DOT's $69.8M transit contract with WMATA shows a decade-long commitment to regional transportation infrastructure

Contract Overview

Contract Amount: $69,782,892 ($69.8M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2011-09-06

End Date: 2015-09-30

Contract Duration: 1,485 days

Daily Burn Rate: $47.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: EXERCISE OPTION YEAR WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA DTOS59-11-D-00510

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 $69.8 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: EXERCISE OPTION YEAR WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA DTOS59-11-D-00510 Key points: 1. The contract value represents a significant, long-term investment in maintaining and operating critical transit services. 2. Sole-source nature raises questions about potential cost efficiencies and market-based pricing. 3. The extended duration suggests a stable, ongoing need for these services, indicating low immediate risk. 4. Performance context is tied to the operational success of the Washington Metropolitan Area Transit Authority. 5. This contract falls within the broader 'Transit and Ground Passenger Transportation' sector, a vital public service area.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contracts. However, the substantial dollar amount over its duration suggests a significant operational scale. The fixed-price nature provides some cost certainty, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Further analysis would require understanding the specific services rendered and their associated costs.

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 indicates that the agency determined WMATA was the only entity capable of providing the required services, likely due to its unique position as the regional transit provider. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially resulting in a higher overall cost for the services provided.

Public Impact

The primary beneficiaries are the millions of daily commuters and residents in the Washington Metropolitan Area who rely on WMATA's transit services. Services delivered include the operation, maintenance, and potentially expansion of bus and rail transit systems. The geographic impact is concentrated within the District of Columbia and surrounding Northern Virginia and Maryland suburbs. Workforce implications include the employment of thousands of transit operators, maintenance staff, and administrative personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can reduce the incentive for the contractor to innovate or improve efficiency.
Dependence on a single provider creates a risk if WMATA faces operational or financial challenges.

Positive Signals

Long-term contract indicates a stable and reliable service provider for essential transit.
Fixed-price contract offers budget predictability for the Department of Transportation.
WMATA's established infrastructure and expertise ensure continuity of service.

Sector Analysis

This contract operates within the public transportation sector, specifically focusing on ground passenger transit. The market is often characterized by public entities or heavily regulated private operators due to the significant infrastructure, capital investment, and public service requirements. Comparable spending benchmarks would typically involve other large metropolitan transit authorities and their operational contracts, which are often sole-source or limited competition due to the nature of the service.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a large public transit authority, subcontracting opportunities for small businesses are likely limited and would depend on WMATA's internal procurement practices. The primary impact is on the direct provision of transit services rather than fostering small business participation in federal contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. Accountability measures would be tied to the performance metrics and service level agreements outlined in the contract. Transparency is generally maintained through federal contract databases, but detailed operational performance data may be less publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Transit Administration Grants
Metropolitan Planning Organizations
National Highway System
Public Transportation Infrastructure Investment

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost inefficiencies due to lack of competition.
Dependency on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $69.8 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. EXERCISE OPTION YEAR WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY DBA: WMATA DTOS59-11-D-00510

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 $69.8 million.

What is the period of performance?

Start: 2011-09-06. End: 2015-09-30.

What specific services are covered under this $69.8 million contract with WMATA?

While the data indicates this is an option year exercise for a contract with the Washington Metropolitan Area Transit Authority (WMATA), the specific services are not detailed. However, given WMATA's mission, these services likely encompass the operation, maintenance, and support of the regional public transit system, including bus and rail services. This could involve everything from daily service provision, fare collection systems, infrastructure upkeep, safety protocols, and potentially capital improvements or technology upgrades necessary for the transit network's functioning within the Washington metropolitan area.

How does the $69.8 million value compare to typical transit contracts of this nature?

The $69.8 million value over its duration (approximately 1485 days, or about 4 years) represents a substantial commitment to transit services. Annualized, this contract is worth roughly $17.5 million. This figure is significant but needs to be contextualized against the scale of WMATA's overall operations, which typically involve billions in annual budgets for a system of its size. Compared to contracts for smaller, specialized transit services or specific equipment procurements, this value is high. However, for a comprehensive operational contract supporting a major metropolitan transit authority, it may represent a reasonable portion of their funding needs, especially if it covers a specific functional area or a set of services rather than the entirety of WMATA's budget.

What are the primary risks associated with a sole-source contract for essential transit services?

The primary risks associated with a sole-source contract for essential transit services like those provided by WMATA include a lack of competitive pressure, which can lead to higher costs for the government and taxpayers. Without competing bids, there is less incentive for the contractor to innovate, improve efficiency, or offer the most cost-effective solutions. Furthermore, sole-source awards create a dependency on a single provider. If WMATA were to face significant operational disruptions, financial instability, or management issues, the government would have limited alternative options for ensuring the continuity of these critical transit services, potentially leading to service interruptions or the need for emergency interventions.

What is the track record of WMATA as a federal contractor, particularly in fulfilling transit service obligations?

WMATA has a long-standing and extensive track record as a provider of public transit services in the Washington metropolitan area. As a quasi-governmental entity, its primary function is to operate and maintain the region's bus and rail systems. Its track record as a federal contractor, specifically under this DOT contract, would be evaluated based on its ability to meet the terms and conditions of the agreement, including service delivery, performance standards, and financial management. While generally recognized for providing essential services, WMATA has also faced public scrutiny regarding operational efficiency, safety incidents, and financial management in the past. Therefore, its track record is complex, marked by both its critical role in regional mobility and challenges inherent in managing a large, complex public transit system.

How has federal spending on transit services in the Washington D.C. area evolved over the past decade?

Federal spending on transit services in the Washington D.C. area, particularly through agencies like the Department of Transportation (DOT) and the Federal Transit Administration (FTA), has generally been substantial and consistent, reflecting the importance of the region's transportation infrastructure. Over the past decade, federal funding has supported both operational needs and capital investments for entities like WMATA. While specific figures fluctuate annually based on appropriations, economic conditions, and infrastructure priorities, federal support has remained a critical component of transit funding. This support often comes through grants for capital projects, operating assistance, and specific service contracts, aiming to ensure the reliability and modernization of the transit network. The trend has likely been influenced by national infrastructure initiatives and the ongoing demand for public transportation in major metropolitan areas.

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: $69,782,892

Exercised Options: $69,782,892

Current Obligation: $69,782,892

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