DoD's $13.3M waste management contract awarded to WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT shows potential value concerns

Contract Overview

Contract Amount: $13,366,012 ($13.4M)

Contractor: Wasatch Intergrated Waste Management District

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2011-04-06

Contract Duration: 2,013 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT for work described as: Key points: 1. Contract awarded for solid waste incineration services, a critical but potentially high-cost area. 2. Limited competition dynamics may have impacted overall value for money. 3. Long contract duration (over 5 years) warrants scrutiny of ongoing performance and cost-effectiveness. 4. The contract's fixed-price nature provides some cost certainty but may limit flexibility. 5. Sector positioning within defense logistics highlights the importance of reliable waste disposal for military operations. 6. Performance context is crucial to understand if the services met operational needs effectively.

Value Assessment

Rating: fair

Benchmarking the $13.3 million total contract value against similar solid waste management contracts for federal agencies is challenging without more specific service details. However, the duration of over five years suggests a significant investment. The firm fixed-price structure implies that the contractor assumed the risk of cost overruns, which can be beneficial for the government if costs are managed efficiently. Without detailed performance metrics or comparisons to commercial rates for comparable services in Utah, a definitive value assessment is difficult, but the scale of the award warrants careful review of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, indicating that only one responsible source was determined to be capable of meeting the government's needs. This significantly limits the competitive landscape, raising questions about whether the government secured the best possible pricing and terms. The absence of multiple bidders means there was no direct price comparison or incentive for WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT to offer more competitive rates.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the potential for competitive bidding, which typically drives down prices, is eliminated.

Public Impact

The primary beneficiary is the Department of Defense, ensuring compliant and efficient waste disposal at its facilities. Services delivered include the operation of solid waste combustors and incinerators, crucial for environmental and operational management. The geographic impact is localized to Utah, where the waste management services were provided. Workforce implications include employment opportunities within the waste management sector in Utah, supporting local jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of detailed performance data makes it difficult to assess the true value for money.
Long contract duration could mask inefficiencies if not actively managed and reviewed.
The specific nature of waste incineration may involve environmental compliance risks that need continuous monitoring.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Award to a specialized waste management entity ensures expertise in a critical service area.
Contract supports essential operational functions for the Department of Defense.

Sector Analysis

The solid waste management sector is essential for supporting various industries, including government operations, by handling the disposal of waste materials. This contract falls within the broader environmental services industry. While specific market size data for federal waste incineration contracts is not readily available, the consistent need for such services across military bases and government facilities indicates a stable demand. Comparable spending benchmarks would typically involve analyzing other DoD or federal contracts for similar waste disposal and incineration services, considering factors like volume, type of waste, and geographic location.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT, a specific district, suggests it may operate as a larger entity or a specialized public service provider rather than a typical small business contractor. Therefore, the direct impact on the small business ecosystem is likely minimal, with no explicit provisions to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Defense Logistics Agency (DLA) Services
Environmental Services Contracts
Department of Defense Facilities Management
Solid Waste Management Programs

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed performance data hinders value assessment.
Potential for environmental compliance issues in waste incineration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2005-10-01. End: 2011-04-06.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification would typically be documented by the procuring agency (Department of the Air Force in this case) in a Justification and Approval (J&A) document. Common reasons for sole-source awards include unique capabilities of the contractor, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. Without access to the official J&A, the precise rationale remains unknown, but it implies that the Air Force determined that WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT possessed unique qualifications or that competition was otherwise impracticable.

How does the $13.3 million contract value compare to similar solid waste incineration contracts awarded by the DoD?

Direct comparison of the $13.3 million total contract value for WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT's solid waste incineration services is difficult without more granular data on comparable contracts. Factors such as the volume and type of waste processed, the specific incineration technology used, the duration of service, and geographic location significantly influence contract costs. However, $13.3 million over approximately 5.5 years (from Oct 2005 to Apr 2011) suggests an average annual expenditure of roughly $2.4 million. This figure needs to be benchmarked against contracts for similar services at other military installations of comparable size and operational tempo to ascertain if it represents good value for money.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation reports for this contract. Typically, federal contracts outline specific metrics related to waste processing capacity, turnaround times, environmental compliance (e.g., emissions standards), safety protocols, and reporting accuracy. Assessing whether WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT met these KPIs would require access to contract performance documentation, inspection reports, and potentially contractor performance assessment reporting (CPAR) records. Without this information, it's impossible to definitively state if the contractor performed satisfactorily.

What is the track record of WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT with federal contracts prior to and after this award?

Information on WASATCH INTERGRATED WASTE MANAGEMENT DISTRICT's federal contracting history beyond this specific award is not provided in the data. To assess their track record, one would need to search federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity. This would reveal the types of services they have provided, the agencies they have served, the contract values, and importantly, their performance history, including any awards, disputes, or terminations. A comprehensive review would establish a pattern of reliability and competence or highlight potential concerns.

Were there any identified risks or challenges associated with the performance of this contract?

The provided data does not explicitly list risks or challenges encountered during the performance of this contract. However, general risks associated with solid waste incineration contracts can include environmental compliance issues (meeting emission standards), operational disruptions (equipment failure), fluctuating waste volumes, and potential cost overruns if not managed under a fixed-price agreement. Given the sole-source nature, a key risk is the potential for suboptimal pricing due to lack of competition. Further investigation into contract close-out documentation or agency reports might reveal specific performance issues or challenges faced.

How does the PSC code (if available) or NAICS code relate to the services provided and the contract type?

The provided data includes the NAICS code '562213' for Solid Waste Combustors and Incinerators. This code accurately reflects the primary service being procured under the contract. The contract type is 'FIRM FIXED PRICE' (FFP), which is a common and generally preferred contract type for services where the scope is well-defined and risks can be reasonably estimated. FFP provides cost certainty for the government, as the price is fixed regardless of the contractor's actual costs. The combination of this NAICS code and FFP type suggests a straightforward procurement for a defined waste management service.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Solid Waste Combustors and Incinerators

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 650 E HIGHWAY 193, LAYTON, UT, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Timeline