for better value.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 293 SEASIDE SPARROW WAY, KYLE, TX, 78640

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: $380,000

Exercised Options: $380,000

Current Obligation: $380,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline