DOT's $49.6M contract with WMATA for transit systems awarded without competition

Contract Overview

Contract Amount: $49,581,000 ($49.6M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2008-10-09

End Date: 2012-09-30

Contract Duration: 1,452 days

Daily Burn Rate: $34.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FARE MEDIA

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 $49.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: FARE MEDIA Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 1452 days (approx. 4 years) suggests a long-term need for these services. 3. No specific performance metrics or risk indicators are immediately apparent from the provided data. 4. This contract represents a significant investment in transit system maintenance and operations. 5. The lack of competition raises questions about whether the government secured the best possible value. 6. The contract's value is substantial, warranting close scrutiny of its necessity and execution.

Value Assessment

Rating: questionable

Given the sole-source nature of this contract, a direct comparison to similar competitively awarded contracts is difficult. Without competitive bidding, it is challenging to definitively assess if the pricing reflects fair market value. The absence of multiple bids means there was no market pressure to drive down costs. Further analysis would require access to the contract's detailed pricing structure and justification for the sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of Transportation did not solicit bids from multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means there was no opportunity for multiple companies to bid, which could have led to a lower price.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiary of this contract is the Washington Metropolitan Area Transit Authority (WMATA), which receives funding for transit system operations. The services delivered likely involve the maintenance, operation, or enhancement of mixed-mode transit systems. The geographic impact is concentrated within the Washington Metropolitan Area, serving commuters and residents. This contract supports jobs within WMATA and potentially its subcontractors, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards can indicate potential barriers to entry for other qualified vendors.
The long contract duration without clear performance benchmarks could pose execution risks.

Positive Signals

Contract supports essential public transportation infrastructure.
Award to a major transit authority suggests alignment with public service goals.

Sector Analysis

This contract falls within the Transportation sector, specifically focusing on transit systems. The market for transit operations and maintenance is often characterized by large, established authorities and specialized service providers. Government spending in this area is crucial for maintaining public infrastructure and ensuring mobility. Comparable spending benchmarks would typically involve other large-scale transit system contracts awarded by federal, state, or local agencies.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award to a large transit authority, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process itself, though WMATA may have its own internal small business programs.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's internal review processes. As a sole-source award, the justification and terms would be subject to scrutiny to ensure compliance with federal procurement regulations. Transparency may be limited due to the non-competitive nature of the award, but contract details should be publicly accessible through federal procurement databases.

Related Government Programs

Federal Transit Administration Grants
Metropolitan Planning Organizations
National Highway System Programs

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency on specific service delivery metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $49.6 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. FARE MEDIA

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 $49.6 million.

What is the period of performance?

Start: 2008-10-09. End: 2012-09-30.

What specific services are covered under this $49.6 million contract with WMATA?

The contract is categorized under 'Mixed Mode Transit Systems' (NAICS code 485111), suggesting it covers a broad range of services related to the operation and maintenance of public transportation. This could include the upkeep of vehicles (buses, trains), track infrastructure, signaling systems, stations, and related operational support. Given the sole-source nature and the recipient being WMATA, the contract likely funds essential services that WMATA provides to the public in the Washington Metropolitan Area. Without the full contract details, the precise scope remains general, but it is clearly tied to the core functions of a large urban transit provider.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For a contract with WMATA, the justification might stem from WMATA's unique position as the primary public transit provider in the Washington D.C. metropolitan area, possessing specialized infrastructure, operational expertise, and existing systems that are difficult for other entities to replicate or integrate with. The Department of Transportation may have determined that contracting directly with WMATA was the most efficient or only feasible way to fund these critical transit services. A formal Justification for Other than Full and Open Competition (JOFOC) would detail the specific reasons.

How does the $49.6 million value compare to typical spending on similar transit systems?

The $49.6 million contract value over approximately four years (2008-2012) represents an annual average of roughly $12.4 million. This figure, while substantial, needs to be contextualized within the overall budget of WMATA and the scale of transit operations in a major metropolitan area. WMATA's total operating budget is in the billions of dollars annually. Therefore, this specific DOT contract, while significant, likely represents a portion of the funding for specific services or projects rather than WMATA's entire operational cost. Comparisons would be most relevant to other federal grants or contracts awarded to large transit agencies for similar system-wide support.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk of a sole-source contract is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not achieve the best possible price. Additionally, sole-source awards can stifle innovation and limit opportunities for other qualified vendors to participate in government contracting. There's also a risk that the government's specific needs might not be as uniquely met as they could be through a competitive process that encourages diverse solutions. For this contract, ensuring the funds are used efficiently and effectively for their intended transit purposes is a key oversight concern.

What is the track record of WMATA as a contractor for the Department of Transportation?

WMATA is not typically viewed as a traditional 'contractor' in the sense of a private company bidding on services. Instead, it is a public entity that receives significant federal funding, often through grants and specific contracts, to operate and maintain the transit systems it manages. The Department of Transportation (DOT), particularly through the Federal Transit Administration (FTA), has a long-standing relationship with WMATA, providing substantial financial support and oversight. WMATA's track record is therefore assessed more in terms of its operational effectiveness, financial management, and ability to deliver public transit services reliably, rather than its performance on specific competitive bids.

How does this contract fit into the broader federal strategy for transportation infrastructure?

This contract aligns with the federal government's broader strategy to support and invest in public transportation infrastructure, particularly in major metropolitan areas. The Department of Transportation plays a key role in ensuring the functionality and modernization of transit systems, which are vital for economic activity, environmental sustainability, and urban mobility. Funding agreements like this one with WMATA help maintain essential services, improve rider experience, and potentially support upgrades to aging infrastructure. It reflects a commitment to public transit as a critical component of the nation's transportation network.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Mixed Mode Transit Systems

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

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 ROOM 6 B15, WASHINGTON, DC, 20001

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,581,000

Exercised Options: $49,581,000

Current Obligation: $49,581,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTOS5909D00455

IDV Type: IDC

Timeline