Army awards $17M contract for debris management in McDowell County, North Carolina

Contract Overview

Contract Amount: $17,023,098 ($17.0M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2024-10-25

End Date: 2025-04-24

Contract Duration: 181 days

Daily Burn Rate: $94.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE MCDOWELL COUNTY DEBRIS MANAGEMENT

Place of Performance

Location: MARION, MCDOWELL County, NORTH CAROLINA, 28752

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to ASHBRITT INC for work described as: HURRICANE HELENE MCDOWELL COUNTY DEBRIS MANAGEMENT Key points: 1. Contract value appears reasonable for large-scale disaster recovery operations. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Contract duration of 181 days is typical for immediate post-disaster needs. 5. Contractor Ashbritt Inc. has prior experience in disaster response. 6. Geographic focus on North Carolina aligns with potential disaster-prone areas.

Value Assessment

Rating: good

The contract value of $17.02 million for debris management services in McDowell County is within a reasonable range for disaster recovery efforts. While specific benchmarks for this exact type of localized debris removal are difficult to pinpoint without more granular data, similar large-scale disaster response contracts can range from tens to hundreds of millions of dollars depending on the scope and duration. The firm-fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can manage their expenses effectively. The award amount is below the reported benchmark of $94,050 for a similar contract, suggesting potentially favorable pricing or a different scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The open competition suggests the agency sought the best value proposition from the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential disaster recovery services, preventing potential overpayment.

Public Impact

Residents and businesses in McDowell County, North Carolina, will benefit from timely debris removal following a potential disaster. The contract ensures the restoration of essential services and infrastructure by clearing roadways and public areas. Local workforce may see employment opportunities during the contract period for debris removal and management tasks. The contract supports the overall resilience and recovery of the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if disaster impact exceeds initial estimates.
Contractor's ability to mobilize resources quickly and efficiently in an emergency.
Ensuring compliance with environmental regulations during debris disposal.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Contractor Ashbritt Inc. likely possesses relevant experience in disaster response.

Sector Analysis

The debris management sector is a critical component of disaster response and recovery, often involving specialized equipment and personnel. This contract falls under the broader waste collection and disposal industry (NAICS 562119). The market for disaster recovery services can be highly variable, with significant spending spikes following major natural events. Government contracts in this area are essential for ensuring public safety and restoring normalcy after emergencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Ashbritt Inc., depending on the subcontracting plan and the specific needs of the debris management operation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army personnel. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

FEMA Disaster Relief Fund
Army Corps of Engineers Emergency Management
State and Local Emergency Management Agencies

Risk Flags

Potential for cost overruns if scope expands
Contractor mobilization and resource availability risks
Environmental compliance during debris disposal

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to ASHBRITT INC. HURRICANE HELENE MCDOWELL COUNTY DEBRIS MANAGEMENT

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 $17.0 million.

What is the period of performance?

Start: 2024-10-25. End: 2025-04-24.

What is Ashbritt Inc.'s track record with similar government debris management contracts?

Ashbritt Inc. has a significant history of performing debris management and removal services for various government agencies, including FEMA and the Department of Defense, particularly in response to hurricanes and other natural disasters. Their past performance often includes large-scale operations across multiple states. While specific details of past contract performance, such as on-time completion rates or cost overruns, are not detailed in this award notice, their repeated selection for such critical services suggests a generally satisfactory performance history. A deeper dive into contract performance reports and past performance evaluations would provide a more comprehensive understanding of their capabilities and reliability in emergency situations.

How does the awarded amount compare to the benchmark provided?

The awarded amount for this contract is $17,023,097.56. The provided benchmark value ('br') is 94,050. There appears to be a significant discrepancy or misunderstanding in how the benchmark is presented or intended to be used in relation to the contract award. If the benchmark represents a per-unit cost or a cost for a significantly smaller scope of work, then the $17 million award is substantially higher, which is expected for a large-scale debris management operation. If the benchmark was intended to be a comparable contract value, then $17 million is considerably larger. Without further context on what the 'br' value of 94,050 represents (e.g., per ton, per cubic yard, or a different contract size), a direct comparison is difficult. However, the total award is for a comprehensive debris management effort.

What are the primary risks associated with this debris management contract?

The primary risks associated with this contract include potential cost overruns if the scope of debris removal exceeds initial estimates, delays in mobilization and execution due to unforeseen logistical challenges or weather, and environmental compliance issues related to debris sorting and disposal. There's also a risk related to the contractor's capacity to manage the workforce and equipment effectively under high-pressure emergency conditions. Ensuring the quality of work and adherence to safety protocols are also critical risk areas. The firm-fixed-price structure mitigates some financial risk for the government but places it on the contractor, potentially leading to disputes if scope changes.

How effective is full and open competition in ensuring value for taxpayer money in disaster response contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in disaster response contracts. By allowing all qualified vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals based on technical merit and cost, selecting the offer that represents the best overall value. While the administrative effort is higher than sole-source or limited competition, the potential savings and improved service quality often outweigh these costs, especially for significant expenditures like disaster recovery.

What is the historical spending pattern for debris management contracts by the Department of the Army?

Historical spending patterns for debris management contracts by the Department of the Army, particularly through entities like the Army Corps of Engineers, show significant fluctuations tied to major disaster events. The Army frequently engages in debris removal and management as part of its civil works and emergency response missions. Spending can range from millions to hundreds of millions of dollars annually, depending on the frequency and severity of natural disasters requiring federal assistance. Contracts are often awarded on a rapid, as-needed basis following declared emergencies, utilizing pre-negotiated contract vehicles or full and open competition for specific events.

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,023,098

Exercised Options: $17,023,098

Current Obligation: $17,023,098

Actual Outlays: $2,794,723

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EK22D0002

IDV Type: IDC

Timeline