WMATA Awarded $15M Contract for Transit Services, Raising Oversight Questions
Contract Overview
Contract Amount: $50,219,550 ($50.2M)
Contractor: Washington Metropolitan Area Transit Authority
Awarding Agency: Department of Transportation
Start Date: 2013-09-04
End Date: 2014-09-30
Contract Duration: 391 days
Daily Burn Rate: $128.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::CL::IGF FY 14 WMATA WASHINGTON METRO AREA TRANSIT AUTHORITY $15,000,000.00
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590
Plain-Language Summary
Department of Transportation obligated $50.2 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: IGF::CL::IGF FY 14 WMATA WASHINGTON METRO AREA TRANSIT AUTHORITY $15,000,000.00 Key points: 1. The contract for transit services was awarded to the Washington Metropolitan Area Transit Authority (WMATA). 2. The award was not competed, raising concerns about price discovery and potential value. 3. The total award value is $15,000,000.00, with $50,219,549.69 obligated. 4. This spending falls under the 'All Other Transit and Ground Passenger Transportation' sector.
Value Assessment
Rating: questionable
The contract was not competed, making a direct pricing assessment against similar contracts difficult. The fixed-price nature provides some cost certainty, but the lack of competition hinders a robust value-for-money evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, meaning WMATA was the sole source. This limits price discovery and may not have resulted in the most cost-effective solution for taxpayers.
Taxpayer Impact: Without competition, taxpayers may have paid more than necessary for these transit services.
Public Impact
Taxpayers may be overpaying for transit services due to the lack of competition. The Department of Transportation's oversight of this non-competed award warrants scrutiny. The long duration of the contract (391 days) for a fixed price could lead to inefficiencies if costs change significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited price discovery
Positive Signals
- Fixed price contract provides cost certainty
Sector Analysis
This contract falls within the transit and ground passenger transportation sector. Benchmarks for similar services are difficult to establish without competitive data, but non-competed awards often carry a premium.
Small Business Impact
There is no indication that small businesses were involved in this contract award, as it was awarded directly to WMATA.
Oversight & Accountability
The lack of competition for this significant award raises questions about the Department of Transportation's procurement processes and oversight. Further review is needed to ensure accountability and value.
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
- Significant difference between award and obligated amounts
- Potential for inflated pricing
- Limited transparency in justification
Tags
all-other-transit-and-ground-passenger-t, department-of-transportation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $50.2 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. IGF::CL::IGF FY 14 WMATA WASHINGTON METRO AREA TRANSIT AUTHORITY $15,000,000.00
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 $50.2 million.
What is the period of performance?
Start: 2013-09-04. End: 2014-09-30.
What was the justification for not competing this contract, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as a sole-source rationale or emergency procurement. Without this information, it's impossible to assess if alternative solutions were adequately explored or if this was the most appropriate method.
How does the obligated amount of $50.2M compare to the total award value of $15M, and what does this signify?
The obligated amount ($50,219,549.69) significantly exceeds the stated award value ($15,000,000.00). This discrepancy suggests that the initial award value may have been a ceiling or estimate, and the actual spending or potential spending under the contract is much higher. This warrants further investigation into the contract's modifications and actual expenditure.
What is the potential impact on service quality and cost-effectiveness given the non-competed nature of this award?
The non-competed nature of this award raises concerns about potential impacts on both service quality and cost-effectiveness. Without competitive pressure, WMATA may have less incentive to optimize service delivery or control costs rigorously. This could lead to higher prices for taxpayers and potentially less efficient service compared to what could be achieved through a competitive bidding process.
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: $50,219,550
Exercised Options: $50,219,550
Current Obligation: $50,219,550
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
Start Date: 2013-09-04
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2021-03-01
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