Interior Department awards $30.4M waste disposal contract to Lewistown Disposal, Inc. for 5 years

Contract Overview

Contract Amount: $30,425 ($30.4K)

Contractor: Lewistown Disposal, Inc.

Awarding Agency: Department of the Interior

Start Date: 2021-06-15

End Date: 2026-05-31

Contract Duration: 1,811 days

Daily Burn Rate: $17/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MT-CMR NWR-SC-HQ -GARBAGE SERVICE

Place of Performance

Location: LEWISTOWN, FERGUS County, MONTANA, 59457

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $30,424.98 to LEWISTOWN DISPOSAL, INC. for work described as: MT-CMR NWR-SC-HQ -GARBAGE SERVICE Key points: 1. Contract value of $30.4M over 5 years suggests a moderate annual spend. 2. Competition dynamics for this service need further examination to assess value. 3. Contract duration of 1811 days indicates a long-term service requirement. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 562111 points to solid waste collection services. 6. Geographic location in Montana may influence local market competition and pricing.

Value Assessment

Rating: fair

The contract value of $30.4 million over approximately five years averages to about $6 million annually. Benchmarking this against similar solid waste collection contracts for federal agencies of comparable size and scope is necessary to determine if the pricing is competitive. Without specific per-unit cost data or comparisons to market rates for similar services in Montana, a definitive value assessment is challenging. The firm fixed-price nature provides budget predictability, but the overall value hinges on the negotiated rates for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While the exact number of bids received is not detailed, 'COMPETED UNDER SAP' suggests that multiple offers were solicited and considered. This method aims to ensure fair pricing and access for eligible businesses, though the level of competition might be less intense than for larger, more complex procurements.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering price competition, leading to potentially lower costs compared to sole-source awards. It also provides opportunities for a broader range of businesses to secure federal contracts.

Public Impact

This contract directly benefits the U.S. Fish and Wildlife Service by ensuring proper waste management at its facilities. The service delivered is solid waste collection and disposal, crucial for maintaining operational hygiene and environmental compliance. The geographic impact is primarily within Montana, where the contractor, Lewistown Disposal, Inc., is located and presumably operates. Workforce implications include potential job creation or utilization of existing staff by Lewistown Disposal, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics or quality assurance provisions in the provided data.
Potential for price escalation if contract terms do not adequately address inflation over the 5-year period.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Award to a specific company, Lewistown Disposal, Inc., suggests they met the requirements and offered competitive terms.
Firm Fixed Price contract type provides cost certainty for the government.
The contract was competed, indicating an effort to achieve a fair market price.

Sector Analysis

Solid waste collection and disposal is a mature industry with established players. Federal contracts in this sector typically involve routine service delivery. The market size for federal waste management services is substantial, spread across numerous agencies and locations. This contract fits within the broader 'Other Services' category for the federal government, often characterized by localized service delivery and varying levels of competition depending on the geographic area and service complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Lewistown Disposal, Inc., is likely not a small business, or if it is, the contract was not specifically awarded under a small business set-aside program. There is no information on subcontracting requirements, so the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Fish and Wildlife Service's contracting officers and program managers. Accountability measures are usually embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Waste Management Services
General Services Administration (GSA) Schedules for Waste Management
Department of Defense (DoD) Waste Disposal Contracts
Environmental Protection Agency (EPA) Regulations on Waste Disposal

Risk Flags

Potential for cost increases if market conditions change significantly over the contract term.
Need for robust performance monitoring to ensure service quality.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $30,424.98 to LEWISTOWN DISPOSAL, INC.. MT-CMR NWR-SC-HQ -GARBAGE SERVICE

Who is the contractor on this award?

The obligated recipient is LEWISTOWN DISPOSAL, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $30,424.98.

What is the period of performance?

Start: 2021-06-15. End: 2026-05-31.

What is the historical spending pattern for solid waste collection services by the U.S. Fish and Wildlife Service in Montana?

Analyzing historical spending for solid waste collection by the U.S. Fish and Wildlife Service (FWS) in Montana requires accessing past contract awards and obligations data. Without direct access to this specific historical data, it's difficult to provide precise figures. However, federal agencies typically award numerous contracts for essential services like waste management. Spending patterns can fluctuate based on facility needs, operational changes, and the competitive landscape. The current $30.4 million award over five years suggests a significant, ongoing requirement. Previous contracts might have been smaller in scope, shorter in duration, or awarded to different vendors, reflecting changes in service needs or market conditions. A deeper dive into FWS procurement history for Region 6 (which includes Montana) would reveal trends in contract values, competition levels, and pricing for similar services over time.

How does the annual cost of this contract compare to the average annual cost of similar federal waste disposal contracts?

The annual cost of this contract averages approximately $6.08 million ($30.4M / 5 years). To benchmark this effectively, we need to compare it to similar contracts awarded by federal agencies for solid waste collection and disposal services, particularly in the Mountain West region. Factors influencing cost include the volume and type of waste, frequency of collection, disposal fees, and specific service requirements (e.g., recycling, hazardous waste handling). Contracts awarded under Simplified Acquisition Procedures (SAP) might have different pricing structures than larger, full-and-open competitive bids. Without access to a comprehensive database of comparable federal contracts with detailed service scopes and pricing, a precise comparison is challenging. However, if this contract covers a large number of facilities or a significant population base within FWS operations in Montana, the annual cost might be considered reasonable, assuming competitive bidding yielded fair market rates.

What are the specific performance metrics and quality assurance measures included in this contract?

The provided data does not specify the performance metrics or quality assurance measures for this contract. Typically, federal contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines detailed requirements, deliverables, and standards. Quality assurance provisions often involve inspection, testing, and reporting mechanisms to ensure the contractor meets the agreed-upon service levels. For solid waste collection, metrics might include on-time pickups, proper disposal methods, compliance with environmental regulations, and cleanliness of collection areas. Without the full contract documentation, it's impossible to assess the robustness of these oversight mechanisms and how contractor performance will be monitored and evaluated.

What is the track record of Lewistown Disposal, Inc. in performing federal contracts, particularly for waste management services?

Information regarding Lewistown Disposal, Inc.'s specific track record with federal contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported disputes or terminations. A company's experience with similar services, its financial stability, and its history of meeting contractual obligations are crucial factors in evaluating its suitability for a significant contract like this. If Lewistown Disposal, Inc. has a history of successful federal contract performance, it increases confidence in their ability to deliver the required waste management services effectively.

What is the potential risk associated with the 5-year duration of this contract, considering potential changes in service needs or technology?

A 5-year duration (1811 days) for a solid waste collection contract presents both benefits and risks. The primary benefit is stability and predictability for both the agency and the contractor, potentially leading to better service planning and cost efficiencies. However, risks include the potential for service needs to evolve over five years due to changes in FWS operations, facility usage, or regulatory requirements. Technological advancements in waste management (e.g., more efficient collection vehicles, advanced recycling sorting) might emerge, making the current service model less optimal. Furthermore, market conditions, such as fuel prices or disposal fees, can fluctuate significantly over this period, potentially impacting the contractor's costs and, if not managed through contract clauses, the government's overall expenditure. The firm fixed-price nature mitigates direct cost increases for the government but could strain the contractor if costs rise unexpectedly.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140F0521Q0027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26 CORBLEY RD, LEWISTOWN, MT, 59457

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

Financial Breakdown

Contract Ceiling: $30,425

Exercised Options: $30,425

Current Obligation: $30,425

Actual Outlays: $27,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline