DOT's FAA awards $21.5M transit benefits contract to WMATA, a sole-source award

Contract Overview

Contract Amount: $21,543,949 ($21.5M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2018-03-06

End Date: 2026-03-31

Contract Duration: 2,947 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: THIS CONTRACT IS FOR THE FAA WASHINGTON DC METRO AREA TRANSIT BENEFITS PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $21.5 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: THIS CONTRACT IS FOR THE FAA WASHINGTON DC METRO AREA TRANSIT BENEFITS PROGRAM Key points: 1. Contract provides transit benefits to FAA employees in the DC metro area. 2. Sole-source award to WMATA raises questions about competition and potential cost savings. 3. Long contract duration (2018-2026) suggests a stable, ongoing need for services. 4. The contract type (Cost No Fee) offers limited incentive for cost control by the contractor. 5. Focus on a specific geographic area (DC Metro) indicates localized service delivery. 6. The absence of small business set-asides suggests larger prime contractor involvement.

Value Assessment

Rating: fair

This contract's value is difficult to benchmark due to its sole-source nature and the specific service provided (transit benefits). Without competitive bids, it's challenging to assess if the $21.5 million over its term represents a fair market price. The Cost No Fee contract type also provides less assurance of cost efficiency compared to fixed-price contracts. However, the service is essential for employee benefits and retention in a high-cost-of-living area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the Washington Metropolitan Area Transit Authority (WMATA). This means that the FAA did not solicit bids from other potential providers. While WMATA is a logical provider for transit benefits in the DC metro area, the lack of competition means there was no opportunity to explore alternative pricing or service models that might have been offered by other entities.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the government's ability to discover potentially more innovative or cost-effective solutions from a wider market.

Public Impact

FAA employees in the Washington DC metro area benefit from subsidized public transportation. The contract supports employee commuting and reduces reliance on single-occupancy vehicles. The service is geographically concentrated within the DC metropolitan region. This contract supports the operational needs of the Federal Aviation Administration by facilitating employee access to work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost No Fee contract type offers minimal incentive for contractor cost efficiency.
Lack of transparency in pricing due to no competitive bidding process.
Long contract duration without clear performance metrics could lead to complacency.

Positive Signals

Provides essential employee benefits, aiding in recruitment and retention for FAA staff.
Supports sustainable transportation options in the DC metro area.
Leverages an existing, established transit authority (WMATA) for service delivery.

Sector Analysis

This contract falls within the broader category of government services and employee benefits administration. The market for transit benefit programs is often localized, with established transit authorities like WMATA being primary providers in major metropolitan areas. While not a large-scale procurement in terms of typical defense or IT contracts, it represents a consistent and necessary expenditure for agencies operating in areas with significant public transit infrastructure. Benchmarking is difficult as these are often niche, localized sole-source agreements.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. The prime contractor, WMATA, is a large regional transit authority. There is no information provided regarding subcontracting opportunities for small businesses within this specific contract, suggesting that the primary service delivery is handled directly by WMATA.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA) contracting officers and program managers. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Employee Commuter Benefits Programs
Federal Transit Administration Programs
Department of Transportation Employee Services
Washington Metropolitan Area Transit Authority Contracts

Risk Flags

Sole-source award lacks competitive justification.
Cost No Fee contract type offers limited cost control incentives.
Lack of publicly available performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.5 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. THIS CONTRACT IS FOR THE FAA WASHINGTON DC METRO AREA TRANSIT BENEFITS PROGRAM

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 (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2018-03-06. End: 2026-03-31.

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

The provided data does not explicitly state the justification for the sole-source award. However, sole-source contracts are typically awarded when only one responsible source is available or capable of providing the required service. In this case, WMATA is the primary public transit provider in the Washington DC metropolitan area, making it a logical, and potentially the only, entity capable of administering a comprehensive transit benefits program for FAA employees in that region. The FAA likely determined that WMATA possessed unique capabilities or that competition was not feasible or practical for this specific service.

How does the 'Cost No Fee' contract type impact cost control and contractor incentives?

A 'Cost No Fee' (Cost) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs but receives no fee or profit. This contract type is generally used when the cost risks are too high for either the government or the contractor to estimate with certainty, or when the service is considered essential and the provider is a non-profit or governmental entity. For the contractor (WMATA), there is no financial incentive to control costs beyond ensuring the service is delivered. The government bears all the cost risk. This contrasts with fixed-price contracts, which incentivize the contractor to manage costs tightly to maximize profit, or cost-plus-incentive-fee contracts, which offer bonuses for meeting or exceeding cost targets.

What is the historical spending pattern for this transit benefits program?

The provided data indicates a single definitive contract awarded on March 6, 2018, with an end date of March 31, 2026, totaling $21,543,949.05. This suggests that this is the primary, if not sole, contract vehicle used by the FAA for this specific transit benefits program in the DC metro area during this period. Without access to historical contract databases or previous contract awards for this program, it's difficult to establish a long-term spending trend. However, the current contract's duration and total value suggest a consistent and significant annual expenditure for employee transit benefits.

Are there any performance metrics or service level agreements associated with this contract?

The provided data does not include details on specific performance metrics or service level agreements (SLAs) for this contract. In 'Cost No Fee' contracts, the emphasis is often on the reimbursement of allowable costs incurred in performing the required service. While the contract undoubtedly outlines the scope of services expected (e.g., providing transit passes or subsidies to eligible employees), the absence of explicit performance data in the summary makes it difficult to assess the contractor's efficiency or effectiveness beyond fulfilling the basic service requirements. Robust oversight would typically involve monitoring service delivery and employee utilization.

What is the potential impact of this contract on the broader transit market in the DC area?

This contract's direct impact on the broader transit market is likely minimal. It primarily functions as a mechanism for the FAA to provide benefits to its employees, utilizing the existing infrastructure of WMATA. It does not represent a new transit service development or a significant expansion of WMATA's operations beyond what is already provided to the general public. The contract's value, while substantial for the FAA's employee benefits budget, is a fraction of WMATA's overall operating budget. Therefore, it's unlikely to significantly alter market dynamics or competition among transit providers in the region.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Mixed Mode Transit Systems

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $21,600,000

Exercised Options: $21,543,949

Current Obligation: $21,543,949

Actual Outlays: $12,110,047

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline