DOJ awards $50K contract for shredding services to Shred-Eco, LLC, with 2 bidders

Contract Overview

Contract Amount: $50,272 ($50.3K)

Contractor: Shred-Eco, LLC

Awarding Agency: Department of Justice

Start Date: 2022-10-13

End Date: 2026-10-12

Contract Duration: 1,460 days

Daily Burn Rate: $34/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHRED SERVICES FOR HQ AND SPRINGFIELD, VA.

Place of Performance

Location: WALKERSVILLE, FREDERICK County, MARYLAND, 21793

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $50,271.64 to SHRED-ECO, LLC for work described as: SHRED SERVICES FOR HQ AND SPRINGFIELD, VA. Key points: 1. Contract value appears low for a multi-year service agreement, suggesting a focus on a specific, limited scope. 2. The use of 'Full and Open Competition' indicates a broad market solicitation, though only two bids were received. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. The contract duration of 1460 days (4 years) provides long-term service stability. 5. The award to a single vendor suggests potential for consolidation or a niche service offering. 6. The small contract value may indicate a pilot program or a supplementary service rather than a core function.

Value Assessment

Rating: good

The contract value of approximately $50,271 over four years is relatively small for federal services. Benchmarking against similar shredding contracts is difficult without more specific scope details, but this value suggests a limited service area or frequency. The firm fixed-price structure is favorable for budget predictability. Given the small scale, it's likely a cost-effective solution for the specific needs of the U.S. Marshals Service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit bids. However, only two bids were received. This limited number of bidders, despite open competition, could indicate a specialized market, high barriers to entry for smaller firms, or simply a lack of interest from a wider range of vendors for this particular scope and value.

Taxpayer Impact: While two bidders suggest some level of competition, it's on the lower end. Taxpayers benefit from the competitive pricing achieved, but a higher number of bidders could potentially drive prices even lower.

Public Impact

The U.S. Marshals Service benefits from secure and compliant destruction of sensitive documents. Confidential information is protected through professional shredding services. The service likely supports operations at HQ and Springfield, VA facilities. Potential for local job creation within the service area of the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) despite full and open solicitation may warrant further investigation into market dynamics.
Contract value is small, raising questions about the full scope of services required and potential for future expansion or additional contracts.
Geographic specificity (HQ and Springfield, VA) limits the broader impact and applicability of this contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, adhering to standard procurement practices.
Contract duration of 4 years offers stability for service provision.
The contractor, SHRED-ECO, LLC, is providing a necessary compliance and security service.

Sector Analysis

The document destruction and shredding services market is a segment within the broader business support services sector. While specific market size data for federal shredding contracts is not readily available, it's a consistent need across government agencies for managing sensitive information and complying with record retention policies. This contract represents a small expenditure within the federal procurement landscape for such services.

Small Business Impact

This contract does not appear to be a small business set-aside, as indicated by 'sb': false. There is no information provided regarding subcontracting plans. The award to SHRED-ECO, LLC, a specific company, does not inherently indicate a positive or negative impact on the broader small business ecosystem without further details on the contractor's size and subcontracting practices.

Oversight & Accountability

The contract is a Delivery Order under a larger contract vehicle, implying it has undergone initial vetting. Oversight would typically be managed by the U.S. Marshals Service contracting officer and program managers. Transparency is provided through federal procurement databases like FPDS. Specific Inspector General jurisdiction would depend on the agency's IG mandate concerning administrative services.

Related Government Programs

Records Management Services
Secure Document Destruction
Administrative Support Services
U.S. Marshals Service Operations

Risk Flags

Limited Competition
Potential for Scope Creep
Contractor Prioritization Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $50,271.64 to SHRED-ECO, LLC. SHRED SERVICES FOR HQ AND SPRINGFIELD, VA.

Who is the contractor on this award?

The obligated recipient is SHRED-ECO, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $50,271.64.

What is the period of performance?

Start: 2022-10-13. End: 2026-10-12.

What is the typical cost range for similar federal shredding services contracts?

Determining a precise cost range for similar federal shredding services is challenging without detailed scope parameters such as volume, frequency, types of media (paper, digital), and specific locations. However, federal contracts for document destruction can range from a few thousand dollars for small, localized needs to millions for large-scale, agency-wide programs. Given this contract's value of approximately $50,271 over four years, it suggests a relatively modest scope, possibly serving a single facility or a limited number of users. For context, smaller, localized contracts might average between $10,000 to $30,000 annually, making this award fall within a plausible range for a specific, defined need.

What is the track record of SHRED-ECO, LLC with federal contracts?

Information regarding the specific track record of SHRED-ECO, LLC with federal contracts is not detailed in the provided data. To assess their performance history, one would typically review past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. A thorough analysis would involve searching federal procurement databases (like FPDS or SAM.gov) for previous awards to this entity, examining the types of services rendered, contract values, and agencies served. Without this external data, it's impossible to definitively comment on their track record beyond their current award.

How does the limited number of bidders (2) impact the value proposition for taxpayers?

A limited number of bidders, even under 'Full and Open Competition,' can raise concerns about the extent of price discovery. While two bidders still introduce competition, a larger pool typically exerts more downward pressure on prices. Taxpayers benefit from the competition that did occur, as it likely resulted in a more favorable price than a sole-source award. However, the potential exists that with more interested vendors, even lower prices could have been achieved. This situation warrants consideration of whether market conditions genuinely limit the number of capable providers or if procurement strategies could be adjusted to attract more bidders in the future.

What are the potential risks associated with a small-value, multi-year contract like this?

Small-value, multi-year contracts present several potential risks. Firstly, there's the risk of 'scope creep,' where the services gradually expand beyond the original intent without a corresponding increase in contract value, potentially leading to underperformance or dissatisfaction. Secondly, the contractor might deprioritize this contract in favor of larger, more lucrative ones, potentially impacting service quality or responsiveness. Thirdly, the low value might not attract robust competition initially, as seen here with only two bidders, potentially limiting long-term cost savings. Finally, if the scope is too narrowly defined, the agency might need to procure additional, separate contracts for related services, leading to administrative inefficiency.

Are there any indications of potential inefficiencies or redundancies in federal shredding services spending?

The provided data focuses on a single contract award and does not offer a broad view of federal shredding services spending, making it difficult to identify systemic inefficiencies or redundancies. However, potential inefficiencies can arise if multiple agencies or sub-agencies procure similar shredding services independently without leveraging economies of scale or consolidated contracts. Duplication of services across different locations or departments within the same agency could also occur. To assess this, a comprehensive analysis of all federal shredding contracts, their scopes, geographic coverage, and pricing across different agencies would be necessary.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3901 BARRETT DR STE 306, RALEIGH, NC, 27609

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,530

Exercised Options: $50,272

Current Obligation: $50,272

Actual Outlays: $16,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS03F0023V

IDV Type: FSS

Timeline