California wildfire cleanup contract awarded to Ashbritt Inc. for over $25 million

Contract Overview

Contract Amount: $25,088,244 ($25.1M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2018-03-31

End Date: 2018-06-30

Contract Duration: 91 days

Daily Burn Rate: $275.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CALIFORNIA WILDFIRE DEBRIS CLEAN UP TO 6

Place of Performance

Location: SANTA ROSA, SONOMA County, CALIFORNIA, 95409

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to ASHBRITT INC for work described as: IGF::OT::IGF CALIFORNIA WILDFIRE DEBRIS CLEAN UP TO 6 Key points: 1. Contract value of $25.1 million for debris removal services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Short performance period of 91 days indicates a focused, urgent need. 4. Fixed-price contract type helps manage cost certainty for the government. 5. Geographic focus on California highlights specific regional disaster response needs. 6. Contractor Ashbritt Inc. is the sole awardee for this specific task order.

Value Assessment

Rating: fair

The contract value of $25.1 million for debris removal in California appears to be within a reasonable range for disaster response efforts of this scale. Benchmarking against similar large-scale debris removal contracts, especially those following major wildfires or hurricanes, would provide a clearer picture of value for money. The fixed-price nature of the contract offers some cost control, but the ultimate value depends on the efficiency and effectiveness of the cleanup operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The presence of competition is a positive sign for achieving a fair market price.

Taxpayer Impact: Full and open competition suggests that taxpayers benefit from a potentially more competitive price due to multiple companies vying for the contract.

Public Impact

Residents and businesses in California affected by wildfires benefit from the debris removal services. Services delivered include the cleanup and disposal of debris resulting from wildfire damage. Geographic impact is concentrated in areas of California impacted by recent wildfires. Workforce implications include temporary employment opportunities for debris removal and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise in debris removal.
Dependence on a single contractor (Ashbritt Inc.) for this specific task order.
Ensuring environmental compliance during debris removal and disposal is critical.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract type provides cost certainty.
Addresses urgent need for post-wildfire cleanup in a specific region.

Sector Analysis

The contract falls within the broader waste collection and disposal sector, specifically addressing emergency response services for natural disasters. The market for disaster recovery and debris removal is often characterized by specialized firms capable of rapid mobilization and large-scale operations. This contract represents a significant, albeit temporary, investment in mitigating the impact of wildfires, a growing concern in California and other regions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this specific contract award. As it was awarded under full and open competition, it is possible that larger firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were specific provisions for their participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency (Department of the Army) and potentially the agency's Inspector General. Mechanisms would include performance monitoring, site inspections, and financial reviews to ensure compliance with contract terms and efficient use of funds. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Federal Emergency Management Agency (FEMA) disaster relief programs
Army Corps of Engineers emergency response contracts
State and local government debris removal contracts

Risk Flags

Potential for environmental non-compliance during debris disposal.
Risk of schedule delays impacting community recovery timelines.
Contractor performance issues could lead to cost overruns or incomplete work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to ASHBRITT INC. IGF::OT::IGF CALIFORNIA WILDFIRE DEBRIS CLEAN UP TO 6

Who is the contractor on this award?

The obligated recipient is ASHBRITT 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 $25.1 million.

What is the period of performance?

Start: 2018-03-31. End: 2018-06-30.

What is the track record of Ashbritt Inc. in handling large-scale debris removal contracts, particularly in disaster zones?

Ashbritt Inc. has a significant history of performing large-scale debris removal and emergency management services, often in the aftermath of major natural disasters such as hurricanes and wildfires. They have been awarded numerous contracts by federal, state, and local governments across the United States. Their experience includes managing complex logistics, coordinating with multiple agencies, and ensuring compliance with environmental regulations. While specific performance metrics for every contract are not publicly detailed, their repeated awards suggest a capacity to meet the demands of such critical operations. However, like any large contractor, they may have faced scrutiny or challenges on specific projects, necessitating a review of past performance reports or IG investigations if available for detailed assessment.

How does the $25.1 million contract value compare to similar wildfire debris cleanup efforts in California or other states?

The $25.1 million contract value for this specific wildfire debris cleanup in California is substantial, reflecting the scale and complexity of removing hazardous materials and damaged structures. Comparing it directly to other contracts requires careful consideration of factors such as the acreage affected, the type and volume of debris, the duration of the contract, and the specific services included (e.g., hazardous material removal, structural demolition, soil remediation). For instance, major wildfire recovery efforts in California have sometimes involved contracts in the tens or even hundreds of millions of dollars. Without more granular data on the scope of this particular contract and comparable contracts, it's difficult to definitively state if it represents exceptionally high or low value. However, the fixed-price nature suggests an attempt to cap costs.

What are the primary risks associated with this type of debris removal contract, and how are they mitigated?

Key risks in debris removal contracts include potential cost overruns due to unforeseen site conditions (e.g., hazardous materials, unstable structures), environmental compliance issues (improper disposal, soil contamination), contractor performance failures (delays, inadequate work), and public health and safety concerns. Mitigation strategies employed by the government often include thorough pre-award assessments of contractor capabilities, detailed contract specifications, robust oversight and inspection protocols, clear performance standards, and the use of fixed-price contract types to incentivize efficiency. Environmental monitoring and adherence to strict disposal regulations are also crucial. The short performance period here might mitigate some long-term performance risks but could increase pressure on rapid execution.

What is the expected effectiveness of this contract in restoring affected areas and supporting community recovery?

The effectiveness of this contract hinges on its timely and thorough execution. Successful debris removal is a critical first step in the recovery process, enabling residents to return, rebuilding efforts to commence, and the environment to begin healing. If Ashbritt Inc. completes the cleanup efficiently and in compliance with all regulations, it will significantly contribute to restoring the affected areas. However, the contract's scope is limited to debris removal; broader community recovery involves other federal, state, and local programs addressing housing, infrastructure, economic support, and mental health. Therefore, while this contract is essential, it is only one component of a larger, multi-faceted recovery effort.

How has federal spending on wildfire response and debris cleanup evolved over the years, and does this contract fit into that trend?

Federal spending on wildfire response and debris cleanup has generally trended upwards over the past two decades, largely attributed to increasing wildfire frequency and intensity, particularly in Western states like California. This trend is linked to climate change, forest management practices, and increased development in wildland-urban interfaces. Contracts like this one, awarded by the Department of Defense (often through the Army Corps of Engineers for debris removal), are part of the federal government's mechanism to rapidly deploy resources during major disasters. The $25.1 million value is significant but not unprecedented within the context of large-scale federal disaster response efforts, reflecting the ongoing challenge and cost associated with managing and recovering from severe wildfires.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 565 E HILLSBORO BLVD, DEERFIELD BEACH, FL, 33441

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

Financial Breakdown

Contract Ceiling: $25,088,244

Exercised Options: $25,088,244

Current Obligation: $25,088,244

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P814D0033

IDV Type: IDC

Timeline