VA awards $1.99M for Indianapolis paratransit, with Govtranz LLC securing the contract

Contract Overview

Contract Amount: $1,994,620 ($2.0M)

Contractor: Govtranz, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-16

End Date: 2026-10-15

Contract Duration: 272 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: INDIANAPOLIS PARATRANSIT SERVICES

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46202

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to GOVTRANZ, LLC for work described as: INDIANAPOLIS PARATRANSIT SERVICES Key points: 1. Contract value appears reasonable for specialized transportation services. 2. Full and open competition suggests potential for competitive pricing. 3. No immediate red flags on risk indicators, but performance history is key. 4. Service delivery is critical for veterans in the Indianapolis area. 5. This contract falls within the broader healthcare support services sector.

Value Assessment

Rating: good

The contract value of $1.99 million for paratransit services over approximately one year seems aligned with industry standards for specialized transportation. Benchmarking against similar contracts for veteran transportation or general paratransit services in comparable metropolitan areas would provide a more precise value-for-money assessment. Without specific per-unit cost data, a direct comparison is limited, but the overall award amount does not appear excessive for the scope of services described.

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 multiple bidders were likely considered. This method generally promotes a competitive environment, allowing the government to solicit proposals from a wide range of qualified vendors. The number of bidders and the evaluation criteria would further illuminate the strength of the competition and its impact on achieving the best possible price and service.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Veterans in the Indianapolis area will benefit from reliable paratransit services. The contract ensures the delivery of special needs transportation. Services are geographically focused on Indianapolis, Indiana. Potential for local job creation in the transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration of over one year allows for stable service provision.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract for paratransit services falls under the broader category of transportation and logistics support, often intertwined with healthcare services. The market for specialized transportation, particularly for government agencies like the VA, involves providers capable of meeting specific accessibility and reliability requirements. Comparable spending benchmarks would involve analyzing other VA contracts for similar services or contracts awarded by other federal agencies for specialized transit.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. The contract was awarded under full and open competition, which does not preclude small businesses from participating, but it also doesn't guarantee a specific set-aside. Further analysis would be needed to determine if small businesses are involved as prime contractors or subcontractors and the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Care Transportation
Federal Transit Administration Grants
Department of Defense Logistics Support

Risk Flags

Performance history of contractor needs verification.
Potential for service disruptions if contractor fails to meet demand.
Geographic concentration of service may limit scalability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to GOVTRANZ, LLC. INDIANAPOLIS PARATRANSIT SERVICES

Who is the contractor on this award?

The obligated recipient is GOVTRANZ, 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 $2.0 million.

What is the period of performance?

Start: 2026-01-16. End: 2026-10-15.

What is the track record of Govtranz, LLC in providing paratransit services, particularly for federal agencies?

Assessing the track record of Govtranz, LLC is crucial for understanding their capability and reliability in fulfilling this contract. A review of past performance evaluations, any documented disputes or contract terminations, and client testimonials, especially from federal agencies like the VA or other government entities, would provide insight. Information on their experience with specialized transportation needs, adherence to schedules, vehicle maintenance, and driver qualifications is essential. Without specific past performance data, it's difficult to definitively gauge their reliability, but the award suggests they met the government's minimum requirements during the solicitation process.

How does the awarded amount compare to the estimated value or budget for these paratransit services?

The awarded amount of $1.99 million for paratransit services provides a concrete figure for the contract's value. To assess if this is competitive, it should be compared against the government's independent government cost estimate (IGCE) or the agency's allocated budget for this service. If the awarded amount is significantly lower than the IGCE, it could indicate strong competition or potentially underestimated requirements. Conversely, if it's close to or exceeds the estimate, further scrutiny of the pricing structure and scope might be warranted. Benchmarking against similar contracts awarded in the Indianapolis area or for comparable services nationwide would also offer valuable context.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical for ensuring the quality and reliability of the paratransit services provided by Govtranz, LLC. These metrics typically include on-time performance rates, vehicle availability, safety incident rates, customer satisfaction scores, and response times for ride requests. The contract documents should clearly define these KPIs and SLAs, along with the associated remedies or incentives for meeting or failing to meet them. Effective monitoring of these metrics by the VA is essential for accountability and to ensure veterans receive the necessary transportation support.

What is the historical spending pattern for paratransit services by the Department of Veterans Affairs in Indiana?

Analyzing historical spending patterns for paratransit services by the VA in Indiana can provide context for the current $1.99 million award. This involves examining previous contract awards for similar services in the region, noting the contractors, contract values, durations, and any trends in pricing or service scope. Understanding whether this award represents an increase, decrease, or stable level of spending compared to prior years is important. It can also reveal if there's been a consistent reliance on specific providers or a competitive market evolving over time. Such analysis helps in evaluating the long-term cost-effectiveness and strategic sourcing of these essential services.

Are there any specific technological requirements or innovations expected in the paratransit services provided?

The provided data does not specify any unique technological requirements or innovations for the paratransit services. However, modern paratransit contracts often include expectations for real-time vehicle tracking, electronic scheduling and dispatch systems, passenger communication platforms, and data reporting capabilities. The VA may have specific requirements related to accessibility features in vehicles or systems that facilitate efficient routing and scheduling for individuals with special needs. Understanding these technological aspects is important for assessing the contractor's operational efficiency and the overall quality of service delivery.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 293 SEASIDE SPARROW WAY, KYLE, TX, 78640

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,994,620

Exercised Options: $1,994,620

Current Obligation: $1,994,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25026D0035

IDV Type: IDC

Timeline