DoD awards $4.2M contract for bus transit services to Airport Metro Connection, Inc

Contract Overview

Contract Amount: $4,236,883 ($4.2M)

Contractor: Airport Metro Connection, Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-01

End Date: 2027-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TRANSPORTATION (BUS/MOTOR VEHICLE TRANSIT) SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $4.2 million to AIRPORT METRO CONNECTION, INC for work described as: TRANSPORTATION (BUS/MOTOR VEHICLE TRANSIT) SERVICES Key points: 1. Contract awarded to a single provider for essential transportation. 2. Limited competition raises questions about price discovery and value. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: Transportation services supporting government operations.

Value Assessment

Rating: questionable

The contract value of $4.2M over five years is difficult to assess without comparable benchmarks. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential overpricing due to the absence of market forces.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, limiting price discovery. This sole-source approach may not yield the best value for taxpayers.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Ensures transportation for personnel, potentially impacting mission readiness. Lack of competition may limit service innovation or cost-saving measures. Taxpayers may be paying a premium for these essential transit services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in pricing

Positive Signals

Ensures essential service delivery
Long-term contract provides stability

Sector Analysis

This contract falls within the transportation services sector, specifically bus and motor vehicle transit. Benchmarks for similar government contracts are scarce due to the limited competition nature of this award.

Small Business Impact

The contract does not indicate any specific provisions or set-asides for small businesses. The awardee is Airport Metro Connection, Inc., a single entity.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the pricing is fair and reasonable. Accountability for the justification of sole-source awards is crucial.

Related Government Programs

Bus and Other Motor Vehicle Transit Systems
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency in pricing justification
Absence of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.2 million to AIRPORT METRO CONNECTION, INC. TRANSPORTATION (BUS/MOTOR VEHICLE TRANSIT) SERVICES

Who is the contractor on this award?

The obligated recipient is AIRPORT METRO CONNECTION, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2022-02-01. End: 2027-01-31.

What is the justification for awarding this contract on a limited competition basis?

The justification for limited competition is not provided in the data. Typically, such awards are made when only one source can fulfill the requirement due to unique capabilities, urgent need, or specific circumstances. Further investigation would be needed to understand the rationale behind this specific award and ensure it aligns with federal procurement regulations.

How can the government ensure fair pricing without competition?

Without competition, the government must rely on robust price analysis techniques, including cost realism analysis, market research for comparable services, and negotiation. Independent government cost estimates and review of the contractor's proposed costs are essential. However, these methods are generally less effective than competitive bidding in driving down prices.

What is the potential impact on service quality due to limited competition?

Limited competition can sometimes lead to complacency in service quality, as the contractor faces less pressure to innovate or improve. However, if the contract includes strong performance metrics and service level agreements, quality can be maintained. The government's oversight and enforcement of contract terms are critical to ensuring satisfactory service delivery.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Bus and Other Motor Vehicle Transit Systems

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4910 LAWRENCE PL, HYATTSVILLE, MD, 20781

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,236,883

Exercised Options: $4,236,883

Current Obligation: $4,236,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline