DC Council approves emergency contract with Modaxo Traffic Management USA for over $6M

The Council of the District of Columbia convened on February 20, 2025, to discuss and introduce Council Bill 260096, titled the “Contract No. CW118832 with Modaxo Traffic Management USA, Inc., Approval and Payment Authorization Emergency Act of 2025.” This emergency legislation aims to approve a contract with Modaxo Traffic Management USA, Inc., and authorize payment for services rendered under this agreement.

The primary purpose of the bill is to facilitate the timely execution of a contract valued at $6,034,831.66, which is essential for traffic management services in the District. The bill seeks to bypass certain procurement regulations outlined in the Procurement Practices Reform Act of 2010, allowing for expedited approval and payment processes. This approach is justified under the emergency provisions of the District’s Home Rule Act, which enables the Council to act swiftly in urgent situations.

During the session, discussions highlighted the necessity of the contract in addressing ongoing traffic management challenges within the District. Council members expressed support for the bill, emphasizing the importance of maintaining efficient traffic flow and safety for residents and visitors alike. However, some members raised concerns regarding the lack of competitive bidding and transparency typically associated with such contracts, urging for a review of procurement practices in future contracts to ensure accountability.

The fiscal impact statement, adopted from the Chief Financial Officer, indicates that the funding for this contract will be sourced from the District’s budget, with no additional financial burden anticipated. The bill is designed to remain in effect for a maximum of 90 days, pending approval from the Mayor or a potential override of a mayoral veto.

As the Council moves forward with this legislation, the implications of this emergency act could set a precedent for future contracts requiring expedited approval. The swift passage of this bill reflects the Council's commitment to addressing immediate infrastructure needs while balancing concerns over procurement integrity. The next steps will involve monitoring the contract's implementation and assessing its impact on traffic management in the District.