DOT Awards $13.6M for Penn Station Study to Kimley-Horn, Optimizing Future Services

Contract Overview

Contract Amount: $13,579,070 ($13.6M)

Contractor: Kimley-Horn and Associates Inc

Awarding Agency: Department of Transportation

Start Date: 2025-09-29

End Date: 2027-09-28

Contract Duration: 729 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: NEW YORK PENN STATION SERVICE OPTIMIZATION STUDY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $13.6 million to KIMLEY-HORN AND ASSOCIATES INC for work described as: NEW YORK PENN STATION SERVICE OPTIMIZATION STUDY Key points: 1. Study aims to optimize services at a major transportation hub. 2. Kimley-Horn, a large engineering firm, secured the contract. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is transportation consulting, a critical area for infrastructure.

Value Assessment

Rating: good

The contract value of $13.6 million for a two-year study appears reasonable given the scope of optimizing services for a major hub like Penn Station. Benchmarking against similar large-scale transportation consulting studies would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for a wider range of bidders and can lead to more competitive pricing. The fixed-price contract type further supports price discovery.

Taxpayer Impact: Taxpayer funds are being used for a study aimed at improving efficiency and service at a critical national transportation asset, potentially leading to long-term cost savings and better passenger experience.

Public Impact

Enhances efficiency and passenger experience at a vital transportation hub. Supports infrastructure planning and modernization efforts. Provides insights for future transportation investments and service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a complex optimization study.
Ensuring effective implementation of study recommendations.

Positive Signals

Focus on service optimization at a high-impact location.
Use of full and open competition.
Firm fixed-price contract promotes cost control.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to transportation infrastructure consulting. Spending in this area is crucial for maintaining and improving national transit systems, with benchmarks varying widely based on project complexity and scale.

Small Business Impact

The contract was awarded to Kimley-Horn and Associates Inc., a large firm. There is no indication that small businesses were specifically targeted or subcontracted for this particular award, which is common for large-scale engineering studies.

Oversight & Accountability

The Federal Railroad Administration is responsible for overseeing this contract. Standard oversight procedures for delivery orders under larger indefinite-delivery contracts would apply, focusing on performance, schedule, and adherence to the fixed-price terms.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Railroad Administration Programs

Risk Flags

Potential for scope creep.
Dependency on external factors for implementation.
Ensuring robust data collection and analysis.
Effective stakeholder engagement and buy-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.6 million to KIMLEY-HORN AND ASSOCIATES INC. NEW YORK PENN STATION SERVICE OPTIMIZATION STUDY

Who is the contractor on this award?

The obligated recipient is KIMLEY-HORN AND ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2025-09-29. End: 2027-09-28.

What specific metrics will be used to define 'service optimization' for Penn Station?

The study's success will hinge on clearly defined metrics for service optimization. These could include passenger wait times, on-time performance of trains, operational efficiency of station staff, energy consumption, and overall passenger satisfaction. The contract should specify how these metrics will be measured, baseline established, and targets set for improvement.

What are the potential risks associated with implementing the study's recommendations?

Implementing recommendations carries risks such as significant capital investment requirements, potential disruption to ongoing operations during upgrades, resistance from stakeholders (e.g., transit agencies, unions), and unforeseen technical challenges. A thorough risk assessment and mitigation plan should be part of the study's deliverables to address these potential issues proactively.

How will the study ensure long-term value and cost-effectiveness for taxpayers?

Long-term value will be achieved if the study leads to demonstrable improvements in operational efficiency, reduced maintenance costs, and enhanced passenger throughput, thereby increasing revenue or reducing subsidies. Cost-effectiveness will be measured by comparing the study's implementation costs against the realized operational savings and benefits over time.

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: 693JJ625Q000027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 421 FAYETTEVILLE ST, RALEIGH, NC, 27601

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

Financial Breakdown

Contract Ceiling: $13,579,070

Exercised Options: $13,579,070

Current Obligation: $13,579,070

Actual Outlays: $1,331,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0501X

IDV Type: FSS

Timeline