DOT awarded $86.6M to WMATA for transit services, a sole-source contract with a 5-year duration

Contract Overview

Contract Amount: $86,625,840 ($86.6M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2010-10-01

End Date: 2015-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $47.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA

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 $86.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 5 years suggests a long-term need for transit services. 3. Fixed-price contract type aims to control costs, but sole-sourcing may inflate the base price. 4. Awarded to an established transit authority, implying a known entity with existing infrastructure. 5. No small business set-aside, indicating potential missed opportunities for smaller firms. 6. Spending is concentrated in the DC metro area, aligning with the transit authority's operational scope.

Value Assessment

Rating: fair

The contract value of $86.6 million over five years averages to approximately $17.3 million annually. Benchmarking this against similar transit service contracts is challenging without more specific service details. However, given the sole-source nature and the established provider (WMATA), the pricing may not reflect the most competitive market rates. The fixed-price structure provides some cost certainty, but the lack of competition raises questions about whether the government secured the best possible value.

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 Department of Transportation did not solicit bids from other potential providers. While WMATA is a logical provider for transit services in the DC metropolitan area, the lack of competition means that alternative solutions or more cost-effective options from other vendors were not explored. This approach can be justified if WMATA is the only entity capable of providing the required services, but it bypasses the standard competitive procurement process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall expenditures.

Public Impact

Federal employees and personnel in the Washington D.C. metropolitan area benefit from reliable transit services. The contract supports the operation and maintenance of transit infrastructure crucial for government operations. Geographic impact is concentrated within the Washington D.C. metropolitan area, serving a key federal hub. Workforce implications include the continued employment of transit operators, maintenance staff, and administrative personnel at WMATA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of small business participation means missed opportunities to foster growth in smaller transit-related businesses.
Long contract duration without clear performance metrics could reduce incentives for continuous improvement.
Concentration of spending with one provider may create vendor lock-in.

Positive Signals

Award to WMATA leverages an existing, experienced transit provider with established infrastructure.
Fixed-price contract provides cost certainty for the government over the contract period.
Contract supports essential transportation services for federal operations in the capital region.
Long-term contract ensures continuity of service, vital for government employee commutes and operations.

Sector Analysis

The transit and ground passenger transportation sector is a critical component of infrastructure, facilitating movement of people and goods. This contract falls under 'All Other Transit and Ground Passenger Transportation,' a broad category encompassing services not specifically classified elsewhere. The market for transit services in major metropolitan areas is often dominated by large, established authorities like WMATA, especially for integrated regional systems. Federal spending in this sector supports essential services, national security logistics, and economic activity. Comparable spending benchmarks would depend heavily on the specific routes, service levels, and fleet size provided.

Small Business Impact

This contract did not include a small business set-aside, nor is there any indication of subcontracting requirements for small businesses. Given that the award was sole-source to WMATA, a large public transit authority, there were likely no opportunities for small businesses to participate directly in this procurement. This represents a missed opportunity to engage the small business ecosystem in providing transit services or related support functions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. As a sole-source award to a public entity, the level of transparency might differ from competitively awarded contracts. Accountability measures would be defined in the contract terms, focusing on service delivery and adherence to the fixed-price agreement. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Transit Administration Grants
Department of Transportation Operating Expenses
Metropolitan Planning Organizations
Commuter Rail Services

Risk Flags

Sole-source award may indicate a lack of market research or justification for competition.
Potential for inflated pricing due to lack of competitive bidding.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $86.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA

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 $86.6 million.

What is the period of performance?

Start: 2010-10-01. End: 2015-09-30.

What specific transit services are being procured under this contract?

The provided data indicates the contract is for 'All Other Transit and Ground Passenger Transportation' awarded to the Washington Metropolitan Area Transit Authority (WMATA). While the specific services are not detailed, it is reasonable to infer that this contract covers the provision of public transportation services within the Washington D.C. metropolitan area. This could include bus services, rail operations (like the Metrorail system), paratransit services, and potentially related support functions such as maintenance, scheduling, and operational management. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not available in the provided summary data. Understanding the precise services is crucial for evaluating the value and necessity of the $86.6 million expenditure over five years.

How does the $17.3 million annual cost compare to similar transit contracts in other major metropolitan areas?

Directly comparing the $17.3 million annual cost to similar transit contracts is difficult without detailed service specifications. However, major transit authorities in large metropolitan areas often manage budgets significantly higher than this figure for their overall operations. For instance, the New York Metropolitan Transportation Authority (MTA) has an annual operating budget in the tens of billions of dollars. The Los Angeles County Metropolitan Transportation Authority (Metro) also operates with multi-billion dollar annual budgets. The $17.3 million figure for this specific DOT contract likely represents a portion of WMATA's overall operational costs, potentially for specific routes, services, or federal facility access. To make a meaningful comparison, one would need to isolate the cost per passenger mile, cost per service hour, or cost per route mile for the services funded by this contract and benchmark it against similar metrics from other agencies.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for transit services, KPIs might include on-time performance, passenger satisfaction ratings, vehicle availability, safety incident rates, and adherence to service schedules. SLAs would define the minimum acceptable performance levels for these KPIs. Given that this is a fixed-price contract awarded sole-source to WMATA, the oversight would likely focus on ensuring that the agreed-upon services are delivered consistently and meet the defined standards. Without access to the contract's SOW and performance clauses, it's impossible to assess the rigor of these measures or how effectively they ensure accountability and service quality for the $86.6 million investment.

What is WMATA's track record in delivering transit services, particularly for government contracts?

WMATA has a long-standing track record of providing public transit services in the Washington D.C. metropolitan area, operating the Metrorail and Metrobus systems. As a major public entity, it serves millions of riders annually and is integral to the region's transportation network. Its track record includes managing large-scale operations, infrastructure maintenance, and capital projects. However, like many large transit agencies, WMATA has faced challenges related to funding, aging infrastructure, service reliability, and safety incidents over the years. Its experience with government contracts, particularly sole-source awards, would be extensive given its role in serving the nation's capital. Evaluating its performance on this specific $86.6 million contract would require reviewing its historical performance data, any past audit findings, and its responsiveness to service demands relevant to the federal government's needs.

What is the historical spending trend for similar transit services procured by the Department of Transportation?

Historical spending data for similar transit services procured by the Department of Transportation (DOT) is not provided in the summary. However, DOT, through its various administrations like the Federal Transit Administration (FTA), regularly funds transit operations and infrastructure. Spending in this category can fluctuate based on federal appropriations, infrastructure initiatives, and specific agency needs. Contracts for transit services can range from small, localized shuttle operations to large-scale regional transit system support. The $86.6 million awarded to WMATA represents a significant, multi-year commitment. To analyze historical trends, one would need to examine DOT's contract databases over several fiscal years, filtering for contracts with similar scope (transit services) and geographic focus (Washington D.C. metro area) to identify patterns in award types, values, and durations.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,625,840

Exercised Options: $86,625,840

Current Obligation: $86,625,840

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTOS5911D00510

IDV Type: IDC

Timeline