DOJ's Bureau of Prisons awards $72.5M for solid waste collection in California
Contract Overview
Contract Amount: $72,462 ($72.5K)
Contractor: Arakelian Enterprises, Inc
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $199/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 ATHENS SERVICES ACCT.#GS0000206
Place of Performance
Location: CITY OF INDUSTRY, LOS ANGELES County, CALIFORNIA, 91716
Plain-Language Summary
Department of Justice obligated $72,461.96 to ARAKELIAN ENTERPRISES, INC for work described as: FY26 ATHENS SERVICES ACCT.#GS0000206 Key points: 1. Contract awarded to Arakelian Enterprises, Inc. for FY26. 2. Solid Waste Collection (NAICS 562111) services for the Federal Prison System. 3. The contract has a firm fixed price and a duration of 364 days. 4. This is a single award purchase order.
Value Assessment
Rating: fair
The contract value of $72.5 million for a 364-day period appears high for solid waste collection services. Benchmarking against similar contracts is needed to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. This method may not yield the best price discovery compared to full and open competition.
Taxpayer Impact: The potential for overpayment due to limited competition impacts taxpayer funds.
Public Impact
Ensures essential waste management services for federal correctional facilities. Supports operational continuity within the Bureau of Prisons. Potential for increased costs to taxpayers if pricing is not competitive.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for the service type.
- Limited competition due to SAP.
- Lack of detailed performance metrics.
Positive Signals
- Essential service provision.
- Clear contract duration and pricing type.
Sector Analysis
The Bureau of Prisons requires consistent waste management services to maintain facility hygiene and environmental compliance. Spending benchmarks for this sector can vary significantly based on location and facility size.
Small Business Impact
The data does not indicate if Arakelian Enterprises, Inc. is a small business. Further analysis is needed to determine the impact on small business participation.
Oversight & Accountability
Oversight should focus on ensuring service delivery meets contractual requirements and that the pricing remains competitive throughout the contract term, especially given the limited competition.
Related Government Programs
- Solid Waste Collection
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- High contract value.
- Limited competition.
- Potential for uncompetitive pricing.
- Lack of small business consideration noted.
- Need for detailed cost-benefit analysis.
Tags
solid-waste-collection, department-of-justice, ca, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $72,461.96 to ARAKELIAN ENTERPRISES, INC. FY26 ATHENS SERVICES ACCT.#GS0000206
Who is the contractor on this award?
The obligated recipient is ARAKELIAN ENTERPRISES, 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 $72,461.96.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the typical cost range for solid waste collection services for facilities of similar size and location to those served by the Bureau of Prisons?
The typical cost range for solid waste collection services can vary widely based on factors such as geographic location, volume of waste, frequency of collection, and specific service requirements (e.g., recycling, hazardous waste disposal). Without specific details on the facilities served, providing an exact benchmark is difficult. However, contracts of this magnitude often warrant a thorough cost analysis against industry standards to ensure taxpayer value.
How does the limited competition under SAP potentially inflate the contract price compared to a full and open competition?
Limited competition, such as that under Simplified Acquisition Procedures (SAP), can lead to higher prices because fewer vendors are aware of or able to bid on the requirement. This reduces the incentive for contractors to offer their most competitive pricing. In contrast, full and open competition typically attracts a wider range of bidders, fostering a more robust price discovery process and potentially driving down costs for the government.
What mechanisms are in place to ensure the effectiveness and quality of solid waste collection services provided by Arakelian Enterprises, Inc. under this contract?
The contract specifies a Firm Fixed Price (FFP) structure, which incentivizes the contractor to control costs. However, effectiveness and quality are typically ensured through detailed performance work statements, inspection and acceptance clauses, and potential remedies for non-performance. The government should have a system for monitoring service delivery, addressing any deficiencies promptly, and ensuring compliance with all contractual obligations.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14048 VALLEY BLVD, LA PUENTE, CA, 91746
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,462
Exercised Options: $72,462
Current Obligation: $72,462
Actual Outlays: $57,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-10
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