NYC MTA EZ PASS contract awarded for $325,000 by DHS for transit and ground passenger transportation

Contract Overview

Contract Amount: $325,000 ($325.0K)

Contractor: City of NEW York

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-26

End Date: 2026-12-25

Contract Duration: 274 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 2026 NYC MTA EZ PASS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $325,000 to CITY OF NEW YORK for work described as: 2026 NYC MTA EZ PASS Key points: 1. Value for money appears fair given the fixed-price nature and defined duration. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with a defined scope and fixed price. 4. Performance context is tied to transit and ground passenger transportation services. 5. Sector positioning is within the broader transportation infrastructure and technology domain.

Value Assessment

Rating: fair

The contract value of $325,000 for a duration of 274 days appears reasonable for a purchase order of this nature. Benchmarking against similar transit technology procurements is challenging without more specific details on the EZ Pass system's scope. However, the fixed-price structure suggests a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium compared to a competitively bid contract. Without multiple bids, the government has less leverage to negotiate the lowest possible price.

Public Impact

The New York City Metropolitan Transportation Authority (MTA) is the primary beneficiary, likely receiving enhanced EZ Pass system functionality or support. Services delivered are related to transit and ground passenger transportation, improving efficiency for users. Geographic impact is concentrated in New York City and its surrounding transit areas. Workforce implications are minimal, likely involving existing operational staff rather than new hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation and vendor choice in the long term.

Positive Signals

Fixed-price contract provides cost certainty for the duration.
Clear end date for the contract minimizes long-term financial commitment uncertainty.

Sector Analysis

This contract falls within the 'Other Transit and Ground Passenger Transportation' sector, a segment of the broader transportation industry focused on fare collection and management systems. The market for such systems is characterized by specialized technology providers. Comparable spending benchmarks are difficult to ascertain without knowing the specific services rendered, but investments in transit technology are generally substantial due to the critical infrastructure role.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award, it is unlikely that small businesses were specifically targeted or considered as primary contractors. Further analysis would be needed to determine if any small businesses could be involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Secret Service and the Department of Homeland Security. Accountability measures are inherent in the purchase order structure, requiring delivery of specified goods or services. Transparency is limited due to the sole-source nature, but contract details should be publicly accessible through federal procurement databases.

Related Government Programs

Federal Transit Administration Grants
Department of Transportation Technology Initiatives
Smart City Infrastructure Projects

Risk Flags

Sole-source award limits price competition.
Contractor listed as 'City of New York' requires clarification on performing entity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $325,000 to CITY OF NEW YORK. 2026 NYC MTA EZ PASS

Who is the contractor on this award?

The obligated recipient is CITY OF NEW YORK.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $325,000.

What is the period of performance?

Start: 2026-03-26. End: 2026-12-25.

What specific services or technology upgrades are included in this $325,000 contract for the NYC MTA EZ Pass system?

The provided data indicates the contract is for 'All Other Transit and Ground Passenger Transportation' and is a purchase order with a fixed price of $325,000. However, the specific nature of the services or technology upgrades is not detailed. It could range from software maintenance and support for the existing EZ Pass system, to minor hardware upgrades, data processing services, or consulting related to the system's operation. Without further documentation, such as a Statement of Work (SOW), it is impossible to determine the precise deliverables. The award being sole-source further complicates understanding the necessity and scope of these specific services.

How does the $325,000 contract value compare to typical spending on similar transit technology procurements by federal agencies?

Benchmarking this $325,000 contract value against similar transit technology procurements is challenging due to the lack of specific details regarding the services rendered and the sole-source nature of the award. Federal spending on transit technology can vary widely, from small software licenses to multi-million dollar system overhauls. For a purchase order with a fixed duration of 274 days, $325,000 might be considered moderate if it involves specialized support or minor upgrades. However, if it represents a significant system component or a new implementation, it could be on the lower end. A competitive bidding process would typically yield more transparent pricing data for comparison.

What are the primary risks associated with this sole-source award for the NYC MTA EZ Pass system?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the absence of competition. Without multiple vendors vying for the contract, the City of New York and the Department of Homeland Security may not be securing the most cost-effective solution. Another risk is the potential for limited innovation, as the selected vendor may not be incentivized to offer cutting-edge solutions or improvements beyond the basic requirements. Furthermore, reliance on a single source can create dependency and make future procurements more difficult if the vendor's pricing or performance deteriorates.

What is the historical spending pattern for the NYC MTA EZ Pass system by the Department of Homeland Security?

The provided data does not include historical spending patterns for the NYC MTA EZ Pass system by the Department of Homeland Security. This single contract award for $325,000 in 2026 is the only data point available. To assess historical spending, one would need to access procurement databases for previous years to identify any prior contracts awarded for similar services to the MTA or related entities by this agency. Understanding past spending would help determine if this award represents an increase, decrease, or continuation of previous investment levels.

What is the track record of the contractor (City of New York) in delivering similar transit technology services to federal agencies?

The 'contractor' listed is the 'City of New York,' which is unusual as typically a specific company or entity would be the contractor. This suggests the City of New York might be acting as an intermediary or that the data entry is atypical. If the City of New York is indeed the direct contractor, its track record in delivering transit technology services to federal agencies would need to be evaluated based on its own municipal IT projects and intergovernmental agreements. However, it is more probable that a specific vendor contracted by the City of New York is performing the work, and that vendor's track record would be the relevant factor. Without identifying the actual performing entity, assessing track record is not possible.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 BROADWAY BSMT B, NEW YORK, NY, 10004

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $325,000

Exercised Options: $325,000

Current Obligation: $325,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline