Army awards $26.8M for refuse and recycling services at JBLM, WA, over nearly 10 years

Contract Overview

Contract Amount: $26,836,385 ($26.8M)

Contractor: Harold Lemay Enterprises, Incorporated

Awarding Agency: Department of Defense

Start Date: 2012-11-15

End Date: 2022-10-31

Contract Duration: 3,637 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF REFUSE/RECYCLING AT JBLM, WA

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to HAROLD LEMAY ENTERPRISES, INCORPORATED for work described as: IGF::OT::IGF REFUSE/RECYCLING AT JBLM, WA Key points: 1. Contract awarded to Harold Lemay Enterprises, Inc. for solid waste collection services. 2. The contract duration spans approximately 10 years, indicating a long-term need for these services. 3. The award type is a Definitive Contract with a Firm Fixed Price, suggesting predictable costs. 4. The North American Industry Classification System (NAICS) code is 562111 for Solid Waste Collection. 5. The contract was not competitively procured, raising questions about potential value for money. 6. The total value of the contract is over $26.8 million. 7. The contract was awarded to a single entity, Harold Lemay Enterprises, Inc.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without comparable solicitations for refuse and recycling services at military installations of similar size and scope. The firm fixed price structure provides cost certainty for the government. However, the lack of competition means there was no direct price comparison to ensure the most advantageous pricing was secured. Further analysis would require understanding the specific service requirements and market rates for waste management in the JBLM area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific circumstances where full and open competition is not feasible or advantageous. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding. Without competing offers, it is difficult to ascertain if the awarded price reflects the lowest reasonable cost for the services rendered.

Public Impact

The primary beneficiaries are the Department of the Army and personnel stationed at Joint Base Lewis-McChord (JBLM) in Washington State, who will receive essential waste management services. The contract ensures the collection and disposal of solid waste and recycling, contributing to environmental compliance and operational readiness at the base. The geographic impact is localized to JBLM, WA, ensuring a clean and functional environment for military operations and community living. The contract supports local employment through Harold Lemay Enterprises, Inc., contributing to the regional economy in Washington State.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the government's ability to secure the best value.
Long contract duration (nearly 10 years) could limit flexibility to adapt to changing needs or market conditions.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Ensures essential waste management services for a critical military installation.
Long-term award suggests a stable and reliable service provider.

Sector Analysis

The solid waste collection and disposal industry is a mature sector providing essential services to government and commercial entities. Federal contracts in this space often involve significant logistical challenges and regulatory compliance. The market size for federal waste management services is substantial, with agencies requiring consistent and reliable disposal solutions. This contract fits within the broader category of base operations and support services, which are critical for maintaining military installations.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside or specific subcontracting requirements for small businesses. The award to Harold Lemay Enterprises, Inc. does not specify its size status. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of set-asides in a sole-source award means opportunities for small businesses to compete directly for this prime contract were not present.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Accountability measures are established through the contract terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where award details are recorded. The effectiveness of oversight depends on regular performance reviews and adherence to contractual obligations by both the contractor and the government.

Related Government Programs

Base Operations Support Services
Environmental Services Contracts
Solid Waste Management Contracts
Department of Defense Facilities Management

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to HAROLD LEMAY ENTERPRISES, INCORPORATED. IGF::OT::IGF REFUSE/RECYCLING AT JBLM, WA

Who is the contractor on this award?

The obligated recipient is HAROLD LEMAY ENTERPRISES, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2012-11-15. End: 2022-10-31.

What is the historical spending pattern for refuse and recycling services at JBLM?

Analyzing historical spending patterns for refuse and recycling services at JBLM would require access to prior contract awards for these specific services at the installation. Without that data, it's impossible to determine if the $26.8 million awarded to Harold Lemay Enterprises, Inc. represents an increase, decrease, or stable level of spending compared to previous periods. Understanding historical spending is crucial for identifying trends, potential cost efficiencies, or inflationary pressures in service provision over time. It also helps in assessing whether the current contract value is aligned with past investments in similar services.

What specific services are included under this 'Solid Waste Collection' contract?

The NAICS code 562111, 'Solid Waste Collection,' typically encompasses the collection, disposal, and recycling of garbage, refuse, and other waste materials. For a military installation like JBLM, this would likely include regular pickup of general waste, recycling services for materials like paper, plastic, and metal, and potentially specialized waste disposal services depending on the base's operations. The contract's statement of work would detail the frequency of collection, types of waste accepted, specific recycling targets, and any requirements for hazardous waste handling or disposal, ensuring environmental compliance and base cleanliness.

What is the track record of Harold Lemay Enterprises, Inc. with federal contracts?

Information regarding the specific track record of Harold Lemay Enterprises, Inc. with federal contracts is not detailed in the provided data snippet. A comprehensive assessment would involve reviewing their past performance on similar government contracts, including their history of on-time delivery, quality of service, and any past performance issues or disputes. Examining their contract history, including the types of services provided, contract values, and agencies served, would offer insight into their experience and reliability as a federal contractor. This information is typically available through federal procurement databases.

How does the $26.8M contract value compare to similar waste management contracts for military bases?

Comparing the $26.8 million contract value for refuse and recycling services at JBLM to similar contracts for military bases requires access to a database of comparable solicitations and awards. Factors such as the size of the installation, population served, geographic location (affecting logistics and disposal fees), and specific service requirements (e.g., types of waste, recycling mandates) significantly influence contract value. Without these benchmarks, it's difficult to definitively state whether this contract represents a high, low, or average cost. However, the nearly 10-year duration suggests a substantial, long-term service requirement.

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

The primary risk associated with a sole-source award for essential services like waste management is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not secure the most cost-effective pricing. Additionally, there's a risk of vendor complacency or reduced incentive to innovate or improve service quality, as the incumbent contractor faces no immediate threat of losing the business. This can also limit the government's leverage in negotiating terms and conditions. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

What is the significance of the 'Firm Fixed Price' contract type for this service?

A Firm Fixed Price (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience in performing the work. For the government, this offers significant cost certainty and predictability, as the total expenditure is known upfront, assuming the contractor meets all performance obligations. This is particularly beneficial for services like waste management where operational costs can be relatively stable. The risk of cost overruns is borne by the contractor, incentivizing them to manage their expenses efficiently to maintain profitability.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911S812R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Waste Connections, Inc

Address: 4111 192ND ST E, TACOMA, WA, 98446

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

Financial Breakdown

Contract Ceiling: $52,076,702

Exercised Options: $52,076,702

Current Obligation: $26,836,385

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline