DOJ's $3.8M infectious waste removal contract for FY26 awarded to Stericycle Inc

Contract Overview

Contract Amount: $38,391 ($38.4K)

Contractor: Stericycle Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $105/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INFECTIOUS WASTE REMOVAL SERVICES FOR FISCAL YEAR 2026 IN ACCORDANCE WITH STATEMENT OF WORK OPTION YEAR 4

Place of Performance

Location: BANNOCKBURN, LAKE County, ILLINOIS, 60015

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $38,391 to STERICYCLE INC for work described as: INFECTIOUS WASTE REMOVAL SERVICES FOR FISCAL YEAR 2026 IN ACCORDANCE WITH STATEMENT OF WORK OPTION YEAR 4 Key points: 1. Contract value represents a modest portion of the agency's overall operational budget. 2. Competition dynamics suggest potential for cost efficiencies, though specific details are limited. 3. Performance risk appears low given the nature of the service and contractor's established role. 4. This contract supports essential public health and safety functions within federal correctional facilities. 5. The service falls under hazardous waste management, a critical but specialized sector.

Value Assessment

Rating: good

The contract value of $3.84 million for infectious waste removal services for one year appears reasonable when benchmarked against similar federal contracts for hazardous waste management. While specific pricing details are not publicly available for direct comparison, the firm-fixed-price structure suggests that the government has negotiated a set rate. The contractor, Stericycle Inc., is a well-established provider in this space, implying a level of expertise that can contribute to value. However, without granular data on service volume and specific waste types, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. While the specific number of bidders is not detailed, the use of SAP generally implies that multiple offers were solicited and considered. This level of competition, even within SAP, is expected to drive price discovery and ensure fair market value for the services rendered. The award to Stericycle Inc. suggests they offered the best value among the competing proposals.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it helps ensure that the government is not overpaying for essential waste removal services.

Public Impact

The primary beneficiaries are the inmates and staff within the Federal Prison System, ensuring a safe and sanitary environment. Essential services include the collection, transportation, and disposal of infectious medical waste generated by healthcare facilities within the Bureau of Prisons. The geographic impact is concentrated within federal correctional facilities located in Illinois, where the services are to be performed. This contract supports a specialized workforce involved in hazardous waste management and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract periods if competition diminishes.
Reliance on a single contractor for a critical public health service could pose a risk if performance issues arise.

Positive Signals

Stericycle Inc. is a recognized leader in medical waste disposal, suggesting a high likelihood of reliable service delivery.
The firm-fixed-price contract provides cost certainty for the government.
The competitive bidding process under SAP indicates efforts to secure favorable pricing.

Sector Analysis

The hazardous waste treatment and disposal sector (NAICS 562211) is a critical component of environmental services, supporting regulatory compliance and public health. This contract for infectious waste removal is a niche within this broader market. Federal spending in this area is consistent, driven by the ongoing need for safe disposal of regulated medical waste from government facilities. Comparable contracts often involve long-term agreements with specialized providers who meet stringent federal and state environmental regulations.

Small Business Impact

The provided 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 related to a set-aside requirement. The primary contractor, Stericycle Inc., is a large corporation, and it is unlikely that significant portions of this specific contract would be subcontracted to small businesses unless explicitly required or if specialized services were needed.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Federal Prison System / Bureau of Prisons. Performance will be monitored against the Statement of Work (SOW) and delivery orders issued. The firm-fixed-price nature of the contract provides a degree of accountability by fixing costs. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Medical Waste Disposal
EPA Hazardous Waste Management Contracts
GSA Schedule for Environmental Services

Risk Flags

Potential for price escalation in future years.
Dependence on a single provider for critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38,391 to STERICYCLE INC. INFECTIOUS WASTE REMOVAL SERVICES FOR FISCAL YEAR 2026 IN ACCORDANCE WITH STATEMENT OF WORK OPTION YEAR 4

Who is the contractor on this award?

The obligated recipient is STERICYCLE INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $38,391.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is Stericycle Inc.'s track record with federal contracts, particularly for waste management services?

Stericycle Inc. has a significant history of performing federal contracts, primarily related to medical and hazardous waste management. Publicly available data indicates numerous awards across various federal agencies, including the Department of Defense, Department of Veterans Affairs, and other civilian agencies. These contracts often involve the collection, transportation, treatment, and disposal of regulated medical waste, sharps, and other hazardous materials. While specific performance ratings are not always public, the consistent awarding of contracts suggests a generally satisfactory performance history. However, like any large contractor, there may be instances of past performance issues or contract disputes that warrant further investigation if specific concerns arise regarding this particular award.

How does the $3.84 million cost compare to similar infectious waste removal contracts awarded by the federal government?

Benchmarking the $3.84 million cost requires comparing it to contracts of similar scope, duration, and volume. Given this is for one year (FY26) and covers infectious waste removal for the Federal Prison System in Illinois, it represents a significant but not exceptionally large contract. Similar contracts for large correctional systems or major federal medical centers can range from hundreds of thousands to several million dollars annually, depending on the number of facilities served and the volume of waste generated. Stericycle is a major player, and their pricing is generally competitive within the specialized market for regulated medical waste. Without specific details on the quantity of waste and service frequency, a precise comparison is difficult, but the amount appears within the expected range for a contract of this nature.

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

The primary risks associated with this contract include potential service disruptions, non-compliance with environmental regulations, and cost overruns if the fixed price does not adequately account for fluctuating waste volumes or disposal costs. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price (FFP) nature of the contract shifts some cost risk to the contractor, Stericycle Inc. Performance standards outlined in the Statement of Work (SOW) and delivery orders provide clear expectations. The Federal Prison System will conduct regular oversight, monitoring adherence to the SOW and regulatory compliance. Stericycle's established expertise in hazardous waste management also serves as a risk mitigation factor, as they are expected to have robust internal controls and compliance protocols.

How effective is the Bureau of Prisons in managing its infectious waste disposal contracts?

The effectiveness of the Bureau of Prisons (BOP) in managing its infectious waste disposal contracts can be inferred from its ability to secure essential services consistently. The BOP operates a large network of facilities, each generating medical waste that requires compliant disposal. The recurring nature of these contracts, like the one awarded to Stericycle for FY26, suggests a functional procurement and management process. However, the effectiveness is best measured by the absence of major public health incidents related to waste mismanagement and consistent compliance with EPA and state environmental regulations. Detailed internal performance metrics and audit reports would provide a more precise assessment of the BOP's effectiveness in contract oversight and ensuring value.

What are the historical spending patterns for infectious waste removal services by the Department of Justice or the Federal Prison System?

Historical spending patterns for infectious waste removal by the Department of Justice (DOJ), specifically the Federal Prison System (FPS), indicate a consistent need for these services across its numerous facilities. While precise year-over-year figures for this specific service line are not detailed in the provided data, the FPS typically allocates substantial budgets towards operational necessities, including healthcare services and waste management. Spending in this category is driven by inmate population size, the scope of healthcare provided within facilities, and evolving regulatory requirements for hazardous waste disposal. Contracts are often re-competed or extended, reflecting ongoing demand. Analyzing past contract awards and their values over several fiscal years would reveal trends in spending and potential fluctuations based on agency needs and market conditions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 WAUKEGAN RD, BANNOCKBURN, IL, 60015

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

Financial Breakdown

Contract Ceiling: $38,391

Exercised Options: $38,391

Current Obligation: $38,391

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B20521D00000227

IDV Type: IDC

Timeline