Department of Defense contract for solid waste collection in Texas awarded to OSIRUS, INC. for over $24 million

Contract Overview

Contract Amount: $24,121,061 ($24.1M)

Contractor: Osirus, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-12-21

End Date: 2016-02-29

Contract Duration: 1,896 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MUNICIPAL SOLID WASTE/FOOD WASTE COLLECT

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to OSIRUS, INC. for work described as: MUNICIPAL SOLID WASTE/FOOD WASTE COLLECT Key points: 1. The contract value of over $24 million for solid waste collection suggests a significant operational need within the Department of the Air Force. 2. The contract was awarded under Full and Open Competition after Exclusion of Sources, indicating a competitive process but with specific source exclusions. 3. The fixed-price contract type aims to control costs, but the duration of 1896 days (approximately 5 years) requires careful monitoring for potential cost overruns. 4. The contract's performance period spans from late 2010 to early 2016, providing a historical context for current spending patterns. 5. The North American Industry Classification System (NAICS) code 562111 points to a standard service within the waste management sector. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the scope of services provided (e.g., volume of waste, frequency of collection, specific locations). However, a $24 million contract over five years for municipal solid waste collection indicates a substantial, ongoing service requirement. The firm fixed-price structure is generally favorable for cost control, but the total value suggests a need to ensure competitive pricing was achieved throughout the performance period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded from bidding. The specific reasons for exclusion are not detailed here, but this approach can sometimes limit the breadth of competition and potentially impact price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' clause suggests an attempt to ensure a competitive environment. Taxpayers benefit from competitive bidding, but the exclusions warrant scrutiny to ensure they were justified and did not lead to inflated prices.

Public Impact

The primary beneficiaries are the Department of the Air Force installations in Texas requiring municipal solid waste and food waste collection services. The contract delivers essential waste management services, crucial for operational readiness and environmental compliance at military facilities. The geographic impact is concentrated within Texas, where the Air Force bases are located. The contract supports the workforce within the waste management sector, likely employing personnel for collection, transportation, and disposal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the 5-year contract duration, even with a fixed-price structure, if scope changes or unforeseen operational challenges arise.
The 'exclusion of sources' in the competition method warrants further investigation to ensure it did not unduly limit competition and lead to suboptimal pricing.
Lack of specific performance metrics or quality assurance details in the provided data makes it difficult to assess the contractor's performance effectiveness beyond basic service delivery.

Positive Signals

The contract was awarded under a competitive process, suggesting an effort to secure services at a reasonable price.
The firm fixed-price contract type provides cost certainty for the government, transferring some risk to the contractor.
The contract duration of approximately five years allows for stable service provision and potential economies of scale for the contractor.

Sector Analysis

The waste management sector is a critical component of public and private infrastructure, encompassing collection, disposal, recycling, and treatment of waste. This contract falls under the industrial services sub-sector, specifically solid waste collection. The market is typically characterized by regional providers and significant logistical operations. Federal spending in this area supports government facilities' operational needs and environmental compliance. Comparable spending benchmarks would depend on the specific volume and type of waste handled, as well as the geographic density of service locations.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this contract. The primary contractor, OSIRUS, INC., would have discretion regarding subcontracting, but without specific set-aside requirements, the impact on the small business ecosystem is not directly driven by this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, where the contractor is responsible for delivering services as specified. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Municipal Solid Waste Collection Services
Commercial Waste Management Contracts
Federal Facility Waste Management
Department of Defense Logistics Support
Environmental Services Contracts

Risk Flags

Limited Competition Transparency
Lack of Detailed Performance Metrics
Potential for Unscrutinized Exclusions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to OSIRUS, INC.. MUNICIPAL SOLID WASTE/FOOD WASTE COLLECT

Who is the contractor on this award?

The obligated recipient is OSIRUS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2010-12-21. End: 2016-02-29.

What was the specific justification for excluding certain sources in this 'Full and Open Competition after Exclusion of Sources' award?

The provided data does not specify the exact reasons for excluding certain sources. Typically, such exclusions might be based on factors like past performance issues with specific vendors, proprietary technology requirements, or specific security clearances needed for the service. Without further documentation from the contracting agency (Department of the Air Force), the precise justification remains unknown. This lack of transparency can be a concern, as it limits the ability to fully assess whether the exclusion unduly restricted competition and potentially impacted the final price paid by taxpayers.

How does the per-unit cost of this contract compare to similar solid waste collection contracts awarded by the Department of Defense or other federal agencies?

A direct per-unit cost comparison is challenging without detailed service metrics (e.g., cost per ton collected, cost per cubic yard, cost per pickup). The total contract value of over $24 million spread over approximately five years suggests an average annual expenditure of around $4.8 million. To benchmark effectively, one would need to compare this to contracts for similar volumes and types of waste collection at comparable military installations or federal facilities, considering regional cost variations. The firm fixed-price nature implies that the contractor assumed the risk for cost fluctuations, which is a positive indicator if the price was competitive at the time of award.

What were the key performance indicators (KPIs) and quality assurance measures stipulated in the contract to ensure service delivery effectiveness?

The provided data does not include details on specific Key Performance Indicators (KPIs) or quality assurance (QA) measures. Effective contracts for services like waste collection typically include metrics such as on-time pickup rates, proper waste segregation, compliance with environmental regulations, and responsiveness to service requests. The absence of this information in the summary data makes it difficult to assess the contractor's performance beyond the basic fact that services were rendered over the contract period. Robust QA processes are crucial for ensuring value for money and operational continuity.

What is the historical spending trend for solid waste collection services by the Department of the Air Force in Texas over the past decade?

This specific contract represents a significant portion of spending for solid waste collection in Texas for the Department of the Air Force during its performance period (late 2010 to early 2016). To understand the broader trend, one would need to analyze spending data for similar services across multiple years and potentially other Air Force installations within Texas. Factors influencing trends could include changes in waste generation rates, new environmental regulations, shifts in contracting strategies (e.g., consolidation of contracts), and overall budget allocations. This single contract provides a data point, but a comprehensive trend analysis requires a broader dataset.

What was the track record of OSIRUS, INC. with federal contracts prior to and during the performance of this $24 million award?

The provided data indicates OSIRUS, INC. was awarded this contract. To assess their track record, one would need to examine their contract history, including past performance evaluations, any contract disputes or terminations, and their overall performance on other federal awards. A contractor's history of successful delivery, adherence to schedules, and compliance with contract terms are critical indicators of reliability and value. Without access to detailed performance reviews or a broader contract history for OSIRUS, INC., a full assessment of their track record related to this specific award is limited.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Solid Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA300209R0064

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1866 GRANDSTAND, SAN ANTONIO, TX, 78238

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,678,485

Exercised Options: $24,668,729

Current Obligation: $24,121,061

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300210D0013

IDV Type: IDC

Timeline