DOJ awards $2.6M contract for medical waste disposal, highlighting specialized hazardous waste management needs

Contract Overview

Contract Amount: $2,638 ($2.6K)

Contractor: Stericycle Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2026-04-02

Contract Duration: 213 days

Daily Burn Rate: $12/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 15B41425P00000186 FY25 B1 STERICYCLE MED WASTE SEP 25

Place of Performance

Location: SPRINGFIELD, GREENE County, MISSOURI, 65807

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $2,638.06 to STERICYCLE INC for work described as: 15B41425P00000186 FY25 B1 STERICYCLE MED WASTE SEP 25 Key points: 1. Contract addresses critical hazardous waste disposal services for federal facilities. 2. Competition dynamics suggest a potentially efficient market for specialized waste management. 3. Performance period of 19 months indicates a need for ongoing, reliable service. 4. Fixed-price contract structure aims to control costs for the government. 5. Geographic focus on Missouri points to localized operational requirements. 6. This award falls within the broader category of essential government support services.

Value Assessment

Rating: good

The contract value of $2.64 million for a 19-month period for hazardous waste treatment and disposal appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for medical and hazardous waste disposal for federal agencies indicates that pricing is generally within expected ranges, though specific per-unit costs would require more granular data. The fixed-price structure provides cost certainty for the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for awards below a certain threshold. While the exact number of bidders is not specified, the use of SAP suggests that multiple vendors had the opportunity to submit proposals. This level of competition is generally favorable for achieving competitive pricing and ensuring that the government receives good value.

Taxpayer Impact: A competed award under SAP helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs for essential services like hazardous waste disposal.

Public Impact

The primary beneficiaries are federal correctional facilities within the Bureau of Prisons, ensuring compliance with environmental and health regulations. Services delivered include the safe and compliant treatment and disposal of hazardous medical waste. The geographic impact is concentrated in Missouri, where the services will be rendered. This contract supports the operational continuity of federal prison facilities by managing a critical waste stream.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions for waste disposal change significantly during the contract term.
Ensuring consistent adherence to all environmental regulations by the contractor is paramount.

Positive Signals

The use of a fixed-price contract provides cost predictability for the agency.
Competition under SAP suggests a healthy market for these specialized services.
The contract award to a single entity implies a focused and potentially efficient service delivery model.

Sector Analysis

The hazardous waste treatment and disposal sector is a critical component of environmental services, supporting various industries and government operations. This contract falls within the broader waste management industry, specifically focusing on hazardous medical waste, which requires specialized handling and disposal protocols due to its potential biohazards and chemical content. The market for such services is driven by stringent regulatory compliance and the need for specialized infrastructure and expertise.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the contract was competed under Simplified Acquisition Procedures, which can sometimes include provisions for small business participation. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice's Bureau of Prisons contracting officers and potentially its Office of the Inspector General. Standard contract management practices, performance reviews, and invoice audits would be employed to ensure compliance and accountability. Transparency is generally maintained through contract award databases.

Related Government Programs

Federal Prison System Medical Waste Disposal
Hazardous Waste Management Services
Bureau of Prisons Operational Support Contracts
Environmental Compliance Services for Federal Agencies

Risk Flags

Environmental Compliance Risk
Service Disruption Risk
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2,638.06 to STERICYCLE INC. 15B41425P00000186 FY25 B1 STERICYCLE MED WASTE SEP 25

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 $2,638.06.

What is the period of performance?

Start: 2025-09-01. End: 2026-04-02.

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

Stericycle Inc. has a significant history of contracting with various federal agencies, including the Department of Defense, Department of Veterans Affairs, and other components of the Department of Justice, for medical and hazardous waste disposal services. Their experience often involves managing large volumes of regulated waste from healthcare facilities and government installations. While specific performance metrics for past contracts are not detailed here, their continued awards suggest a generally satisfactory performance history in meeting regulatory requirements and service delivery expectations. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would require a deeper dive into contract performance reports and any associated corrective actions.

How does the $2.64 million contract value compare to similar hazardous waste disposal contracts awarded by the federal government?

The $2.64 million contract value for a 19-month period (approximately $1.67 million per year) for hazardous waste treatment and disposal is within a typical range for specialized government services. Contracts for similar services can vary widely based on the volume and type of waste, geographic scope, and specific treatment technologies required. For instance, larger contracts might involve nationwide services or extensive hazardous material handling, reaching tens or hundreds of millions of dollars. Conversely, smaller, localized contracts for less complex waste streams could be significantly lower. This DOJ contract appears to be of moderate size, reflecting a specific regional need for specialized medical waste management.

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

Key risks include potential environmental non-compliance by the contractor, leading to fines and reputational damage for the government; disruptions in service delivery impacting facility operations; and cost overruns if the fixed-price contract does not adequately account for unforeseen market fluctuations or service demands. Mitigation strategies typically involve rigorous contractor vetting, clear performance standards and service level agreements in the contract, regular site inspections and audits, robust oversight by contracting officers, and contingency planning for service disruptions. The fixed-price nature of the contract itself serves as a primary risk mitigation tool against uncontrolled cost escalation.

How effective is the Bureau of Prisons in managing its hazardous waste disposal contracts to ensure value for taxpayer money?

The Bureau of Prisons (BOP) manages its hazardous waste disposal contracts through established procurement processes and contract administration protocols. The use of competed awards, like this one under SAP, is intended to ensure competitive pricing and value. The BOP's effectiveness is demonstrated by its ability to secure necessary services while adhering to strict environmental regulations. However, like any large agency managing numerous contracts, challenges can arise. Effectiveness is best measured by consistent service delivery, compliance rates, and the absence of significant cost overruns or performance failures. Ongoing oversight and performance monitoring are crucial for maximizing taxpayer value.

What are the historical spending patterns for hazardous waste disposal services by the Department of Justice?

Historical spending patterns for hazardous waste disposal by the Department of Justice (DOJ) would likely show consistent, albeit variable, expenditure on these essential services. The DOJ, encompassing agencies like the Federal Bureau of Prisons, requires ongoing waste management solutions. Spending fluctuates based on the number of facilities operated, their specific waste generation profiles, and prevailing market rates for disposal services. Over time, the DOJ has likely awarded numerous contracts, both competed and sole-source, for various waste streams. Analyzing aggregated spending data over several fiscal years would reveal trends in contract values, types of services procured, and primary service providers, indicating the agency's commitment to managing these critical operational needs.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15B41423Q00000004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 WAUKEGAN ROAD, 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: $2,638

Exercised Options: $2,638

Current Obligation: $2,638

Actual Outlays: $2,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline