Interior Department's $1.2M trash removal contract awarded to Waste Connections raises questions on competition and value

Contract Overview

Contract Amount: $12,261 ($12.3K)

Contractor: Waste Connections of Washington, Inc.

Awarding Agency: Department of the Interior

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $7/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRASH REMOVAL FOR BUILDING 728

Place of Performance

Location: VANCOUVER, CLARK County, WASHINGTON, 98661

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $12,260.64 to WASTE CONNECTIONS OF WASHINGTON, INC. for work described as: TRASH REMOVAL FOR BUILDING 728 Key points: 1. Contract awarded without competition, potentially limiting price discovery and value for taxpayers. 2. Limited competition may indicate a lack of market responsiveness or contractor leverage. 3. Long contract duration (5 years) could lock in pricing, impacting long-term cost-effectiveness. 4. Fixed-price contract type offers cost certainty but may not capture potential savings. 5. No small business set-aside, suggesting missed opportunities for small business participation. 6. Solid waste collection services are essential but typically have competitive markets.

Value Assessment

Rating: fair

The contract's value is difficult to assess without competitive benchmarks. The fixed-price nature provides cost certainty for the government, but the lack of competition means there's no clear indication if the price is optimal. Comparing this to similar solid waste collection contracts in Washington state would be necessary to determine if the per-unit cost is reasonable. The total value of $1.2 million over five years for trash removal suggests a consistent need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating it was likely awarded on a sole-source basis or through a limited competition not detailed in the provided data. The absence of a competitive bidding process means that multiple vendors were not evaluated, which can lead to higher prices and reduced innovation. The specific justification for not competing is not provided, making it hard to assess if it was appropriate.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential waste management services. Without a competitive process, there is less pressure on the contractor to offer cost savings.

Public Impact

Provides essential trash removal services for Building 728, ensuring a clean and safe environment. Benefits the Bureau of Indian Affairs and Bureau of Indian Education by supporting their operational needs. Services are geographically focused within Washington state, impacting local waste management infrastructure. Supports local jobs in the solid waste collection industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Long-term contract duration could result in suboptimal pricing over time.
Absence of small business participation limits economic opportunities.

Positive Signals

Essential service provision ensures operational continuity.
Fixed-price contract offers budget predictability.
Contractor is responsible for service delivery over a defined period.

Sector Analysis

The solid waste collection industry (NAICS 562111) is a mature and generally competitive sector. Contracts for government facilities typically involve regular waste removal, recycling, and sometimes specialized disposal. While many local providers exist, government procurement processes can sometimes lead to less competitive outcomes if not managed effectively. Benchmarking against other federal contracts for similar services in the region would provide further context on pricing and service levels.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there information indicating subcontracting opportunities for small businesses. This represents a missed opportunity to leverage the small business contracting program and potentially foster competition among smaller, local waste management providers. Further investigation into the rationale for not including small business considerations would be beneficial.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Indian Affairs and Bureau of Indian Education within the Department of the Interior. Standard contract management practices, including performance monitoring and invoice review, would be expected. Transparency regarding the justification for sole-source award and any performance reviews would enhance accountability.

Related Government Programs

Federal Waste Management Contracts
Bureau of Indian Affairs Operations
Bureau of Indian Education Facilities Management
Department of the Interior Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Long Contract Duration
No Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12,260.64 to WASTE CONNECTIONS OF WASHINGTON, INC.. TRASH REMOVAL FOR BUILDING 728

Who is the contractor on this award?

The obligated recipient is WASTE CONNECTIONS OF WASHINGTON, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $12,260.64.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What is the specific justification for awarding this contract on a sole-source or non-competed basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). This suggests it was either awarded sole-source or through a limited competition that did not meet the thresholds or requirements for full and open competition. Government agencies typically justify sole-source awards when only one responsible source can satisfy the agency's needs, or in specific emergency situations. Without further documentation from the Department of the Interior, the precise reason remains unclear. This lack of transparency can be a concern for taxpayers, as it bypasses the standard process designed to ensure the best value is obtained through market competition.

How does the pricing of this contract compare to similar solid waste collection services in Washington state?

Benchmarking the pricing of this $1.2 million, 5-year contract against similar solid waste collection services in Washington state is crucial for assessing value for money. The NAICS code 562111 covers solid waste collection, a service typically offered by numerous private companies. Without access to a database of comparable federal or state contracts, or local commercial rates for similar service volumes and frequencies, it's impossible to definitively state if the price is competitive. However, the absence of competition raises a red flag, suggesting the possibility that the price may be higher than what could be achieved in a more robustly competed scenario.

What are the potential risks associated with a 5-year fixed-price contract for trash removal?

A 5-year fixed-price contract for trash removal offers budget predictability for the government, as the price is set for the duration. However, potential risks include: 1) Price escalation: If market rates for fuel, labor, or disposal fees increase significantly over the five years, the contractor may be locked into a less profitable contract, potentially leading to service quality issues or requests for modification. Conversely, if market rates decrease, the government misses out on potential savings. 2) Contractor complacency: With a long-term, non-competed contract, there might be less incentive for the contractor to innovate or improve efficiency. 3) Lock-in effect: The government is committed to this contractor for the full term, limiting flexibility if a better offer or service provider emerges.

What is the historical spending pattern for trash removal services at Building 728 or similar facilities within the Bureau of Indian Affairs?

The provided data only details the current contract from 2020-2025. To understand historical spending patterns, one would need to examine procurement records for Building 728 or comparable facilities managed by the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) prior to October 1, 2020. Analyzing past contracts, including their duration, value, competition levels, and awarded contractors, would reveal trends in spending, identify potential cost increases or decreases over time, and highlight any recurring issues with procurement or service delivery. Without this historical data, it's difficult to assess if the current $1.2 million award represents an increase, decrease, or stable level of spending for these essential services.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not specify any performance metrics or service level agreements (SLAs) for this trash removal contract. Typically, government contracts include clauses outlining expected service standards, such as pickup frequency, container cleanliness, response times for missed pickups, and compliance with environmental regulations. The presence and stringency of these SLAs are critical for ensuring the contractor delivers satisfactory service and for holding them accountable. Without defined metrics, oversight becomes more subjective, and it is harder to objectively assess the contractor's performance and the overall value received by the government.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAY Disposal, LLC

Address: 12115 NE 99TH ST STE 1830, VANCOUVER, WA, 98682

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,261

Exercised Options: $12,261

Current Obligation: $12,261

Actual Outlays: $12,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline