Navy's $14.4M solid waste contract awarded to Honolulu Disposal Service, Inc. shows fair value with 3 bidders

Contract Overview

Contract Amount: $14,393,205 ($14.4M)

Contractor: Honolulu Disposal Service, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2019-09-25

Contract Duration: 3,829 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FFP (BASE PERIOD)

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to HONOLULU DISPOSAL SERVICE, INC. for work described as: FFP (BASE PERIOD) Key points: 1. The contract's value appears reasonable given the 10-year duration and the competitive nature of the award. 2. Limited publicly available data makes a precise value-for-money assessment challenging, but the pricing seems competitive. 3. The award was made under full and open competition, indicating a healthy market for these services. 4. The contract duration of over 10 years suggests a stable, long-term need for solid waste management. 5. The contractor has a long history with the Navy, implying a degree of reliability and established performance. 6. The contract falls within the broad category of essential base support services, crucial for operational readiness.

Value Assessment

Rating: good

The contract's total value of approximately $14.4 million over a decade suggests a reasonable annual cost for solid waste collection services. Benchmarking against similar contracts is difficult without more specific service details and geographic scope. However, the presence of three bidders indicates that the pricing was likely competitive and offered good value to the government. The firm-fixed-price structure also provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Three bids were received, indicating a moderate level of competition for this service. While three bidders is not an exceptionally high number, it suggests that the market is sufficiently robust to support multiple providers and that the government had options to choose from, likely driving a more competitive price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that aims to secure the best possible price for essential services.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel at installations in Hawaii, ensuring a clean and functional environment. The service delivered is essential solid waste collection and disposal, critical for maintaining base hygiene and operational efficiency. The geographic impact is concentrated in Hawaii, specifically supporting Navy operations within the state. This contract supports local jobs in the waste management sector in Hawaii, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals given the long duration.
Dependence on a single contractor for a critical service could pose risks if performance issues arise.
Limited transparency on specific performance metrics and quality control measures.

Positive Signals

Long-standing relationship with the contractor suggests a history of satisfactory performance.
Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, indicating a competitive process.

Sector Analysis

This contract falls within the broader 'Other Services' category, specifically focusing on waste management. The solid waste collection industry is characterized by regional service providers and significant logistical operations. The market size for government waste management contracts is substantial, driven by the need to maintain facilities and operations across numerous federal agencies. This specific contract represents a significant portion of spending for solid waste services within the Navy's Hawaii operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the primary contractor, Honolulu Disposal Service, Inc., is likely a larger entity. There is no explicit information regarding small business subcontracting plans. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal, though larger prime contractors may engage small businesses for ancillary services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Environmental Services Contracts
Logistics and Transportation Services
Municipal Solid Waste Management Contracts

Risk Flags

Long contract duration may limit future cost-saving opportunities.
Dependence on a single provider for essential services carries inherent risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to HONOLULU DISPOSAL SERVICE, INC.. FFP (BASE PERIOD)

Who is the contractor on this award?

The obligated recipient is HONOLULU DISPOSAL SERVICE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2009-04-01. End: 2019-09-25.

What is the historical spending trend for solid waste collection services by the Department of the Navy in Hawaii?

Historical spending data for solid waste collection by the Department of the Navy in Hawaii prior to this contract award is not readily available in the provided data. However, this $14.4 million contract, spanning from April 2009 to September 2019, represents a significant investment over its 10-year term. Analyzing prior contracts, if available, would be necessary to establish a clear spending trend. Generally, such essential services tend to have consistent or incrementally increasing budgets due to inflation and operational needs. Without more granular historical data, it's difficult to pinpoint specific trends beyond the scale of this single, long-term award.

How does the per-unit cost of this contract compare to similar solid waste collection contracts for other military branches or federal agencies?

A precise per-unit cost comparison is challenging without detailed breakdowns of services rendered (e.g., cost per ton collected, cost per pickup, cost per facility serviced) and specific geographic service areas for comparable contracts. The provided data focuses on the total contract value. However, given that this contract was awarded under full and open competition with three bidders, it suggests the pricing was likely within a competitive range for the services provided in the Hawaii region. To perform a robust comparison, one would need to access data from similar contracts across different agencies and locations, standardizing metrics like cost per capita served or cost per square foot of facility area managed.

What are the key performance indicators (KPIs) used to evaluate Honolulu Disposal Service, Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Honolulu Disposal Service, Inc.'s performance. Typically, for solid waste collection contracts, KPIs would include metrics such as on-time pickup rates, proper waste segregation and disposal compliance, environmental standards adherence, response times to service requests or complaints, and overall cleanliness of service areas. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring the contractor meets the contractual obligations. Formal performance evaluations and quality assurance surveillance plans (QASPs) are standard components of such contracts.

What is the track record of Honolulu Disposal Service, Inc. with federal government contracts, particularly with the Department of Defense?

Honolulu Disposal Service, Inc. has a significant track record with the federal government, particularly the Department of the Navy, as evidenced by this 10-year contract. While the provided data doesn't detail the entirety of their federal contract history, the award of such a long-duration and substantial contract suggests a history of satisfactory performance and reliability. Companies that secure long-term, high-value contracts often demonstrate consistent adherence to contractual terms, quality service delivery, and effective management. Further investigation into their contract award history and performance reviews, if publicly accessible, would provide a more comprehensive view of their track record.

What are the potential risks associated with a sole-source or limited competition award for essential services like solid waste management?

While this contract was awarded under full and open competition, the question pertains to risks of limited competition. Risks associated with sole-source or limited competition for essential services like solid waste management include potentially higher costs due to lack of competitive pressure, reduced incentive for innovation or efficiency improvements by the contractor, and a greater risk of service disruption if the single provider faces financial or operational difficulties. It can also limit the government's flexibility in adapting services to changing needs. For taxpayers, this often translates to paying a premium for services that could potentially be procured at a lower cost through robust competition.

How does the duration of this contract (over 10 years) impact its overall value and risk profile for the government?

The long duration of this contract (3,829 days, approximately 10.5 years) offers benefits such as price stability and reduced administrative burden associated with frequent re-competitions. It allows the contractor to make necessary investments in equipment and personnel, potentially leading to more efficient service delivery. However, it also increases the risk of the government being locked into a contract that may become suboptimal in terms of price or service quality if market conditions or needs change significantly over the decade. It also reduces opportunities to incorporate newer technologies or more competitive pricing that might emerge in the market during the contract period.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1169 MIKOLE ST, HONOLULU, HI, 96819

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,603,136

Exercised Options: $20,603,136

Current Obligation: $14,393,205

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247809D2319

IDV Type: IDC

Timeline