Department of the Army awards $25.4M contract for trash and garbage collection services at Fort Lewis

Contract Overview

Contract Amount: $25,477,009 ($25.5M)

Contractor: Harold Lemay Enterprises, Incorporated

Awarding Agency: Department of Defense

Start Date: 2002-09-01

End Date: 2003-08-31

Contract Duration: 364 days

Daily Burn Rate: $70.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200212!000392!2100!KF57 !DIRECTORATE OF CONTRACTING !DAKF5702C0020 !A!N! !Y! !20020901!20020930!003824661!003824661!003824661!N!HAROLD LEMAY ENTERPRISES !13502 PACIFIC AVE !TACOMA !WA!98444!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000000205543!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562111!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1G!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! ! ! !0001!

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to HAROLD LEMAY ENTERPRISES, INCORPORATED for work described as: 200212!000392!2100!KF57 !DIRECTORATE OF CONTRACTING !DAKF5702C0020 !A!N! !Y! !20020901!20020930!003824661!003824661!003824661!N!HAROLD LEMAY ENTERPRISES !13502 PACIFIC AVE !TACOMA !WA!98444!24915!053!53!FORT LEWIS !PIERC… Key points: 1. Contract awarded for essential waste management services, indicating a need for routine operational support. 2. The contract's value suggests a significant demand for waste disposal and related services over its duration. 3. Awarded as 'Not Available for Competition,' raising questions about the procurement process and potential for broader market engagement. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Services include trash/garbage collection and potentially portable sanitation, covering a critical base support function. 6. The duration of the contract (364 days) suggests a short-term or interim need for these services.

Value Assessment

Rating: fair

The contract value of $25.4 million for a one-year period for trash and garbage collection services appears high. Benchmarking against similar contracts for waste management on military installations is difficult without more specific service details and geographic context. However, the significant dollar amount warrants scrutiny to ensure it represents a fair price for the scope of services provided, especially given the lack of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' designation. This indicates that the agency did not solicit bids from multiple offerors, suggesting a specific justification for not engaging in a competitive process. The lack of competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market competition to secure the best possible price.

Public Impact

Fort Lewis military personnel and their families benefit from essential sanitation and waste management services. The contract ensures the proper disposal of waste, maintaining environmental standards and public health on the installation. Services directly support the operational readiness and quality of life at Fort Lewis, Washington. The contract supports the local economy through the provision of waste management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
The 'Not Available for Competition' status requires further investigation into the justification.
The high dollar value for a one-year service contract warrants a detailed cost analysis.

Positive Signals

Contract ensures essential base support services are maintained.
Firm fixed-price contract provides cost predictability.
Services are critical for health, safety, and environmental compliance at Fort Lewis.

Sector Analysis

The waste management and disposal services sector is a critical component of infrastructure support for government facilities. This contract falls under the broader category of commercial services, specifically solid waste collection. The market for these services is typically localized, with numerous providers competing within specific geographic areas. However, for government installations, especially those with unique security or logistical requirements, specialized contracts are often necessary. The value of this contract is substantial for a single-year service agreement in this sector.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this contract was not competed, it is less likely that specific small business goals were a primary driver of the procurement strategy. Further analysis would be needed to determine if the prime contractor has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and financial management offices at Fort Lewis. The Inspector General's office may also conduct audits or investigations into contract performance and pricing, particularly given the non-competitive award. Transparency is limited by the lack of public competition details, but contract modifications and performance reports would be subject to internal review.

Related Government Programs

Base Operations Support Services
Environmental Services Contracts
Logistics and Support Contracts
Solid Waste Management Contracts

Risk Flags

Non-competitive award requires justification review.
High contract value for a one-year service period.
Potential for uncompetitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to HAROLD LEMAY ENTERPRISES, INCORPORATED. 200212!000392!2100!KF57 !DIRECTORATE OF CONTRACTING !DAKF5702C0020 !A!N! !Y! !20020901!20020930!003824661!003824661!003824661!N!HAROLD LEMAY ENTERPRISES !13502 PACIFIC AVE !TACOMA !WA!98444!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000000205543!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562111!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is HAROLD LEMAY ENTERPRISES, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2002-09-01. End: 2003-08-31.

What specific services are included under 'Trash/Garbage Collection Services - Incl Port San Svcs'?

The contract description 'Trash/Garbage Collection Services - Incl Port San Svcs' suggests a comprehensive waste management solution. This likely includes the regular collection and disposal of solid waste (trash and garbage) generated by the facilities and personnel at Fort Lewis. The inclusion of 'Port San Svcs' indicates that portable sanitation services, such as the provision and servicing of portable toilets, may also be part of the contract scope. The exact details of frequency, types of waste handled, and specific portable sanitation requirements would be outlined in the contract's statement of work (SOW).

Why was this contract awarded on a 'Not Available for Competition' basis?

The 'Not Available for Competition' (NAC) status, often associated with sole-source procurements, implies that the Department of the Army determined that only one responsible source was capable of providing the required services. Common justifications for NAC awards include urgent and compelling needs, unique capabilities of a specific contractor, or situations where a follow-on contract is awarded to the incumbent under specific circumstances. Without further documentation from the agency, the precise reason for this NAC award remains undisclosed, but it bypasses the standard competitive bidding process.

How does the contract value of $25.4 million compare to typical waste management contracts for military bases?

The contract value of $25.4 million for a 364-day period for waste management services at Fort Lewis is substantial. While waste management costs can vary significantly based on the size of the installation, the volume of waste generated, the types of services required (e.g., hazardous waste, recycling, portable sanitation), and geographic location, this figure appears to be on the higher end for a single year. Benchmarking requires detailed comparison with similar-sized installations and service scopes, but the lack of competition suggests potential for a less favorable price than if it were competitively bid.

What is the significance of the 'Firm Fixed Price' contract type?

A Firm Fixed Price (FFP) contract type means that the contractor is obligated to perform the work for a stated price, regardless of the actual costs incurred. This contract type offers the greatest cost certainty for the government, as the total price is established upfront and is not subject to adjustment based on the contractor's cost experience. For the contractor, it carries the highest risk, as they assume responsibility for any cost overruns. This type of contract is generally preferred by the government when the scope of work is well-defined and risks can be reasonably assessed.

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

The primary risk associated with a sole-source award for essential services like waste management is the potential for inflated pricing due to the lack of competition. Without competing offers, the government loses the opportunity to leverage market forces to secure the most cost-effective solution. Additionally, there's a risk that the contractor may have less incentive to innovate or improve efficiency if they are not facing competitive pressure. The justification for the sole-source award itself needs to be robust to ensure it was truly necessary and not a result of poor planning or agency preference.

What is the North American Industry Classification System (NAICS) code 562111 and what does it entail?

The NAICS code 562111 pertains to 'Waste Collection.' This industry includes establishments primarily engaged in collecting and transporting sanitary and industrial waste, including garbage, refuse, and recyclable materials. Establishments in this industry may operate collection trucks, dumpsters, and other specialized vehicles. This code covers a wide range of waste collection activities, from residential garbage pickup to commercial waste hauling and potentially specialized services like portable toilet rentals, aligning with the contract's description.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Waste Connections US, Inc.

Address: 13502 PACIFIC AVE, TACOMA, WA, 98444

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline