VA awards $2.7M contract for wheelchair transportation in Minnesota, with a 378-day duration

Contract Overview

Contract Amount: $2,731,500 ($2.7M)

Contractor: Care Transportation MN, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-02

End Date: 2026-08-15

Contract Duration: 378 days

Daily Burn Rate: $7.2K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MINNEAPOLIS VAMC WHEELCHAIR TRANSPORTATION SERVICES, BP TO

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to CARE TRANSPORTATION MN, LLC for work described as: MINNEAPOLIS VAMC WHEELCHAIR TRANSPORTATION SERVICES, BP TO Key points: 1. Contract value appears reasonable for specialized transportation services over the specified period. 2. Competition dynamics indicate a competed award, suggesting potential for fair pricing. 3. Risk indicators are low, with a firm-fixed-price contract type and clear service delivery period. 4. Performance context is for essential medical support services for veterans. 5. Sector positioning is within healthcare support services for the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract value of $2,731,500 for 378 days of wheelchair transportation services in Minnesota seems aligned with market rates for specialized medical transport. Benchmarking against similar contracts for non-emergency medical transportation (NEMT) for government agencies suggests this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, and the award to CARE TRANSPORTATION MN, LLC, indicates a selection based on demonstrated capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and evaluated. This level of competition is generally favorable for price discovery and ensuring the government receives a fair value for the services rendered.

Taxpayer Impact: A competed award under SAP helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Veterans in Minnesota requiring wheelchair transportation will benefit from reliable and accessible medical transport. The services delivered will ensure timely access to medical appointments and facilities. Geographic impact is focused on the state of Minnesota, serving veterans within its service areas. Workforce implications include employment opportunities for drivers and support staff within CARE TRANSPORTATION MN, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a competed process, indicating potential for good value.
Firm-fixed-price contract type mitigates cost overrun risks.
Clear service period (delivery order) with defined start and end dates.
Contract supports essential healthcare services for a vulnerable population.

Sector Analysis

The healthcare support services sector, particularly non-emergency medical transportation, is a critical component of the healthcare delivery system. Government agencies, like the VA, frequently contract for these services to ensure beneficiaries can access necessary medical care. Spending in this area is driven by the need for specialized transport solutions that accommodate patients with mobility challenges, ensuring compliance with accessibility regulations and patient comfort. Comparable spending benchmarks for such services vary based on geographic location, service intensity, and contract duration, but consistent demand exists across federal health agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to CARE TRANSPORTATION MN, LLC, a specific entity, suggests it is capable of performing the service directly. Further analysis would be needed to determine if CARE TRANSPORTATION MN, LLC itself is a small business or if there are opportunities for small business participation in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under 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 by the performance end date. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction may be invoked if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Care Transportation
Non-Emergency Medical Transportation (NEMT)
Federal Healthcare Support Services
Veteran Support Services

Risk Flags

Potential for service disruption if contractor faces operational challenges.
Dependence on contractor's ability to maintain vehicle fleet and driver pool.
Need for ongoing VA oversight to ensure service quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to CARE TRANSPORTATION MN, LLC. MINNEAPOLIS VAMC WHEELCHAIR TRANSPORTATION SERVICES, BP TO

Who is the contractor on this award?

The obligated recipient is CARE TRANSPORTATION MN, 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 $2.7 million.

What is the period of performance?

Start: 2025-08-02. End: 2026-08-15.

What is the track record of CARE TRANSPORTATION MN, LLC in providing similar services to the federal government?

A review of federal procurement data indicates that CARE TRANSPORTATION MN, LLC has received federal contracts primarily from the Department of Veterans Affairs. While specific details on past performance quality are not publicly available in summary data, the award of this contract suggests they have met the VA's requirements for capability and capacity. Further investigation into past performance evaluations or any reported issues would be necessary for a comprehensive assessment of their track record. The current award is a delivery order under a larger contract vehicle, implying a prior selection process.

How does the per-mile or per-trip cost of this contract compare to industry benchmarks for wheelchair transportation?

The provided data does not include per-mile or per-trip cost breakdowns, making a direct comparison to industry benchmarks challenging. The total contract value of $2,731,500 over 378 days averages approximately $7,226 per day. Without knowing the volume of trips or miles covered daily, it's impossible to calculate a precise per-unit cost. However, given the specialized nature of wheelchair transportation, which requires trained personnel and accessible vehicles, costs are generally higher than standard taxi services. The fact that the contract was competed suggests the pricing was deemed acceptable within the competitive landscape.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions due to vehicle maintenance issues, driver availability, or unforeseen demand surges. Mitigation strategies are inherent in the contract structure: the firm-fixed-price nature caps the government's financial exposure. The contract duration of 378 days provides a defined period for service delivery. The Department of Veterans Affairs likely has performance standards and reporting requirements that CARE TRANSPORTATION MN, LLC must meet. Furthermore, the competitive award process suggests the contractor was vetted for reliability and capability, reducing the risk of poor performance.

How effective is this contract in ensuring veterans have reliable access to necessary medical appointments?

This contract is designed to directly address the effectiveness of ensuring veterans have reliable access to medical appointments by providing dedicated wheelchair transportation. The service is crucial for veterans with mobility impairments who cannot use standard public transport or personal vehicles. By contracting with CARE TRANSPORTATION MN, LLC, the VA aims to guarantee that these veterans can reach their healthcare providers consistently. The success of this contract in achieving effectiveness hinges on the contractor's operational efficiency, adherence to schedules, and the quality of service provided, which are subject to VA oversight.

What is the historical spending pattern for wheelchair transportation services by the VA in Minnesota?

Analyzing historical spending patterns for wheelchair transportation by the VA in Minnesota requires access to detailed procurement databases beyond the provided summary data. However, it is reasonable to infer that the VA consistently requires such services to support its patient population. The current award of $2.7 million suggests a significant and ongoing need. Past awards would likely show similar contract types (e.g., fixed-price) and durations, potentially with different contractors or varying award amounts based on market conditions and specific service area requirements within Minnesota.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this contract?

The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, it is standard practice for government contracts, especially for essential services like medical transportation, to include performance standards. These typically relate to on-time arrival rates, vehicle availability, driver professionalism, patient safety, and compliance with accessibility regulations. The Department of Veterans Affairs would monitor these aspects to ensure the contractor meets contractual obligations. Failure to meet KPIs could result in penalties or contract termination.

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: 2600 7TH ST N, SAINT CLOUD, MN, 56303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,731,500

Exercised Options: $2,731,500

Current Obligation: $2,731,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26325D0064

IDV Type: IDC

Timeline