Transportation Department awards $55.1M for virtual inventory, impacting transit equipment supply

Contract Overview

Contract Amount: $55,108,408 ($55.1M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2008-09-04

End Date: 2010-09-30

Contract Duration: 756 days

Daily Burn Rate: $72.9K/day

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Transportation

Official Description: TRANSERVE WILL PURCHASE FROM WASHINGTON METROPOLITAN AREA TRANSIT AUTHORIT. DBA: WMATA VIRTUAL INVENTORY FOR THE PARTICIPATES IN THE SMART BENEFITS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $55.1 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: TRANSERVE WILL PURCHASE FROM WASHINGTON METROPOLITAN AREA TRANSIT AUTHORIT. DBA: WMATA VIRTUAL INVENTORY FOR THE PARTICIPATES IN THE SMART BENEFITS Key points: 1. Contract value of $55.1 million over two years suggests a significant need for transit equipment and supplies. 2. The award to Washington Metropolitan Area Transit Authority (WMATA) indicates a potential concentration of spending within a specific regional transit authority. 3. The contract's duration of 756 days (approximately two years) provides a stable, albeit limited, timeframe for service delivery. 4. The classification of 'Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers' points to a specialized market segment. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to promote small business participation. 6. The contract type is a delivery order, implying it's part of a larger indefinite-delivery contract or schedule.

Value Assessment

Rating: fair

The total award of $55.1 million over approximately two years averages to about $27.5 million annually. Benchmarking this against similar contracts for virtual inventory management in the transportation sector is challenging without more specific details on the scope of services. However, the price appears to be within a reasonable range for a large-scale transit authority's needs, assuming the virtual inventory covers a substantial portion of their equipment and supplies. Further analysis would require comparing unit costs for specific items managed under this virtual inventory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unclear whether this was a sole-source award, a limited competition, or a full and open competition. Without this information, it's impossible to assess the effectiveness of the procurement process in achieving competitive pricing and value for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to lower prices and better terms, while limited or sole-source awards may result in higher costs.

Public Impact

The primary beneficiaries are likely participants in the SMART BENEFITS program, who will have access to a virtual inventory system for transit equipment. The services delivered involve the management and provision of transportation equipment and supplies, excluding motor vehicles. The geographic impact is centered in the Washington Metropolitan Area, as the awardee is WMATA. Workforce implications are not explicitly detailed but could involve personnel at WMATA managing the virtual inventory and potentially impacting the supply chain workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method limits assessment of value for money.
The contract's focus on a specific regional transit authority may limit broader applicability or scalability of the solution.
The duration of the contract (approx. 2 years) might be insufficient for long-term strategic inventory management improvements.

Positive Signals

The award to a major transit authority like WMATA suggests a recognized need and potential for efficient service delivery.
The contract addresses a critical function: managing transportation equipment and supplies, which is vital for operational continuity.
The existence of a 'virtual inventory' points towards a modern approach to supply chain management.

Sector Analysis

This contract falls within the broader transportation equipment and supplies wholesale sector. The market for such services is driven by the operational needs of public transit agencies and other large transportation entities. Spending in this area is crucial for maintaining infrastructure and operational readiness. Comparable spending benchmarks would typically involve analyzing the total procurement spend of major transit authorities on inventory management and related supplies, which can run into hundreds of millions or even billions of dollars annually depending on the size of the agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This suggests that the procurement process did not prioritize small business participation through set-asides. Consequently, the direct impact on the small business ecosystem is likely minimal unless WMATA engages small businesses as subcontractors, which is not specified in the provided data. The focus appears to be on fulfilling the needs of a large transit authority.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Inspector General and relevant program offices. Accountability measures would be tied to the terms and conditions of the delivery order, including performance metrics and delivery schedules. Transparency is facilitated through public contract databases, but detailed operational oversight information is typically internal.

Related Government Programs

Federal Transit Administration (FTA) Grants
Department of Transportation Procurement Data
Public Transportation Infrastructure Projects
Supply Chain Management Services

Risk Flags

Lack of Competition Details
Potential Vendor Lock-in
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $55.1 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. TRANSERVE WILL PURCHASE FROM WASHINGTON METROPOLITAN AREA TRANSIT AUTHORIT. DBA: WMATA VIRTUAL INVENTORY FOR THE PARTICIPATES IN THE SMART BENEFITS

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 $55.1 million.

What is the period of performance?

Start: 2008-09-04. End: 2010-09-30.

What specific types of transportation equipment and supplies are covered under this virtual inventory contract?

The provided data classifies the contract under 'Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers.' This suggests the inventory likely includes components, parts, tools, and consumables necessary for the maintenance and operation of transit systems, such as signaling equipment, track components, electrical supplies, and maintenance materials. However, the exact list of items is not detailed in the summary data. A virtual inventory typically implies a digital catalog and management system rather than physical warehousing by the contractor, focusing on efficient ordering, tracking, and delivery of these essential supplies to WMATA's operational sites.

How does the $55.1 million award compare to historical spending by the Department of Transportation on similar virtual inventory solutions?

Direct comparison to historical spending on 'virtual inventory' solutions by the Department of Transportation is difficult without more granular data. The $55.1 million award over approximately two years ($27.5 million annually) is substantial for a single contract. However, the Department of Transportation manages a vast array of programs and procurements. To assess comparability, one would need to analyze trends in IT and supply chain management procurements within the transit sector, looking at contracts for inventory management systems, logistics support, and specialized equipment supply. The specific nature of a 'virtual inventory' as opposed to traditional warehousing contracts makes direct historical comparisons challenging without further context on the evolution of such services.

What are the key performance indicators (KPIs) or 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 a virtual inventory management contract, KPIs would focus on aspects like order fulfillment accuracy, on-time delivery rates for critical parts, inventory accuracy (in the virtual system), cost savings achieved through efficient procurement, and system uptime for the virtual inventory platform. SLAs would define the acceptable performance thresholds for these KPIs and potential penalties or incentives tied to meeting them. Without this information, a thorough assessment of the contractor's performance and the contract's effectiveness is limited.

What is the track record of Washington Metropolitan Area Transit Authority (WMATA) as a contractor for the federal government, particularly in managing supply chains?

Washington Metropolitan Area Transit Authority (WMATA) is primarily known as a public transit operator, not typically as a federal contractor for supply chain services. This award appears to be an exception, where WMATA is acting as the provider of a virtual inventory solution. Their track record as a federal contractor in this specific capacity is likely limited or non-existent based on their core mission. However, as a large transit agency, WMATA possesses significant experience in managing its own complex supply chain for rolling stock, infrastructure maintenance, and operational needs, which likely informs their ability to manage this virtual inventory contract.

Are there any identified risks associated with this contract, such as vendor lock-in or reliance on a single provider for critical supplies?

Potential risks associated with this contract could include vendor lock-in, especially if the virtual inventory system is proprietary and difficult to transition away from. There's also a risk of over-reliance on WMATA for critical transportation equipment and supplies, which could lead to disruptions if WMATA faces operational challenges. The contract's duration (approximately two years) might mitigate long-term lock-in but could still pose challenges for transition if not managed carefully. Furthermore, the lack of specified competition details raises concerns about whether the government secured the best possible terms and pricing, potentially leading to suboptimal value.

What is the estimated annual spending on transportation equipment and supplies for the participating SMART BENEFITS program members?

The provided data indicates a total contract award of $55,108,408.14 for a duration of 756 days (approximately 2 years). This translates to an average annual spending of roughly $27,554,204.07. This figure represents the total value allocated for the virtual inventory services for the participants in the SMART BENEFITS program. It's important to note that this is the contract ceiling or estimated value, and the actual amount spent may be lower depending on usage and specific orders placed throughout the contract period.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Contractor Details

Address: 600 5TH ST NW ROOM 6 B15, WASHINGTON, DC, 20001

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,108,408

Exercised Options: $55,108,408

Current Obligation: $55,108,408

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTOS5906D00454

IDV Type: IDC

Timeline