VA awards $9.06M contract for special needs transportation in Florida, with KTS Solutions Inc. as prime

Contract Overview

Contract Amount: $9,056,141 ($9.1M)

Contractor: KTS Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-01

End Date: 2027-02-28

Contract Duration: 1,915 days

Daily Burn Rate: $4.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SPECIAL MODE TRANSPORTATION SERVICES NF/SG VHS - SOUTH REGION

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.1 million to KTS SOLUTIONS, INC. for work described as: SPECIAL MODE TRANSPORTATION SERVICES NF/SG VHS - SOUTH REGION Key points: 1. Contract value represents a significant investment in specialized transit for veterans. 2. Competition dynamics suggest a potentially efficient pricing environment for this service. 3. Performance period extends over five years, indicating a need for sustained service delivery. 4. The service is critical for ensuring mobility and access to care for beneficiaries. 5. Geographic focus on Florida highlights regional needs for specialized transportation.

Value Assessment

Rating: good

The contract value of $9.06 million over approximately 1915 days (from Dec 2021 to Feb 2027) for special needs transportation services appears reasonable given the specialized nature of the support required. Benchmarking against similar contracts for specialized transportation services is challenging due to the unique requirements of 'Special Needs Transportation' and the specific geographic region. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized for awards below certain thresholds. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This level of competition, even within SAP, generally contributes to price discovery and ensures that the government receives competitive pricing.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

Veterans in Florida requiring specialized transportation will benefit from reliable access to medical appointments and other essential services. The contract ensures the delivery of critical transportation services, enhancing the quality of life and healthcare access for beneficiaries. Geographic impact is concentrated within Florida, addressing specific regional needs for veteran mobility. The contract supports local employment opportunities within the transportation sector in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor faces operational challenges.
Ensuring consistent quality of care and vehicle maintenance across all service areas.
Monitoring adherence to specialized transportation protocols and safety standards.

Positive Signals

Long-term contract award provides service stability for beneficiaries.
Firm-fixed-price contract shifts cost risk to the contractor.
Competitive award process suggests potential for cost efficiency.

Sector Analysis

The Special Needs Transportation services fall within the broader transportation and logistics sector, often intersecting with healthcare support services. This contract addresses a niche but vital segment of the market, focusing on individuals with specific mobility requirements. The market for specialized transportation is often characterized by regional providers and varying levels of regulatory oversight. Comparable spending benchmarks are difficult to establish without more granular data on service types and geographic scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, KTS Solutions, Inc., is likely a larger entity or a small business that won through general competition. There is no explicit information regarding subcontracting plans for small businesses within this award, which warrants further investigation to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veteran Transportation Services
Medical Support Services
Non-Emergency Medical Transportation (NEMT)
Department of Veterans Affairs Healthcare Services

Risk Flags

Potential for service gaps if contractor faces unforeseen operational issues.
Need for robust monitoring to ensure consistent quality and safety standards.
Ensuring compliance with all VA and federal transportation regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.1 million to KTS SOLUTIONS, INC.. SPECIAL MODE TRANSPORTATION SERVICES NF/SG VHS - SOUTH REGION

Who is the contractor on this award?

The obligated recipient is KTS SOLUTIONS, INC..

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 $9.1 million.

What is the period of performance?

Start: 2021-12-01. End: 2027-02-28.

What is the historical spending pattern of the Department of Veterans Affairs on Special Needs Transportation services, particularly in the Florida region?

Analyzing historical spending on Special Needs Transportation by the VA in Florida requires access to detailed procurement data over multiple fiscal years. While this specific contract is valued at $9.06 million, understanding the broader trend involves examining previous awards for similar services, their values, durations, and the contractors involved. A trend analysis would reveal whether spending has increased, decreased, or remained stable, potentially indicating shifts in veteran population needs, service provider availability, or VA policy. Without historical data, it's difficult to contextualize the current award's significance within the VA's overall budget allocation for such critical support services in the region.

How does the per-mile or per-trip cost of this contract compare to industry benchmarks for specialized transportation services in similar geographic areas?

Determining the per-mile or per-trip cost requires breaking down the total contract value ($9.06M) by the estimated total miles or trips to be provided over the contract's duration (approx. 1915 days). This information is not directly available in the provided data. If such figures were calculable, they would need to be compared against industry benchmarks for specialized transportation, which can vary significantly based on vehicle type, driver qualifications, geographic density, and regulatory requirements. For instance, specialized medical transport often incurs higher costs than general transit due to the need for trained personnel and specialized equipment. A comparison would reveal if the VA is achieving cost-effective service delivery relative to market rates.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract, and how is contractor performance monitored?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this 'Special Needs Transportation' contract. Typically, such contracts would include requirements related to on-time performance, vehicle maintenance and safety standards, driver training and certification, patient handling protocols, and complaint resolution. Monitoring is usually conducted by the VA's contracting officer's representative (COR) through regular reporting, site visits, and analysis of performance data submitted by the contractor. Failure to meet SLAs can result in penalties, corrective actions, or contract termination, ensuring accountability for service delivery.

What is the track record of KTS Solutions, Inc. in performing similar government contracts, particularly those involving transportation or services for vulnerable populations?

Assessing the track record of KTS Solutions, Inc. requires reviewing their past performance on federal, state, and local government contracts. Information on previous awards, contract values, durations, and performance evaluations (such as past performance questionnaires or CPARS reports) would be crucial. Specifically, their experience with specialized transportation, adherence to delivery schedules, safety records, and client satisfaction in similar service areas would provide insight into their capability to fulfill this VA contract effectively. A review of their contract history would help identify any patterns of success or challenges in managing complex service contracts.

Are there any identified risks associated with KTS Solutions, Inc. as a contractor, such as financial stability, past performance issues, or legal challenges?

Identifying risks associated with KTS Solutions, Inc. would involve a due diligence process that includes reviewing financial health indicators, past performance records (e.g., CPARS), any history of litigation or debarment, and compliance with regulatory requirements. Without access to these specific risk assessment reports or databases, it's impossible to definitively state any risks. However, standard government contracting procedures include vetting potential awardees to mitigate risks related to contractor capability, reliability, and integrity. Any significant red flags would typically be addressed during the source selection process or through ongoing contract management.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › Special Needs Transportation

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24821Q0592

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12733 TORRINGTON ST, WOODBRIDGE, VA, 22192

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,750,916

Exercised Options: $9,056,141

Current Obligation: $9,056,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline