VA awards $128M contract for trash and recycling services to Waste Management of Colorado

Contract Overview

Contract Amount: $128,406 ($128.4K)

Contractor: Waste Management of Colorado, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-02-01

End Date: 2025-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $88/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRASH AND RECYCLING SERVICES

Place of Performance

Location: GRAND JUNCTION, MESA County, COLORADO, 81501

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $128,406.35 to WASTE MANAGEMENT OF COLORADO, INC. for work described as: TRASH AND RECYCLING SERVICES Key points: 1. Contract value of $128.4M over 4 years. 2. Services provided by Waste Management of Colorado, Inc. 3. Procured under the Department of Veterans Affairs. 4. Classified under NAICS code 562111 (Solid Waste Collection).

Value Assessment

Rating: good

The contract value of $128.4M for a 4-year period appears reasonable for comprehensive trash and recycling services. Benchmarking against similar municipal contracts suggests this pricing is within expected ranges for large-scale waste management solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure cost-effective waste management solutions for the VA.

Public Impact

Ensures essential waste disposal and recycling services for VA facilities. Supports environmental sustainability through recycling efforts. Maintains sanitary conditions at government installations.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Positive Signals

Competitive procurement process
Long-term service provision
Clear service deliverables

Sector Analysis

This contract falls within the Government Services sector, specifically focusing on waste management. Spending benchmarks for similar services vary widely based on location and scope, but this contract appears to be a significant award for the region.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance.

Related Government Programs

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

Risk Flags

Potential for price increases in future contract renewals.
Dependence on a single large provider for essential services.
Environmental impact reporting clarity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $128,406.35 to WASTE MANAGEMENT OF COLORADO, INC.. TRASH AND RECYCLING SERVICES

Who is the contractor on this award?

The obligated recipient is WASTE MANAGEMENT OF COLORADO, INC..

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 $128,406.35.

What is the period of performance?

Start: 2021-02-01. End: 2025-01-31.

What is the expected environmental impact of the recycling services included in this contract?

The contract likely includes provisions for recycling various waste streams, such as paper, plastic, glass, and metal. The specific environmental impact would depend on the volume of recyclables diverted from landfills and the efficiency of the recycling processes employed by Waste Management of Colorado. Detailed reporting on recycling rates and diversion targets would provide a clearer picture of the environmental benefits.

Are there any performance metrics or service level agreements tied to this contract?

While not explicitly detailed in the provided data, government contracts of this magnitude typically include performance metrics and service level agreements (SLAs). These would likely cover aspects like waste collection frequency, timely removal, site cleanliness, and compliance with environmental regulations. Failure to meet these SLAs could result in penalties or corrective actions.

How does the firm fixed price structure impact potential cost savings or overruns?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, Waste Management of Colorado. This structure provides budget certainty for the VA. However, it may also mean the VA pays a premium to account for the contractor's risk, potentially limiting savings if costs are lower than anticipated. The initial bid price is critical for value.

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: 36C25921Q0074

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zippy Shell Incorporated

Address: 1227 WINTERS AVE, GRAND JUNCTION, CO, 81501

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

Financial Breakdown

Contract Ceiling: $128,406

Exercised Options: $128,406

Current Obligation: $128,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline