VA awards $2.2M hazardous waste removal contract to Earth Smart Environmental Solutions LLC

Contract Overview

Contract Amount: $2,199,498 ($2.2M)

Contractor: Earth Smart Environmental Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-01

End Date: 2026-02-20

Contract Duration: 1,572 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF:CT:IGF:HAZARDOUS WASTE REMOVAL SERVICES

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to EARTH SMART ENVIRONMENTAL SOLUTIONS LLC for work described as: IGF:CT:IGF:HAZARDOUS WASTE REMOVAL SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract, often used for services with uncertain scope or duration. 3. Firm Fixed Price contract type aims to control costs for the government. 4. The contract duration is over 1500 days, indicating a long-term service requirement. 5. The awardee, Earth Smart Environmental Solutions LLC, is a single entity for this service. 6. The contract is geographically focused on Ohio. 7. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $2.2 million over approximately 4.3 years averages to about $511,000 annually. Benchmarking this against similar hazardous waste removal contracts is challenging without more specific service details and geographic scope. However, the firm fixed-price structure provides cost certainty. The number of bids received (3) suggests some level of interest, but a more robust competition might yield better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the pool of bidders. Three bids were received, which is a moderate level of competition. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified vendors had been able to participate. However, the exclusion of sources might have been justified by specific technical requirements or past performance.

Public Impact

Benefits the Department of Veterans Affairs by ensuring safe and compliant hazardous waste disposal. Services delivered include the collection and removal of hazardous waste. Geographic impact is primarily within Ohio, where the contractor is located and services will be rendered. Workforce implications include employment opportunities for hazardous waste management professionals within the awarded company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery.
The specific reasons for excluding certain sources are not detailed, raising potential transparency concerns.
Long contract duration could lead to scope creep or price adjustments if not managed carefully.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Awarded to a single entity for a defined service, simplifying management.
Contract is for essential environmental services, ensuring regulatory compliance for the VA.

Sector Analysis

The hazardous waste management industry is a critical component of environmental services, supporting regulatory compliance for government agencies and private sector entities. This contract falls within the broader environmental services sector, which includes waste collection, treatment, disposal, and remediation. Market size for hazardous waste services is substantial, driven by stringent environmental regulations. This contract represents a specific, localized need for the VA.

Small Business Impact

This contract was not set aside for small businesses, and the awarded company, Earth Smart Environmental Solutions LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. This means the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is partially addressed by the public nature of contract awards, but detailed performance metrics and oversight reports may not be readily available.

Related Government Programs

Environmental Services Contracts
Hazardous Waste Management
Department of Veterans Affairs Procurement
Definitive Contracts

Risk Flags

Limited competition may impact price.
Potential for scope creep in definitive contracts.
Contractor performance and compliance are critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to EARTH SMART ENVIRONMENTAL SOLUTIONS LLC. IGF:CT:IGF:HAZARDOUS WASTE REMOVAL SERVICES

Who is the contractor on this award?

The obligated recipient is EARTH SMART ENVIRONMENTAL SOLUTIONS 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 $2.2 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-02-20.

What is the track record of Earth Smart Environmental Solutions LLC with federal contracts, particularly with the VA?

Information regarding the specific track record of Earth Smart Environmental Solutions LLC with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A deeper dive into contract databases like FPDS-NG or SAM.gov would be necessary to assess their past performance, payment history, and any instances of contract disputes or terminations. Understanding their prior experience with similar hazardous waste removal services, their performance ratings on previous government contracts, and their capacity to handle the scope of this definitive contract would provide crucial context for evaluating the current award's risk and value.

How does the awarded price compare to market rates for similar hazardous waste removal services in Ohio?

Directly comparing the awarded price to market rates for similar hazardous waste removal services in Ohio is difficult without more granular data on the specific types and volumes of waste being handled, as well as the frequency and locations of service. The contract value of approximately $2.2 million over 4.3 years equates to roughly $511,000 annually. To perform a robust comparison, one would need to analyze pricing data from other federal, state, or local government contracts for comparable services in the same geographic region, as well as solicit quotes from private sector providers. Factors such as regulatory compliance costs, transportation logistics, and disposal facility fees significantly influence pricing in this sector.

What are the specific risks associated with a 'definitive contract' for hazardous waste removal?

Definitive contracts, while offering flexibility, can introduce risks, particularly for services like hazardous waste removal. One primary risk is the potential for scope creep if the exact nature and volume of waste to be removed are not well-defined upfront. This can lead to cost overruns, even under a firm fixed-price structure, if change orders become necessary. Another risk relates to contractor performance; if the contractor fails to meet stringent environmental and safety standards, it could result in regulatory penalties for the VA and potential service disruptions. The long duration of this contract (over 1500 days) also increases the risk of unforeseen market changes or technological advancements that could make the contracted services less efficient or cost-effective over time.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process and potential value?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a procurement process that aimed for broad participation but ultimately restricted the pool of eligible bidders. This typically occurs when specific technical requirements, past performance, or unique capabilities are necessary, leading the agency to exclude vendors who do not meet these stringent criteria. While it ensures that the selected contractor possesses the required qualifications, it can limit the number of bids received. In this case, only three bids were submitted. A more limited competition, compared to unrestricted full and open competition, may reduce the downward pressure on pricing, potentially leading to a less favorable outcome for taxpayers if the excluded sources could have offered competitive pricing.

How has the VA's spending on hazardous waste removal services trended historically, and does this contract align with past patterns?

Analyzing the VA's historical spending on hazardous waste removal services would require accessing multi-year procurement data. Without that specific data, it's difficult to definitively state whether this $2.2 million contract aligns with past patterns. However, the VA, as a large healthcare provider with numerous facilities, consistently generates regulated medical and hazardous waste. Therefore, ongoing contracts for compliant disposal services are expected. The value of this contract appears moderate for a multi-year definitive agreement covering a specific geographic region. A trend analysis would reveal if the VA is increasing or decreasing its reliance on external contractors for these services, or if spending levels are relatively stable.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25021Q0717

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 232 S DILLARD ST STE 230, WINTER GARDEN, FL, 34787

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,201,498

Exercised Options: $2,199,498

Current Obligation: $2,199,498

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline