DHS awards $34.2M contract for hazardous waste disposal in Alaska, highlighting critical environmental services

Contract Overview

Contract Amount: $34,251 ($34.3K)

Contractor: US Ecology Alaska LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-05

End Date: 2025-12-13

Contract Duration: 99 days

Daily Burn Rate: $346/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEAD CONTAMINATED HAZARDOUS WASTE PICKUP AND DISPOSAL

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99619

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34,251.03 to US ECOLOGY ALASKA LLC for work described as: LEAD CONTAMINATED HAZARDOUS WASTE PICKUP AND DISPOSAL Key points: 1. Contract addresses essential environmental remediation needs in a remote region. 2. Competition dynamics appear favorable given the contract type and number of bidders. 3. Performance risk is moderate, influenced by the specialized nature of hazardous waste handling. 4. The contract duration suggests a sustained need for these services. 5. This award falls within the broader category of environmental services and waste management. 6. Geographic location in Alaska presents unique logistical challenges and costs.

Value Assessment

Rating: good

The contract value of $34.2 million for hazardous waste pickup and disposal appears reasonable given the specialized nature of the services and the remote location in Alaska. Benchmarking against similar contracts for hazardous waste management in remote or challenging environments would provide further insight. The firm-fixed-price structure helps control costs for the government. Without specific per-unit data, a direct cost comparison is difficult, but the overall value seems aligned with the scope.

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 suitable for the contract's value. With four bidders, there was a reasonable level of competition, which typically helps in achieving fair market prices. The use of SAP suggests that the agency sought competitive quotes while streamlining the acquisition process for a service of this nature.

Taxpayer Impact: The competitive bidding process under SAP likely resulted in a more favorable price for taxpayers compared to a sole-source award. The presence of multiple bidders indicates that the market can support this type of service, fostering price discovery.

Public Impact

The U.S. Coast Guard (part of DHS) benefits by ensuring environmental compliance and safety in its Alaskan operations. Services include the pickup and disposal of lead-contaminated hazardous waste, crucial for environmental protection. The geographic impact is concentrated in Alaska, addressing specific regional environmental challenges. The contract supports the workforce involved in specialized hazardous waste management and disposal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Logistical complexities of hazardous waste transport in remote Alaskan regions.
Potential for unforeseen environmental conditions impacting disposal costs.
Ensuring consistent compliance with stringent hazardous waste regulations.

Positive Signals

Firm-fixed-price contract structure limits cost overruns.
Competitive award process suggests a fair market price was likely achieved.
Specialized expertise of the contractor in hazardous waste management.

Sector Analysis

This contract falls within the Environmental Services and Waste Management sector, specifically focusing on hazardous waste. The North American Industry Classification System (NAICS) code 562111 (Solid Waste Collection) is relevant, though hazardous waste disposal often involves more specialized sub-sectors. The market for hazardous waste management is significant, driven by regulatory requirements and industrial activity. Comparable spending benchmarks would typically be found within environmental remediation and disposal services contracts.

Small Business Impact

The data does not indicate if this contract included small business set-asides or subcontracting requirements. Given the specialized nature of hazardous waste disposal, it's possible that larger, specialized firms are primary awardees. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the U.S. Coast Guard contracting office within DHS. Accountability measures are inherent in the firm-fixed-price contract terms and performance requirements. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight specifics are not provided.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Solid Waste Collection
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

Logistical challenges in remote locations
Environmental compliance risks
Specialized service requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34,251.03 to US ECOLOGY ALASKA LLC. LEAD CONTAMINATED HAZARDOUS WASTE PICKUP AND DISPOSAL

Who is the contractor on this award?

The obligated recipient is US ECOLOGY ALASKA LLC.

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 $34,251.03.

What is the period of performance?

Start: 2025-09-05. End: 2025-12-13.

What is the contractor's track record with similar hazardous waste disposal contracts for federal agencies, particularly in remote locations?

Assessing US ECOLOGY ALASKA LLC's past performance is crucial. A review of their contract history with federal agencies, especially the Department of Homeland Security and the U.S. Coast Guard, would reveal their experience with similar hazardous waste pickup and disposal services. Emphasis should be placed on contracts executed in remote or challenging environments like Alaska, as these present unique logistical and operational hurdles. Performance metrics from previous contracts, including on-time delivery, adherence to safety protocols, and successful disposal in compliance with regulations, would provide strong indicators of their capability and reliability for this current award. Any history of contract disputes, performance failures, or corrective actions would be significant risk factors.

How does the awarded price compare to the average cost for similar hazardous waste disposal services in Alaska or other remote regions?

Benchmarking the $34.2 million contract value against similar services in Alaska or comparable remote regions is essential for value assessment. This involves researching historical contract data for hazardous waste management, considering factors like waste type (lead-contaminated), volume, transportation distances, and disposal facility fees. The firm-fixed-price nature of this contract provides cost certainty, but understanding the underlying cost drivers is key. If per-unit costs or rates for specific services (e.g., per ton disposed, per mile transported) are available, they can be compared to industry averages or previous government contracts. A higher-than-average cost might be justifiable due to Alaska's unique logistical challenges, but a significant deviation would warrant further scrutiny.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include logistical challenges inherent in transporting hazardous waste within Alaska, potential environmental incidents during transport or disposal, and ensuring strict compliance with evolving environmental regulations. The remote nature of operations could lead to unexpected delays and increased costs if not managed proactively. Mitigation strategies likely involve robust safety protocols, detailed transportation plans, contingency measures for spills or accidents, and close coordination with regulatory bodies. The contractor's experience and the firm-fixed-price structure also serve as risk mitigation tools by setting clear expectations and cost ceilings. The U.S. Coast Guard's oversight will be critical in monitoring adherence to these mitigation efforts.

What is the historical spending pattern for hazardous waste disposal services by the U.S. Coast Guard or DHS in Alaska?

Analyzing historical spending patterns for hazardous waste disposal by the U.S. Coast Guard and DHS in Alaska is vital for context. This involves examining previous contract awards for similar services over the past several fiscal years. Understanding the frequency, value, and duration of past contracts can reveal trends in service needs and expenditure. For instance, consistent annual spending might indicate an ongoing requirement, while sporadic awards could suggest project-based needs. Comparing the current $34.2 million award against historical figures will help determine if this represents an increase, decrease, or stable level of investment in these environmental services for the region. It also helps in assessing the overall budget allocation for such critical, albeit specialized, services.

How does the competition level (4 bidders) under SAP influence the final price and potential for contractor performance?

Having four bidders compete under Simplified Acquisition Procedures (SAP) for this $34.2 million contract suggests a healthy level of competition for this specific service and geographic area. A greater number of bidders generally leads to more competitive pricing as contractors vie for the award, potentially driving down costs for the government. It also increases the likelihood that the selected contractor possesses the necessary capabilities and capacity, as they were willing and able to submit a competitive offer. While SAP streamlines the process, the presence of multiple offers still allows for price discovery and selection of the best value. The agency's evaluation criteria under SAP would determine if the award was based solely on price or a combination of price and other factors.

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: 31140PR250000194

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Republic Services Inc

Address: 619 E SHIP CREEK AVE, ANCHORAGE, AK, 99501

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

Financial Breakdown

Contract Ceiling: $34,251

Exercised Options: $34,251

Current Obligation: $34,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline