VA awards $33.3M contract for ambulance services in Maryland, highlighting regional healthcare needs

Contract Overview

Contract Amount: $33,265 ($33.3K)

Contractor: Freestate Transportation LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GROUND AMBULANCE TRANSPORTATION SERVICE

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33,265.46 to FREESTATE TRANSPORTATION LLC for work described as: GROUND AMBULANCE TRANSPORTATION SERVICE Key points: 1. Contract value represents a significant investment in essential medical transport. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Delivery order structure indicates a need for immediate or short-term service provision. 4. Fixed-price contract shifts performance risk to the contractor. 5. Service area concentrated in Maryland, addressing specific regional demand. 6. Contractor's performance history will be key to assessing value. 7. NAICS code 621910 points to a specialized segment of the healthcare support industry.

Value Assessment

Rating: good

The contract value of $33.3 million for a one-month period of performance is substantial, suggesting a high volume of services or specialized equipment required. Benchmarking against similar contracts for ambulance services is crucial to determine if this price reflects market rates for the specified region and service level. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been initially excluded for defined reasons. The number of bidders is not specified, but the broad competition type suggests multiple entities were likely considered. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging providers to offer their best pricing.

Public Impact

Veterans in Maryland will benefit from reliable and timely ground ambulance transportation. Essential emergency medical services will be delivered to patients requiring transport. The contract supports healthcare infrastructure within the state of Maryland. Local workforce may see employment opportunities in the provision of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance is subpar.
Ensuring adequate response times and quality of care requires diligent oversight.

Positive Signals

Contract awarded through full and open competition, suggesting a robust market.
Firm fixed-price contract aligns contractor incentives with cost control.
Specific service area defined, allowing for focused resource allocation.

Sector Analysis

Ground ambulance transportation is a critical component of the healthcare support services sector. This contract falls under the broader healthcare industry, specifically focusing on emergency and non-emergency medical transport. The market for these services is often localized and regulated, with significant operational costs related to vehicles, staffing, and medical equipment. Comparable spending benchmarks would typically be assessed based on per-transport rates or annual service agreements within specific geographic regions.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Freestate Transportation LLC engages them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts can sometimes limit opportunities for smaller players to compete directly.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is generally facilitated through contract award databases, though specific performance metrics and quality assurance reviews may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Emergency Medical Services Contracts
Healthcare Transportation Services
Department of Veterans Affairs Medical Support Contracts
State-Level Healthcare Service Agreements

Risk Flags

Potential for service gaps if contractor fails to meet demand.
Ensuring quality of care and patient safety requires robust oversight.
High contract value necessitates thorough financial and operational vetting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33,265.46 to FREESTATE TRANSPORTATION LLC. GROUND AMBULANCE TRANSPORTATION SERVICE

Who is the contractor on this award?

The obligated recipient is FREESTATE TRANSPORTATION LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $33,265.46.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What is the historical spending pattern for ground ambulance services by the Department of Veterans Affairs, particularly in the Maryland region?

Analyzing historical spending for ground ambulance services by the VA in Maryland requires access to detailed procurement data beyond this single award. Generally, VA spending on medical support services, including transportation, fluctuates based on patient needs, facility locations, and the availability of contracted services. A review of past contracts would reveal trends in contract values, duration, and the number of awarded contracts for similar services. This specific contract's value of $33.3 million for a one-month period is exceptionally high, suggesting either a very large scope of work, a specialized need, or potentially a consolidation of services. Without historical context, it's difficult to determine if this represents an increase, decrease, or stable level of spending for this specific service in the region.

How does the pricing of this contract compare to similar ambulance service contracts awarded by other federal agencies or state governments?

Direct price comparison is challenging without knowing the exact service levels, response times, fleet size, and geographic coverage stipulated in this contract. However, the $33.3 million value for a single month suggests a high per-diem or per-transport cost. To benchmark, one would need to identify contracts for similar services (e.g., non-emergency medical transport, emergency response) in comparable regions (e.g., other densely populated East Coast states). Factors like labor costs, insurance, regulatory compliance, and the specific medical capabilities of the ambulances (e.g., ALS vs. BLS) significantly influence pricing. A preliminary assessment suggests this contract value is substantial and warrants a detailed cost analysis against market rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will they be monitored?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for ambulance services, KPIs would include metrics such as response times (e.g., average time to arrive on scene for emergency calls), patient transport times, patient satisfaction scores, vehicle availability, and compliance with medical protocols. SLAs would define the expected standards for these metrics. Monitoring would likely involve regular reporting from Freestate Transportation LLC, site visits by VA personnel, and potentially the use of GPS tracking and electronic patient care reporting systems. The contracting officer's representative (COR) would be responsible for overseeing performance and ensuring compliance with the contract's terms.

What is the track record of Freestate Transportation LLC in performing similar government contracts, particularly regarding reliability and quality of service?

Assessing the track record of Freestate Transportation LLC requires a review of their past performance on federal, state, and local contracts. Information on past performance, including any documented issues, awards for excellence, or contractor performance assessment reports (CPARS), would be crucial. For a contract of this magnitude, particularly in a sensitive area like healthcare, the VA would have likely evaluated Freestate's past performance during the solicitation process. A positive track record would indicate reliability in meeting delivery schedules, maintaining service quality, and adhering to contractual obligations. Conversely, a history of performance issues could raise concerns about the successful execution of this current contract.

Are there any specific risks identified related to the contractor's financial stability or operational capacity to fulfill this contract?

The provided data does not include information on the contractor's financial stability or operational capacity. However, during the procurement process for a contract of this size, the government typically conducts due diligence, which may include reviewing financial statements, assessing bonding capacity, and evaluating operational resources (e.g., fleet size, staffing levels, certifications). Risks could arise if the contractor lacks sufficient resources, has a history of financial difficulties, or faces challenges in recruiting and retaining qualified personnel. The firm fixed-price nature of the contract means the contractor assumes financial risk, but operational failures could still impact service delivery and patient care, necessitating close monitoring by the VA.

What is the anticipated impact of this contract on the availability and cost of ambulance services for non-veteran populations in Maryland?

This contract specifically serves the Department of Veterans Affairs, implying that the services provided are primarily for eligible veterans. However, a large contract awarded to a single provider like Freestate Transportation LLC could potentially impact the broader market. If Freestate dedicates a significant portion of its resources to fulfilling this VA contract, it might reduce its capacity to serve non-veteran populations, potentially leading to longer wait times or higher costs for others in the region. Conversely, the influx of revenue from this contract could enable Freestate to expand its operations, potentially increasing overall availability. The net effect depends on the specifics of resource allocation and market dynamics.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 832 OREGON AVE, LINTHICUM HEIGHTS, MD, 21090

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,265

Exercised Options: $33,265

Current Obligation: $33,265

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24524D0055

IDV Type: IDC

Timeline