DoD's $31M waste collection contract awarded to ASHBRITT INC shows fair value with 22 bids

Contract Overview

Contract Amount: $31,097,018 ($31.1M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2005-10-03

End Date: 2006-03-31

Contract Duration: 179 days

Daily Burn Rate: $173.7K/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: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to ASHBRITT INC for work described as: Key points: 1. The contract demonstrates a competitive bidding process, suggesting potential for good value. 2. Pricing appears reasonable when benchmarked against similar waste collection services. 3. The duration of the contract (179 days) is relatively short, indicating a focus on immediate needs. 4. This award falls within the 'Other Waste Collection' NAICS code, a common service area for the DoD. 5. The contract's value is moderate within the context of large federal procurement actions. 6. The use of a Firm Fixed Price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract's total award amount of $31,097,017.58 for waste collection services appears to be within a reasonable range for the scope and duration. Benchmarking against similar contracts for emergency or routine waste management in disaster-affected areas suggests that the pricing is competitive. The number of bids received (22) further supports the notion that the government secured a fair price through a robust competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a broad solicitation process. The high number of 22 bids suggests significant interest from the market. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide array of qualified contractors, likely leading to a more cost-effective outcome.

Taxpayer Impact: A robust competition with 22 bidders means taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and service for waste collection needs.

Public Impact

The primary beneficiaries are the Department of Defense and potentially affected communities requiring waste management services. Services delivered include essential waste collection and disposal, crucial for maintaining operational readiness and environmental safety. The geographic impact is focused on Mississippi (MS), where the contract was performed. Workforce implications include the potential for local employment opportunities in waste management and logistics within the contract's operational area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor if future needs arise.
Contract duration is short, which might necessitate rapid re-competition or extensions, potentially impacting continuity.
The specific nature of 'Other Waste Collection' could encompass a wide range of services, requiring clear performance standards.

Positive Signals

Strong competition with 22 bidders indicates a healthy market response.
Firm Fixed Price contract type provides cost certainty for the government.
Awarded to a single entity (ASHBRITT INC) for a defined period, allowing for focused execution.
The contract was performed in Mississippi, potentially supporting regional economic activity.

Sector Analysis

The waste collection industry is a critical component of infrastructure and public services, encompassing a wide range of activities from routine municipal services to specialized emergency response. Federal spending in this sector often supports military installations, disaster relief efforts, and agency operations. This contract, valued at approximately $31 million, falls within the typical range for significant federal waste management procurements, especially those related to specific events or locations like disaster recovery. The NAICS code 562119 ('Other Waste Collection') covers non-hazardous waste collection, which is a fundamental service.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, the significant number of bidders (22) could include small businesses participating directly or indirectly. The prime contractor, ASHBRITT INC, may also engage small businesses for subcontracting opportunities to fulfill specialized aspects of the waste collection and disposal services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring delivery of specified services. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award.

Related Government Programs

Federal Emergency Management Agency (FEMA) Disaster Relief Contracts
Department of Defense Base Operations Support Contracts
Environmental Services Contracts
Municipal Solid Waste Management Contracts

Risk Flags

Environmental Compliance Risk
Logistical Challenges
Contractor Performance Risk
Cost Overrun Potential (for contractor)
Security Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 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 $31.1 million.

What is the period of performance?

Start: 2005-10-03. End: 2006-03-31.

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

ASHBRITT INC has a significant history of performing federal contracts, particularly in emergency response and logistics, including waste management services. They have been awarded numerous contracts across various agencies, often in support of disaster relief operations. Their experience includes large-scale debris removal and waste disposal following major natural disasters. While specific performance metrics for every contract are not publicly detailed, their consistent awards suggest a capacity to meet federal requirements. It is advisable to review specific contract performance reports and past performance questionnaires, if available, for a comprehensive understanding of their track record on similar waste collection and management solicitations.

How does the $31 million award compare to other federal waste collection contracts?

The $31 million award for this 179-day contract is substantial, particularly for a focused geographic area like Mississippi. Federal waste collection contracts can vary widely in value depending on scope, duration, and location. Contracts supporting large military bases or extensive disaster recovery efforts can easily reach tens or hundreds of millions of dollars. This particular award, given its relatively short duration, suggests a significant operational tempo or a response to a specific event. When compared to routine, long-term municipal waste contracts, it appears higher on a per-day basis, but this is common for emergency or specialized federal procurements which often involve rapid mobilization and complex logistics.

What are the primary risks associated with this type of waste collection contract?

Key risks include environmental compliance, as improper waste disposal can lead to significant fines and ecological damage. Operational risks involve logistical challenges in collection routes, equipment availability, and workforce management, especially in potentially difficult terrain or post-disaster environments. There's also a risk of cost overruns if unforeseen waste volumes or disposal challenges arise, although the Firm Fixed Price (FFP) structure aims to mitigate this for the government. Contractor performance risk, ensuring timely and compliant service, is always present. Finally, security risks, particularly if operating near sensitive military installations, must be managed.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply?

This designation means that the contract was initially intended for full and open competition, but certain sources were excluded for specific, justifiable reasons before the final award. This could occur if, for example, specific capabilities were required that only a limited number of vendors possessed, or if prior performance issues led to the exclusion of certain bidders. However, the 'full and open' aspect implies that the solicitation was broadly advertised to all responsible prospective contractors who met the minimum requirements, and the exclusion of sources was documented and justified. The high number of bids (22) suggests that despite any exclusions, the competition remained robust and diverse.

How has federal spending on waste collection services evolved over the past five years?

Federal spending on waste collection and management services has generally remained consistent, with fluctuations often tied to major disaster events or shifts in environmental regulations. Agencies like the DoD, GSA, and FEMA are consistent spenders in this category. Spending can increase significantly in years with widespread natural disasters requiring large-scale debris removal and waste disposal. There's also a growing emphasis on sustainable waste management practices and recycling, which may influence contract requirements and spending patterns over time. Analyzing historical data shows a steady baseline demand, punctuated by surges during emergencies.

What are the implications of the contract being awarded as 'FIRM FIXED PRICE'?

A Firm Fixed Price (FFP) contract type means the contractor, ASHBRITT INC, is obligated to perform the work for a predetermined price, regardless of the actual costs incurred. This structure places the primary risk of cost overruns on the contractor and provides the government with maximum price certainty. It is generally favored for well-defined requirements where the scope of work is clear and unlikely to change significantly. For the government, this means the $31,097,017.58 award amount is the ceiling and likely the final cost, assuming no contract modifications. This simplifies budgeting and financial management for the Department of the Army.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

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