VA awards $2.1M contract for Puget Sound transportation services, highlighting potential value in specialized transit

Contract Overview

Contract Amount: $2,105,284 ($2.1M)

Contractor: Medstar Cabulance Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $5.8K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: EO14042 - TRANSPORTATION SERVICES FOR ELIGIBLE BENEFICIARIES IN THE PUGET SOUND CATCHMENT AREA SOUTH SECTION.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to MEDSTAR CABULANCE INC for work described as: EO14042 - TRANSPORTATION SERVICES FOR ELIGIBLE BENEFICIARIES IN THE PUGET SOUND CATCHMENT AREA SOUTH SECTION. Key points: 1. Contract awarded to Medstar Cabulance Inc. for specialized transportation services. 2. The contract is a firm-fixed-price delivery order under the Simplified Acquisition Procedures (SAP). 3. Service area covers the Puget Sound catchment area, south section. 4. Duration of the contract is 364 days, indicating a short-term need. 5. The contract was competed, suggesting a degree of market engagement. 6. No small business set-aside was utilized for this procurement. 7. The North American Industry Classification System (NAICS) code is 485991 for Special Needs Transportation.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for a one-year period for specialized transportation services in a specific geographic region appears reasonable. Benchmarking against similar contracts for special needs transportation is challenging without more granular data on service levels and geographic scope. However, the firm-fixed-price structure provides cost certainty for the VA. The award to Medstar Cabulance Inc. suggests they met the government's requirements and pricing expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for procurements valued below the SAT. While the specific number of bidders is not provided, the fact that it was competed suggests that multiple vendors had the opportunity to submit proposals. This competitive process is intended to ensure fair pricing and access to a range of qualified providers.

Taxpayer Impact: Competition under SAP generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source awards. It ensures that the government is not overpaying for services by leveraging market forces.

Public Impact

Eligible beneficiaries in the Puget Sound catchment area, south section, will receive specialized transportation services. The services are crucial for individuals who require specialized transport due to medical needs or other eligibility criteria. The geographic impact is focused on the southern part of the Puget Sound region in Washington state. This contract supports the healthcare delivery mission of the Department of Veterans Affairs by ensuring beneficiaries can access necessary services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
Limited information on the number of bidders restricts a full understanding of the competitive landscape.
The duration of the contract (364 days) may indicate a need for ongoing re-competition or potential service disruption if not managed proactively.

Positive Signals

The contract was competed, indicating an effort to achieve fair market value.
Firm-fixed-price contract type provides cost predictability for the government.
The award is to a specific vendor, suggesting they have the capacity and qualifications to perform the required services.

Sector Analysis

The Special Needs Transportation sector, classified under NAICS code 485991, involves providing transportation for individuals with special needs, often related to medical appointments or disabilities. This market is characterized by specialized vehicles, trained personnel, and adherence to strict safety and accessibility regulations. Government contracts in this area are common, particularly for agencies like the VA that serve vulnerable populations requiring reliable transit to access care. Spending benchmarks are highly variable based on geographic density, service complexity, and contract duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the procurement was open to all eligible offerors, including large businesses. While this allows for a broader pool of potential contractors, it also means that small businesses may not have had a specific advantage in securing this award. Subcontracting opportunities for small businesses are not detailed in the provided information but would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under SAP, it is subject to standard federal procurement regulations and oversight. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing on service delivery and compliance. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Care Transportation Services
Department of Defense Transportation Contracts
Medicare/Medicaid Non-Emergency Medical Transportation
State-level Special Transportation Assistance Programs

Risk Flags

Potential for service disruption if contractor fails to meet demand.
Limited transparency on specific performance metrics.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to MEDSTAR CABULANCE INC. EO14042 - TRANSPORTATION SERVICES FOR ELIGIBLE BENEFICIARIES IN THE PUGET SOUND CATCHMENT AREA SOUTH SECTION.

Who is the contractor on this award?

The obligated recipient is MEDSTAR CABULANCE 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 $2.1 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the historical spending pattern for Medstar Cabulance Inc. with the Department of Veterans Affairs?

Analyzing the historical spending patterns for Medstar Cabulance Inc. with the Department of Veterans Affairs (VA) is crucial for understanding their track record and reliability. Without access to specific historical contract data for this vendor, a definitive analysis cannot be provided. However, typically, federal procurement databases (like FPDS or SAM.gov) would be consulted to review past awards, contract values, performance history, and any reported issues. A history of successful, on-time, and compliant contract performance would indicate a lower risk for this current award. Conversely, a pattern of contract disputes, performance failures, or late payments might raise concerns about their capacity and reliability. For this specific contract, the VA's decision to award suggests that Medstar Cabulance Inc. likely met their pre-award assessments, which may include a review of past performance.

How does the awarded price per day or per trip compare to industry benchmarks for similar special needs transportation services?

Determining the precise value-for-money requires a detailed breakdown of services provided (e.g., type of vehicle, specialized equipment, driver qualifications, trip distance, patient assistance required) and comparing it to established benchmarks for special needs transportation. The total contract value is approximately $2.1 million over 364 days, equating to roughly $5,784 per day. If this contract involves a fleet of vehicles operating throughout the day, this daily rate might be competitive. However, if it's based on individual trips, the cost per trip would need to be analyzed. Industry benchmarks vary significantly by region and service complexity. For instance, non-emergency medical transportation (NEMT) services can range from $50 to $200+ per trip depending on factors like mileage, vehicle type (e.g., wheelchair accessible van vs. standard sedan), and level of assistance. Without more granular data on the service delivery model and specific geographic cost factors in the Puget Sound area, a definitive benchmark comparison is difficult. The firm-fixed-price nature, however, suggests the VA aimed for cost certainty.

What are the key performance indicators (KPIs) used to evaluate Medstar Cabulance Inc.'s performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for special needs transportation services, common KPIs typically include: On-Time Performance (percentage of trips completed within a specified window), Vehicle Availability (ensuring sufficient vehicles are ready for service), Driver Qualifications and Training (compliance with licensing, background checks, and specialized training), Patient Satisfaction (feedback from beneficiaries), Safety Record (tracking accidents and incidents), and Compliance with Regulations (adherence to ADA, HIPAA, and other relevant laws). The Department of Veterans Affairs would have established specific metrics within the contract's Performance Work Statement (PWS) to monitor Medstar Cabulance Inc.'s adherence to these standards. Regular performance reviews and reporting would be conducted to ensure the contractor is meeting or exceeding expectations.

What is the potential risk associated with the contractor's ability to scale services if demand increases unexpectedly?

The potential risk associated with Medstar Cabulance Inc.'s ability to scale services depends heavily on their existing operational capacity, fleet size, driver pool, and contingency planning. As this is a firm-fixed-price contract, the contractor assumes the risk of managing fluctuating demand within the agreed-upon price. If demand significantly exceeds projections, Medstar Cabulance Inc. might face challenges in meeting all service requests promptly, potentially leading to performance issues and beneficiary dissatisfaction. Conversely, if demand is lower than anticipated, they bear the financial risk of underutilized resources. The VA likely assessed the contractor's capacity during the procurement process. However, unforeseen surges in demand, especially in a specialized service like this, could strain resources. Mitigation strategies might include the contractor having pre-established relationships with other transport providers for overflow, or the VA having contingency plans for alternative service arrangements.

How does this contract align with the VA's broader mission to provide comprehensive healthcare access to veterans?

This contract directly aligns with the VA's core mission of ensuring veterans have access to necessary healthcare services, regardless of their location or personal mobility challenges. Reliable transportation is a critical determinant of healthcare access, particularly for veterans living in remote areas or those with disabilities or chronic conditions that impede their ability to travel independently. By securing specialized transportation services in the Puget Sound area, the VA is removing a significant barrier that could otherwise prevent veterans from attending medical appointments, receiving treatments, or accessing other essential VA services. This contract exemplifies the VA's commitment to a patient-centered approach, recognizing that logistical support is as vital as clinical care in achieving positive health outcomes for veterans.

What are the implications of the 'COMPETED UNDER SAP' designation for contract oversight and potential future procurements?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation indicates that this contract was awarded through a streamlined procurement process designed for purchases below the Simplified Acquisition Threshold (SAT), which is currently $250,000, but can be higher for certain types of contracts or agencies. However, the contract value here is $2.1 million, suggesting this might be a Delivery Order against an existing IDIQ contract that was competed under SAP, or the SAP threshold has been adjusted or waived for this specific circumstance. If it's a Delivery Order against a previously competed IDIQ, the initial competition established the overall framework and pricing. Oversight for this specific delivery order would focus on performance and compliance. For future procurements, if this contract is a standalone award exceeding the SAT, it would typically require a more formal, full and open competition process unless specific exceptions apply. The SAP designation suggests a focus on efficiency for smaller value procurements, but its application to a $2.1M contract warrants clarification on the specific procurement vehicle.

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: 1904 FRUITVALE BLVD, YAKIMA, WA, 98902

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,105,284

Exercised Options: $2,105,284

Current Obligation: $2,105,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26021D0022

IDV Type: IDC

Timeline