Interior's National Park Service awards $1.4M contract for railroad insurance to Pennsylvania authority

Contract Overview

Contract Amount: $139,625 ($139.6K)

Contractor: Pennsylvania Northeast Regional Railroad Authority

Awarding Agency: Department of the Interior

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $384/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOD STEA- PNRRA INSURANCE REIMBURSEMENT

Place of Performance

Location: SCRANTON, LACKAWANNA County, PENNSYLVANIA, 18503

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $139,625 to PENNSYLVANIA NORTHEAST REGIONAL RAILROAD AUTHORITY for work described as: MOD STEA- PNRRA INSURANCE REIMBURSEMENT Key points: 1. Contract awarded to a regional authority, suggesting a specialized need or existing relationship. 2. The fixed-price contract type aims to control costs for the government. 3. A single award indicates potential limitations in competition or a unique service provider. 4. The contract duration of one year with options for extension provides flexibility. 5. Focus on insurance reimbursement highlights a specific operational risk management requirement.

Value Assessment

Rating: fair

The contract value of $1.4 million for a one-year period for railroad insurance reimbursement appears reasonable given the specialized nature of the service. Without specific benchmarks for railroad insurance in this region or for similar authorities, a direct comparison is difficult. However, the firm fixed-price structure suggests an effort to manage costs predictably. The absence of detailed cost breakdowns makes a thorough value assessment challenging, but the award to a regional authority might imply cost efficiencies through local expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Pennsylvania Northeast Regional Railroad Authority was identified as the only capable provider for this specific insurance reimbursement service. The rationale for sole-source procurement typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The limited competition means that price discovery through market forces was not leveraged, potentially leading to a higher cost than if multiple bids were solicited.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing. The government may not achieve the most cost-effective solution when competition is absent.

Public Impact

The Pennsylvania Northeast Regional Railroad Authority directly benefits from this contract by providing essential insurance reimbursement services. The National Park Service receives critical support for managing financial risks associated with railroad operations under its purview. The geographic impact is concentrated in Pennsylvania, where the railroad authority operates. This contract supports the operational continuity and financial stability of railroad infrastructure managed or influenced by the National Park Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of detailed cost breakdown hinders comprehensive value-for-money assessment.
Potential for higher costs due to absence of competitive bidding.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a regional authority may leverage local expertise and potentially reduce administrative overhead.
Contract duration allows for stable service provision.

Sector Analysis

The contract falls within the 'Other' sector, specifically related to specialized insurance and financial services for infrastructure. The market for railroad insurance is niche, often involving unique risk assessments and regulatory considerations. Comparable spending benchmarks are difficult to establish without more granular data on similar insurance reimbursement contracts for regional rail authorities. This award represents a specific instance of the federal government securing essential risk management services for a particular asset.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded to a regional railroad authority. There is no indication of subcontracting requirements for small businesses within the provided data. The focus is on a direct service provision to a specific entity, rather than broader market engagement that would typically include small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Park Service's contracting officers and program managers within the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified services within the agreed-upon terms. Transparency is limited by the sole-source nature of the award and the absence of publicly available detailed cost justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Railroad Administration Grants
National Park Service Infrastructure Management
Transportation Insurance Programs
Regional Transportation Authorities Funding

Risk Flags

Sole-source award
Limited competition
Lack of detailed cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $139,625 to PENNSYLVANIA NORTHEAST REGIONAL RAILROAD AUTHORITY. MOD STEA- PNRRA INSURANCE REIMBURSEMENT

Who is the contractor on this award?

The obligated recipient is PENNSYLVANIA NORTHEAST REGIONAL RAILROAD AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $139,625.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of the Pennsylvania Northeast Regional Railroad Authority in managing insurance reimbursement for similar entities?

Information regarding the specific track record of the Pennsylvania Northeast Regional Railroad Authority (PNRRA) in managing insurance reimbursement for entities similar to the National Park Service is not detailed in the provided data. As a regional railroad authority, PNRRA likely has experience managing operational and financial aspects of its own rail network, which may include insurance. However, the extent of its experience with federal agency contracts or providing specialized insurance reimbursement services to external government bodies is not specified. Further investigation into PNRRA's past performance, client testimonials, or previous federal contracts would be necessary to fully assess their capabilities and reliability in this specific context.

How does the $1.4 million contract value compare to similar railroad insurance reimbursement contracts awarded by federal agencies?

Direct comparison of the $1.4 million contract value for railroad insurance reimbursement is challenging due to the specialized nature of the service and the limited availability of public data on similar federal contracts. Contracts for railroad insurance can vary significantly based on the scope of coverage, the specific risks involved (e.g., passenger vs. freight, infrastructure age, operational complexity), and the geographic region. Without access to a database of comparable sole-source or competitively awarded insurance contracts for regional railroad authorities or similar federal infrastructure assets, it is difficult to benchmark this specific award. The value appears reasonable for a one-year term covering specialized insurance needs, but a definitive assessment requires more comparative data.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if the firm fixed-price model does not accurately reflect the actual insurance reimbursement needs, and the risk of inadequate service delivery due to the sole-source nature of the award, which limits competitive pressure. Mitigation strategies include the firm fixed-price structure itself, which shifts some cost risk to the contractor. The National Park Service's oversight and performance monitoring are crucial for ensuring adequate service delivery. The contract's one-year duration with potential extensions allows for reassessment and adjustment if performance or cost issues arise. However, the lack of competition inherently increases the risk of not securing the best possible value.

What is the expected effectiveness of this contract in ensuring the National Park Service's financial protection against railroad-related liabilities?

The effectiveness of this contract hinges on the adequacy of the insurance coverage secured by the Pennsylvania Northeast Regional Railroad Authority and the efficiency of their reimbursement process. Assuming the PNRRA procures appropriate insurance policies that align with the National Park Service's identified risks, the contract should provide a necessary layer of financial protection. The firm fixed-price nature suggests a defined budget for these services. However, the ultimate effectiveness depends on the PNRRA's expertise in managing these insurance arrangements and their ability to process reimbursements accurately and promptly, which is not fully detailed in the provided data.

What has been the historical spending pattern for railroad insurance or similar risk management services by the National Park Service or Department of the Interior?

The provided data does not include historical spending patterns for railroad insurance or similar risk management services by the National Park Service or the Department of the Interior. This specific contract represents a $1.4 million award for a one-year period. To understand historical spending, one would need to analyze past contracts related to railroad operations, infrastructure maintenance, or specific insurance needs within these agencies. Without this historical context, it is difficult to determine if this award represents an increase, decrease, or consistent level of spending for such services.

Industry Classification

NAICS: Transportation and Warehousing › Rail Transportation › Short Line Railroads

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 280 CLIFF ST, SCRANTON, PA, 18503

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $139,625

Exercised Options: $139,625

Current Obligation: $139,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline