DOT's $99M Virtual Fare Media Contract Awarded to WMATA with No Competition

Contract Overview

Contract Amount: $98,940,261 ($98.9M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2017-10-01

End Date: 2021-10-31

Contract Duration: 1,491 days

Daily Burn Rate: $66.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FY 2018 VIRTUAL FARE MEDIA AND SMARTBENEFITS - PARKING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $98.9 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: FY 2018 VIRTUAL FARE MEDIA AND SMARTBENEFITS - PARKING Key points: 1. Significant spending on transit technology, specifically fare media. 2. Lack of competition raises concerns about price discovery and value. 3. Contract duration of nearly four years suggests a substantial, ongoing need. 4. Focus on parking services within transit technology is a niche area.

Value Assessment

Rating: questionable

The contract value of $98.9M over almost four years is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market alternatives for similar virtual fare media and smart benefits systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers overpaying for these services, as the government did not explore potentially more cost-effective solutions.

Public Impact

Transit riders in the Washington Metropolitan Area may experience changes in fare payment systems. The use of virtual fare media could streamline payment processes for commuters. Smart benefits related to transit could offer cost savings or incentives to users. Government spending on transit technology impacts the broader transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Long contract duration

Positive Signals

Potential for improved transit payment systems
Focus on smart benefits

Sector Analysis

This contract falls within the transit and ground passenger transportation sector, specifically focusing on technology for fare media and related smart benefits. Spending benchmarks in this niche area are hard to establish without competitive data, but large IT contracts often require rigorous competition to ensure value.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is a large transit authority. This suggests limited direct opportunities for small businesses in this particular contract, unless they are subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the decision not to compete was justified. Transparency in the justification for sole-source awards is crucial.

Related Government Programs

All Other Transit and Ground Passenger Transportation
Department of Transportation Contracting
Immediate Office of the Secretary of Transportation Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited oversight visibility
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $98.9 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. FY 2018 VIRTUAL FARE MEDIA AND SMARTBENEFITS - PARKING

Who is the contractor on this award?

The obligated recipient is WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $98.9 million.

What is the period of performance?

Start: 2017-10-01. End: 2021-10-31.

What specific technological advancements or unique capabilities justify the sole-source award to WMATA for virtual fare media and smart benefits, given the absence of competition?

The justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or an urgent need that only a specific entity can fulfill. Without further details on the contract's justification, it's presumed WMATA possesses exclusive rights or infrastructure essential for this specific virtual fare media and smart benefits system, making competition impractical or impossible within the required timeframe.

How does the $98.9 million contract value compare to industry benchmarks for similar virtual fare media and smart benefits systems, especially considering the lack of competitive bidding?

Benchmarking this contract's value is challenging due to its sole-source nature and specific focus. Typically, competitive bidding drives down costs. Without comparable contracts awarded through a competitive process, it's difficult to definitively state if $98.9 million represents a fair market price. The absence of competition suggests a potential risk of overpayment compared to what could have been achieved through a competitive procurement.

What are the potential long-term implications for transit technology innovation and cost-effectiveness if agencies increasingly rely on sole-source contracts for critical systems like virtual fare med

A continued reliance on sole-source contracts could stifle innovation by reducing the incentive for vendors to develop cutting-edge, cost-effective solutions. It may also lead to higher costs for taxpayers and government agencies over time, as the market is not regularly tested for better alternatives. This practice could entrench incumbent providers, making it harder for new technologies and smaller businesses to enter the market.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 5TH ST NW, WASHINGTON, DC, 20001

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $104,997,733

Exercised Options: $104,997,733

Current Obligation: $98,940,261

Actual Outlays: $28,747,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTOS5917D00505

IDV Type: IDC

Timeline