DOT awards $2.6M for rail support services in California, highlighting engineering expertise

Contract Overview

Contract Amount: $2,644,108 ($2.6M)

Contractor: Transystems Corporation

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-08-17

Contract Duration: 364 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Transportation

Official Description: THE CONTRACTOR SHALL PROVIDE THE FEDERAL RAILROAD ADMINISTRATION FOR FOR SUPPORT, TECHNICAL, OVERSIGHT, REVIEW, AND MONITORING (STORM) FOR RRD-55 WEST REGION.

Place of Performance

Location: BERKELEY, ALAMEDA County, CALIFORNIA, 94704

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.6 million to TRANSYSTEMS CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE THE FEDERAL RAILROAD ADMINISTRATION FOR FOR SUPPORT, TECHNICAL, OVERSIGHT, REVIEW, AND MONITORING (STORM) FOR RRD-55 WEST REGION. Key points: 1. Contract focuses on essential support, technical, oversight, review, and monitoring for the Federal Railroad Administration's West Region. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of one year indicates a need for ongoing, but not long-term, specialized support. 4. The primary service category is Engineering Services, aligning with the contractor's expertise. 5. The contract value is relatively modest, suggesting it addresses specific, targeted needs rather than broad program support.

Value Assessment

Rating: good

The contract value of $2.64 million for a one-year period for specialized rail support services appears reasonable. Benchmarking against similar contracts for engineering and technical support within the Department of Transportation would provide a more precise value-for-money assessment. However, given the full and open competition, it suggests that the pricing was competitive among multiple bidders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a competitive environment that should drive fair pricing and encourage innovation. This approach is generally favored for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and quality, ultimately benefiting the public through cost-effective service delivery.

Public Impact

The Federal Railroad Administration's West Region benefits from enhanced support for its rail infrastructure and safety initiatives. The public gains from improved oversight and monitoring of rail operations, contributing to safer and more efficient rail transport. Services provided will support the maintenance and advancement of critical rail infrastructure across the western United States. The contract supports specialized technical and engineering roles, potentially creating or sustaining jobs in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's track record on similar projects.
The contract is a BPA Call, which can sometimes lead to less defined scopes if not managed carefully, though this is a single call.
The duration is only one year, which might indicate a need for more stable, long-term support if the STORM program is critical.

Positive Signals

The contractor, Transystems Corporation, is likely selected based on demonstrated expertise in engineering services, as indicated by the NAICS code.
Award under full and open competition suggests a competitive process that likely yielded a fair price.
The contract supports a critical federal agency (FRA) in a vital sector (rail transportation), indicating alignment with national priorities.

Sector Analysis

The rail transportation sector is a critical component of the U.S. economy, requiring significant engineering, technical, and oversight support. This contract falls within the Engineering Services (NAICS 541330) category, which is a substantial market supporting infrastructure projects across various sectors. Spending in this area is often driven by federal and state investments in infrastructure modernization and maintenance, with comparable contracts varying widely in value based on project scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor may choose to engage small businesses as subcontractors, which would depend on their own business practices and the specific needs of the STORM program.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Railroad Administration (FRA) contracting officers and program managers. As a BPA Call, the oversight might be integrated into broader BPA management processes. Transparency is generally facilitated through contract award databases and public reporting, though specific performance monitoring details are typically internal. The Inspector General for the Department of Transportation would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Federal Railroad Administration Grants
Railroad Safety and Compliance Programs
Transportation Infrastructure Investment Programs
Engineering and Technical Support Services Contracts

Risk Flags

Potential for scope creep given the nature of oversight and monitoring contracts.
Reliance on contractor's specialized expertise requires careful vetting and performance monitoring.
Contract duration of one year may limit long-term strategic impact if program requires sustained effort.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.6 million to TRANSYSTEMS CORPORATION. THE CONTRACTOR SHALL PROVIDE THE FEDERAL RAILROAD ADMINISTRATION FOR FOR SUPPORT, TECHNICAL, OVERSIGHT, REVIEW, AND MONITORING (STORM) FOR RRD-55 WEST REGION.

Who is the contractor on this award?

The obligated recipient is TRANSYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Railroad Administration).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-08-17.

What is Transystems Corporation's track record with the Federal Railroad Administration or similar agencies for providing STORM-like services?

Without access to a comprehensive federal procurement database or specific contract history for Transystems Corporation, it is difficult to definitively assess their track record for providing STORM (Support, Technical, Oversight, Review, and Monitoring) services. However, their designation under NAICS code 541330 (Engineering Services) suggests they possess the foundational expertise required for such tasks. Agencies typically award contracts based on past performance evaluations, which would have been assessed during the procurement process. To gain a clearer picture, one would need to examine past performance reviews submitted by the FRA or other relevant agencies for this contractor on similar projects, looking for indicators of successful project completion, adherence to timelines, and quality of deliverables.

How does the $2.64 million contract value compare to similar rail support and oversight contracts awarded by the FRA or other transportation agencies?

The $2.64 million contract value for a one-year duration for specialized rail support, technical, oversight, review, and monitoring (STORM) services by the Federal Railroad Administration (FRA) appears to be within a reasonable range for targeted support. However, a precise benchmark requires comparison with contracts of similar scope, duration, and complexity. For instance, larger, multi-year contracts for comprehensive program management or extensive infrastructure oversight would naturally be valued significantly higher. Conversely, smaller, task-specific engineering consultancies might be awarded for less. Given this contract was awarded under full and open competition, the pricing achieved suggests it was competitive within its specific niche of services for the West Region.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential scope creep, where the services required expand beyond the initial definition, leading to cost overruns or schedule delays. Another risk is the contractor's ability to deliver the specialized technical and oversight expertise consistently throughout the contract period. Performance quality is also a risk, as inadequate review or monitoring could impact rail safety or operational efficiency. Mitigation strategies likely include robust contract management by the FRA, clear definition of deliverables and performance standards, regular progress reviews, and potentially performance-based payment structures. The contractor's past performance evaluation during the bidding process would also serve as a risk mitigation factor.

How effective is the STORM program likely to be in achieving the FRA's objectives for the West Region, based on this contract?

The effectiveness of the STORM program, supported by this $2.64 million contract, hinges on the specific objectives it aims to achieve for the FRA's West Region. Assuming STORM is designed to enhance oversight, improve technical support, and facilitate review processes for rail operations and infrastructure, this contract provides the necessary resources for those functions. The success will depend on the clarity of the program's goals, the contractor's ability to execute the defined tasks, and the FRA's own capacity to leverage the support provided. The one-year duration suggests it's intended for ongoing, but perhaps not foundational, program support, implying it contributes to existing FRA efforts rather than establishing entirely new ones.

What are the historical spending patterns for similar engineering and technical support services by the Federal Railroad Administration?

Historical spending patterns for engineering and technical support services by the Federal Railroad Administration (FRA) typically reflect the agency's priorities in areas such as safety, infrastructure development, and regulatory compliance. The FRA often procures services for track inspection, signal system analysis, environmental reviews, and research and development. Spending can fluctuate based on federal appropriations, major infrastructure initiatives (like high-speed rail projects), and specific safety mandates. Contracts for these services range from small, specialized consultancies to larger, multi-year agreements. The $2.64 million awarded here for STORM services in the West Region represents a specific allocation for targeted support, and understanding broader FRA spending would require analyzing aggregate data across various service categories and regions over several fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 693JJ624Q000012

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2400 PERSHING RD STE 400, KANSAS CITY, MO, 64108

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

Financial Breakdown

Contract Ceiling: $7,395,743

Exercised Options: $2,644,108

Current Obligation: $2,644,108

Actual Outlays: $74,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JJ624A000004

IDV Type: BPA

Timeline