VA awards $126K contract for pharmaceutical waste removal to MILSPEC LOGISTICS LLC

Contract Overview

Contract Amount: $126,495 ($126.5K)

Contractor: Milspec Logistics LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-29

End Date: 2027-05-28

Contract Duration: 729 days

Daily Burn Rate: $174/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHARMACEUTICAL WASTE REMOVAL

Place of Performance

Location: HARLINGEN, CAMERON County, TEXAS, 78550

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $126,495.25 to MILSPEC LOGISTICS LLC for work described as: PHARMACEUTICAL WASTE REMOVAL Key points: 1. Contract awarded for hazardous waste collection services. 2. MILSPEC LOGISTICS LLC is the sole awardee. 3. The contract is for a duration of 729 days. 4. The contract is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $126,495.25 over two years appears reasonable for specialized hazardous waste removal services. Benchmarking against similar contracts for pharmaceutical waste disposal is difficult without more specific service details and geographic scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. While SAP aims for efficiency, it may not always yield the lowest price compared to full and open competition.

Taxpayer Impact: The total taxpayer impact is $126,495.25, which is a modest sum for essential waste management services.

Public Impact

Ensures safe and compliant disposal of pharmaceutical waste, protecting public health and the environment. Supports the Department of Veterans Affairs' operational needs by managing hazardous materials. Provides essential services to a specific geographic region (Texas).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for higher pricing compared to full competition.

Positive Signals

Essential service for VA operations.
Fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the hazardous waste collection sector, specifically for pharmaceutical waste. Spending in this sector is driven by regulatory compliance and healthcare facility operations. Benchmarks are highly variable based on volume and type of waste.

Small Business Impact

The data does not indicate if MILSPEC LOGISTICS LLC is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract is a Purchase Order awarded by the Department of Veterans Affairs, indicating standard procurement oversight. The use of SAP suggests a streamlined process, but accountability for price and performance remains with the agency.

Related Government Programs

Hazardous Waste Collection
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Potential for price not being optimized due to SAP.
Lack of small business participation data.
Need for robust oversight to ensure compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $126,495.25 to MILSPEC LOGISTICS LLC. PHARMACEUTICAL WASTE REMOVAL

Who is the contractor on this award?

The obligated recipient is MILSPEC LOGISTICS 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 $126,495.25.

What is the period of performance?

Start: 2025-05-29. End: 2027-05-28.

What is the typical cost range for pharmaceutical waste removal services of this volume and scope in Texas?

Determining a precise cost range without detailed service specifications (e.g., frequency of pickup, types of pharmaceuticals, specific disposal methods) is challenging. However, contracts for hazardous waste management can vary significantly. Factors like regulatory compliance, transportation logistics, and specialized handling contribute to costs. A $126K contract over two years for a single VA facility in Texas might be within a reasonable range if it involves regular, comprehensive services.

What were the specific reasons for using Simplified Acquisition Procedures (SAP) instead of full and open competition?

Simplified Acquisition Procedures (SAP) are typically used for purchases below the simplified acquisition threshold (currently $250,000 for most agencies). The VA likely used SAP for this contract because the estimated value was below this threshold, allowing for a faster and less burdensome procurement process. Reasons could include urgency, administrative efficiency, or the expectation that competition among a limited number of qualified vendors would be sufficient.

How does this contract ensure effective and environmentally sound disposal of pharmaceutical waste?

The contract specifies 'Hazardous Waste Collection' and is awarded to a company likely possessing the necessary licenses and expertise for handling regulated medical waste. The 'Firm Fixed Price' structure incentivizes the contractor to perform efficiently. However, the contract's effectiveness and environmental soundness depend on the VA's oversight, the contractor's adherence to all federal, state, and local regulations, and proper documentation of disposal methods.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25725Q0482

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4499 MEDICAL DR STE 191, SAN ANTONIO, TX, 78229

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $265,956

Exercised Options: $126,495

Current Obligation: $126,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline