Paratransit and special needs transportation for elderly and disabled government beneficiaries. Find active federal and state special needs transportation contracts — AI-scored against your profile across SAM.gov and 200+ portals.
Annual federal spend under NAICS 485991 is estimated at $1.5–2.5 billion, driven primarily by VA beneficiary transportation, Medicaid non-emergency medical transport (NEMT), and FTA Section 5310 grants. Contracts are typically awarded as state-level managed care or broker-administered NEMT, plus VA shuttle and trip-by-trip procurements. Competition is moderate, with many small, local operators competing against a few large brokers (e.g., MTM, LogistiCare). Demand is stable and growing due to aging demographics. Most contracts are fixed-price per trip or per hour, with some cost-reimbursement elements. IDIQs and BPAs are common for agency-specific routes.
These agencies are the largest buyers of special needs transportation services and products in the federal government. Each awards contracts under NAICS 485991 regularly — build relationships with their small business offices first.
To win Special Needs Transportation contracts, focus on state Medicaid NEMT broker procurements and VA medical transportation RFPs. The most common set-aside is Service-Disabled Veteran-Owned Small Business (SDVOSB) for VA contracts, and HUBZone or 8(a) for FTA grants. The highest-leverage move is to obtain Medicaid NEMT broker certification in your target state and build a compliant vehicle fleet with wheelchair-accessible vehicles. Also, register in SAM with the correct PSC code V123 (Transportation/Travel/Relocation).
Most Special Needs Transportation work is awarded via LPTA (lowest price technically acceptable) due to the commodity-like nature of transportation services. Common vehicles include GSA Schedule 541 V502 (Transportation and Travel Services), state-specific NEMT IDIQs, and VA's Medical Transportation Services BPA. Evaluation typically focuses on price, safety record, vehicle accessibility, and past performance.
You need a valid DOT number, FMCSA operating authority (if crossing state lines), and often a state-specific NEMT broker or provider license. For VA contracts, SDVOSB certification is highly advantageous. Additionally, drivers must have a commercial driver's license (CDL) with passenger and school bus endorsements if transporting more than 15 passengers.
Most federal contracts under $150,000 do not require a Miller Act bond, but many state-level NEMT contracts require a performance bond (typically 5–10% of contract value) and a bid bond. For larger IDIQ contracts, bonding may be required at the task order level. Check each solicitation's bond requirements.
Award sizes vary widely: small route-specific contracts can be $50,000–$500,000 annually, while state NEMT broker contracts often exceed $10 million per year. VA shuttle contracts average $1–5 million. Most contracts are for 1–3 base years with options for up to 5 years total.
It is moderately competitive. Many small, local operators compete, but large brokers (MTM, LogistiCare, ModivCare) dominate state NEMT contracts. Small businesses can win by focusing on underserved rural areas, obtaining set-aside certifications (SDVOSB, HUBZone, 8(a)), and offering specialized wheelchair-accessible vehicles.
Yes, subcontracting is common, especially for large broker contracts. Prime contractors often subcontract to local operators for specific routes. However, if you are a small business prime, ensure you meet the limitations on subcontracting (50% of personnel costs performed by your employees for services contracts).