Calidad Environmental Services Inc. awarded $9.8M for HAZMAT operations, serving Defense Logistics Agency

Contract Overview

Contract Amount: $9,845,692 ($9.8M)

Contractor: Calidad Environmental Services Inc

Awarding Agency: Department of Defense

Start Date: 2007-12-05

End Date: 2012-12-31

Contract Duration: 1,853 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INITIAL YEAR - HAZMAT OPERATIONS

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to CALIDAD ENVIRONMENTAL SERVICES INC for work described as: INITIAL YEAR - HAZMAT OPERATIONS Key points: 1. Contract value appears reasonable for specialized HAZMAT services over a 5-year period. 2. Full and open competition suggests potential for competitive pricing, though specific bidder numbers are limited. 3. Contract duration and fixed-price structure may mitigate cost overrun risks. 4. Services align with critical facility support needs for military operations. 5. Geographic focus on Texas indicates localized support, potentially impacting broader regional availability. 6. No small business set-aside noted, suggesting larger prime contractors were anticipated.

Value Assessment

Rating: good

The contract value of approximately $9.8 million over five years for HAZMAT operations appears to be within a reasonable range for specialized environmental services. Benchmarking against similar contracts for facilities support and hazardous material management would provide a more precise value-for-money assessment. The firm fixed-price structure, while potentially limiting flexibility, helps control costs for the government. Without specific per-unit cost data or detailed scope of work comparisons, a definitive value assessment is challenging, but the overall award seems aligned with the nature of the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broadly solicited, specific exclusions were applied. The presence of 4 bidders suggests a moderate level of competition. This level of competition is generally positive for price discovery, as it allows multiple firms to vie for the contract, potentially driving down costs. However, understanding the reasons for source exclusion is crucial to fully assess the impact on competition.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging lower prices and better service offerings. The fact that four companies bid suggests that the market is sufficiently interested and capable of providing these services.

Public Impact

The Department of Defense, specifically the Defense Logistics Agency, benefits from essential HAZMAT operations support. Services include critical hazardous materials management, ensuring safety and compliance for military facilities. The contract's geographic impact is focused on Texas (TX), supporting operations within that state. Workforce implications include employment opportunities for personnel skilled in environmental services and HAZMAT handling within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions, which could impact long-term pricing.
Geographic concentration in Texas might not serve broader national needs if similar requirements arise elsewhere.
Firm Fixed Price contracts can sometimes lead to scope creep if not managed carefully, though this is a general risk.

Positive Signals

Full and open competition, even with exclusions, generally fosters a competitive environment.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration of five years allows for stable service provision and potential for contractor efficiency gains.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. The specific focus on HAZMAT operations highlights a specialized niche within this sector, requiring expertise in handling, storage, and disposal of hazardous materials. The market for such services is driven by regulatory compliance, safety requirements, and the operational needs of government agencies, particularly those with extensive infrastructure like the Department of Defense. Comparable spending benchmarks would likely be found within other government contracts for environmental remediation, waste management, and facility maintenance.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). The award to Calidad Environmental Services Inc. suggests that the primary focus was on obtaining the most competitive offer from the available bidders, rather than specifically targeting small businesses for this particular requirement. This implies that larger firms or those with specialized capabilities were expected to compete. There is no explicit information on subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) within the Defense Logistics Agency. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Facilities Maintenance and Operations
Defense Logistics Agency Support Contracts
Department of Defense Environmental Compliance

Risk Flags

Potential for limited competition due to source exclusions.
Firm Fixed Price contracts can be inflexible if requirements change significantly.
Geographic concentration may not meet broader needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to CALIDAD ENVIRONMENTAL SERVICES INC. INITIAL YEAR - HAZMAT OPERATIONS

Who is the contractor on this award?

The obligated recipient is CALIDAD ENVIRONMENTAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2007-12-05. End: 2012-12-31.

What is the historical spending pattern for HAZMAT operations by the Defense Logistics Agency?

Analyzing historical spending for HAZMAT operations by the Defense Logistics Agency (DLA) requires accessing detailed contract databases over multiple fiscal years. While this specific contract represents an award of $9.8 million over five years, understanding the DLA's broader expenditure trends in this area is crucial for context. Factors influencing historical spending include changes in regulatory requirements, the number and scale of military installations requiring HAZMAT services, and shifts in contracting strategies (e.g., moving towards consolidated contracts or specific service providers). Without access to a comprehensive historical dataset for DLA's HAZMAT spending, it's difficult to provide precise figures. However, it's reasonable to assume that spending in this area is substantial and likely influenced by geopolitical factors and the operational tempo of military activities. Trends might show an increase in spending due to heightened environmental awareness and stricter regulations, or potential decreases if consolidation efforts prove effective in reducing overall costs.

How does the per-unit cost of HAZMAT operations for Calidad Environmental Services Inc. compare to industry benchmarks?

Determining the precise per-unit cost for HAZMAT operations performed by Calidad Environmental Services Inc. under this contract is challenging without a detailed breakdown of the services rendered and their associated quantities. The contract is a Firm Fixed Price (FFP) award, which means the total price is set, and the contractor assumes the risk of cost overruns. To compare per-unit costs to industry benchmarks, one would need to identify specific services (e.g., per ton of hazardous waste disposed, per cubic yard of contaminated soil remediated, per inspection conducted) and their corresponding prices within the contract's structure. Industry benchmarks for HAZMAT services vary significantly based on the type of hazard, the complexity of the operation, geographic location, and regulatory environment. Generally, specialized HAZMAT services command higher prices due to the expertise, equipment, and stringent safety protocols required. Without specific line-item data from the contract and access to proprietary industry cost databases, a direct comparison is not feasible. However, the overall contract value of $9.8 million over five years suggests an average annual value of approximately $1.96 million, which provides a high-level indicator of the scale of services.

What is the track record of Calidad Environmental Services Inc. in performing similar HAZMAT contracts for the federal government?

Assessing the track record of Calidad Environmental Services Inc. in performing similar HAZMAT contracts for the federal government involves reviewing their past performance on federal awards. This includes examining the number of previous contracts, their values, the agencies they served, and critically, their past performance ratings. Federal procurement systems often include mechanisms for recording contractor performance, highlighting adherence to schedule, cost control, quality of work, and overall customer satisfaction. A review of publicly available contract databases (like FPDS) would reveal the extent of their federal contracting history. Positive performance indicators would include successful completion of previous HAZMAT or environmental services contracts, favorable past performance reviews, and a history of timely delivery and compliance. Conversely, any history of contract disputes, performance failures, or negative past performance assessments would be significant concerns. Without a specific review of Calidad's detailed contract history and performance data, it's difficult to definitively characterize their track record, but the award of this contract suggests they met the agency's requirements and potentially had a satisfactory performance history.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' contract type?

The 'Full and Open Competition After Exclusion of Sources' (FOCAES) contract type presents a unique set of potential risks. While it aims to leverage the benefits of full and open competition, the explicit exclusion of certain sources can limit the pool of potential bidders. The primary risk is that the exclusion might inadvertently eliminate highly capable or cost-competitive vendors, potentially leading to a less optimal outcome for the government in terms of price or innovation. The justification for excluding sources must be robust and clearly documented to ensure fairness and prevent potential protests. If the exclusions are perceived as arbitrary or unjustified, it could lead to legal challenges. Furthermore, a reduced number of bidders, even if the competition is 'open' among the remaining pool, might lessen the downward pressure on pricing compared to a truly unrestricted full and open competition. Transparency regarding the reasons for exclusion is vital to mitigate risks related to fairness and perceived favoritism.

How does the duration of this contract (1853 days) impact the overall value and risk for the government?

The contract duration of 1853 days, approximately five years, has several implications for value and risk. From a value perspective, a longer duration allows the contractor to achieve economies of scale and potentially offer more competitive pricing over the contract's life. It also provides stability and continuity of essential services for the Defense Logistics Agency, reducing the administrative burden and costs associated with frequent re-solicitation. For risk, a longer duration can mitigate the risk of service disruption. However, it also increases the government's exposure to potential contractor underperformance over an extended period. The firm fixed-price nature of the contract helps to lock in costs, reducing the risk of price escalation for the government. Conversely, if market conditions or requirements change significantly during the five years, the fixed price might become less advantageous for the government if costs decrease or the scope needs adjustment. Careful performance management and clear contract terms are crucial to managing risks over such a duration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912NW07R0015

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1150 E MAIN ST, ROBSTOWN, TX, 27

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,845,692

Exercised Options: $9,845,692

Current Obligation: $9,845,692

Contract Characteristics

Cost or Pricing Data: NO

Timeline