VA awards $2.39M contract for specialized waste disposal services in California

Contract Overview

Contract Amount: $2,390,929 ($2.4M)

Contractor: EWA Direction Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REGULATED MEDICAL, ORGANIC FOOD, AND SPECIALIZED GENERAL WASTE DISPOSAL

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to EWA DIRECTION INC. for work described as: REGULATED MEDICAL, ORGANIC FOOD, AND SPECIALIZED GENERAL WASTE DISPOSAL Key points: 1. Contract awarded to EWA DIRECTION INC. for waste disposal services. 2. The contract has a duration of 1460 days. 3. Services are to be performed in California. 4. The contract type is Firm Fixed Price. 5. This contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code is 562119. 7. The Product Service Code (PSC) is not specified.

Value Assessment

Rating: fair

The contract value of $2.39 million over approximately four years for specialized waste disposal is within a reasonable range for such services. Benchmarking against similar contracts for regulated medical and organic waste disposal in California would provide a clearer picture of value for money. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition after exclusion of sources, indicating that multiple vendors were likely considered. The specific reason for excluding sources is not detailed, but the 'full and open' designation suggests a robust competitive process. The number of bidders is not provided, which limits the ability to assess the intensity of competition and its impact on pricing.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Veterans in California will benefit from the proper disposal of regulated medical and organic waste, ensuring a safe and compliant healthcare environment. The contract ensures the delivery of specialized waste disposal services, crucial for maintaining public health and environmental standards. The geographic impact is focused on California, where the services will be rendered. The contract supports the waste management workforce, likely through EWA DIRECTION INC.'s operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality and contractor performance.
The specific reasons for 'exclusion of sources' in the competition process are not fully transparent.
Limited information on the number of bidders restricts a thorough analysis of price discovery and competition intensity.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of nearly four years allows for stable service provision.

Sector Analysis

The waste collection industry, particularly specialized services for medical and organic waste, is a critical component of public health infrastructure. This contract falls under the broader waste management sector, which is characterized by varying levels of competition depending on specialization and geographic reach. The NAICS code 562119 covers 'Other Waste Collection,' indicating a focus beyond standard municipal solid waste. Comparable spending benchmarks would require analysis of contracts for similar specialized waste streams within the federal government or large municipal contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to EWA DIRECTION INC. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this waste disposal service.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The firm fixed-price nature of the contract provides some cost control. Transparency regarding performance metrics and detailed competition outcomes would enhance accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Waste Disposal Contracts
Specialized Waste Management Services
Department of Veterans Affairs Procurement

Risk Flags

Potential for service disruption due to contractor performance issues.
Risk of non-compliance with environmental and health regulations if disposal is inadequate.
Limited transparency on the rationale for excluding sources during competition.
Difficulty in assessing value for money without detailed performance metrics and market comparisons.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to EWA DIRECTION INC.. REGULATED MEDICAL, ORGANIC FOOD, AND SPECIALIZED GENERAL WASTE DISPOSAL

Who is the contractor on this award?

The obligated recipient is EWA DIRECTION 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 $2.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the track record of EWA DIRECTION INC. in performing similar federal contracts?

Information regarding EWA DIRECTION INC.'s specific track record with federal contracts, particularly those involving regulated medical and organic waste disposal, is not readily available in the provided data. A comprehensive review of the System for Award Management (SAM) and past performance databases would be necessary to assess their history, including on-time delivery, quality of service, and any past disputes or contract modifications. Understanding their experience with similar government requirements is crucial for evaluating their capability to fulfill this contract effectively and efficiently.

How does the awarded price compare to market rates for specialized waste disposal in California?

The total contract value of $2.39 million over approximately four years equates to an average annual value of roughly $597,500. To benchmark this against market rates, one would need to compare it with pricing data from other federal agencies, state and local governments, and private sector contracts for similar specialized waste disposal services (e.g., regulated medical waste, organic waste) within California. Factors such as volume, frequency of pickup, types of waste, and specific disposal methods significantly influence pricing. Without access to detailed pricing structures and market data, a precise comparison is difficult, but the firm fixed-price nature suggests an attempt to establish a predictable cost.

What are the primary risks associated with this contract for the Department of Veterans Affairs?

Key risks for the VA include potential service disruptions if EWA DIRECTION INC. fails to meet performance standards, leading to non-compliance with health and environmental regulations. There's also a risk of cost overruns if the firm fixed-price contract does not adequately account for unforeseen operational challenges or changes in waste volume. Ensuring the contractor maintains necessary licenses and adheres to all disposal regulations is critical. Furthermore, the lack of detailed performance metrics makes it harder to proactively identify and mitigate performance issues, potentially impacting the quality and reliability of the waste disposal services.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market access with specific needs. While 'full and open' suggests an initial wide solicitation, the 'exclusion of sources' implies that certain potential bidders were disqualified or not considered for reasons not detailed here. If the exclusion was based on legitimate technical or capability requirements, it can lead to a more focused competition among qualified vendors, potentially resulting in better-suited services. However, if the exclusion criteria are overly restrictive or not clearly justified, it could limit competition, potentially leading to higher prices and reduced value for taxpayers. Transparency in the exclusion rationale is key to assessing its impact.

What is the historical spending pattern for similar waste disposal services by the Department of Veterans Affairs?

Analyzing historical spending patterns for similar waste disposal services by the VA is essential for context. This would involve examining previous contracts for regulated medical, organic, and specialized general waste disposal, noting contract values, durations, awardees, and competition levels. Significant year-over-year increases or decreases in spending, or a pattern of sole-source awards for these services, could indicate market trends, changes in service needs, or potential issues with competition. Understanding this history helps determine if the current $2.39 million award is consistent with past investments or represents a notable shift.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26223Q0410

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2211 ALA WAI BLVD, HONOLULU, HI, 96815

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

Financial Breakdown

Contract Ceiling: $3,049,606

Exercised Options: $2,390,929

Current Obligation: $2,390,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline