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

State: District of Columbia Government Spending

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

Positive Signals

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

Risk Flags

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 WarehousingOther Transit and Ground Passenger TransportationAll Other Transit and Ground Passenger Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONOTHER 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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