Army awards $89.6M contract for waterway debris removal in Polk County post-Hurricane Helene

Contract Overview

Contract Amount: $89,618,740 ($89.6M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-01

End Date: 2025-06-30

Contract Duration: 149 days

Daily Burn Rate: $601.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATERWAY DEBRIS FOR POLK COUNTY IN SUPPORT OF HURRICANE HELENE

Place of Performance

Location: RUTHERFORDTON, POLK County, NORTH CAROLINA, 28139

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $89.6 million to ASHBRITT INC for work described as: WATERWAY DEBRIS FOR POLK COUNTY IN SUPPORT OF HURRICANE HELENE Key points: 1. Contract value appears substantial for debris removal services, necessitating a close look at efficiency and necessity. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period is relatively short (approx. 5 months), indicating a focused response to immediate post-disaster needs. 4. The fixed-price contract type aims to control costs, but the large award amount warrants scrutiny of unit pricing. 5. This contract falls under waste collection services, a critical but often costly component of disaster response. 6. The geographic focus on Polk County highlights a targeted response to a specific disaster-affected area.

Value Assessment

Rating: fair

The award of $89.6 million for waterway debris removal over a five-month period is a significant expenditure. Benchmarking this against similar disaster response contracts is challenging due to the variable nature of debris removal needs and geographic scope. However, the scale suggests a substantial operation. The firm fixed-price structure provides cost certainty, but the overall value hinges on the actual volume and complexity of debris encountered. Without detailed breakdowns of unit costs for different debris types, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and encourages competitive pricing. The agency's decision to use this procurement approach suggests confidence in the market's ability to provide qualified contractors at reasonable prices.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding, leading to a more efficient use of public funds.

Public Impact

Residents and businesses in Polk County will benefit from the removal of hazardous waterway debris, improving safety and environmental conditions. The services delivered include the collection and disposal of debris from waterways, crucial for restoring normal conditions after a hurricane. The geographic impact is concentrated in Polk County, addressing specific needs arising from Hurricane Helene. While not explicitly stated, such contracts can indirectly support local economies through employment opportunities for debris removal crews and related logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The substantial award amount raises questions about the potential for cost overruns if debris volume exceeds initial estimates.
Lack of detailed unit pricing makes it difficult to assess the fairness of the price for specific debris removal tasks.
The short performance period could lead to rushed work or potential scope creep if not managed effectively.

Positive Signals

The use of 'full and open competition' suggests a robust bidding process that should yield competitive pricing.
The 'firm fixed price' contract type provides cost certainty for the government.
The contract targets a specific, critical need following a natural disaster, indicating a responsive government action.

Sector Analysis

This contract falls within the broader waste collection and disposal services sector, which is a critical component of infrastructure support and disaster management. The market for disaster recovery services can be highly specialized and fluctuates significantly based on the frequency and severity of natural events. Government contracts of this magnitude are often awarded to large, experienced firms capable of mobilizing significant resources quickly. Comparable spending benchmarks are difficult to establish due to the unique nature of each disaster response.

Small Business Impact

The data indicates that small business participation (SB set-aside and subcontracting) was not a specific requirement or focus for this contract (SB=false, SS=false). This suggests the contract was likely awarded to a large prime contractor. Opportunities for small businesses may arise indirectly through subcontracting, but this is not guaranteed or mandated by the contract terms provided. The absence of set-aside provisions means the primary competition was likely among larger firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight and performance monitoring are internal processes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Hurricane Response Contracts
Emergency Debris Removal Services
Army Corps of Engineers Contracts
Disaster Relief Funding
Environmental Remediation Services

Risk Flags

Potential for cost overruns due to unpredictable debris volume.
Difficulty in precise value-for-money assessment without detailed unit cost breakdowns.
Short performance period may create pressure on execution.
Limited explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.6 million to ASHBRITT INC. WATERWAY DEBRIS FOR POLK COUNTY IN SUPPORT OF HURRICANE HELENE

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 $89.6 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-06-30.

What is the track record of Ashbritt Inc. in handling large-scale disaster debris removal contracts for the federal government?

Ashbritt Inc. has a significant history of securing and executing large federal contracts, particularly for disaster debris removal and management services. They have been involved in numerous post-hurricane and other disaster recovery efforts across the United States. Their experience often includes managing complex logistics, large fleets of equipment, and extensive workforces to clear debris from public and private property, as well as waterways. While their extensive experience suggests capability, it is also important to review past performance reviews, any contract disputes, or cost-related issues from previous engagements to fully assess their reliability and efficiency for this specific $89.6 million contract.

How does the $89.6 million award compare to typical federal spending on waterway debris removal after major hurricanes?

The $89.6 million award for waterway debris removal in Polk County is substantial and falls within the higher end of typical federal spending for such services following a major hurricane. The cost of debris removal is highly variable, depending on the scale of the disaster, the types of debris (e.g., vegetative, construction and demolition, hazardous materials), the accessibility of affected areas, and the duration of the response. Larger hurricanes impacting densely populated coastal areas can easily result in contracts in the tens or hundreds of millions of dollars. This specific award suggests that Hurricane Helene caused significant waterway obstruction in Polk County, necessitating a large-scale, costly cleanup operation.

What are the primary risks associated with a firm fixed-price contract for disaster debris removal?

The primary risk with a firm fixed-price (FFP) contract for disaster debris removal is that the fixed price may not accurately reflect the actual scope of work required, especially in the unpredictable aftermath of a hurricane. If the volume or complexity of debris is significantly higher than anticipated during the bidding phase, the contractor may incur substantial losses, potentially impacting their ability to complete the work or leading to requests for contract modifications or claims. Conversely, if the debris volume is lower, the government might overpay relative to the work performed. Effective government oversight is crucial to ensure the contractor is performing the necessary work and that the scope remains aligned with the contract's intent.

What are the potential implications of this contract on the local workforce and small businesses in North Carolina?

Given that the contract is for services in Polk County, Florida, and the contractor's principal place of business is listed as North Carolina, the direct impact on the North Carolina workforce and small businesses is likely related to the contractor's home base. Ashbritt Inc., being a large entity, may draw upon its existing workforce or hire additional personnel, potentially from North Carolina, for specialized roles or management. However, the bulk of the on-the-ground labor for debris removal is typically sourced closer to the disaster site. Small businesses in North Carolina might benefit if Ashbritt Inc. utilizes them for support services, equipment rental, or logistics, but this is not explicitly mandated by the contract details provided. The primary beneficiaries of the direct labor will likely be in the Polk County, Florida area.

How does the 'Other Waste Collection' NAICS code (562119) encompass waterway debris removal?

The North American Industry Classification System (NAICS) code 562119, 'Other Waste Collection,' broadly covers establishments primarily engaged in collecting and transporting waste materials other than hazardous waste, sewage, or refuse collected by municipal services. This includes specialized waste collection services. Waterway debris removal, especially after a natural disaster like a hurricane, involves collecting and transporting a variety of materials (vegetative, structural, etc.) that have accumulated in waterways. Therefore, it fits under the umbrella of 'other waste collection' as it's a non-hazardous, non-municipal collection service focused on clearing obstructions and environmental hazards from water bodies.

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: $89,618,740

Exercised Options: $89,618,740

Current Obligation: $89,618,740

Actual Outlays: $32,813,553

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