DOJ's $623K solid waste contract with Waste Management of WV Inc. awarded for FBI facility

Contract Overview

Contract Amount: $623,235 ($623.2K)

Contractor: Waste Management of West Virginia Inc

Awarding Agency: Department of Justice

Start Date: 2022-03-17

End Date: 2027-03-31

Contract Duration: 1,840 days

Daily Burn Rate: $339/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOLID WASTE COLLECTION FOR THE CJIS FACILITY

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19101

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $623,235.25 to WASTE MANAGEMENT OF WEST VIRGINIA INC for work described as: SOLID WASTE COLLECTION FOR THE CJIS FACILITY Key points: 1. Contract awarded for solid waste collection services, a critical but routine operational need. 2. The contract duration of 1840 days (approx. 5 years) suggests a stable, long-term requirement. 3. The fixed-price contract type aims to control costs for the government. 4. Awarded to a single vendor, raising questions about competitive pricing and market alternatives. 5. The specific facility served (CJIS) indicates a need for secure and reliable waste disposal. 6. The contract value of $623,235.25 over its term averages approximately $339 per day.

Value Assessment

Rating: fair

The contract value of $623,235.25 over approximately five years appears reasonable for specialized waste management services at a federal facility. Benchmarking against similar contracts for solid waste collection at federal sites is difficult without more specific service details (e.g., volume, frequency, hazardous waste handling). However, the daily average cost of around $339 suggests a potentially fair price for dedicated service, though a lack of competition limits the ability to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific location requirements. The lack of competition means the government did not benefit from multiple bids to drive down prices or explore alternative solutions, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, it's harder to ensure the price reflects the lowest possible cost for these essential services.

Public Impact

The Federal Bureau of Investigation (FBI) facility at CJIS benefits from reliable and compliant solid waste disposal. Ensures environmental regulations are met for waste management at a sensitive federal site. Supports the operational continuity of the CJIS facility by addressing a fundamental service need. The contract likely supports local jobs through Waste Management of West Virginia Inc.'s operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Lack of transparency in the justification for sole-source award.
Contract duration of nearly five years may not align with evolving waste management technologies or needs.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to an established company (Waste Management) suggests reliability.
Contract addresses a critical operational requirement for a secure federal facility.

Sector Analysis

The solid waste collection industry is mature and highly competitive, with numerous providers at local and regional levels. Federal contracts for such services are common, often awarded through competitive bidding processes to ensure value. This specific contract, however, deviates from the norm by being sole-source, which is unusual for a service with many potential providers. The market size for federal waste management services is substantial, encompassing diverse needs from routine collection to specialized hazardous waste disposal.

Small Business Impact

This contract does not appear to include a small business set-aside. Waste Management of West Virginia Inc. is a large corporation. There is no information provided regarding subcontracting opportunities for small businesses within this contract, which could represent a missed opportunity to support the small business ecosystem.

Oversight & Accountability

The contract is a Firm Fixed Price definitive contract, which helps in cost control. Oversight would typically fall under the contracting agency (Department of Justice) and the specific serviced agency (FBI). Transparency is limited due to the sole-source nature of the award. Further oversight details, such as specific performance metrics or Inspector General involvement, are not provided in the available data.

Related Government Programs

Federal Bureau of Investigation Operations
Department of Justice Facilities Management
General Services Administration (GSA) Schedules (potential alternative procurement)

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $623,235.25 to WASTE MANAGEMENT OF WEST VIRGINIA INC. SOLID WASTE COLLECTION FOR THE CJIS FACILITY

Who is the contractor on this award?

The obligated recipient is WASTE MANAGEMENT OF WEST VIRGINIA INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $623,235.25.

What is the period of performance?

Start: 2022-03-17. End: 2027-03-31.

What is the specific justification for awarding this solid waste collection contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION' and is a 'SOLE SOURCE'. While the specific justification is not detailed, common reasons for sole-source awards in federal contracting include situations where only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent requirements where competition is not feasible, or if the existing contractor has unique knowledge or infrastructure critical to the service. For solid waste collection, this might relate to proximity, specialized equipment for a particular facility, or existing integrated systems at the CJIS facility. A thorough review of the Justification for Other than Full and Open Competition (JOFOC) document would be necessary to understand the precise rationale.

How does the daily cost of $339 compare to market rates for similar services?

Benchmarking the daily cost of $339 for solid waste collection is challenging without more granular data on the scope of services, frequency of pickups, volume of waste, and specific location. However, general industry data suggests that commercial solid waste collection contracts can range significantly, from under $100 to several hundred dollars per month per bin, depending on service levels and location. For a federal facility like CJIS, which may have higher security and compliance requirements, costs could be elevated. The average daily rate of $339, translating to roughly $123,735 annually, appears within a plausible range for dedicated, potentially specialized, waste management services, but without competitive bids, it's difficult to ascertain if it represents optimal value for taxpayers.

What are the risks associated with a sole-source contract for essential services like waste management?

The primary risk of a sole-source contract for essential services like waste management is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may have less incentive to offer the most competitive pricing. Additionally, the government misses out on potential innovations or service improvements that might be offered by other vendors. There's also a risk of vendor lock-in, making it difficult or costly to switch providers in the future. Furthermore, the absence of a competitive process can raise concerns about fairness and transparency in government procurement, potentially leading to public scrutiny or perceptions of inefficiency.

What is the track record of Waste Management of West Virginia Inc. with federal contracts?

Waste Management of West Virginia Inc. is part of the larger Waste Management Inc. (WM) corporation, a major player in the waste management industry. While specific federal contract history for the West Virginia subsidiary isn't detailed here, WM as a whole has a significant history of holding federal contracts across various agencies for waste collection, recycling, and disposal services. Their extensive experience suggests a capacity to handle large-scale and complex requirements. However, the performance history on specific federal contracts, including past issues or commendations, would require a deeper dive into federal procurement databases and agency performance reports.

What is the historical spending pattern for solid waste collection at the CJIS facility or similar FBI facilities?

Historical spending data for solid waste collection specifically at the CJIS facility or similar FBI facilities is not provided in this data snippet. To assess historical spending patterns, one would need to examine past contracts for these services at the same or comparable locations. This would involve looking at contract values, durations, and award types over time. Analyzing this trend could reveal whether spending has increased, decreased, or remained stable, and whether previous contracts were competed or sole-sourced. Such analysis is crucial for understanding cost trends and identifying potential anomalies or efficiencies over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Solid Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zippy Shell Incorporated

Address: 1488 DAWSON DR STE 102, BRIDGEPORT, WV, 26330

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

Financial Breakdown

Contract Ceiling: $623,235

Exercised Options: $623,235

Current Obligation: $623,235

Actual Outlays: $441,227

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline