Army awards $139.6M contract for Hurricane Katrina debris removal services to Phillips and Jordan, Inc

Contract Overview

Contract Amount: $53,013,673 ($53.0M)

Contractor: Phillips and Jordan, Incorporated

Awarding Agency: Department of Defense

Start Date: 2005-11-29

End Date: 2008-09-27

Contract Duration: 1,033 days

Daily Burn Rate: $51.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200602!600253!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0014 ! !20051129!20051231!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!05000!033!22!BATON ROUGE !EAST BATON ROUGE !LOUISIANA !+000040241815!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!M! !B!D!20060930!B! ! !N!A!A!N!J!2!022!N!2A!C!N!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! !5800! !0001! !

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to PHILLIPS AND JORDAN, INCORPORATED for work described as: 200602!600253!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0014 ! !20051129!20051231!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!05000!033!22!BATON ROUGE !EAST… Key points: 1. Contract awarded for essential post-disaster services, highlighting the government's reliance on private sector support during emergencies. 2. The fixed-price contract structure suggests a defined scope of work, potentially limiting cost overruns if managed effectively. 3. The award was made under full and open competition, indicating a competitive bidding process that should have yielded fair market pricing. 4. The contract duration of over 3 years suggests a significant and prolonged recovery effort following Hurricane Katrina. 5. The specific service code (562119) points to specialized waste collection, including port services, indicating a complex logistical requirement. 6. The contract's value of $139.6 million places it as a substantial investment in disaster recovery operations.

Value Assessment

Rating: good

The contract value of $139.6 million for Hurricane Katrina debris removal services appears reasonable given the scale of the disaster and the duration of the contract (over 3 years). While a direct per-unit cost comparison for such a unique and large-scale emergency service is difficult without more granular data on debris volume and types, the fixed-price nature of the award suggests a negotiated price for the overall scope. Benchmarking against other large-scale disaster recovery contracts would be necessary for a more precise value assessment, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, certain sources may have been excluded based on specific criteria. However, the 'full and open' designation generally suggests a robust bidding process. The fact that there were 22 bids received indicates a healthy level of competition for this significant contract, which is positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive process with 22 bidders is beneficial for taxpayers as it drives down prices through market forces, ensuring that the government is not overpaying for essential disaster recovery services.

Public Impact

Residents and businesses in affected areas, particularly Louisiana, benefit from the removal of debris, facilitating recovery and restoration of services. Essential services, including trash and garbage collection, and port services, are delivered, crucial for public health and economic activity. The geographic impact is primarily focused on Louisiana, specifically Baton Rouge and surrounding areas heavily impacted by Hurricane Katrina. The contract supports a significant workforce, likely including local labor, for debris removal and logistical operations, providing employment opportunities during a critical recovery period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a large-scale disaster response, which could increase costs beyond the initial award if not managed tightly.
Logistical challenges in managing debris removal across a wide and devastated area could impact efficiency and timelines.
Ensuring environmental compliance during debris disposal is critical to avoid secondary environmental damage.
The long duration of the contract could lead to contractor fatigue or potential issues with maintaining consistent service quality over time.

Positive Signals

The award to a single contractor for a large scope suggests an ability to handle the scale of the operation.
The fixed-price contract provides cost certainty, assuming the scope is well-defined and managed.
The competitive bidding process with 22 offers indicates market interest and a potentially well-vetted selection.
The contract's focus on essential services addresses critical needs post-disaster, demonstrating responsiveness to urgent requirements.

Sector Analysis

The waste collection services sector, particularly for disaster recovery, is a critical but often specialized area. This contract falls under the broader 'Other Waste Collection' NAICS code (562119). The market for large-scale disaster debris removal is characterized by a limited number of highly capable firms able to mobilize rapidly and manage complex logistics. The value of this contract, $139.6 million, is substantial and reflects the immense scale of the Hurricane Katrina disaster and the subsequent recovery efforts. Comparable spending benchmarks would typically be found in other major disaster recovery operations, such as those following Hurricanes Rita, Sandy, or Harvey.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. Given the scale and specialized nature of large-scale disaster debris removal, prime contracts are often awarded to larger, established firms with the capacity to manage such extensive operations. However, it is possible that Phillips and Jordan, Inc. may utilize small businesses for certain aspects of the subcontracting work, such as equipment rental or specialized labor, which would be beneficial to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Given the nature of disaster response, there would likely be on-site monitoring and regular progress reporting to ensure compliance with contract terms, timelines, and environmental regulations. Transparency would be facilitated through contract award announcements and potentially public reporting on recovery progress. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Contracts
Department of Defense Disaster Response Contracts
Army Corps of Engineers Recovery Operations
Debris Removal and Management Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Logistical complexities in disaster zones.
Environmental compliance risks.
Contractor performance variability over long durations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to PHILLIPS AND JORDAN, INCORPORATED. 200602!600253!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0014 ! !20051129!20051231!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!05000!033!22!BATON ROUGE !EAST BATON ROUGE !LOUISIANA !+000040241815!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!M! !B!D!200

Who is the contractor on this award?

The obligated recipient is PHILLIPS AND JORDAN, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $53.0 million.

What is the period of performance?

Start: 2005-11-29. End: 2008-09-27.

What was the specific scope of work for Phillips and Jordan, Inc. under this contract, and how was it defined?

The contract data indicates the scope included 'TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS' under NAICS code 562119. This suggests a broad range of services related to the removal and disposal of debris, waste, and potentially sanitation services, including those necessary for port operations. The 'FIXED PRICE' contract type implies that a specific set of services was agreed upon for a predetermined price. However, the exact deliverables, quantities, and service locations would have been detailed in the contract's statement of work (SOW). Given the context of Hurricane Katrina, the scope likely encompassed the removal of vast amounts of residential, commercial, and public debris, including hazardous materials, and the restoration of essential sanitation services to facilitate recovery and public health.

How does the $139.6 million award compare to other large-scale disaster debris removal contracts awarded by the federal government?

The $139.6 million award for Hurricane Katrina debris removal is substantial, reflecting the unprecedented scale of the disaster. To benchmark this, one would look at other major hurricane recovery efforts. For instance, contracts awarded after Hurricane Sandy in 2012 also ran into hundreds of millions of dollars for debris removal and management. Similarly, post-Hurricane Harvey in 2017 saw significant federal spending on recovery, including debris clearance. While exact comparisons are difficult due to varying disaster impacts, debris types, geographic areas, and contract durations, this award is consistent with the magnitude of federal investment required for catastrophic natural disasters. It signifies a major federal commitment to restoring affected regions.

What were the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

Specific Key Performance Indicators (KPIs) are not detailed in the provided summary data. However, for a contract of this nature, typical KPIs would likely include: timeliness of debris removal from designated areas, adherence to disposal site regulations, volume of debris collected and properly disposed of, safety incident rates (both for workers and the public), environmental compliance (e.g., proper handling of hazardous materials), and overall cost control within the fixed-price framework. Performance would also be assessed against the contractor's ability to mobilize resources rapidly and maintain operations throughout the contract duration. Regular progress reports and site inspections by government representatives would be crucial for monitoring these metrics.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided data does not contain information on specific challenges or disputes encountered during the performance of this contract. Large-scale disaster recovery contracts, especially those following catastrophic events like Hurricane Katrina, are inherently complex and often face unforeseen obstacles. These can include logistical hurdles, environmental concerns, changes in scope due to evolving needs, coordination issues with multiple agencies, and potential contractor performance issues. Without access to contract performance reports, audit findings, or legal records, it is impossible to detail any specific disputes or challenges that may have arisen.

What is the historical spending pattern for debris removal services by the Department of the Army, particularly in response to major hurricanes?

The Department of the Army, primarily through the Army Corps of Engineers, is a primary agency responsible for federal debris removal operations following major disasters. Historical spending patterns show significant investments in response to major hurricanes. For example, following Hurricane Katrina, the Army Corps of Engineers awarded billions of dollars in contracts for debris removal, management, and disposal across the Gulf Coast. Subsequent major hurricanes like Rita, Ike, Sandy, Harvey, Irma, and Maria have also resulted in substantial federal spending on similar services, often in the hundreds of millions or even billions of dollars per event, depending on the scale and duration of the recovery.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 22

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Phillips Heavy, Inc (UEI: 003845336)

Address: 8940 GALL BLVD, ZEPHYRHILLS, FL, 33541

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P805D0022

IDV Type: IDC

Timeline