DoD's $41.6M waste collection contract with Ashbritt Inc. awarded in 2005 shows potential value concerns

Contract Overview

Contract Amount: $41,649,847 ($41.6M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-24

End Date: 2006-03-31

Contract Duration: 188 days

Daily Burn Rate: $221.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to ASHBRITT INC for work described as: Key points: 1. The contract's duration of 188 days for a $41.6 million award suggests a high daily burn rate. 2. Limited performance data makes it difficult to assess the true value for money delivered. 3. The contract was awarded under 'full and open competition after exclusion of sources,' indicating a potentially complex procurement history. 4. The fixed-price contract type may offer cost certainty but could limit flexibility if unforeseen issues arose. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities. 6. The contract's completion in 2006 means current market benchmarks may not directly apply. 7. The award to a single contractor, Ashbritt Inc., requires scrutiny of pricing against industry standards.

Value Assessment

Rating: questionable

The contract's value of $41.6 million over approximately six months translates to a significant daily expenditure, raising questions about efficiency. Without detailed performance metrics or comparable contracts from the same period, it's challenging to benchmark the value effectively. The fixed-price nature suggests an attempt at cost control, but the high overall value necessitates a closer look at the unit costs and services rendered to ensure taxpayer funds were used judiciously.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be broad, certain sources may have been excluded for particular reasons, potentially impacting the number of actual bidders. The record indicates 22 bids were received, which is a healthy number, but the 'exclusion of sources' clause warrants understanding the rationale behind it to ensure it did not unduly restrict competition.

Taxpayer Impact: A robust number of bids suggests competitive pressure, which should theoretically lead to better pricing for taxpayers. However, the 'exclusion of sources' aspect requires careful review to ensure no viable competitors were unfairly prevented from bidding, which could have inflated costs.

Public Impact

The primary beneficiaries of this contract were likely the Department of Defense and its personnel, who received waste collection services. The services delivered were essential for maintaining operational readiness and environmental compliance within military facilities. The geographic impact was concentrated in Mississippi, where the contract was performed. The contract supported a workforce involved in waste management and logistics, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily expenditure rate suggests potential for cost overruns or inefficient service delivery.
The 'exclusion of sources' in the procurement process could indicate a non-standard or potentially restrictive competition.
Lack of readily available performance data hinders a comprehensive value-for-money assessment.
The contract's age (awarded in 2005) may limit the applicability of current market comparisons.

Positive Signals

The 'full and open competition' aspect, despite source exclusions, suggests an effort to solicit multiple bids.
The receipt of 22 bids indicates significant interest from the market.
The fixed-price contract type provides a degree of cost certainty for the government.
The contract was performed in Mississippi, potentially benefiting the local economy through service provision.

Sector Analysis

This contract falls within the broader waste management and environmental services sector, a critical component of government operations and infrastructure support. The North American Industry Classification System (NAICS) code 562119 ('Other Waste Collection') indicates specialized services beyond standard refuse collection. The market for government contracting in this area is substantial, with numerous firms competing for large-scale service agreements. Benchmarking this $41.6 million award requires comparison with similar large-scale, geographically specific waste management contracts awarded to the federal government during the mid-2000s.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely aimed at larger, established firms capable of handling the scale and complexity of the services required. There is no explicit information on subcontracting plans or performance, making it difficult to assess the impact on the small business ecosystem. Further investigation would be needed to determine if small businesses were utilized as subcontractors by the prime contractor, Ashbritt Inc.

Oversight & Accountability

Oversight mechanisms for this contract would have primarily resided within the Department of the Army's contracting and program management offices. Accountability would be enforced through contract terms, performance reviews, and payment schedules. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. However, detailed operational oversight reports or Inspector General findings related specifically to this contract are not readily available in the provided data.

Related Government Programs

Department of Defense Waste Management Contracts
Environmental Services Contracts
Logistics Support Contracts
Federal Waste Collection Services
Emergency Response Waste Management

Risk Flags

High Contract Value
Limited Performance Data
Unclear Service Specifics
Potential Competition Restriction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to ASHBRITT INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ASHBRITT INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2005-09-24. End: 2006-03-31.

What was the specific nature of the waste collection services provided under this contract?

The contract, identified by NAICS code 562119 ('Other Waste Collection'), suggests specialized waste management services beyond routine trash pickup. Given the Department of Defense context and the award date (2005), it is plausible that this contract was related to post-disaster cleanup, hazardous waste removal, or support for military operations in a specific region. Without further documentation, the exact scope remains unclear, but it likely involved managing and disposing of various types of waste generated by military activities or in support of federal emergency response efforts.

How does the per-diem cost of this contract compare to similar federal waste management contracts from the same era?

The contract value of $41.6 million over 188 days (approximately 6.2 months) equates to a daily cost of roughly $221,542. Benchmarking this figure requires access to detailed contract data from the mid-2000s for comparable federal waste collection and management services. Factors such as geographic location, type of waste, regulatory compliance requirements, and the specific services rendered (e.g., collection, transport, disposal, recycling) significantly influence costs. A preliminary assessment suggests this daily rate is substantial, necessitating a detailed comparison with contracts of similar scope and complexity to ascertain its reasonableness.

What were the reasons for excluding certain sources during the 'full and open competition after exclusion of sources' procurement?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be broad, specific potential bidders were deliberately excluded. The reasons for such exclusions can vary widely, including prior performance issues, failure to meet specific technical qualifications, or pre-existing contractual relationships that might create conflicts of interest. In some cases, it might relate to national security concerns or specific government requirements that only a subset of the market could meet. Understanding the precise justification for excluding sources is crucial for assessing whether the competition was truly fair and if the government obtained the best possible value.

What was Ashbritt Inc.'s track record with the federal government prior to or around the time of this award?

Ashbritt Inc. has a history of securing significant federal contracts, particularly in disaster recovery and environmental services. Prior to this 2005 award, the company had likely established a presence in government contracting, potentially including work with the Department of Defense or other agencies involved in emergency response or infrastructure support. A comprehensive review of their contract history would reveal their experience with similar large-scale service contracts, their performance ratings on previous awards, and any past issues or accolades that might provide context for their selection for this $41.6 million waste collection contract.

Are there any known performance issues or disputes associated with this specific contract?

The provided data does not contain specific details regarding performance issues, disputes, or contract modifications for this particular award. Federal contract databases typically record basic award information, but detailed performance records, inspection reports, or litigation histories are often found in agency-specific archives or through legal databases. Without access to such granular information, it is impossible to definitively state whether there were any performance problems. However, the contract's completion date (March 2006) suggests it was successfully concluded, though the quality of that conclusion remains unverified by this data alone.

How has federal spending on waste collection and management services evolved since this contract was awarded?

Federal spending on waste collection and management services has likely seen significant fluctuations and increases since 2005, driven by factors such as inflation, increased regulatory requirements (particularly for hazardous and environmental waste), expanded military operations, and a greater emphasis on sustainability and recycling. Agencies like the Department of Defense, which manage vast physical footprints, are major spenders in this category. Tracking overall federal outlays for NAICS code 562119 and related categories would reveal a trend, likely showing substantial growth in total contract values and potentially a diversification of services offered, including more sophisticated environmental remediation and waste-to-energy solutions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 480 S ANDREWS AVE ST2103, POMPANO BEACH, FL, 23

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P805D0025

IDV Type: IDC

Timeline