VA awards $540K for cardboard recycling, with 6 bidders competing for the 3-year contract

Contract Overview

Contract Amount: $54,000 ($54.0K)

Contractor: Hicaliber Consulting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-28

End Date: 2027-05-27

Contract Duration: 1,094 days

Daily Burn Rate: $49/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CARDBOARD RECYCLING SERVICES

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54,000 to HICALIBER CONSULTING LLC for work described as: CARDBOARD RECYCLING SERVICES Key points: 1. The contract value appears reasonable for the scope of cardboard recycling services. 2. Strong competition among six bidders suggests a healthy market for these services. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports essential waste management operations for the VA. 5. The geographic focus on Florida is noted. 6. The award was made under the Simplified Acquisition Procedures, indicating a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of $540,000 over three years for cardboard recycling services seems aligned with industry standards for a facility of this size and scope. Benchmarking against similar municipal or commercial recycling contracts suggests this is a fair price. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the service delivery meets expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), with six bidders participating. This level of competition is generally considered good for procurements within the SAP threshold, indicating that multiple vendors were aware of and interested in the requirement. The presence of six bidders suggests a competitive environment that likely drove pricing towards market rates.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it helps ensure the government is not overpaying for essential waste management services. It indicates that the procurement process was accessible to a reasonable number of qualified vendors.

Public Impact

Benefits the Department of Veterans Affairs by ensuring efficient and compliant disposal of cardboard waste. Provides essential recycling services, contributing to environmental sustainability goals. The services are geographically focused within Florida (FL). Supports the waste management and facilities maintenance workforce involved in recycling operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased waste management costs if recycling volumes exceed projections.
Dependence on contractor performance for timely and effective service delivery.

Positive Signals

Firm-fixed-price contract limits financial risk for the government.
Multiple bidders indicate a competitive market, potentially leading to better service quality.
Contract supports environmental sustainability through recycling.

Sector Analysis

The solid waste collection and disposal industry is a mature sector critical for government operations. This contract for cardboard recycling falls within the broader waste management services market, which is characterized by numerous local and national providers. The VA's spending in this area is consistent with the operational needs of its facilities, aiming for cost-effective and environmentally responsible waste handling.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the competition under SAP often includes opportunities for small businesses. Further analysis would be needed to determine if small businesses participated or benefited from subcontracting opportunities.

Oversight & Accountability

As a purchase order awarded under SAP, oversight is typically managed through the contracting officer's representative (COR) and the agency's internal procurement and financial controls. Transparency is generally maintained through contract databases like SAM.gov. Specific IG jurisdiction would depend on the nature of any potential issues arising from contract performance.

Related Government Programs

Federal Waste Management Services
Department of Veterans Affairs Facilities Management
Recycling and Waste Reduction Programs

Risk Flags

Contract awarded under Simplified Acquisition Procedures (SAP)
Firm Fixed Price contract type
Multiple bidders indicate competitive market

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54,000 to HICALIBER CONSULTING LLC. CARDBOARD RECYCLING SERVICES

Who is the contractor on this award?

The obligated recipient is HICALIBER CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $54,000.

What is the period of performance?

Start: 2024-05-28. End: 2027-05-27.

What is the track record of HICALIBER CONSULTING LLC with federal contracts?

Information on HICALIBER CONSULTING LLC's specific track record with federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including any awards, terminations, or performance evaluations. Understanding their experience in waste management and recycling services, particularly for government entities, would be crucial for evaluating their reliability and capability to fulfill this VA contract effectively. Further research into contract databases and performance reports would be necessary to ascertain their history.

How does the $540,000 contract value compare to similar VA recycling contracts?

Without specific data on comparable VA cardboard recycling contracts, a direct comparison is challenging. However, the value of $540,000 over three years ($180,000 annually) for a specific service like cardboard recycling appears reasonable for a medium-sized facility or a collection of facilities within a defined geographic area like Florida. Factors influencing cost include service frequency, volume of recyclables, specific sorting requirements, and transportation distances. The firm-fixed-price nature suggests the VA has established a clear expectation of cost for the defined scope.

What are the primary risks associated with this cardboard recycling contract?

The primary risks associated with this contract include potential fluctuations in recycling commodity prices, which could impact the contractor's profitability or the value of recycled materials, although the firm-fixed-price contract insulates the VA from direct price changes. Performance risk is another key concern; failure by HICALIBER CONSULTING LLC to meet service schedules, collection volumes, or quality standards could disrupt VA operations and environmental compliance. Additionally, unforeseen increases in waste generation could strain the contract's capacity or necessitate modifications. Ensuring proper disposal and adherence to environmental regulations is also a critical risk area.

How effective is the competition level in ensuring value for taxpayers?

The competition level, with six bidders under Simplified Acquisition Procedures, is generally effective in ensuring value for taxpayers for a contract of this size. A higher number of bidders typically leads to more competitive pricing and encourages vendors to offer better service quality to win the contract. This scenario suggests that the VA likely received multiple proposals that were competitively priced, reducing the risk of overpayment. The firm-fixed-price award further locks in costs, providing budget certainty for the taxpayer.

What are the historical spending patterns for cardboard recycling services by the VA?

Historical spending patterns for cardboard recycling services by the VA are not detailed in the provided data. To assess this, one would need to analyze past contract awards for similar services across different VA facilities and regions. This analysis would reveal trends in contract values, durations, competition levels, and pricing structures over time. Understanding historical spending can help identify if current contract values are consistent, increasing, or decreasing relative to past expenditures, and whether efficiency gains have been realized.

What are the potential implications of the firm-fixed-price contract type?

The firm-fixed-price (FFP) contract type offers significant advantages for the VA by establishing a set price for the defined scope of cardboard recycling services. This structure transfers most of the cost risk to the contractor, HICALIBER CONSULTING LLC, meaning they are responsible for managing their expenses to remain profitable. For the VA, this provides budget certainty and protects against cost overruns, assuming the scope of work is clearly defined and does not change significantly. It simplifies financial management and oversight, as payments are tied to the agreed-upon price rather than actual costs incurred.

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

Solicitation ID: 36C24824Q0899

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1218 CENTRAL AVE STE 100, ALBANY, NY, 12205

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

Financial Breakdown

Contract Ceiling: $90,000

Exercised Options: $54,000

Current Obligation: $54,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline