DoD's $10.5M Landfill Contract in Arizona: Long-Term Solid Waste Management
Contract Overview
Contract Amount: $10,510,169 ($10.5M)
Contractor: Huachuca City
Awarding Agency: Department of Defense
Start Date: 1985-10-15
End Date: 2024-09-30
Contract Duration: 14,230 days
Daily Burn Rate: $739/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: HUACHUCA CITY, COCHISE County, ARIZONA, 85616
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $10.5 million to HUACHUCA CITY for work described as: Key points: 1. The contract value is substantial at $10.5 million, indicating a significant long-term need. 2. Full and open competition was utilized, suggesting a healthy market for these services. 3. The contract duration is exceptionally long (1985-2024), raising questions about flexibility and potential for cost overruns. 4. The sector is essential infrastructure (solid waste management), critical for base operations.
Value Assessment
Rating: fair
The contract's long duration and fixed price nature may obscure current market pricing. Without more granular data on services provided and comparable contracts, a precise value assessment is difficult. The benchmark of $739 (likely per month or year) seems low for landfill services, suggesting it might be a specific component or an outdated benchmark.
Cost Per Unit: $739
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which is generally positive for price discovery. However, the extremely long contract term might have limited the number of bidders willing to commit over such an extended period, potentially impacting the competitiveness of the final price.
Taxpayer Impact: The long-term nature of this contract, spanning nearly four decades, suggests consistent spending on essential services. While competition was open, the extended duration warrants scrutiny to ensure taxpayers are not overpaying for services that could be re-competed at more frequent intervals.
Public Impact
Ensures continuous waste disposal services for a military installation, maintaining operational readiness. Supports local economy through service provision, though the long duration limits new business opportunities. Potential for environmental impact management through landfill operations, subject to regulatory compliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Excessively long contract duration (39 years)
- Lack of recent competition due to duration
- Potential for outdated service delivery methods
Positive Signals
- Utilized full and open competition
- Ensures essential service continuity
- Fixed price contract provides cost certainty
Sector Analysis
Solid waste management is a critical but often overlooked sector supporting government operations. Spending benchmarks vary widely based on location, volume, and service type. This contract's value, spread over decades, suggests a stable, long-term requirement for a specific military installation.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While full and open competition was used, the long duration might have deterred smaller entities from bidding or being able to fulfill the extensive commitment.
Oversight & Accountability
The extremely long duration of this contract raises significant oversight questions. Agencies should regularly review such long-term agreements to ensure continued necessity, cost-effectiveness, and alignment with current operational needs and market conditions.
Related Government Programs
- Solid Waste Landfill
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration exceeds typical procurement cycles (39 years)
- Potential for cost inefficiency due to lack of recent competition
- Risk of outdated service standards or technology
- Limited transparency on evolving service scope and pricing
- Small business participation is zero
Tags
solid-waste-landfill, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to HUACHUCA CITY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HUACHUCA CITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.5 million.
What is the period of performance?
Start: 1985-10-15. End: 2024-09-30.
What specific services are included under this landfill contract, and how has the scope evolved since 1985?
The contract number 562212 designates Solid Waste Landfill services. Given the contract's start date in 1985, the scope likely includes the operation and maintenance of landfill facilities. However, without detailed contract modifications or statements of work, it's impossible to ascertain how services have evolved to meet modern environmental regulations, waste management technologies, or changing disposal needs at the installation.
How does the $739 benchmark compare to current market rates for similar landfill services in Arizona, considering inflation and regulatory changes?
The $739 benchmark appears exceptionally low for landfill services, especially when considering a contract value of over $10 million. It's highly probable this figure represents a very specific, minor component, a historical rate from decades ago, or perhaps a monthly/annual charge for a limited service rather than the overall contract value. A meaningful comparison would require current, localized data on per-ton disposal fees, tipping fees, and operational costs for comparable facilities.
What mechanisms are in place to ensure the Department of the Army is receiving value for money given the contract's nearly 40-year duration?
The primary mechanism for value is the initial 'full and open competition.' However, for such an extended duration, ongoing oversight is crucial. This includes periodic reviews of service performance, potential renegotiation clauses (if any exist), and comparison against market rates for similar services. The fixed-price nature provides some cost certainty, but the lack of re-competition over decades limits the government's ability to leverage market shifts for better pricing or updated service standards.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Solid Waste Landfill
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 500 N GONZALES BLVD, HUACHUCA CITY, AZ, 85616
Business Categories: Category Business, Council of Governments, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $730,553
Exercised Options: $730,553
Current Obligation: $10,510,169
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1985-10-15
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2023-10-12
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