Solid Waste Collection Contract for US Army Garrison West Point Awarded to Donato Marangi, Inc. for $19.5M

Contract Overview

Contract Amount: $19,530,671 ($19.5M)

Contractor: Donato Marangi, Inc

Awarding Agency: Department of Defense

Start Date: 2019-01-31

End Date: 2024-05-15

Contract Duration: 1,931 days

Daily Burn Rate: $10.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COLLECTION OF REFUSE AND RECYCLING AT US ARMY GARRISON WEST POINT

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to DONATO MARANGI, INC for work described as: COLLECTION OF REFUSE AND RECYCLING AT US ARMY GARRISON WEST POINT Key points: 1. Contract awarded for solid waste collection and recycling services. 2. Service area covers US Army Garrison West Point. 3. Contract duration spans over 5 years. 4. Awarded as a definitive contract with a firm fixed price. 5. Competition was conducted under the Simplified Acquisition Procedures (SAP). 6. The North American Industry Classification System (NAICS) code is 562111. 7. The contract was awarded to Donato Marangi, Inc.

Value Assessment

Rating: good

The contract value of $19.5 million over approximately 5 years for solid waste collection at a military installation appears reasonable. Benchmarking against similar contracts for waste management at federal facilities of comparable size and scope would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific performance metrics and comparison data, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for procurements below a certain dollar threshold, allowing for more streamlined acquisition. The limited competition under SAP may result in fewer offers and potentially less aggressive pricing compared to a full and open competition, though it can also lead to faster award times.

Taxpayer Impact: The limited competition under SAP means taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process. However, the use of SAP can also lead to cost savings in the acquisition process itself.

Public Impact

The primary beneficiaries are the residents and operations of the US Army Garrison West Point, ensuring essential waste management services. Services delivered include the collection and recycling of refuse. The geographic impact is localized to the West Point military installation in New York. Workforce implications are likely related to the operational staff required by Donato Marangi, Inc. for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals due to limited competition history.
Reliance on a single contractor for essential services could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract structure limits cost escalation risk for the government.
Long-term contract provides service stability for the garrison.
Contract completion within the estimated duration suggests reliable service delivery.

Sector Analysis

The solid waste collection and recycling industry is a mature sector characterized by numerous service providers, ranging from small local businesses to large national corporations. Federal contracts for waste management are common across various agencies and installations. This contract fits within the broader 'Utilities and Waste Management' sector. Comparable spending benchmarks would involve analyzing other federal contracts for waste services at similar-sized military bases or government facilities, considering factors like geographic location and service scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of small business subcontracting requirements (sb: false). This suggests that the primary award went to a larger entity, and opportunities for small businesses to participate as subcontractors may be limited or not mandated by the contract terms. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and relevant departments within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Waste Management Contracts
Department of Defense Logistics Services
Military Installation Support Services
Solid Waste Collection Services
Recycling Services Contracts

Risk Flags

Potential for service quality degradation if contractor faces cost pressures.
Limited competition may lead to suboptimal pricing.
Reliance on a single vendor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to DONATO MARANGI, INC. COLLECTION OF REFUSE AND RECYCLING AT US ARMY GARRISON WEST POINT

Who is the contractor on this award?

The obligated recipient is DONATO MARANGI, 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 $19.5 million.

What is the period of performance?

Start: 2019-01-31. End: 2024-05-15.

What is the historical spending pattern for solid waste collection at US Army Garrison West Point prior to this contract?

Analyzing historical spending data for solid waste collection at US Army Garrison West Point prior to the current contract (awarded 2019-01-31, ending 2024-05-15) is crucial for understanding cost trends and value. Without access to prior contract details, it's difficult to establish a baseline. However, if previous contracts were for similar services and duration, comparing the annual cost of this $19.5 million contract (approximately $3.9 million per year) to prior periods could reveal significant increases or decreases. Factors such as inflation, changes in service requirements, or market shifts would need to be considered when evaluating these historical patterns. A consistent increase in costs over time might indicate market pressures or evolving service needs, while a decrease could suggest improved efficiency or more competitive bidding in earlier periods.

How does the per-unit cost of service for this contract compare to industry benchmarks for similar military installations?

Determining the per-unit cost for this contract requires defining a relevant unit, such as cost per ton of waste collected, cost per household served, or cost per square foot of facility managed. Given the contract is for 'COLLECTION OF REFUSE AND RECYCLING,' a cost per ton or per cubic yard of waste collected would be a suitable metric. Without specific volume data or detailed service delivery metrics, a precise per-unit cost benchmark is challenging. However, if data were available, it could be compared to industry reports or government studies on waste management costs at comparable federal facilities. A higher per-unit cost might suggest less efficient operations or a less competitive bidding environment, while a lower cost could indicate strong value for money or efficient service delivery by Donato Marangi, Inc.

What is the track record of Donato Marangi, Inc. in performing federal contracts, particularly for waste management services?

Donato Marangi, Inc.'s track record in performing federal contracts, especially for waste management, is a key indicator of reliability and performance. Information from contract databases (like FPDS) would reveal their history of awards, performance ratings (if available), and any past performance issues or disputes. A history of successful contract completions, positive performance reviews, and timely service delivery would suggest a low risk associated with this current contract. Conversely, a record of contract terminations, significant performance deficiencies, or unresolved disputes could raise concerns about their capacity to meet the requirements of the US Army Garrison West Point contract. Understanding their experience with similar-sized contracts and government clients is also important.

What are the potential risks associated with a firm fixed-price contract for waste management services?

While firm fixed-price (FFP) contracts are generally favored for their cost control benefits, they do carry specific risks, particularly in service-oriented industries like waste management. For the government, the primary risk is that the contractor may cut corners on service quality to maintain profitability if costs exceed initial estimates, especially if oversight is lax. For the contractor, the risk is absorbing unexpected cost increases due to factors like fuel price volatility, equipment failures, or unforeseen changes in waste volume or composition. In this specific contract, if the volume of refuse or recycling significantly exceeds projections, Donato Marangi, Inc. might face financial strain, potentially impacting service levels or leading to requests for contract modifications, which could negate the FFP benefit.

How does the duration of this contract (over 5 years) impact its overall value and risk profile?

The contract duration of over 5 years (from January 31, 2019, to May 15, 2024, totaling approximately 1931 days or 5.3 years) offers both advantages and disadvantages. For the government, a longer duration provides service stability and reduces the administrative burden and cost associated with frequent re-procurement. It also allows the contractor to make necessary investments in equipment and personnel, potentially leading to more efficient operations. However, a longer duration also locks the government into a specific price and provider for an extended period. If market prices decrease or if the contractor's performance deteriorates, the government has limited flexibility to change providers or renegotiate terms. This extended commitment increases the risk of paying above-market rates over the contract's life if market conditions shift unfavorably.

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

Solicitation ID: W911SD18R0145

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 175 ROUTE 303, VALLEY COTTAGE, NY, 10989

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

Financial Breakdown

Contract Ceiling: $24,016,929

Exercised Options: $23,690,594

Current Obligation: $19,530,671

Actual Outlays: $1,934,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline