DoD's $42.3M waste collection contract awarded to ASHBRITT INC shows fair value with 227681 bids

Contract Overview

Contract Amount: $42,348,614 ($42.3M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-26

End Date: 2006-03-31

Contract Duration: 186 days

Daily Burn Rate: $227.7K/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: BILOXI, HARRISON County, MISSISSIPPI, 39534

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to ASHBRITT INC for work described as: Key points: 1. The contract's value appears reasonable given the extensive bidding process. 2. Strong competition suggests potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks. 4. Performance duration of 186 days is relatively short for the scope. 5. This contract falls within the broader waste management services sector. 6. The award to a single entity indicates a focused service delivery approach.

Value Assessment

Rating: good

The contract value of $42.3 million for waste collection services appears to be within a reasonable range, especially considering the 227,681 bids received, which suggests a highly competitive environment. Benchmarking against similar large-scale waste management contracts for military installations would provide a more precise value-for-money assessment. However, the high number of bids generally indicates that pricing was likely scrutinized and competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a broad solicitation process that allowed all eligible sources to compete. The exceptionally high number of bids (227,681) suggests robust market interest and a highly competitive landscape for these services. This level of competition is ideal for price discovery and ensuring the government secures services at the most favorable terms.

Taxpayer Impact: The extensive competition means taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and service. This reduces the risk of overpayment and ensures a fair market price was established.

Public Impact

Military personnel and facilities at the specified location benefit from essential waste management services. The contract ensures the proper collection and disposal of waste, maintaining environmental and health standards. Geographic impact is localized to the area served by the Department of the Army. The contract supports jobs within the waste collection and logistics industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if the primary contractor faces operational issues.
Dependence on a single contractor for a critical service.
Ensuring compliance with environmental regulations throughout the contract duration.

Positive Signals

High level of competition indicates a healthy market and potential for quality service.
Firm fixed-price contract provides cost certainty for the government.
Award to an established entity suggests experience in handling such contracts.

Sector Analysis

The waste collection services sector is a critical component of infrastructure support, encompassing a wide range of activities from residential pickup to specialized industrial waste management. This contract, valued at over $42 million, represents a significant procurement within this sector, likely serving a large military installation. Comparable spending benchmarks would involve analyzing other large government contracts for waste management, particularly those serving federal agencies or large municipalities, to gauge the scale and pricing efficiency.

Small Business Impact

While the data indicates this was a full and open competition, it does not specify if small businesses were involved as prime contractors or subcontractors. The large contract value might present opportunities for small businesses to participate through subcontracting agreements, provided the prime contractor actively seeks them out. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel responsible for facility services. Accountability measures would be embedded in the contract's performance work statement, with potential penalties for non-compliance. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of Defense Facilities Management
Environmental Services Contracts
Municipal Waste Management Services
Logistics and Support Services

Risk Flags

Potential for environmental non-compliance if not rigorously monitored.
Risk of service interruption impacting base operations.
Contract performance dependent on contractor's operational capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 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 $42.3 million.

What is the period of performance?

Start: 2005-09-26. End: 2006-03-31.

What is the track record of ASHBRITT INC in handling large federal contracts, particularly in waste management?

ASHBRITT INC has a history of securing and performing on various government contracts, including those related to disaster recovery, logistics, and environmental services. While specific details on their waste management performance for this particular Department of the Army contract require deeper investigation into performance reports and any associated contract actions (e.g., modifications, claims), their presence in the federal contracting space suggests they possess the necessary infrastructure and experience. Analyzing past performance evaluations and any documented issues on similar contracts would provide a clearer picture of their reliability and effectiveness in delivering contracted services.

How does the awarded amount compare to the estimated value or budget for this waste collection service?

The provided data does not include the original estimated value or budget for this contract, making a direct comparison impossible. However, the fact that the contract was awarded under full and open competition with a substantial number of bids (227,681) suggests that the awarded amount of $42.3 million was likely competitive and potentially aligned with market expectations. To assess value, one would need to compare this figure against pre-solicitation estimates or benchmark it against similar contracts awarded by the DoD or other federal agencies for comparable services and geographic regions.

What are the primary risks associated with this contract, and how were they mitigated?

Key risks for a waste collection contract include service disruptions due to equipment failure or labor issues, environmental non-compliance, and potential cost escalations (though mitigated by fixed-price). The firm fixed-price (FFP) contract type is a primary mitigation strategy, shifting most cost risk to the contractor. The high competition suggests ASHBRITT INC was confident in its ability to manage these risks within the fixed price. Further mitigation would involve performance monitoring, clear service level agreements, and contingency planning by the agency.

What is the expected effectiveness of the services delivered under this contract in meeting the DoD's waste management needs?

The effectiveness of the services is expected to be high, given the competitive bidding process and the firm fixed-price nature of the contract, which incentivizes the contractor to perform efficiently. The contract duration of 186 days suggests a focused scope, possibly for a specific project or period. The Department of the Army's selection of ASHBRITT INC implies they met the technical and performance requirements outlined in the solicitation. Success will ultimately be measured by the contractor's adherence to the performance work statement, including timely collection, proper disposal, and compliance with all environmental regulations.

What are the historical spending patterns for waste collection services by the Department of the Army or similar agencies?

Historical spending patterns for waste collection by the Department of the Army and similar agencies can vary significantly based on installation size, location, specific service requirements (e.g., hazardous waste, recycling), and contract vehicles used. Generally, these services represent a consistent operational expense for maintaining facilities. Analyzing past contracts for similar services at comparable military bases or federal facilities would reveal trends in contract values, duration, and competition levels. This specific $42.3 million contract appears substantial, suggesting it covers a significant operational area or a period of heightened activity.

What is the significance of the NAICS code 562119 (Other Waste Collection) in the context of this contract?

The NAICS code 562119, 'Other Waste Collection,' indicates that this contract covers waste collection services that do not fall under more specific categories like hazardous waste collection (562211) or solid waste landfill (562212). This suggests the contract likely pertains to the collection of general refuse, recyclables, or other non-hazardous waste streams generated by the military installation. The broadness of this code implies flexibility in the types of waste covered but also necessitates clear definition within the contract's scope of work to ensure all requirements are met.

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