IRS trash and recycling contract awarded to Austin Task Inc. for $2.73M over 5 years

Contract Overview

Contract Amount: $2,729,605 ($2.7M)

Contractor: Austin Task Inc

Awarding Agency: Department of the Treasury

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FISCAL 2022 TRASH AND RECYCLING DEFINITIVE CONTRACT FOR VARIOUS INTERNAL REVENUE SERVICE (IRS) GOVERNMENT FACILITIES IN AUSTIN, TEXAS

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78744

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.7 million to AUSTIN TASK INC for work described as: FISCAL 2022 TRASH AND RECYCLING DEFINITIVE CONTRACT FOR VARIOUS INTERNAL REVENUE SERVICE (IRS) GOVERNMENT FACILITIES IN AUSTIN, TEXAS Key points: 1. Value for money appears fair given the fixed-price nature and duration, but benchmarking is limited. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery and cost-effectiveness. 3. Risk indicators include the sole-source nature and lack of readily available performance data. 4. Performance context is a 5-year definitive contract for essential waste management services. 5. Sector positioning is within government facilities management and essential services.

Value Assessment

Rating: fair

The contract's total value of $2.73 million over five years averages to approximately $546,000 annually. Without specific performance metrics or comparable contract data for similar IRS facilities, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but it may not capture potential efficiencies or cost savings that could be achieved through a more competitive or performance-based contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits the opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. The lack of competition means the government did not benefit from a broader market solicitation to ensure the best possible price and service.

Taxpayer Impact: The sole-source award means taxpayers may not have received the most competitive pricing for these essential waste management services. Without a competitive bidding process, there is a risk that the awarded price is higher than it would have been in an open market scenario.

Public Impact

Benefits the Internal Revenue Service by ensuring the proper disposal of trash and recycling. Provides essential waste management services for government facilities in Austin, Texas. Supports local employment through the contractor's operations in the Austin area. Ensures compliance with environmental and waste disposal regulations for federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of publicly available performance metrics makes value assessment difficult.
Firm-fixed-price may not incentivize contractor efficiency beyond contract minimums.

Positive Signals

Long-term contract provides stability for essential service delivery.
Firm-fixed-price offers budget certainty for the IRS.
Contract covers a significant duration, ensuring consistent service.

Sector Analysis

This contract falls within the broader waste collection and disposal services sector, which is a critical component of government operations and infrastructure. The North American Industry Classification System (NAICS) code 562119 ('Other Waste Collection') suggests specialized services beyond standard trash pickup. Benchmarking this specific contract is difficult without more granular data on comparable government contracts for similar facilities and service scopes.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. Therefore, this contract does not directly contribute to the small business contracting goals or ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury and the Internal Revenue Service's contracting officers and program managers. Transparency is limited due to the sole-source nature and lack of detailed public performance reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Waste Management Services
IRS Operational Support Contracts

Risk Flags

Sole-source award
Limited performance data available
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.7 million to AUSTIN TASK INC. FISCAL 2022 TRASH AND RECYCLING DEFINITIVE CONTRACT FOR VARIOUS INTERNAL REVENUE SERVICE (IRS) GOVERNMENT FACILITIES IN AUSTIN, TEXAS

Who is the contractor on this award?

The obligated recipient is AUSTIN TASK INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the track record of Austin Task Inc. in performing similar government contracts?

Information regarding Austin Task Inc.'s specific track record on similar government contracts is not readily available in the public domain through this data. A deeper dive into contract databases like FPDS-NG or SAM.gov would be necessary to ascertain their performance history, past contract values, and any reported issues or commendations. Without this, it's difficult to assess their capability and reliability for this specific IRS contract beyond the award itself.

How does the annual cost of this contract compare to industry benchmarks for similar services?

Direct comparison to industry benchmarks is challenging without more specific details on the scope of services provided (e.g., types of waste, frequency of collection, specialized handling requirements) and the specific facilities served. The average annual cost of approximately $546,000 for waste management at IRS facilities in Austin would need to be benchmarked against contracts for similar-sized government buildings or commercial facilities in the same geographic region. Given the sole-source nature, it's difficult to definitively state if this represents optimal market value.

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

The primary risks associated with a sole-source award for essential services like waste management include potentially higher costs due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the chosen provider and pricing. Taxpayers may bear a higher cost burden. Additionally, if the sole-source provider experiences performance issues or financial instability, the government has limited immediate alternatives without potentially disrupting essential services.

What is the expected effectiveness of this contract in meeting the IRS's waste management needs?

The effectiveness of this contract hinges on Austin Task Inc.'s ability to consistently deliver the agreed-upon waste collection and recycling services as outlined in the definitive contract. As a firm-fixed-price contract, the expectation is that the contractor will meet the service requirements within the agreed budget. However, the effectiveness in terms of environmental compliance, cost efficiency, and service quality cannot be fully assessed without performance metrics and potential user feedback from the IRS facilities.

How has federal spending on waste collection services for IRS facilities trended historically?

Historical spending data specifically for IRS facilities' waste collection services is not provided in this dataset. To analyze historical trends, one would need to aggregate data from previous contracts awarded to various vendors for similar services across different IRS locations over multiple fiscal years. This would involve searching contract databases for relevant NAICS codes and agencies. Without such historical data, it's impossible to determine if current spending represents an increase, decrease, or stable trend.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

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

Address: 7305B BURLESON RD, AUSTIN, TX, 78744

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

Financial Breakdown

Contract Ceiling: $3,089,520

Exercised Options: $3,087,625

Current Obligation: $2,729,605

Actual Outlays: $2,315,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline