DOE awards $655K sole-source purchase order to CSX Transportation for rail inspection and maintenance
Contract Overview
Contract Amount: $65,564 ($65.6K)
Contractor: CSX Transportation, Inc
Awarding Agency: Department of Energy
Start Date: 2025-08-02
End Date: 2026-08-01
Contract Duration: 364 days
Daily Burn Rate: $180/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CSX AGREEMENT RAILROAD INSPECTION AND MAINTENANCE FOR A ONE (1) YEAR PERFORMANCE PERIOD.
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $65,564 to CSX TRANSPORTATION, INC for work described as: CSX AGREEMENT RAILROAD INSPECTION AND MAINTENANCE FOR A ONE (1) YEAR PERFORMANCE PERIOD. Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. The contract duration of one year aligns with typical maintenance cycles. 4. Performance is concentrated in South Carolina, indicating a localized need. 5. The award falls under the Support Activities for Rail Transportation NAICS code.
Value Assessment
Rating: fair
The contract value of $655,640 for a one-year rail inspection and maintenance agreement appears reasonable given the specialized nature of the services and the sole-source award. Without comparable contract data for similar rail infrastructure maintenance by the Department of Energy, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is set appropriately.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), suggesting it may have been justified under specific sole-source regulations or exceptions. 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 advantageous pricing through a competitive bidding process.
Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost reductions typically achieved through a bidding war among multiple qualified suppliers.
Public Impact
The Department of Energy benefits through the maintenance of critical rail infrastructure. Services include inspection and maintenance of railroad lines, ensuring operational safety and reliability. The geographic impact is focused on South Carolina, where the rail assets are located. The contract supports the operational workforce of CSX Transportation, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing benefits for taxpayers.
- Lack of transparency in the justification for sole-source award.
- Potential for higher costs due to absence of competitive bidding.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- One-year duration is appropriate for maintenance services.
- Contract supports essential infrastructure maintenance for the Department of Energy.
Sector Analysis
The rail transportation sector is critical for logistics and infrastructure. This contract falls under Support Activities for Rail Transportation, a niche within the broader transportation and logistics industry. The market for specialized rail inspection and maintenance services is often concentrated among a few key players, especially when specific infrastructure or geographic requirements are involved. The Department of Energy's need for such services likely relates to specific research facilities, legacy infrastructure, or energy transport routes.
Small Business Impact
This contract was awarded to CSX Transportation, Inc., a large corporation, and there is no indication of small business set-asides or subcontracting requirements. Therefore, this award is unlikely to have a direct positive impact on the small business ecosystem. The focus is on a large, established entity providing specialized services.
Oversight & Accountability
As a purchase order issued by the Department of Energy, this contract is subject to the agency's internal oversight and financial management controls. The firm-fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency regarding the sole-source justification would be crucial for a comprehensive oversight assessment, which is not fully detailed in the provided data.
Related Government Programs
- Federal Railroad Administration (FRA) Safety Programs
- Department of Transportation (DOT) Infrastructure Grants
- Surface Transportation Board (STB) Oversight
Risk Flags
- Sole-source award may limit price competition.
- Lack of detailed justification for sole-source award.
- Potential for higher costs due to lack of competition.
Tags
transportation, department-of-energy, south-carolina, purchase-order, support-activities-for-rail-transportation, firm-fixed-price, sole-source, maintenance, inspection, csx-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $65,564 to CSX TRANSPORTATION, INC. CSX AGREEMENT RAILROAD INSPECTION AND MAINTENANCE FOR A ONE (1) YEAR PERFORMANCE PERIOD.
Who is the contractor on this award?
The obligated recipient is CSX TRANSPORTATION, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $65,564.
What is the period of performance?
Start: 2025-08-02. End: 2026-08-01.
What is the historical spending pattern of the Department of Energy on rail inspection and maintenance services, particularly with CSX Transportation?
The provided data only details a single award of $655,640 to CSX Transportation for a one-year period. To understand historical spending patterns, a broader search across federal procurement databases (like FPDS or USASpending) would be necessary. This would involve looking for previous contracts awarded by the Department of Energy (DOE) or its predecessor agencies to CSX Transportation or other entities for similar rail inspection and maintenance services. Analyzing these historical data points would reveal trends in contract values, durations, competition levels, and the overall investment DOE has made in maintaining its rail infrastructure over time. Without this historical context, it's difficult to determine if this current award represents an increase, decrease, or consistent level of spending.
How does the per-unit cost of this rail inspection and maintenance contract compare to industry benchmarks or similar government contracts?
A precise per-unit cost comparison is not feasible with the current data, as the contract is a lump-sum purchase order for a comprehensive service package over one year. To establish benchmarks, one would need to break down the $655,640 into specific service units (e.g., cost per mile inspected, cost per track segment maintained, cost per hour of labor). Subsequently, these unit costs would need to be compared against industry standards for rail maintenance or against similar contracts awarded by other federal agencies or even state transportation departments. Given the specialized nature of rail infrastructure and the sole-source award to CSX Transportation, a direct comparison might be challenging, but identifying any significant deviations from general industry rates would be a key indicator of value for money.
What specific risks are associated with this sole-source contract for rail inspection and maintenance?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without multiple bids, CSX Transportation may not have been incentivized to offer the lowest possible price. Another risk is reduced transparency in the justification for the sole-source award; if the rationale for not competing the contract is weak or not well-documented, it raises concerns about fairness and potential favoritism. Furthermore, there's a risk that the government might not be receiving the most innovative solutions or the best overall value proposition compared to what a competitive process could yield. Finally, reliance on a single contractor for critical infrastructure maintenance can create dependency and limit flexibility if performance issues arise or if future needs change significantly.
What is the track record of CSX Transportation, Inc. in performing similar rail inspection and maintenance services for government agencies?
CSX Transportation, Inc. is a major freight railroad company in the United States, operating an extensive network. Their core business involves the operation and maintenance of rail infrastructure, including inspection and repair. Therefore, they possess significant experience and established processes for performing these types of services. However, their track record specifically with government agencies for similar maintenance contracts would need to be independently verified through federal procurement databases (e.g., reviewing past performance evaluations, contract awards, and any reported disputes or issues). While their commercial operations suggest capability, government contracts often have specific reporting, compliance, and performance standards that require detailed examination of their past performance history within the public sector.
How does the $655,640 award amount compare to the overall budget or spending on infrastructure maintenance within the Department of Energy?
The $655,640 award represents a specific allocation for rail inspection and maintenance in South Carolina for one year. To assess its significance relative to the Department of Energy's (DOE) overall budget or infrastructure maintenance spending, one would need access to DOE's comprehensive budget documents and capital improvement plans. The DOE manages a vast array of facilities, including national laboratories, power generation assets, and research centers, many of which may have unique infrastructure needs, including rail lines. This $655K award could be a small, targeted expenditure within a much larger infrastructure maintenance portfolio, or it could represent a significant portion of a specific program's budget. Without broader budgetary context, it's difficult to gauge the relative scale and importance of this particular contract.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Rail Transportation › Support Activities for Rail Transportation
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CSX Corporation
Address: 500 WATER ST # C160, JACKSONVILLE, FL, 32202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,564
Exercised Options: $65,564
Current Obligation: $65,564
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-08-02
Current End Date: 2026-08-01
Potential End Date: 2026-08-01 00:00:00
Last Modified: 2026-04-03
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