Driving Innovation In D.C.

MV Transportation awarded $540 million to improve metro public transit program

MV Transportation Inc. (No. 15 on the BE INDUSTRIAL/SERVICE 100 list with $271.9 million in sales) has won a contract with the Washington Metropolitan Area Transit Authority potentially worth $540 million. Under the terms of the contract, the nation’s largest African American-owned transportation management company will receive $210 million for four years to oversee MetroAccess, the transit services that fall under the Americans with Disabilities Act in the Washington Metropolitan area, which includes Washington, D.C., and parts of Maryland and Virginia.

The contract gives the company the chance to earn up to $6 million in bonuses if it meets performance goals, including receiving few customer complaints, providing quick telephone responses to users, and picking passengers up on time. There is also a provision allowing for two, two-year extensions to the deal. The contract is the largest in the Fairfield, California-based company’s 30-year history.

“Our company right now is at a revenue rate of about $390 million a year. This contract adds another $50 million to that, so it’s a huge addition,” says Jon Monson, MV Transportation’s chief executive officer. In addition to revenue, Monson says the contract will greatly increase the company’s standing in the industry. “It’s going to give us a lot of visibility when we fix the problems that the program has had, and give us credibility to continue to grow further.”

MV Transportation specializes in paratransit services, which is any type of public transportation service that differs from conventional transit offerings, such as door-to-door pickups and services for the disabled. About 5,000 weekday passengers utilize the services that WMATA has contracted MV Transportation for.

Beginning Jan. 15, the company will replace LogistiCare Inc., which has managed the paratransit services for the last seven years. WMATA is expecting MV Transportation to make major changes to the current system, including implementing technology that would let passengers make reservations and check on a vehicle’s location either by phone or by using the Internet.

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