VA awards $2.3M contract for specialized transportation services to Journey Via Gurney, LLC

Contract Overview

Contract Amount: $2,332,541 ($2.3M)

Contractor: Journey VIA Gurney, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-05-31

Contract Duration: 150 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SPECIAL MODE TRANSPORTATION SERVICES

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to JOURNEY VIA GURNEY, LLC for work described as: SPECIAL MODE TRANSPORTATION SERVICES Key points: 1. Contract value appears reasonable given the specialized nature of the service. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration is relatively short, potentially limiting long-term price stability. 4. Performance is benchmarked against similar transit and ground passenger transportation contracts. 5. This contract falls within the broader 'Other Transit and Ground Passenger Transportation' sector. 6. The fixed-price structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $2.33 million for a 5-month period for specialized transportation services seems aligned with industry standards for similar niche services. Benchmarking against other contracts in the 'All Other Transit and Ground Passenger Transportation' NAICS code indicates that pricing for specialized medical or mobility-impaired transport can be substantial. The firm fixed-price nature suggests that the VA has negotiated a set rate, which can be advantageous if the contractor can deliver efficiently. However, without specific details on the scope of services (e.g., number of trips, distance, patient acuity), a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The fact that it was competed broadly suggests that multiple vendors had the opportunity to bid. The level of competition, though not explicitly stated in terms of bidder count, is generally positive for price discovery and ensuring the government receives competitive offers. The exclusion of sources clause warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: The broad competition, even with exclusions, aims to secure the best possible price for taxpayers by allowing multiple qualified vendors to vie for the contract. This process helps prevent inflated pricing that might occur in a sole-source or limited-source environment.

Public Impact

Veterans requiring specialized transportation services, particularly those with mobility challenges, will benefit from this contract. The services delivered will ensure beneficiaries can access necessary medical appointments and facilities. The contract is geographically focused on California, impacting veterans within that state. This contract supports the workforce within the specialized transportation and logistics sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition becomes less robust.
Dependence on a single contractor for critical specialized transportation needs.
Ensuring consistent quality of service across all deliveries within the contract period.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract shifts cost overrun risk to the contractor.
Contract duration is defined, allowing for periodic re-evaluation of needs and vendor performance.

Sector Analysis

The 'All Other Transit and Ground Passenger Transportation' sector encompasses a wide range of services beyond standard public transit. This includes specialized services like medical transport, non-emergency medical transportation (NEMT), and services for individuals with disabilities. The market can be fragmented, with many small to medium-sized businesses, but also includes larger players. Government contracts, particularly for healthcare providers like the VA, represent a significant portion of demand for these specialized services, often requiring specific certifications and compliance standards.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to be a small business set-aside, the prime contractor, Journey Via Gurney, LLC, should be assessed for its size. Furthermore, the contract's scope may present opportunities for small businesses to participate as subcontractors, particularly in local service delivery or specialized equipment provision, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Non-Emergency Medical Transportation (NEMT) Services
Federal Transit Administration Grants
Department of Defense Medical Logistics

Risk Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Contract performance risk associated with specialized transportation services.
Geographic concentration in California may limit scalability or require separate contracts elsewhere.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to JOURNEY VIA GURNEY, LLC. SPECIAL MODE TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is JOURNEY VIA GURNEY, 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 $2.3 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-05-31.

What specific types of specialized transportation are covered under this contract, and what is the expected volume of service?

The contract data indicates 'SPECIAL MODE TRANSPORTATION SERVICES' under NAICS code 485999 (All Other Transit and Ground Passenger Transportation). While the specific modes are not detailed, this NAICS code typically includes services like non-emergency medical transportation (NEMT), transportation for individuals with disabilities, and other specialized transit. The contract value of $2.33 million over 150 days (approximately 5 months) suggests a significant operational scale. Without explicit service delivery metrics (e.g., number of trips, patient acuity levels, mileage), it's difficult to quantify the exact volume. However, the substantial award amount implies a consistent and high demand for these specialized transport services for VA beneficiaries in California.

How does the pricing of this contract compare to similar specialized transportation services procured by other federal agencies?

Benchmarking this contract's value requires comparing it to similar specialized transportation services, particularly NEMT or mobility-impaired transport, procured by agencies like HHS (Medicare/Medicaid) or DoD. Given the $2.33 million award for a 5-month period, the per-diem cost is approximately $15,550. This rate needs to be evaluated against the specific service level agreements (SLAs) and geographic coverage. If Journey Via Gurney, LLC is providing high-acuity patient transport or covering extensive rural areas within California, this cost might be justified. However, if the services are more routine, it could represent a higher-than-average cost. A detailed comparison would necessitate access to pricing data from comparable contracts with similar scope and service intensity.

What are the key performance indicators (KPIs) that the VA will use to evaluate Journey Via Gurney, LLC's performance under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for specialized transportation contracts include on-time performance (pickup and drop-off), vehicle availability, driver qualifications and professionalism, patient safety incident rates, and compliance with all relevant regulations (e.g., ADA, HIPAA). The VA would likely establish metrics related to mission capability, such as the percentage of scheduled trips completed successfully and within acceptable timeframes. Customer satisfaction surveys from beneficiaries and healthcare providers could also serve as qualitative KPIs. Failure to meet these KPIs could result in contractual remedies, including financial penalties or termination.

What is the track record of Journey Via Gurney, LLC in performing similar government contracts, particularly for the Department of Veterans Affairs?

Information regarding Journey Via Gurney, LLC's specific track record with government contracts, especially for the VA, is not provided in the initial data. A thorough assessment would require searching federal procurement databases (like FPDS or SAM.gov) for past performance history, including contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or terminations. Understanding their experience with similar specialized transportation services, their financial stability, and their ability to meet demanding government requirements is crucial for evaluating the risk associated with this award.

What is the potential impact of the 'Exclusion of Sources' clause on the overall cost-effectiveness and competition for this contract?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was intended to be broad, certain potential offerors were deliberately excluded. The impact on cost-effectiveness and competition depends heavily on the justification for these exclusions. If sources were excluded based on objective criteria related to capability, past performance, or specific regulatory requirements (e.g., licensing, specialized equipment), then the remaining competition among qualified vendors could still yield competitive pricing. However, if the exclusions were arbitrary or overly restrictive, it could limit the pool of bidders, potentially leading to higher prices and reduced innovation. Understanding the rationale behind the exclusions is key to assessing its impact.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger 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: 1330 W ROBINHOOD DR STE B, STOCKTON, CA, 95207

Business Categories: Category Business, Limited Liability Corporation, 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: $2,332,541

Exercised Options: $2,332,541

Current Obligation: $2,332,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26121D0070

IDV Type: IDC

Timeline