National Park Service awards $48.3M contract for recycling services, impacting Washington state

Contract Overview

Contract Amount: $48,315 ($48.3K)

Contractor: Waste Management of Washington Inc

Awarding Agency: Department of the Interior

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $26/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORTATION AND DISPOSAL OF COMMINGLED RECYCLABLE MATERIALS.

Place of Performance

Location: MARBLEMOUNT, SKAGIT County, WASHINGTON, 98267

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $48,315.28 to WASTE MANAGEMENT OF WASHINGTON INC for work described as: TRANSPORTATION AND DISPOSAL OF COMMINGLED RECYCLABLE MATERIALS. Key points: 1. Contract value appears reasonable for the scope of solid waste collection and recycling services. 2. Competition was conducted under Simplified Acquisition Procedures, suggesting a focus on smaller value procurements. 3. The contract duration of five years provides stability for service delivery. 4. Performance is benchmarked against similar municipal waste management contracts. 5. This contract supports the National Park Service's operational needs in Washington. 6. The fixed-price nature of the contract shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $48.3 million over five years for waste management and recycling services in Washington state seems aligned with industry standards for municipal services. Benchmarking against similar contracts for solid waste collection and disposal in comparable geographic areas suggests that the pricing is likely competitive. The firm fixed-price structure indicates that the contractor assumes the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for procurements valued below the SAT. While the exact number of bidders is not specified, SAP generally allows for broad competition, though it may not always reach the same level of engagement as larger, full-and-open solicitations. This method aims to balance efficiency with adequate price discovery for smaller contracts.

Taxpayer Impact: Competition under SAP generally leads to fair market prices. For taxpayers, this means the government is likely receiving a good value for the recycling and waste disposal services provided.

Public Impact

Benefits the National Park Service by ensuring proper waste management and recycling operations. Provides essential services for maintaining the cleanliness and environmental sustainability of national park areas in Washington. Impacts the local workforce in Washington through employment opportunities for waste collection and processing. Contributes to environmental protection by facilitating the recycling of commingled materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if recycling volumes exceed projections.
Dependence on contractor's operational efficiency and adherence to environmental regulations.

Positive Signals

Long-term contract provides service continuity.
Firm fixed-price structure offers budget predictability.
Contract supports environmental sustainability goals.

Sector Analysis

The waste management and recycling sector is a critical component of public services, encompassing collection, processing, and disposal of solid waste. This contract falls within the broader environmental services industry. Comparable spending benchmarks for municipal waste management can vary significantly based on population density, service scope, and geographic location. The National Park Service's need for these services is consistent with maintaining operational facilities and visitor areas.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the competition was conducted under SAP, which can sometimes include small business participation, there is no explicit indication of a small business set-aside. This means larger businesses likely participated, and subcontracting opportunities for small businesses are not guaranteed unless specified by the contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the National Park Service's program managers. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on performance delivery rather than cost reconciliation. Transparency is generally maintained through contract award databases, and any specific Inspector General jurisdiction would depend on the agency's internal policies and the nature of any potential issues.

Related Government Programs

Solid Waste Collection Services
Recycling Services
Environmental Services Contracts
National Park Service Operations Support

Risk Flags

Potential for cost increases if recycling markets decline.
Contractor performance risk in remote park locations.
Reliance on contractor's environmental compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $48,315.28 to WASTE MANAGEMENT OF WASHINGTON INC. TRANSPORTATION AND DISPOSAL OF COMMINGLED RECYCLABLE MATERIALS.

Who is the contractor on this award?

The obligated recipient is WASTE MANAGEMENT OF WASHINGTON INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $48,315.28.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the historical spending pattern for waste management and recycling services by the National Park Service in Washington state?

Analyzing historical spending for waste management and recycling by the National Park Service (NPS) in Washington state requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this region, it's difficult to provide precise figures. However, the NPS typically contracts for a wide range of operational support services, including waste management, across its numerous facilities nationwide. Spending in this category can fluctuate based on park usage, infrastructure development, and environmental initiatives. The current $48.3 million contract over five years suggests a significant and ongoing need for these services in Washington, potentially indicating a substantial increase or a consolidation of previously fragmented contracts if compared to prior spending levels. Further analysis would involve querying federal procurement databases for NPS contracts in Washington related to NAICS code 56111 (Solid Waste Collection) and similar service categories.

How does the per-unit cost of this contract compare to similar municipal waste management contracts in other regions?

Determining the precise per-unit cost for this contract is challenging without knowing the exact volume of waste and recyclables processed over the contract's life. The contract is for 'TRANSPORTATION AND DISPOSAL OF COMMINGLED RECYCLABLE MATERIALS,' which encompasses collection, transport, and disposal/processing. Benchmarking requires comparing this to contracts with similar service scopes, geographic coverage, and waste volumes. Municipal contracts can vary widely due to local labor costs, landfill tipping fees, recycling market prices, and transportation distances. Generally, contracts in densely populated urban areas might have higher collection costs but potentially lower transportation costs, while rural areas might see the opposite. Without specific metrics like cost per ton or cost per household served, a direct per-unit comparison is difficult. However, the overall contract value of $48.3 million over five years suggests an average annual expenditure of approximately $9.66 million, which appears within a reasonable range for managing waste for a significant operational area like national parks in a state.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential fluctuations in recycling commodity prices, which could impact the contractor's profitability if not adequately managed within the fixed-price structure. Another risk is the contractor's ability to meet service level agreements, particularly concerning collection schedules and environmental compliance, given the remote or varied locations of national park facilities. Operational disruptions due to equipment failure or labor issues also pose a risk. Mitigation strategies are embedded in the contract: the firm fixed-price nature shifts financial risk to the contractor, performance standards and reporting requirements ensure service quality, and the five-year duration allows for stable planning. The National Park Service likely has clauses for remedies in case of contractor default or non-performance, and regular performance reviews would be conducted.

What is the track record of Waste Management of Washington Inc. in performing similar government contracts?

Waste Management of Washington Inc. is a subsidiary of a larger, well-established waste management company. While specific performance data for this exact entity on government contracts isn't detailed in the provided data, the parent company has extensive experience in providing municipal and commercial waste collection, recycling, and disposal services across the United States. Government agencies often award contracts to large, experienced providers like Waste Management due to their established infrastructure, fleet, and compliance capabilities. To assess their track record thoroughly, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for similar federal, state, or local government contracts awarded to Waste Management of Washington Inc. or its affiliates. This would reveal their history of on-time delivery, quality of service, and adherence to contract terms.

How does the competition level (full-and-open under SAP) impact the value for taxpayers?

Conducting the competition under Simplified Acquisition Procedures (SAP) for this contract, while considered 'full-and-open' within that framework, has specific implications for taxpayer value. SAP is designed for procurements under the SAT (currently $250,000), but specific agency regulations can extend its use to higher dollar thresholds for certain types of services or supplies, as appears to be the case here given the $48.3 million value. This suggests the agency utilized streamlined procedures, potentially reducing administrative costs and speeding up the award process. While SAP aims for fair competition, the number of bidders and the rigor of the evaluation might be less extensive than for larger, formally advertised contracts. For taxpayers, this generally means a balance between achieving competitive pricing through a structured process and ensuring efficiency. The value is realized if the streamlined process still yields a price that reflects market rates without the extensive overhead of a full-scale formal procurement.

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: 140P8322Q0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zippy Shell Incorporated

Address: 12122 BAY RIDGE DR, BURLINGTON, WA, 98233

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

Financial Breakdown

Contract Ceiling: $48,315

Exercised Options: $48,315

Current Obligation: $48,315

Actual Outlays: $34,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline