Army awards $69M contract for Hurricane Katrina debris removal services in Mississippi

Contract Overview

Contract Amount: $68,957,151 ($69.0M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2006-04-02

End Date: 2006-06-30

Contract Duration: 89 days

Daily Burn Rate: $774.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200607!600741!96CE!W912EE!USA ENGINEER DISTRICT VICKSBURG !W912P805D0025 !A!N! !N!DE20 !01 !20060402!20060412!848970893!848970893!848970893!N!ASHBRITT, INC !480 S ANDREWS AVE ST2103 !POMPANO BEACH !FL!33069!99045!045!28!HANCOCK !HANCOCK !MISS !+000014749278!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!S!D! !D!20060930!B! ! !N!A!A!N!J!2!022!N!2A!C!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! !5800! !0001! !

Place of Performance

Location: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $69.0 million to ASHBRITT INC for work described as: 200607!600741!96CE!W912EE!USA ENGINEER DISTRICT VICKSBURG !W912P805D0025 !A!N! !N!DE20 !01 !20060402!20060412!848970893!848970893!848970893!N!ASHBRITT, INC !480 S ANDREWS AVE ST2103 !POMPANO BEACH !FL!33069!99045!045!28!HANCOCK !HANC… Key points: 1. Contract awarded for essential services following a major natural disaster. 2. Significant funding allocated for debris removal and related support. 3. Contract duration of 89 days indicates a focused, emergency response. 4. The award value suggests a substantial scale of operations required. 5. Geographic focus on Mississippi highlights regional impact of the disaster. 6. The contract type implies a competitive bidding process was utilized.

Value Assessment

Rating: good

The contract value of $68,957,151.12 for debris removal services appears substantial, reflecting the scale of Hurricane Katrina's impact. Benchmarking this against similar disaster recovery contracts is challenging due to the unique nature and magnitude of Katrina. However, the fixed-price nature of the contract provides cost certainty for the government, assuming the scope of work was well-defined. The award to Ashbritt, Inc. for this critical service suggests they were deemed capable of handling the extensive requirements.

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 that while the competition was broad, specific exclusions might have been applied based on pre-qualification or other criteria. The presence of 22 bids suggests a robust level of interest and competition for this significant disaster recovery effort. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process with 22 offers is beneficial for taxpayers, as it likely drove down prices and ensured a wider pool of qualified contractors could compete for the work, leading to better value.

Public Impact

Residents and businesses in Mississippi directly benefit from the removal of debris, facilitating recovery and restoration of essential services. The contract ensures the provision of trash and garbage collection services, including port sanitation, crucial for public health and safety post-disaster. The geographic impact is concentrated in Mississippi, addressing the specific needs of communities devastated by Hurricane Katrina. The contract supports a workforce involved in debris removal, logistics, and sanitation operations, contributing to local and regional employment during the recovery phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of debris removal expands beyond initial estimates.
Ensuring contractor compliance with environmental regulations during debris disposal.
Logistical challenges in coordinating large-scale debris removal operations across affected areas.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract is firm-fixed-price, providing cost certainty for the government.
The duration of 89 days indicates a focused and potentially efficient response to an urgent need.

Sector Analysis

This contract falls within the broader 'Waste Collection' sector, specifically related to emergency and disaster response services. The market for disaster recovery services can be highly specialized and demand-driven, often activated by significant natural events. While general waste management is a stable sector, emergency debris removal is characterized by rapid scaling and intense logistical requirements. The scale of this award, nearly $69 million, places it among substantial government contracts for disaster relief.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, given the scale and urgency of disaster recovery, prime contractors often manage large-scale operations, and the extent of small business participation would depend on the specific subcontracting requirements outlined in the solicitation and the contractor's approach.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, Vicksburg District, which awarded the contract. Accountability measures would include performance monitoring, adherence to contract terms, and potentially reviews by the Inspector General's office to ensure proper execution and prevent fraud, waste, and abuse, especially in the context of disaster relief funding.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Emergency Debris Removal Contracts
USACE Public Works Contracts
Federal Disaster Response Services

Risk Flags

Potential for scope creep in disaster recovery contracts.
Contractor performance and adherence to timelines.
Ensuring fair and open competition in emergency procurements.
Accurate accounting and billing for services rendered.
Compliance with environmental regulations for debris disposal.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.0 million to ASHBRITT INC. 200607!600741!96CE!W912EE!USA ENGINEER DISTRICT VICKSBURG !W912P805D0025 !A!N! !N!DE20 !01 !20060402!20060412!848970893!848970893!848970893!N!ASHBRITT, INC !480 S ANDREWS AVE ST2103 !POMPANO BEACH !FL!33069!99045!045!28!HANCOCK !HANCOCK !MISS !+000014749278!N!N!000000000000!S205!TRASH/GARBAGE COLLECTION SRVCS-INCL PORT SAN SVCS !S1 !SERVICES !ZHK !HURRICANE KATRINA !562119!E! !5!B!S!D! !D!200

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 $69.0 million.

What is the period of performance?

Start: 2006-04-02. End: 2006-06-30.

What was the specific nature of the 'Exclusion of Sources' in the full and open competition?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific designation (often referred to as FAR 6.102(d)(3) or similar) typically means that the agency intended to solicit offers from all responsible sources but, for reasons documented in the contract file, excluded certain sources from consideration. Common reasons include pre-qualification requirements, specific technical capabilities, or prior performance evaluations that narrowed the field. Without access to the contract's justification and approval (J&A) document, the precise reasons for exclusion remain unclear, but it implies a deliberate, documented decision to limit the pool of potential bidders beyond a standard open solicitation.

How does the awarded amount compare to the estimated cost or budget for Hurricane Katrina debris removal?

The awarded amount of $68,957,151.12 represents a significant portion of the federal expenditure for Hurricane Katrina recovery. While precise budget figures for specific debris removal contracts are often not publicly aggregated in a single source, this award reflects the immense scale of the disaster's impact on infrastructure and communities in Mississippi. It's important to note that this single contract likely covered a specific phase or geographic area of debris removal. The total federal spending on Hurricane Katrina recovery efforts, encompassing various agencies and types of assistance, ran into the tens of billions of dollars, making this contract a substantial but not the sole component of the overall response.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, contracts for debris removal typically focus on critical metrics such as the volume or tonnage of debris collected and transported, the speed of removal from designated areas, adherence to disposal site regulations, and compliance with environmental standards. Deliverables would include regular progress reports, manifests for debris transported, and final reports certifying the completion of services. Given the emergency nature, rapid response and efficient clearing of public rights-of-way and critical infrastructure would be paramount.

What is the track record of Ashbritt, Inc. in disaster recovery contracting?

Ashbritt, Inc. is a well-established contractor specializing in emergency management and disaster recovery services. They have a significant history of being awarded large federal contracts for debris removal and management following major natural disasters across the United States, including hurricanes, floods, and wildfires. Their involvement in Hurricane Katrina recovery, as evidenced by this contract, is part of a broader pattern of their participation in national disaster response efforts. While specific performance details for each contract vary, their repeated selection for such critical and large-scale operations suggests a recognized capacity to meet the demands of disaster recovery.

Were there any notable challenges or controversies associated with this specific contract or Ashbritt's work during Hurricane Katrina?

The Hurricane Katrina recovery effort, in general, faced numerous challenges, including logistical hurdles, accusations of fraud and abuse, and scrutiny over contract awards. While this specific contract data doesn't detail controversies, Ashbritt, like many large contractors involved in post-disaster work, has faced scrutiny in the past regarding billing practices and contract management on other disaster recovery projects. However, without specific information tied to this particular $69 million Vicksburg District contract, it's difficult to assess any unique challenges or controversies directly related to it. The sheer scale and complexity of Katrina recovery meant that many contracts were subject to intense oversight and review.

How did the number of bids (22) influence the final contract price compared to a scenario with fewer bidders?

A robust competition with 22 bids, as seen in this case, generally exerts downward pressure on pricing. When multiple qualified companies vie for a contract, they are incentivized to offer competitive rates to secure the award. This contrasts with a scenario involving fewer bidders, where the lack of intense competition might allow for higher pricing. Therefore, the 22 bids suggest that taxpayers likely benefited from a more favorable price discovery process, leading to a more cost-effective outcome for the government compared to a situation with limited contractor interest.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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

Financial Breakdown

Contract Ceiling: $68,957,150

Exercised Options: $68,957,150

Current Obligation: $68,957,151

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P805D0025

IDV Type: IDC

Timeline