DOJ's $2.48M waste management contract for Federal Prison System awarded to Waste Management of Texas, Inc

Contract Overview

Contract Amount: $24,810 ($24.8K)

Contractor: Waste Management of Texas, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $68/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE WASTE MANAGEMENT SERVICES FY2026 FROM OCTOBER 1, 2025 TO SEPTEMBER 30, 2026.

Place of Performance

Location: NEW BOSTON, BOWIE County, TEXAS, 75570

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $24,810 to WASTE MANAGEMENT OF TEXAS, INC. for work described as: TO PROVIDE WASTE MANAGEMENT SERVICES FY2026 FROM OCTOBER 1, 2025 TO SEPTEMBER 30, 2026. Key points: 1. Contract value represents a significant investment in essential correctional facility support services. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance history of the contractor will be a key indicator of service reliability. 4. This contract aligns with the Bureau of Prisons' operational needs for waste disposal. 5. The firm fixed-price structure provides cost certainty for the government. 6. Geographic concentration of services in Texas may indicate regional operational efficiencies or limitations.

Value Assessment

Rating: good

The contract value of $2.48 million for a one-year period for waste management services appears reasonable given the scope of supporting a federal prison system. Benchmarking against similar contracts for correctional facilities or large-scale waste management services would provide a more precise value-for-money assessment. The firm fixed-price contract type helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible vendors. While the number of bidders is not specified, SAP is designed to promote competition for contracts below certain thresholds. This level of competition is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competed contract, even under SAP, suggests that taxpayers are likely to benefit from a more competitive price compared to a sole-source award.

Public Impact

The primary beneficiaries are the inmates and staff of the Federal Prison System facilities in Texas, who will receive essential sanitation services. The contract ensures the proper disposal of solid waste, contributing to public health and environmental standards within the correctional environment. Geographic impact is concentrated within Texas, specifically serving the Bureau of Prisons' facilities in the state. Workforce implications include potential employment opportunities for Waste Management of Texas, Inc. in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased waste generation in federal facilities impacting service frequency or cost.
Reliance on a single contractor for a critical service like waste management poses operational risk if performance falters.

Positive Signals

Firm fixed-price contract provides budget certainty.
Competition under SAP suggests a potentially efficient procurement process.
Contract duration of one year allows for periodic re-evaluation of needs and performance.

Sector Analysis

Waste management is a critical component of public infrastructure and government operations, encompassing collection, disposal, and recycling services. The North American Industry Classification System (NAICS) code 562212 for Solid Waste Landfill indicates a specific focus within the broader waste management sector. Federal spending in this area supports essential services across various agencies, ensuring compliance with environmental regulations and maintaining operational continuity. Comparable spending benchmarks would involve analyzing contracts for similar services provided to other large federal installations or correctional systems.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities if Waste Management of Texas, Inc. chooses to engage small businesses for specific services. Without explicit subcontracting plans, the direct benefit to small businesses from this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (part of the Department of Justice), which is responsible for ensuring contract compliance and performance standards are met. Accountability measures are typically embedded within the contract terms, including performance metrics and potential penalties for non-compliance. Transparency is facilitated through contract award databases, though detailed operational oversight reports may not be publicly available.

Related Government Programs

Federal Correctional Facility Operations
Department of Justice Agency Contracts
Solid Waste Management Services
Environmental Services Contracts

Risk Flags

Potential for service disruption
Contractor performance risk
Environmental compliance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24,810 to WASTE MANAGEMENT OF TEXAS, INC.. TO PROVIDE WASTE MANAGEMENT SERVICES FY2026 FROM OCTOBER 1, 2025 TO SEPTEMBER 30, 2026.

Who is the contractor on this award?

The obligated recipient is WASTE MANAGEMENT OF TEXAS, 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 $24,810.

What is the period of performance?

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

What is the track record of Waste Management of Texas, Inc. with federal contracts, particularly for correctional facilities?

A thorough review of Waste Management of Texas, Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and values of previous federal awards. Specifically looking at contracts with the Bureau of Prisons or other correctional agencies would provide the most relevant insights into their experience and reliability in serving such unique environments. Without access to a comprehensive federal procurement database with performance data, it is difficult to definitively assess their track record.

How does the awarded price of $2.48 million compare to market rates for similar waste management services for federal prisons?

To benchmark the $2.48 million price, one would need to compare it against similar contracts awarded to other correctional facilities or large government installations of comparable size and service requirements. Key factors to consider include the volume of waste, types of waste handled (e.g., general refuse, hazardous materials), frequency of collection, and geographic location, as these significantly influence costs. Analyzing data from contracts with similar duration (one year) and contract type (firm fixed price) would provide a more accurate comparison. If this price is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding.

What are the primary risks associated with this waste management contract for the Federal Prison System?

The primary risks associated with this contract include potential service disruptions if the contractor fails to meet performance standards, leading to sanitation issues within the prison. There's also a risk of cost escalation if the firm fixed-price contract does not adequately account for unforeseen increases in waste volume or disposal fees, although this is mitigated by the contract type. Operational risks also include compliance with environmental regulations during waste transport and disposal, and potential security concerns related to waste handling within a correctional facility. The reliance on a single vendor for a critical service also presents a risk if the contractor experiences financial difficulties or operational failures.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring competitive pricing for contracts of this nature?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for smaller value contracts, typically below $250,000 (though this threshold can be higher for certain categories). For contracts within the SAP range, it generally promotes competition by allowing for more flexible solicitation methods, such as requests for quotations from multiple sources. This increased competition, compared to sole-source awards, typically leads to better price discovery and more favorable pricing for the government. However, the effectiveness can vary depending on the specific market and the number of vendors actively participating in the SAP process for waste management services.

What is the historical spending pattern for waste management services by the Federal Prison System or the Department of Justice?

Analyzing historical spending patterns for waste management services by the Federal Prison System (FPS) or the broader Department of Justice (DOJ) would reveal trends in contract values, durations, and awarded contractors over time. This data can help identify if spending has been consistent, increasing, or decreasing, and whether the FPS has historically relied on competitive bidding or sole-source awards for these services. Understanding past spending can provide context for the current $2.48 million award, indicating if it aligns with previous investment levels or represents a significant shift. It can also highlight any recurring issues or successes with specific contractors or service models.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zippy Shell Incorporated

Address: 1030 W US HIGHWAY 82, NEW BOSTON, TX, 75570

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

Financial Breakdown

Contract Ceiling: $24,810

Exercised Options: $24,810

Current Obligation: $24,810

Actual Outlays: $10,091

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline