Hurricane Katrina debris removal contract awarded to Phillips and Jordan, Inc. for $55,000 in 2006

Contract Overview

Contract Amount: $75,360,484 ($75.4M)

Contractor: Phillips and Jordan, Incorporated

Awarding Agency: Department of Defense

Start Date: 2006-05-13

End Date: 2006-09-30

Contract Duration: 140 days

Daily Burn Rate: $538.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200608!601896!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0036 ! !20060513!20060615!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000021779475!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!M! !A!D!20060930!B! ! !N!A!A!U!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 $75.4 million to PHILLIPS AND JORDAN, INCORPORATED for work described as: 200608!601896!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0036 ! !20060513!20060615!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!55000!071!22!NEW ORLEANS !ORLE… Key points: 1. Contract awarded for essential services following a major natural disaster. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract value appears low relative to the scale of Hurricane Katrina's impact. 4. Performance period was short, indicating an urgent need for immediate services. 5. The contractor's specific experience in disaster recovery is a key performance indicator. 6. The contract falls under 'Other Waste Collection' services.

Value Assessment

Rating: questionable

The awarded amount of $55,000 for trash and garbage collection services, including port sanitation, seems exceptionally low given the context of Hurricane Katrina's widespread devastation. While this may represent an initial or specific task order, it raises questions about the overall scope and value for money. Without further details on the specific services rendered and the duration, it's difficult to benchmark effectively against similar disaster recovery contracts. The contract's fixed price nature suggests a defined scope, but the low value could indicate a limited service area or a very short-term engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources may have been excluded for specific reasons, possibly related to pre-qualification or specialized capabilities required for disaster response. The number of bidders (22) indicates a degree of interest, but the 'exclusion of sources' clause warrants further investigation into the fairness and breadth of the competition.

Taxpayer Impact: The limited competition, even with 22 bidders, may have resulted in less competitive pricing than a truly unrestricted full and open competition. Taxpayers may have paid a premium if qualified contractors were excluded without clear justification.

Public Impact

Residents and businesses in the New Orleans area, particularly Orleans Parish, Louisiana, benefited from essential sanitation services. Services included trash and garbage collection, crucial for public health and safety in the aftermath of Hurricane Katrina. The geographic impact was focused on the New Orleans region, a primary area affected by the hurricane. The contract supported the immediate workforce needed for debris removal and sanitation operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract value appears disproportionately low for the scale of Hurricane Katrina's impact, raising questions about the scope or completeness of services.
The 'exclusion of sources' in the competition method requires further scrutiny to ensure fair market access and optimal pricing.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The short performance period could indicate a reactive, rather than proactive, approach to disaster recovery needs.

Positive Signals

The contract was awarded through a competitive process, indicating an effort to solicit multiple bids.
The services provided were critical for public health and safety in a disaster-stricken area.
The fixed-price contract structure provides cost certainty for the government.
The contractor was identified, suggesting a clear point of accountability for the services.

Sector Analysis

This contract falls within the 'Other Waste Collection' sector, specifically related to services required during a major disaster. The market for disaster recovery services is often characterized by urgent needs and specialized capabilities. While the specific dollar amount is small, it represents a critical component of the broader federal response to Hurricane Katrina, which involved significant spending across various sectors including construction, transportation, and emergency services. Benchmarking this specific contract is challenging due to its disaster-specific nature and potentially limited scope.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of disaster recovery, large prime contractors often play a significant role, but the potential for small business involvement in specialized waste collection should be considered. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the U.S. Army Corps of Engineers, which managed the New Orleans District. Accountability measures would include contract close-out procedures and potentially audits. Transparency is limited by the available data; more detailed performance reports and justifications for the competition method would enhance oversight assessment. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Emergency Waste Management Services
US Army Corps of Engineers Contracts
Federal Disaster Response Contracts

Risk Flags

Low Contract Value Relative to Disaster Scale
Ambiguity in Competition Method ('Exclusion of Sources')
Limited Performance Data Available
Potential for Unforeseen Conditions in Disaster Zone

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.4 million to PHILLIPS AND JORDAN, INCORPORATED. 200608!601896!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P805D0022 !A!N! !N!0036 ! !20060513!20060615!139664932!139664932!003845336!N!PHILLIPS AND JORDAN, INCORPORA!8940 GALL BLVD !ZEPHYRHILLS !FL!33541!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000021779475!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!M! !A!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 $75.4 million.

What is the period of performance?

Start: 2006-05-13. End: 2006-09-30.

What was the specific scope of 'Trash/Garbage Collection Services - Incl Port San Svcs' awarded to Phillips and Jordan, Inc. for Hurricane Katrina relief?

The provided data indicates the contract was for 'TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS' under NAICS code 562119 (Other Waste Collection). Given the context of Hurricane Katrina and the awarding agency (US Army Engineer District New Orleans), this likely involved the collection and disposal of debris, solid waste, and potentially hazardous materials from affected areas, including port facilities. The 'Port San Svcs' might refer to sanitation services specifically for port operations or potentially sanitation services provided to personnel operating within port areas. The contract value of $55,000 suggests a focused scope, possibly for a specific location, a limited duration, or a particular type of waste removal, rather than a comprehensive, large-scale debris clearance operation.

How does the $55,000 contract value compare to other Hurricane Katrina-related waste management contracts?

The $55,000 contract value appears exceptionally low when compared to the overall scale of Hurricane Katrina recovery efforts, which involved billions of dollars in federal spending. Numerous contracts for debris removal and waste management were awarded, many significantly larger than this one. For instance, contracts for large-scale debris removal often ran into tens or hundreds of millions of dollars. This $55,000 award likely represents a specific, limited task order or an initial contract for a narrowly defined service area or duration. It is not representative of the total federal expenditure on waste management post-Katrina but rather a single, small component.

What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this contract?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a competitive process was initiated, but certain potential offerors were deliberately excluded. The reasons for exclusion are not specified in the data but could include requirements for specialized certifications, pre-existing relationships, or specific capabilities deemed essential for immediate disaster response. While 22 bidders participated, the exclusion clause means the competition was not entirely unrestricted. This could potentially limit price competition if the excluded sources were major competitors or if the exclusion criteria were overly narrow. It implies a deliberate selection process based on specific criteria beyond just the lowest price.

What was Phillips and Jordan, Inc.'s track record prior to or during this contract?

The provided data does not include specific details about Phillips and Jordan, Inc.'s prior track record or performance specifically related to this contract. However, as a contractor awarded a federal contract, they would have been subject to certain pre-qualification processes. Their participation in a competitive bid involving 22 other entities suggests they were considered a viable candidate. Further research into their contract history, past performance evaluations, and experience in disaster recovery operations would be necessary to fully assess their track record. Federal procurement databases and contractor performance systems would typically hold such information.

What risks were associated with this specific contract, and how were they managed?

Key risks associated with this contract likely included the urgency of the services required in a post-disaster environment, potential for unforeseen conditions (e.g., hazardous materials), logistical challenges in a devastated area, and the possibility of cost overruns if the scope was underestimated. The management of these risks would have been through the contract's fixed-price structure, which shifts some cost risk to the contractor, and the defined performance period. The 'exclusion of sources' might have been a risk mitigation strategy to ensure only capable contractors were considered. However, the limited data prevents a detailed assessment of specific risk management protocols employed by the agency or contractor.

How did this contract contribute to the overall Hurricane Katrina recovery effort?

This contract, despite its relatively small value, contributed to the critical need for sanitation and waste removal in the immediate aftermath of Hurricane Katrina. Maintaining basic public health services like trash collection is essential for preventing secondary crises, such as disease outbreaks, and for restoring a semblance of normalcy. By addressing sanitation needs in the New Orleans area, this contract played a role, albeit a specific one, in the broader federal and local efforts to stabilize the region, clear essential areas, and support the ongoing recovery operations.

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, 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