DHS Coast Guard awards $2.7M contract for hazardous waste disposal services on Maui

Contract Overview

Contract Amount: $2,743 ($2.7K)

Contractor: Citibank, N.A.

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-13

End Date: 2025-09-30

Contract Duration: 321 days

Daily Burn Rate: $9/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25 SP RENEWAL SERVICE WITH UNITEK SOLVENT SERVICES INC., - USED OIL/OILY WATER/OILY RAGS SERVICE - STATION MAUI (POP: 1 OCT 2024 THROUGH 30 SEP 2025)

Place of Performance

Location: WAILUKU, MAUI County, HAWAII, 96793

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2,742.64 to CITIBANK, N.A. for work described as: FY25 SP RENEWAL SERVICE WITH UNITEK SOLVENT SERVICES INC., - USED OIL/OILY WATER/OILY RAGS SERVICE - STATION MAUI (POP: 1 OCT 2024 THROUGH 30 SEP 2025) Key points: 1. The contract value represents a significant portion of the annual spending for this specific service at Station Maui. 2. The service is critical for environmental compliance and operational readiness at the Coast Guard facility. 3. The lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds. 4. The contract duration is relatively short, suggesting potential for re-evaluation and competitive bidding in the future. 5. The service falls under the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' NAICS code, indicating specialized industrial services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable service contracts for hazardous waste disposal in the specific geographic region of Maui. The fixed price nature of the contract provides some cost certainty, but the lack of competition prevents a robust assessment of whether the price is truly competitive. Given the specialized nature of the service and its critical function for the Coast Guard, the price may reflect necessary operational costs, but further analysis would be needed to confirm value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required service, or in urgent situations. The lack of competition means that multiple bidders were not considered, which limits the government's ability to secure the best possible price and service through market forces. This raises questions about whether alternative solutions or providers were adequately explored.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The U.S. Coast Guard Station Maui benefits from essential hazardous waste disposal services, ensuring environmental compliance and operational continuity. This service directly supports the Coast Guard's mission in Hawaii by managing potentially harmful waste materials. The contract ensures the safe and compliant handling of used oil, oily water, and oily rags, preventing environmental contamination. The contract's execution has minimal direct workforce implications, as it primarily involves service provision by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in higher costs for taxpayers.
Sole-source award limits transparency and potential for better pricing.
Reliance on a single provider could pose a risk if service quality declines or availability is interrupted.

Positive Signals

Ensures critical environmental compliance for a federal facility.
Provides a necessary service for the operational readiness of the U.S. Coast Guard.
The contract is for a defined period, allowing for future reassessment.

Sector Analysis

The contract falls within the broader industrial services sector, specifically focusing on hazardous waste management. This is a critical but often niche market, with specialized requirements for handling, transportation, and disposal of regulated materials. The market size for such services can vary significantly by region, with demand driven by industrial activity, regulatory compliance, and the presence of facilities generating hazardous waste. Comparable spending benchmarks are difficult to establish without more specific data on the volume and type of waste handled.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further limits opportunities for small businesses to participate in this particular contract. The impact on the small business ecosystem is therefore minimal for this specific award, as it bypasses the typical competitive processes where small businesses might otherwise have a chance to bid.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability measures are inherent in the purchase order terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; however, the contract details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Services Contracts
Hazardous Waste Management Services
Department of Homeland Security Procurement
U.S. Coast Guard Operational Support

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2,742.64 to CITIBANK, N.A.. FY25 SP RENEWAL SERVICE WITH UNITEK SOLVENT SERVICES INC., - USED OIL/OILY WATER/OILY RAGS SERVICE - STATION MAUI (POP: 1 OCT 2024 THROUGH 30 SEP 2025)

Who is the contractor on this award?

The obligated recipient is CITIBANK, N.A..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2,742.64.

What is the period of performance?

Start: 2024-11-13. End: 2025-09-30.

What is the historical spending pattern for this specific hazardous waste disposal service at U.S. Coast Guard Station Maui?

Historical spending data for this specific service at U.S. Coast Guard Station Maui is not directly available in the provided data. However, the current award of $2.74 million for a one-year period (October 1, 2024, through September 30, 2025) suggests a consistent need for these services. Without prior contract details, it's difficult to ascertain if this represents an increase or decrease in spending compared to previous years. Further investigation into historical procurement records for Station Maui or similar Coast Guard facilities in the region would be necessary to establish a comprehensive spending trend.

What are the specific types and quantities of hazardous waste covered under this contract?

The contract specifies services for 'Used Oil/Oily Water/Oily Rags.' While the exact quantities are not detailed in the provided summary, these categories indicate the types of waste generated from vessel maintenance, fuel handling, and general operations at the Coast Guard station. Used oil typically includes lubricating oils and hydraulic fluids. Oily water can result from bilge pumping or spill cleanup. Oily rags are generated from cleaning and maintenance activities. The 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' NAICS code suggests a broad scope within chemical waste management, but the primary focus appears to be petroleum-based and related contaminants common in maritime operations.

What are the potential risks associated with a sole-source award for hazardous waste disposal?

A sole-source award for hazardous waste disposal presents several risks. Firstly, the lack of competition can lead to inflated prices, meaning taxpayers may be paying more than necessary for the service. Secondly, it reduces the incentive for the contractor to maintain high service quality or innovate, as there is no immediate threat of losing business to a competitor. Thirdly, it creates a dependency on a single provider, which can be problematic if the contractor experiences financial difficulties, operational issues, or decides to discontinue the service. This dependency could disrupt critical Coast Guard operations and environmental compliance.

How does the geographic location (Maui, Hawaii) potentially impact the cost and availability of hazardous waste disposal services?

The geographic location of Maui, Hawaii, significantly impacts the cost and availability of specialized services like hazardous waste disposal. Hawaii's island nature means that transportation costs for both bringing in necessary supplies and removing waste are substantially higher compared to the mainland United States. Specialized disposal facilities may be limited on the island, potentially requiring waste to be shipped further, increasing logistical complexity and expense. Furthermore, the availability of qualified contractors capable of handling and disposing of hazardous materials in compliance with stringent environmental regulations may be more restricted in remote locations, contributing to higher service costs due to limited market competition.

What are the performance standards and oversight mechanisms for this contract?

While specific performance standards are not detailed in the provided summary, purchase orders typically include terms and conditions that outline expected service levels, delivery schedules, and quality requirements. Oversight for this contract would be managed by the U.S. Coast Guard contracting officer and potentially a contract specialist or technical point of contact at Station Maui. They are responsible for monitoring the contractor's performance, ensuring compliance with the contract terms, and approving payments. The fixed-price nature of the contract implies that the contractor is responsible for delivering the specified services within the agreed-upon price, with the government paying only upon satisfactory performance.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5800 S CORPORATE PL, SIOUX FALLS, SD, 57108

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

Financial Breakdown

Contract Ceiling: $2,725

Exercised Options: $2,725

Current Obligation: $2,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline