DOT awards $11.25M for Transit Benefit Program, TransiChek-New York, to TransitCenter, Inc

Contract Overview

Contract Amount: $11,250,500 ($11.3M)

Contractor: Transitcenter, Inc

Awarding Agency: Department of Transportation

Start Date: 2005-09-13

End Date: 2006-09-30

Contract Duration: 382 days

Daily Burn Rate: $29.5K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SUPPLY FARE MEDIA FOR THE TRANSIT BENEFIT PROGRAM, TRANSICHEK-NEW YORK.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $11.3 million to TRANSITCENTER, INC for work described as: SUPPLY FARE MEDIA FOR THE TRANSIT BENEFIT PROGRAM, TRANSICHEK-NEW YORK. Key points: 1. Spending is concentrated on a single vendor, TransitCenter, Inc. 2. The contract duration is 382 days, suggesting a short-term need. 3. The award value is significant for a single delivery order. 4. The program focuses on transit benefits, a common government initiative.

Value Assessment

Rating: fair

The contract value of $11.25M for a 382-day duration appears high for a delivery order. Benchmarking against similar transit benefit program contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was awarded as a sole-source delivery order, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying more than necessary due to the absence of competition.

Public Impact

Enhances transit access for employees through the TransiChek program. Supports the Department of Transportation's mission to improve public transportation. Benefits commuters by subsidizing their travel costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
High value for a single delivery order.
Short contract duration may indicate urgency or limited scope.

Positive Signals

Supports a beneficial transit program.
Clear vendor identified for program execution.

Sector Analysis

The Department of Transportation frequently contracts for services related to public transit and employee benefits. Spending benchmarks for similar transit benefit programs are not readily available, but the value of this single order is notable.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. The contract was awarded directly to TransitCenter, Inc.

Oversight & Accountability

The Immediate Office of the Secretary of Transportation awarded this contract. Oversight would focus on program delivery and adherence to the firm fixed price.

Related Government Programs

Mixed Mode Transit Systems
Department of Transportation Contracting
Immediate Office of the Secretary of Transportation Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency on justification
Unclear long-term program effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.3 million to TRANSITCENTER, INC. SUPPLY FARE MEDIA FOR THE TRANSIT BENEFIT PROGRAM, TRANSICHEK-NEW YORK.

Who is the contractor on this award?

The obligated recipient is TRANSITCENTER, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2005-09-13. End: 2006-09-30.

What is the justification for awarding this contract sole-source?

The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, this is due to unique capabilities, urgent needs, or lack of viable alternatives. Without this justification, it's difficult to assess if the government received fair value or if a more competitive approach could have yielded better pricing for taxpayers.

How does the per-unit cost of TransiChek compare to similar transit benefit programs?

Benchmarking the per-unit cost of the TransiChek program against similar initiatives is essential for evaluating its cost-effectiveness. Without this comparative data, it's challenging to determine if the $11.25 million expenditure represents a good value for the services provided. A lack of competitive bidding further complicates this assessment.

What is the long-term effectiveness of the TransiChek program in increasing transit ridership?

The effectiveness of the TransiChek program in achieving its goal of increasing transit ridership needs to be measured. While the funding supports transit benefits, the ultimate impact on commuter behavior and overall transit usage is a key performance indicator. Data on ridership changes post-implementation would be crucial for assessing the program's success.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Mixed Mode Transit Systems

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

Contractor Details

Address: 1065 AVENUE OF THE AMERICAS 16TH FL, NEW YORK, NY, 10018

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,250,500

Exercised Options: $11,250,500

Current Obligation: $11,250,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTOS5906D00458

IDV Type: IDC

Timeline