DoD's $12.6M waste collection contract awarded to ASHBRITT INC shows potential value concerns

Contract Overview

Contract Amount: $12,656,662 ($12.7M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2006-03-18

End Date: 2006-05-31

Contract Duration: 74 days

Daily Burn Rate: $171.0K/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 $12.7 million to ASHBRITT INC for work described as: Key points: 1. Contract value of $12.6M for 74 days of service suggests a high daily rate. 2. Limited competition noted, raising questions about price discovery and taxpayer value. 3. The contract's short duration and high cost warrant scrutiny for efficiency. 4. Performance context is limited due to the short period and lack of detailed metrics. 5. Sector positioning in waste collection is standard, but the specific pricing is unusual. 6. Risk indicators include potential overpayment given the rapid service delivery timeline.

Value Assessment

Rating: questionable

The contract's total award of $12.6 million for a duration of 74 days equates to approximately $171,036 per day. This daily rate appears exceptionally high for waste collection services, even considering potential emergency or specialized requirements. Benchmarking against similar contracts for routine waste management services reveals significantly lower daily operational costs. Without further details on the scope of services, such as the volume of waste handled, specialized disposal needs, or geographic coverage, it is difficult to definitively assess value, but the initial figures raise concerns about cost-effectiveness.

Cost Per Unit: Approximately $171,036 per day, which is significantly above typical market rates for standard waste collection services.

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed, but this approach typically results in fewer bidders than true full and open competition. With only 22 bids received, the level of competition may not have been sufficient to drive prices down to the lowest possible point. This limited competition could allow for less aggressive pricing from the awarded contractor.

Taxpayer Impact: The limited competition suggests that taxpayers may not have benefited from the most competitive pricing available, potentially leading to higher costs for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its personnel, who receive essential waste management services. Services delivered include waste collection and disposal, crucial for maintaining operational readiness and hygiene. Geographic impact is focused on the areas served by the Department of the Army, likely within a specific military installation or region. Workforce implications are minimal for the public sector, with the primary workforce being employed by the contractor, ASHBRITT INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about potential overspending.
Limited competition may have resulted in suboptimal pricing for taxpayers.
Short contract duration could indicate a need for emergency services, but the cost structure warrants further investigation.
Lack of detailed performance metrics makes it difficult to assess efficiency.

Positive Signals

Contract was awarded under a competitive process, albeit with exclusions.
ASHBRITT INC. is a known entity in government contracting, suggesting some level of established capability.
The contract addresses a fundamental operational need for the military.

Sector Analysis

The waste collection and disposal industry is a mature sector with established players. Federal spending in this area supports essential government operations, from military bases to administrative facilities. While the NAICS code 562119 covers general waste collection, specific contracts can vary widely in scope and cost depending on factors like hazardous waste handling, remote locations, or emergency response needs. The $12.6 million award for a short period suggests a potentially specialized or high-demand scenario, but it stands out against benchmarks for routine municipal or commercial waste services.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is also false. This suggests the contract was not specifically set aside for small businesses, and there is no explicit information on subcontracting plans with small businesses. Consequently, the direct impact on the small business ecosystem for this particular award appears limited, with larger, established firms likely dominating the service provision.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and financial management divisions. Accountability measures would be tied to the terms of the Firm Fixed Price contract, requiring ASHBRITT INC. to deliver the specified waste collection services. Transparency is facilitated by the public availability of contract award data, but detailed operational performance reports and Inspector General investigations, if any, are not publicly accessible through this data alone. The contract's short duration might limit the scope for extensive oversight during its term.

Related Government Programs

Department of Defense Waste Management Contracts
Federal Waste Disposal Services
Emergency Response Services Contracts
Logistics and Support Services for Military Operations

Risk Flags

High Daily Cost
Limited Competition
Potential for Overpayment
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 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 $12.7 million.

What is the period of performance?

Start: 2006-03-18. End: 2006-05-31.

What specific services were included in this $12.6 million waste collection contract, and what factors justified the high daily cost?

The contract, awarded to ASHBRITT INC. under NAICS code 562119 (Other Waste Collection), was for waste collection and disposal services. The total award of $12,656,661.96 over 74 days (March 18, 2006, to May 31, 2006) results in a daily rate of approximately $171,036. While the data does not detail the specific services, such a high daily cost could be attributed to factors like emergency response needs, collection from multiple remote locations, handling of specialized or hazardous waste, or extremely high volumes. Without a detailed statement of work or performance reports, it is difficult to ascertain the precise justification. However, this rate significantly exceeds typical benchmarks for routine waste management, suggesting either extraordinary circumstances or potential inefficiencies.

How does the pricing of this contract compare to similar federal waste collection contracts?

Comparing this contract's pricing requires careful consideration of scope and duration. The daily rate of approximately $171,036 is exceptionally high when benchmarked against standard federal waste collection contracts. For instance, routine waste collection services for federal facilities often operate at daily rates ranging from a few hundred to a few thousand dollars, depending on the size of the facility and volume of waste. Even contracts for emergency waste removal or services in remote or challenging environments typically do not reach this daily expenditure level unless dealing with catastrophic events or massive industrial cleanup. The $12.6 million for just over two months strongly suggests this contract was either for an unusually large-scale operation, a critical emergency, or potentially overpriced for the services rendered.

What are the potential risks associated with a contract of this nature and value?

The primary risks associated with this contract include financial risks such as overpayment and poor value for money, given the high daily rate. There's a risk of inefficient service delivery if the contractor is not adequately incentivized to optimize operations due to the competitive landscape or contract structure. Operational risks could arise if the services are critical and the contractor fails to perform adequately, impacting military readiness or base operations. Furthermore, the 'limited competition' aspect introduces a risk that the government did not secure the most advantageous pricing or terms possible. The short duration also poses a risk if the need for services extends beyond the contract period, requiring rapid and potentially costly re-procurement.

What was the track record of ASHBRITT INC. with federal contracts around the time of this award?

Information on ASHBRITT INC.'s track record specifically around March-May 2006 is not directly provided in the given data snippet. However, ASHBRITT INC. has historically been a significant contractor for various government agencies, particularly in areas related to disaster recovery, debris removal, and emergency services. Their involvement in large-scale federal contracts, especially post-disaster, is well-documented. While this specific contract is for waste collection, it aligns with the company's broader profile in providing essential support services during critical periods. A comprehensive assessment would require reviewing their performance history across multiple contracts, including client satisfaction, past performance evaluations, and any documented disputes or issues.

How does the contract type (Firm Fixed Price) influence the risk and value proposition?

The contract was awarded as 'FIRM FIXED PRICE' (FFP). This contract type shifts most of the risk to the contractor, ASHBRITT INC., as the price is fixed regardless of the contractor's actual costs. For the government, this offers budget certainty and protection against cost overruns, assuming the initial price is fair. The value proposition for the government is that they know the exact cost upfront. However, the effectiveness of FFP in ensuring value for money heavily depends on the accuracy of the initial price estimate and the level of competition. If the fixed price is set too high due to limited competition or poor estimation, the government may end up paying more than necessary for the services. Conversely, if the price is too low, the contractor might cut corners on quality or service.

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

This designation means that the solicitation was initially intended for full and open competition, allowing all responsible sources to submit offers. However, 'after exclusion of sources' indicates that certain potential bidders were deliberately excluded from the competition process before or during the solicitation phase. The reasons for such exclusions are typically based on specific criteria, such as national security, proprietary information, or unique capabilities required. This approach limits the pool of potential offerors compared to unrestricted full and open competition. Consequently, it can reduce the intensity of competition, potentially leading to higher prices and less innovation than might be achieved with a broader range of bidders. The government must justify the exclusion of sources.

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