VA awards $2.7M contract for special needs transportation in Arizona

Contract Overview

Contract Amount: $2,740,142 ($2.7M)

Contractor: 28 Trans, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TRANSPORTATION

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to 28 TRANS, LLC for work described as: TRANSPORTATION Key points: 1. Contract awarded to 28 TRANS, LLC for specialized transport services. 2. Duration of the contract is one year, with a potential for extensions. 3. The contract is for special needs transportation, indicating a focus on vulnerable populations. 4. Awarded by the Department of Veterans Affairs, suggesting services for veterans. 5. The contract value is approximately $2.7 million. 6. The contract was not competed under the Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: fair

The contract value of $2.7 million for a one-year special needs transportation service appears to be within a reasonable range for such specialized services, especially considering the geographic area of Arizona. Without specific per-mile or per-trip data, a direct cost comparison is difficult. However, the fixed-price nature of the contract provides some cost certainty. Benchmarking against similar VA contracts for specialized transportation in other states or for different veteran populations would offer a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not openly competed. The data indicates it was 'NOT COMPETED UNDER SAP,' which often implies a non-competitive award outside of standard simplified acquisition thresholds or specific justifications for sole-source. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: For taxpayers, a sole-source award means there's a higher risk of paying a premium compared to a fully competed contract. Without competitive pressure, the awarded price may not reflect the lowest possible cost for the required services.

Public Impact

Veterans in Arizona requiring special needs transportation will benefit from this contract. The services delivered will ensure eligible individuals can access necessary appointments and facilities. The geographic impact is focused on Arizona, serving the state's veteran population. This contract supports the operational needs of the Department of Veterans Affairs in providing essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and limited vendor options.
Sole-source awards can reduce transparency and accountability in the procurement process.
The specific nature of 'special needs' requires careful monitoring to ensure service quality and appropriateness.

Positive Signals

The contract aims to fulfill a critical need for specialized transportation for veterans.
A fixed-price contract provides budget predictability for the VA.
The award is for a defined period, allowing for future re-evaluation of needs and competition.

Sector Analysis

The transportation services sector is vast, encompassing various modes and specializations. Contracts for specialized transportation, particularly for government agencies like the VA, often involve unique logistical challenges and regulatory requirements. This contract fits within the broader category of government support services, where ensuring reliable and accessible transport for specific populations, such as veterans with special needs, is a key objective. Benchmarking would typically involve comparing costs per mile, per trip, or per passenger hour against similar contracts within the healthcare or social services transportation domain.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to '28 TRANS, LLC' does not inherently suggest it is a small business, and the sole-source nature further limits opportunities for small businesses to participate as prime contractors. Subcontracting opportunities for small businesses are not specified in the provided data, but would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Veterans Health Administration (VHA) Medical Care Transportation
Department of Defense (DoD) Transportation Services
State-level Special Needs Transportation Programs
Non-Emergency Medical Transportation (NEMT) Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of transparency in procurement process.
Potential for service quality issues without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to 28 TRANS, LLC. TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is 28 TRANS, 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 $2.7 million.

What is the period of performance?

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

What is the track record of 28 TRANS, LLC in providing special needs transportation services, particularly for government contracts?

Information regarding the specific track record of 28 TRANS, LLC in providing special needs transportation, especially for government contracts, is not detailed in the provided data. As this was a sole-source award, the Department of Veterans Affairs likely conducted some level of due diligence on the contractor's capabilities and past performance. However, without access to the full contract file or contractor performance databases, a comprehensive assessment of their track record is not possible. Further investigation would be needed to determine their experience, client satisfaction, and history of successful contract completion in similar service areas. This would typically involve reviewing past performance evaluations, any debriefings from previous solicitations, and potentially searching for news or litigation related to the company's operations.

How does the awarded amount of $2.7 million compare to similar special needs transportation contracts awarded by the VA or other federal agencies?

A direct comparison of the $2.7 million award for special needs transportation in Arizona is challenging without more granular data on the scope of services, geographic coverage, and service levels (e.g., per mile rates, per trip costs, patient transport volume). However, the contract value appears substantial for a one-year duration, suggesting either a large service area, high demand, or significant complexity in the transportation needs of the beneficiaries. Similar contracts for non-emergency medical transportation (NEMT) or specialized transit services for vulnerable populations by agencies like Medicare or state Medicaid programs can range widely, from hundreds of thousands to tens of millions of dollars annually, depending on the scale. The VA's specific focus on veterans may also influence pricing due to specialized requirements or geographic distribution of beneficiaries. A thorough benchmark would require analyzing contract line item details and performance metrics from comparable awards.

What are the specific risks associated with a sole-source award for essential services like special needs transportation?

Sole-source awards for essential services like special needs transportation carry several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures that multiple bidders would typically exert. Secondly, there's a reduced incentive for the sole provider to innovate or improve service quality beyond the minimum contractual requirements, as there is no immediate threat of losing the contract to a competitor. Thirdly, it limits the government's flexibility; if the contractor underperforms or faces unforeseen issues, switching providers mid-contract can be extremely difficult and costly. Finally, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially eroding public trust and inviting scrutiny regarding the justification for not competing the requirement.

What are the potential program effectiveness implications of awarding this contract to a single vendor without competition?

The effectiveness of the special needs transportation program hinges significantly on the capabilities and performance of the awarded contractor, 28 TRANS, LLC. In a sole-source scenario, the VA relies heavily on its initial vetting of the contractor and ongoing performance monitoring. If 28 TRANS, LLC is highly competent and experienced, the program could be very effective, ensuring reliable and safe transportation for veterans. However, if the contractor lacks sufficient capacity, experience, or commitment to quality, the program's effectiveness could be compromised. This might manifest as delayed or missed appointments, inadequate vehicle suitability, or poor driver conduct. The absence of competitive pressure means the VA must be particularly diligent in contract management and performance oversight to ensure the program meets its intended goals and serves the needs of the veteran population effectively.

How does this contract align with the VA's overall spending patterns for transportation and support services?

This $2.7 million contract for special needs transportation in Arizona represents a specific allocation within the VA's broader budget for healthcare support and logistical services. The VA historically spends significant sums on ensuring veterans can access medical care, which includes various forms of transportation assistance. While this contract is for a specific type of transportation in a particular state, it aligns with the agency's mission to provide comprehensive care. Analyzing this award in the context of total VA spending on medical support services, including other transportation contracts (e.g., ambulance services, patient movement, general shuttle services) across different regions, would reveal its relative scale. The trend towards specialized services, like 'special needs transportation,' suggests a growing recognition and accommodation of diverse veteran requirements within the VA's service delivery model.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 204 DAVENTRY DR, DEBARY, FL, 32713

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: $2,740,142

Exercised Options: $2,740,142

Current Obligation: $2,740,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26225D0014

IDV Type: IDC

Timeline