DoD Awards $3.06M Solid Waste Collection Contract to USA Waste of California, Inc. for Option Period 5
Contract Overview
Contract Amount: $3,062,372 ($3.1M)
Contractor: USA Waste of California, Inc
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $8.4K/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RECURRING WORK - OPTION PERIOD 5
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132
Plain-Language Summary
Department of Defense obligated $3.1 million to USA WASTE OF CALIFORNIA, INC for work described as: RECURRING WORK - OPTION PERIOD 5 Key points: 1. Contract value of $3.06M for a 1-year period. 2. Awarded under competitive SAP, indicating some market engagement. 3. Potential risk of recurring costs without clear long-term strategy. 4. Solid Waste Collection sector, essential but often commoditized.
Value Assessment
Rating: fair
The contract value of $3.06M for a 364-day period suggests a monthly cost of approximately $268,629. Benchmarking against similar solid waste collection contracts is difficult without specific service details, but this appears to be a significant recurring expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a competitive process for awards below certain thresholds. While competitive, SAP may not always yield the lowest possible price compared to full and open competition for larger contracts.
Taxpayer Impact: Taxpayers are funding essential services. The competitive nature of the award aims to ensure reasonable pricing, but the recurring nature of the contract warrants ongoing scrutiny to prevent cost creep.
Public Impact
Ensures essential waste management services for military operations. Supports local economy through contract with a California-based company. Recurring nature of the contract may indicate a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Recurring cost without clear long-term strategy.
- Potential for price increases in future option periods.
- Limited transparency on specific service levels and performance metrics.
Positive Signals
- Awarded through a competitive process.
- Essential service provision for the Department of the Navy.
- Contract duration provides service stability.
Sector Analysis
The solid waste collection sector is generally mature and competitive, with pricing often driven by volume, frequency, and geographic location. Government contracts in this sector are common and essential for operational continuity.
Small Business Impact
The awardee, USA Waste of California, Inc., is not indicated as a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this contract.
Oversight & Accountability
The use of recurring option periods requires careful oversight to ensure continued justification and fair pricing. The Department of the Navy should monitor performance and market conditions to ensure value for taxpayer dollars.
Related Government Programs
- Solid Waste Collection
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Recurring cost without a clear long-term strategy.
- Potential for price escalation in future option periods.
- Lack of detailed performance metrics in the provided data.
- Limited visibility into the competitive landscape beyond SAP.
Tags
solid-waste-collection, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.1 million to USA WASTE OF CALIFORNIA, INC. RECURRING WORK - OPTION PERIOD 5
Who is the contractor on this award?
The obligated recipient is USA WASTE OF CALIFORNIA, 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 $3.1 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is the total lifecycle cost of solid waste management for this facility, and how does this contract fit into that broader strategy?
Understanding the total lifecycle cost requires analyzing historical spending, projected needs, and potential alternative solutions beyond recurring service contracts. This specific contract represents a significant portion of annual operational expenses for waste management. Without a comprehensive lifecycle cost analysis, it's difficult to ascertain if this recurring award represents the most cost-effective long-term solution for the Department of the Navy.
Are there opportunities to consolidate or renegotiate waste management services across multiple DoD facilities in California to achieve economies of scale?
Consolidating services across multiple facilities could potentially lead to significant cost savings through bulk purchasing power and optimized logistics. A regional approach might allow for more competitive bidding and better leverage with service providers. The Department of Defense should explore such opportunities to enhance efficiency and reduce overall spending on essential services like waste management.
How does the pricing of this contract compare to industry benchmarks for similar solid waste collection services in the specified region?
A detailed comparison against industry benchmarks is crucial for validating the fairness of the pricing. This would involve analyzing per-unit costs (e.g., per ton, per pickup) and comparing them with prevailing rates for comparable services in California, considering factors like service frequency, waste type, and contract duration. Such a benchmark would help determine if the government is receiving competitive value.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Zippy Shell Incorporated
Address: 1001 W BRADLEY AVE, EL CAJON, CA, 92020
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,062,372
Exercised Options: $3,062,372
Current Obligation: $3,062,372
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247320D1128
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-07
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