DOJ's $15.6M contract for bus transit systems awarded to Jefferson Partners LP, covering 122 days

Contract Overview

Contract Amount: $15,576 ($15.6K)

Contractor: Jefferson Partners LP

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-01-31

Contract Duration: 122 days

Daily Burn Rate: $128/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FY26 F4 JEFFERSON LINES OCT-JAN

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55404

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $15,575.56 to JEFFERSON PARTNERS LP for work described as: FY26 F4 JEFFERSON LINES OCT-JAN Key points: 1. Value for money appears fair given the short duration and specific service needs. 2. Competition dynamics indicate a single award under simplified acquisition procedures, suggesting limited market engagement. 3. Risk indicators are low due to the short contract term and established service type. 4. Performance context is limited to transit services for the Federal Prison System. 5. Sector positioning is within the transportation services niche for government agencies.

Value Assessment

Rating: fair

The contract value of $15.6 million for a 122-day period suggests a daily rate of approximately $127,668. Without specific details on the scope of services (e.g., number of vehicles, routes, passenger capacity), it's difficult to benchmark against similar contracts. However, the award under simplified acquisition procedures might imply a less complex service requirement, potentially justifying the price. Further analysis would require comparing the service level agreements and operational scope with other government transit contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer than three offers. While the specific number of bidders is not provided, SAP generally indicates a less robust competitive environment compared to full and open competition. This approach is often used for procurements below a certain dollar threshold, aiming for efficiency. The limited competition may have implications for price discovery, potentially leading to higher costs than if a broader range of vendors had been solicited.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean that the government may not always secure the lowest possible price. While efficient for smaller procurements, it reduces the pressure on vendors to offer their most competitive rates.

Public Impact

The Federal Prison System benefits from reliable bus and motor vehicle transit services. Services delivered include transportation for inmates or staff within the Federal Prison System. Geographic impact is primarily within Minnesota, where Jefferson Partners LP is located. Workforce implications include employment opportunities for drivers and support staff for Jefferson Partners LP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Lack of detailed service scope makes value assessment challenging.
Short contract duration may limit long-term service planning and stability.

Positive Signals

Addresses a specific, short-term transit need for the Federal Prison System.
Awarded to a single, presumably capable, vendor.
Utilizes a streamlined procurement process suitable for the contract value.

Sector Analysis

The transportation services sector for government agencies is a significant market. Contracts for bus and motor vehicle transit systems are common, supporting various operational needs from personnel transport to inmate movement. This specific contract falls within the niche of specialized transit solutions for correctional facilities. Benchmarking would involve comparing daily rates and service provisions with similar contracts awarded to other correctional or law enforcement agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was competed under Simplified Acquisition Procedures, it's possible that small businesses were solicited, but specific set-aside goals were not mandated or achieved. Further investigation into the solicitation details would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System's contracting officers and program managers. Accountability measures would be defined in the purchase order, including performance standards and payment terms. Transparency is limited due to the nature of SAP procurements, with less public detail available compared to larger, full-and-open competitions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Transportation Contracts
Bureau of Prisons Vehicle Services
Department of Justice Fleet Management
Government Motor Vehicle Procurement

Risk Flags

Potential for non-competitive award due to SAP.
Lack of detailed service scope hinders value assessment.
Unusual contract value for SAP procedures requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,575.56 to JEFFERSON PARTNERS LP. FY26 F4 JEFFERSON LINES OCT-JAN

Who is the contractor on this award?

The obligated recipient is JEFFERSON PARTNERS LP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $15,575.56.

What is the period of performance?

Start: 2025-10-01. End: 2026-01-31.

What is the specific scope of services required under this contract, and how does it compare to typical transit needs for correctional facilities?

The provided data indicates the contract is for 'Bus and Other Motor Vehicle Transit Systems' (NAICS 485113) awarded to Jefferson Partners LP by the Department of Justice's Federal Prison System. However, the specific scope of services is not detailed. Typically, such contracts could involve transporting inmates to court appearances, medical appointments, or between facilities, or alternatively, transporting staff. The daily rate implied by the contract value ($15.6M over 122 days) is approximately $127,668. Without knowing the number of vehicles, routes, mileage, or passenger capacity, a direct comparison to standard transit needs or market rates is difficult. Further details on service level agreements (SLAs) and operational requirements would be necessary for a comprehensive assessment.

How does the pricing of this contract compare to similar transit services procured by other federal agencies or correctional facilities?

Benchmarking the pricing of this $15.6 million contract for 122 days is challenging without detailed service scope. The implied daily rate of roughly $127,668 is high in absolute terms. However, if the contract includes a large fleet of specialized vehicles, extensive mileage, 24/7 operations, or security escorts for inmate transport, the cost could be justified. To perform a true comparison, one would need to identify contracts with similar service levels (e.g., number of vehicles, operational hours, geographic coverage, type of passengers) from agencies like the Bureau of Prisons, other federal law enforcement, or state correctional departments. The limited competition under SAP also suggests that a thorough market analysis might not have been conducted, potentially impacting the ability to secure the most competitive pricing.

What is Jefferson Partners LP's track record with federal contracts, particularly within the Department of Justice or for correctional services?

Jefferson Partners LP has been awarded this $15.6 million contract for bus and motor vehicle transit systems. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing contract history databases (like FPDS or SAM.gov) for previous awards, contract values, agencies served, and performance ratings. Specifically, looking for prior experience with the Department of Justice, the Federal Prison System, or similar correctional/law enforcement transit needs would be crucial. A history of successful, on-time, and within-budget performance on comparable contracts would indicate reliability, while a pattern of issues could raise concerns about execution risk for this current award.

What are the potential risks associated with awarding this contract under Simplified Acquisition Procedures (SAP)?

Awarding contracts under Simplified Acquisition Procedures (SAP), typically for amounts under the SAT (currently $250,000, though agency-specific thresholds can apply), carries certain risks. While SAP aims for efficiency, it often involves limited competition, potentially leading to suboptimal pricing as vendors may not feel pressured to offer their best rates. There's also a risk that the government might overlook innovative solutions or more capable vendors who weren't solicited. For this specific $15.6 million contract, the use of SAP seems unusual if the value is indeed that high, suggesting potential misclassification or a specific agency exception. The primary risks are reduced price competition and potentially missing out on a wider pool of qualified contractors, which could impact overall value for the taxpayer.

How does the short duration (122 days) of this contract impact its overall effectiveness and cost-efficiency?

The short duration of 122 days for this $15.6 million contract presents a mixed picture regarding effectiveness and cost-efficiency. On the one hand, it allows the Federal Prison System to address an immediate or temporary transit need without a long-term commitment, offering flexibility. This is particularly useful if the requirement is seasonal, project-based, or pending a larger, more permanent solution. However, such short terms can lead to higher per-diem costs as vendors may factor in mobilization/demobilization expenses or charge a premium for short-term engagements. It also limits the opportunity for the contractor to achieve economies of scale or build deep operational efficiencies. Furthermore, the government may incur additional administrative costs if similar short-term contracts are repeatedly required.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Bus and Other Motor Vehicle Transit Systems

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2100 E 26TH ST, MINNEAPOLIS, MN, 55404

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,576

Exercised Options: $15,576

Current Obligation: $15,576

Actual Outlays: $6,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline