VA awards $2.17M contract for NEMT services in Detroit, MI to G & M Automotive Transport

Contract Overview

Contract Amount: $2,172,749 ($2.2M)

Contractor: G & M Automotive Transport, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-09-30

Contract Duration: 272 days

Daily Burn Rate: $8.0K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEMT SERVICE FOR DETROIT VAMCE

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to G & M AUTOMOTIVE TRANSPORT, INC for work described as: NEMT SERVICE FOR DETROIT VAMCE Key points: 1. Contract awarded for specialized transportation services, indicating a need for reliable patient mobility. 2. The contract duration of 272 days suggests a focused, short-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The award amount of $2.17M falls within a moderate spending range for such services. 5. This contract supports the Department of Veterans Affairs' mission to provide healthcare access to veterans. 6. The geographic focus on Detroit, MI, highlights a specific regional demand for NEMT.

Value Assessment

Rating: good

The contract value of $2.17M for approximately 9 months of service appears reasonable for specialized non-emergency medical transportation in a major metropolitan area. Benchmarking against similar NEMT contracts for the VA or other federal agencies would provide a clearer picture of value for money. However, given the specialized nature of the service and the fixed-price structure, the pricing is likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was a full and open competition among eligible vendors. While the specific number of bidders is not provided, SAP is designed to encourage broad participation for contracts under the simplified acquisition threshold. This competitive process should have driven a fair market price.

Taxpayer Impact: A competed contract under SAP generally ensures taxpayers receive competitive pricing, as multiple vendors had the opportunity to bid on the service.

Public Impact

Veterans in the Detroit, Michigan area will benefit from reliable transportation to and from VA medical appointments. The service ensures continuity of care by addressing mobility challenges faced by some veterans. This contract supports the local economy in Michigan through the provision of specialized transportation services. The contract directly impacts veterans who require assistance to access healthcare facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor faces operational issues.
Ensuring consistent quality of service across all transportations.
Monitoring contractor performance to ensure adherence to schedule and patient care standards.

Positive Signals

Contract awarded through a competitive process, indicating potential for good value.
Firm Fixed Price contract provides cost certainty.
Supports the VA's mission to care for veterans.

Sector Analysis

The Non-Emergency Medical Transportation (NEMT) sector is a critical component of healthcare logistics, particularly for government agencies serving specific populations like veterans. This contract fits within the broader healthcare support services market, which is substantial and growing. Comparable spending benchmarks for NEMT services can vary significantly based on geographic location, service intensity, and patient needs, but this award appears to be within a typical range for a metropolitan area.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As the contract was competed under SAP, it's possible small businesses participated, but without specific set-aside designations, their participation level is unknown. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures would include performance monitoring, adherence to the contract's terms and conditions, and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Non-Emergency Medical Transportation Services
Federal NEMT Contracts
Healthcare Support Services
Veteran Transportation Programs

Risk Flags

Potential for service gaps if contractor performance falters.
Need for robust monitoring of service quality and timeliness.
Ensuring compliance with VA healthcare transportation standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to G & M AUTOMOTIVE TRANSPORT, INC. NEMT SERVICE FOR DETROIT VAMCE

Who is the contractor on this award?

The obligated recipient is G & M AUTOMOTIVE TRANSPORT, 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 $2.2 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-09-30.

What is the historical spending pattern for NEMT services by the VA in the Detroit area?

Analyzing historical spending for NEMT services by the VA in the Detroit area would provide crucial context for this $2.17M award. Without specific historical data, it's difficult to determine if this represents an increase, decrease, or stable level of investment. Examining past contracts, their values, durations, and the contractors involved would reveal trends in demand, pricing, and contractor performance. This analysis could highlight whether the VA has consistently relied on contracted NEMT or if this is a new or expanded service offering. Understanding past spending patterns is essential for assessing the long-term financial commitment and identifying potential cost efficiencies or areas of concern.

How does the per-mile cost or per-trip cost of this contract compare to other VA NEMT contracts in similar urban areas?

Benchmarking the per-mile or per-trip cost of this $2.17M contract against similar VA NEMT contracts in comparable urban areas is vital for assessing value for money. Factors such as average trip distance, patient acuity, and service hours (e.g., 24/7 vs. standard business hours) significantly influence these costs. If this contract's unit costs are substantially higher than benchmarks, it could indicate potential overpricing or unique service requirements. Conversely, if they are lower, it might suggest a highly competitive award or efficient service delivery. This comparison helps determine if taxpayers are receiving a fair price for the services rendered and if the VA is leveraging its purchasing power effectively.

What is the track record of G & M Automotive Transport, Inc. with VA contracts, particularly for NEMT services?

Investigating the track record of G & M Automotive Transport, Inc. with the Department of Veterans Affairs, especially concerning Non-Emergency Medical Transportation (NEMT) services, is crucial for assessing performance risk. This involves reviewing past contract performance evaluations (e.g., CPARS), any history of contract modifications, disputes, or terminations, and the company's experience in delivering similar services. A history of successful, on-time, and high-quality service delivery would indicate a lower risk profile. Conversely, past performance issues could signal potential challenges in meeting the requirements of this new contract, potentially impacting veteran access to care and leading to cost overruns or service disruptions.

What specific types of NEMT services are included in this contract (e.g., wheelchair accessible vehicles, stretcher transport)?

The specific types of Non-Emergency Medical Transportation (NEMT) services included in this contract are critical for understanding the scope of work and the needs of the veteran population being served. Services could range from standard sedan transport for ambulatory patients to specialized vehicles equipped for wheelchairs, stretchers, or even bariatric patients. The contract's details will dictate the required vehicle types, driver qualifications (e.g., medical training), and service protocols. Understanding these specifics helps in evaluating whether the contract adequately addresses the diverse mobility needs of veterans in the Detroit area and whether the awarded price reflects the complexity and resource requirements of the specified services.

Are there any performance metrics or key performance indicators (KPIs) outlined in the contract to measure service quality and reliability?

The presence and nature of performance metrics or Key Performance Indicators (KPIs) within the contract are essential for evaluating the effectiveness of the NEMT services and ensuring accountability. These KPIs typically measure aspects like on-time performance, vehicle availability, patient satisfaction, safety incident rates, and compliance with scheduling. A well-defined set of measurable KPIs allows the VA to objectively assess G & M Automotive Transport's performance throughout the contract period. Without clear KPIs, it becomes challenging to hold the contractor accountable for service quality and to identify areas needing improvement, potentially impacting the veteran's healthcare experience.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 416 SHAVANO ST, DESOTO, TX, 75115

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

Financial Breakdown

Contract Ceiling: $2,172,749

Exercised Options: $2,172,749

Current Obligation: $2,172,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25026D5532

IDV Type: IDC

Timeline