VA awards $36.2M non-hazardous waste management contract to Community Waste Disposal LP

Contract Overview

Contract Amount: $36,182 ($36.2K)

Contractor: Community Waste Disposal LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $50/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-HAZARDOUS WASTE MANAGEMENT SERVICES

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75220

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36,181.78 to COMMUNITY WASTE DISPOSAL LP for work described as: NON-HAZARDOUS WASTE MANAGEMENT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 729 days suggests a need for consistent service delivery. 3. Firm Fixed Price contract type provides cost certainty for the VA. 4. Service area in Texas indicates a localized operational focus. 5. No small business set-aside or subcontracting noted, potentially impacting small business participation. 6. NAICS code 562111 points to a standard solid waste collection service.

Value Assessment

Rating: fair

The contract value of $36.2 million over two years for non-hazardous waste management services appears to be within a reasonable range for a large-scale federal contract. However, without specific benchmarks for waste management services in Texas or comparable VA facility contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure offers cost predictability, but the lack of competition could lead to a higher-than-market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or for specific circumstances like urgent needs or existing relationships. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially result in a less favorable price for the government.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the contract was not put out for bid. This could mean a higher overall cost compared to what might have been achieved in a competitive environment.

Public Impact

Benefits the Department of Veterans Affairs by ensuring proper disposal of non-hazardous waste at its facilities. Provides essential solid waste collection and disposal services within Texas. Supports public health and environmental standards by managing waste effectively. Ensures continuity of operations for VA facilities by maintaining waste management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of small business participation or subcontracting opportunities noted.

Positive Signals

Firm Fixed Price contract provides cost certainty for the agency.
Contract duration ensures stable service delivery for the specified period.
Service is essential for maintaining facility operations and public health standards.

Sector Analysis

The waste management sector is a critical component of public infrastructure, encompassing collection, disposal, and recycling services. Federal spending in this area supports government facilities and operations nationwide. This contract, valued at $36.2 million, falls within the typical range for large-scale municipal or federal waste management contracts, particularly for a multi-year duration. The NAICS code 562111 specifically relates to solid waste collection, a fundamental service within the broader environmental services industry.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award also suggests limited opportunities for small businesses to participate as subcontractors unless specifically included by the prime contractor. Further analysis would be needed to determine if Community Waste Disposal LP has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it may have less formal oversight than a larger, more complex contract, but regular performance reviews and invoice approvals would be standard. Transparency is generally maintained through contract databases, though the specifics of sole-source justifications may vary in public accessibility.

Related Government Programs

Federal Waste Management Contracts
Department of Veterans Affairs Procurement
Solid Waste Collection Services
Sole-Source Federal Contracts

Risk Flags

Sole-source award may result in higher costs.
Lack of competition limits price discovery.
Potential for contractor complacency without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36,181.78 to COMMUNITY WASTE DISPOSAL LP. NON-HAZARDOUS WASTE MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is COMMUNITY WASTE DISPOSAL LP.

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 $36,181.78.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of Community Waste Disposal LP with federal contracts?

Information regarding Community Waste Disposal LP's specific track record with federal contracts is not detailed in the provided data. However, as a recipient of this sole-source award from the Department of Veterans Affairs, it implies a level of capability and potentially a prior relationship or demonstrated expertise deemed sufficient by the agency. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the extent and nature of their past federal performance, including any other awarded contracts, their values, and performance ratings, if available.

How does the pricing of this contract compare to similar federal waste management contracts?

A direct comparison of pricing for this $36.2 million contract is difficult without access to detailed cost breakdowns and specific service level agreements. The contract is awarded on a sole-source basis, which inherently limits the ability to benchmark against competitive bids. To assess value for money, one would need to compare the per-unit costs (e.g., cost per ton of waste collected, cost per landfill visit) against similar contracts awarded by other federal agencies or local governments in Texas, considering factors like service scope, contract duration, and volume.

What are the primary risks associated with a sole-source award for waste management services?

The primary risk associated with a sole-source award for waste management services is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the most cost-effective solution. Additionally, there's a risk of complacency from the awarded contractor, as there is no immediate competitive pressure to innovate or improve service quality. Ensuring robust performance standards and oversight becomes even more critical in sole-source situations to mitigate these risks and ensure taxpayer value.

How effective is the firm fixed-price contract type for managing waste disposal services?

The Firm Fixed Price (FFP) contract type is generally effective for managing waste disposal services because the scope of work is typically well-defined and predictable. FFP provides cost certainty for the agency, as the contractor assumes the risk of cost overruns. This structure is suitable for services like solid waste collection where volumes and service requirements can be reasonably estimated. It incentivizes the contractor to manage their costs efficiently to maximize profit, which can align with the government's interest in cost control, provided the initial price is fair.

What are the historical spending patterns for waste management services by the Department of Veterans Affairs?

Historical spending patterns for waste management services by the Department of Veterans Affairs (VA) would typically show consistent annual expenditures across its numerous facilities nationwide. The VA, like other large federal agencies, relies heavily on contracted services for non-hazardous waste disposal. Annual spending can fluctuate based on facility needs, contract renewals, and changes in service requirements or pricing. Analyzing past VA procurements for similar services, including contract values, durations, and competition levels, would provide context for the current $36.2 million award.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C77024Q0246

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2010 CALIFORNIA CROSSING RD, DALLAS, TX, 75220

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,357

Exercised Options: $36,182

Current Obligation: $36,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline