Department of Defense awards $37.3M contract for waste collection services to Phillips and Jordan, Inc

Contract Overview

Contract Amount: $37,349,626 ($37.3M)

Contractor: Phillips and Jordan, Incorporated

Awarding Agency: Department of Defense

Start Date: 2006-03-17

End Date: 2006-05-05

Contract Duration: 49 days

Daily Burn Rate: $762.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to PHILLIPS AND JORDAN, INCORPORATED for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $37.3M is a significant investment in waste collection services. 3. The duration of 49 days indicates a short-term, potentially urgent need for services. 4. The fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The award to a single contractor, Phillips and Jordan, Inc., warrants scrutiny for potential future sole-source awards. 6. The North American Industry Classification System (NAICS) code 562119 points to specialized waste collection, not general landfill operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and duration. The raw dollar amount of $37.3 million for a 49-day period suggests a high per-day cost. However, the nature of waste collection, especially for military operations, can involve complex logistics and specialized equipment that justify higher costs. Further analysis would require comparing this to similar emergency or specialized waste removal contracts in similar geographic or operational contexts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources were initially excluded. This suggests a deliberate decision to limit the pool of potential bidders, which could impact the level of competition. The fact that 22 bids were received indicates a healthy level of interest, but the exclusion of some sources warrants further investigation into the rationale behind it.

Taxpayer Impact: The open competition, despite initial exclusions, likely resulted in a more competitive price than a sole-source award. However, the exclusion of certain bidders may have limited the ultimate cost savings for taxpayers.

Public Impact

The primary beneficiaries are likely military operations requiring specialized waste collection services. Services delivered include waste collection, as indicated by the NAICS code. The geographic impact is specified as Louisiana (LA), suggesting operations within that state. Workforce implications would involve the employment of personnel for waste collection and management within Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a full and open competition needs clarification to ensure maximum taxpayer value.
The high dollar amount for a short duration contract could indicate potential inefficiencies or urgent, costly circumstances.
The contractor's track record and past performance on similar contracts should be reviewed to assess reliability and value.
The specific nature of the 'Other Waste Collection' services needs to be detailed to understand the full scope and cost drivers.

Positive Signals

The award was made through a competitive process, suggesting an effort to secure a reasonable price.
The receipt of 22 bids indicates significant interest from multiple vendors in this contract.
The firm fixed-price contract type provides cost certainty for the government.
The contract is relatively short in duration, minimizing long-term financial commitment.

Sector Analysis

The waste collection services sector is a critical component of infrastructure and operational support across various industries. For the Department of Defense, specialized waste collection is essential for maintaining operational readiness and environmental compliance, particularly in deployed or remote locations. The market for such services can be competitive, with a mix of large national providers and smaller regional specialists. This contract, valued at over $37 million for a short period, suggests a significant or complex waste management requirement, potentially related to a specific military exercise, facility closure, or environmental remediation effort within Louisiana.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Phillips and Jordan, Inc., may engage small businesses as subcontractors depending on their own operational needs and subcontracting plans, which are not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Defense Logistics Agency (DLA) services
Environmental Remediation Services
Emergency Response Contracts
Base Operations Support (BOS)
Waste Management Services

Risk Flags

Potential for limited competition due to source exclusion.
High daily cost warrants scrutiny for value.
Short duration may indicate emergency or urgent need, requiring further context.
Lack of detail on specific waste types and disposal methods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to PHILLIPS AND JORDAN, INCORPORATED. See the official description on USAspending.

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 $37.3 million.

What is the period of performance?

Start: 2006-03-17. End: 2006-05-05.

What specific types of waste were collected under this contract, and what were the associated disposal methods?

The provided data indicates the NAICS code 562119, 'Other Waste Collection,' which is broad and encompasses various waste streams beyond typical municipal solid waste. This could include industrial waste, hazardous materials, construction debris, or specialized military waste. Without further details from the contract's statement of work, it's impossible to specify the exact types of waste. Disposal methods would also depend on the waste type and would need to comply with federal, state, and local environmental regulations. The high contract value for a short duration might suggest the collection and disposal of a large volume or particularly challenging waste streams, such as those requiring specialized handling or long-distance transport.

How does the per-day cost of this contract compare to similar short-term waste collection contracts for the Department of Defense?

The contract value is $37,349,625.84 over 49 days. This equates to approximately $762,237.67 per day. Comparing this 'per-day cost' requires context. Short-term, emergency, or highly specialized waste collection contracts, especially those supporting military operations or in remote locations, can command significantly higher daily rates than routine municipal services. Factors such as rapid deployment, specialized equipment, hazardous material handling, and stringent security requirements can drive up costs. Without specific benchmarks for similar DoD emergency waste collection contracts in Louisiana or comparable operational environments, a definitive value-for-money assessment is difficult. However, the daily rate is substantial and suggests a significant operational requirement.

What was the rationale for excluding certain sources in a 'full and open competition after exclusion of sources' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the agency initially identified a pool of potential offerors but then deliberately excluded some before proceeding with the competition. The specific reasons for exclusion are not provided in the data but typically relate to factors such as the offeror's inability to meet minimum qualifications, past performance issues, failure to submit a compliant proposal in a prior solicitation phase, or specific technical requirements that only a subset of the market could meet. Agencies must justify such exclusions to ensure fair and open competition principles are upheld. Understanding the criteria used for exclusion is crucial to determining if the competition was truly as broad as possible and if it potentially limited price discovery.

What is the track record of Phillips and Jordan, Incorporated on similar government contracts, particularly in waste collection?

Phillips and Jordan, Incorporated is a known entity in government contracting, often involved in construction, infrastructure, and support services. While the provided data confirms they received this $37.3M contract for waste collection, a comprehensive assessment of their track record would require reviewing their past performance ratings on similar contracts, any documented issues (e.g., contract disputes, performance deficiencies), and their experience with the specific types of waste collection services required. Information on their past performance, available through sources like the Contractor Performance Assessment Reporting System (CPARS), would be essential to evaluate their reliability and cost-effectiveness in fulfilling this contract.

How does the $37.3M contract value compare to historical spending on waste collection services by the Department of the Army in Louisiana?

The provided data offers a single contract award of $37.3 million for waste collection in Louisiana by the Department of Defense (awarded by the Department of the Army). To assess historical spending patterns, one would need to analyze aggregate spending data for similar services (NAICS 562119 or related codes) by the Army in Louisiana over several fiscal years. This would involve querying federal procurement databases to identify the total value, number, and types of waste collection contracts awarded. Without this broader historical context, it's difficult to determine if this $37.3M award represents a typical, unusually high, or unusually low expenditure for the specified services and region.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 8940 GALL BLVD, ZEPHYRHILLS, FL, 15

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912P805D0022

IDV Type: IDC

Timeline