DoD awards $150.6M for Hurricane Helene debris removal in North Carolina, with Ashbritt Inc. as the sole contractor

Contract Overview

Contract Amount: $150,594,676 ($150.6M)

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: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL (PPDR)

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $150.6 million to ASHBRITT INC for work described as: HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL (PPDR) Key points: 1. The contract's substantial value suggests a significant scope of work for disaster recovery operations. 2. A single awardee for such a large contract warrants scrutiny regarding the effectiveness of the competition process. 3. The fixed-price nature of the contract aims to control costs, but requires careful monitoring of performance. 4. The short performance period indicates an urgent need for services following the hurricane. 5. The contract is positioned within the emergency response and disaster recovery sector, a critical government function. 6. The geographic focus on North Carolina highlights the specific regional impact of Hurricane Helene.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of debris removal required. However, the total award of $150.6 million for a 5-month period indicates a high per-day cost. Comparing this to other large-scale disaster recovery contracts would be necessary to assess if the pricing is competitive. The firm-fixed-price structure provides cost certainty, but the overall value for money will depend on the efficiency and effectiveness of the services rendered by Ashbritt Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the data does not specify the number of bids received or the evaluation process. A single awardee for a contract of this magnitude, even after full and open competition, can sometimes indicate a highly specialized market or potentially a lack of robust competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive bidding process, potentially leading to lower prices and higher quality services.

Public Impact

Residents and businesses in Buncombe County, North Carolina, will benefit from the removal of private property debris, facilitating recovery and rebuilding efforts. The services delivered include the removal of debris from private properties affected by Hurricane Helene. The geographic impact is concentrated in Buncombe County, North Carolina, addressing the specific needs of this disaster-stricken area. The contract implies a need for a significant workforce to execute the debris removal operations, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of debris removal is underestimated or if unforeseen complexities arise, despite the firm-fixed-price structure.
Ensuring timely and efficient debris removal to meet community recovery needs within the defined performance period.
Monitoring contractor performance to guarantee adherence to environmental regulations and proper disposal of debris.
The concentration of a large contract with a single provider could raise concerns about market concentration in disaster response services.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding under full and open competition suggests an effort to maximize value through market participation.
The contract addresses a critical need for public safety and economic recovery in a disaster-affected area.
The specified performance period indicates a focused and urgent response to the hurricane's aftermath.

Sector Analysis

This contract falls within the broader waste collection and disaster recovery services sector. The market for large-scale disaster response is often characterized by a few specialized firms capable of mobilizing rapidly and managing complex operations. Government spending in this area can fluctuate significantly based on the frequency and severity of natural disasters. Comparable spending benchmarks would typically involve analyzing other major federal disaster relief contracts awarded by agencies like FEMA or the Army Corps of Engineers.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on securing the necessary capabilities for a large-scale debris removal operation, potentially favoring larger, more established contractors. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in disaster recovery efforts.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant program officials within the Department of the Army. Accountability measures will be tied to the firm-fixed-price contract terms, requiring Ashbritt Inc. to deliver the specified debris removal services. Transparency will depend on the agency's public reporting of contract performance and any post-award reviews or audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FEMA Disaster Relief Fund
Army Corps of Engineers Civil Works Programs
State and Local Emergency Management Grants
Public Assistance Program (FEMA)

Risk Flags

Potential for cost overruns if scope is underestimated.
Risk of performance delays impacting recovery timelines.
Ensuring compliance with environmental and disposal regulations.
Adequacy of competition for large-scale disaster response contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $150.6 million to ASHBRITT INC. HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL (PPDR)

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 $150.6 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 performing large-scale disaster debris removal contracts for various federal agencies, including FEMA and the Department of Defense, particularly in the aftermath of major hurricanes and other natural disasters. They have been involved in numerous high-profile recovery efforts across the United States. While their experience is extensive, the scale and complexity of each contract, along with performance metrics and cost-effectiveness, can vary. A detailed review of their past performance, including any documented issues, disputes, or commendations on similar-sized contracts, would be necessary to fully assess their capabilities and reliability for this specific $150.6 million award.

How does the per-day cost of this contract compare to similar disaster debris removal efforts?

Calculating a precise per-day cost requires dividing the total contract value ($150,594,676.47) by the contract duration in days (149 days), which yields approximately $1,009,964.28 per day. This figure represents the total potential expenditure over the contract period. Benchmarking this against similar disaster debris removal contracts is crucial for assessing value for money. Factors such as the type and volume of debris, terrain, accessibility, disposal site availability, and labor costs significantly influence per-day expenditures. Without specific details on the scope of work and comparable contract data, it is difficult to definitively state whether this per-day cost is high or low, but it indicates a substantial daily investment.

What are the primary risks associated with a firm-fixed-price contract for debris removal, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract for debris removal is that the contractor may face unforeseen challenges (e.g., discovering hazardous materials, underestimating debris volume, difficult terrain) that increase their costs beyond the fixed price. If the contractor cannot absorb these extra costs, it could lead to performance issues, delays, or even contract termination. Mitigation strategies include thorough pre-award planning and scope definition, robust contractor oversight to ensure efficient operations and prevent waste, and clear contract clauses addressing potential change orders or equitable adjustments if the scope significantly deviates from initial estimates. The government also benefits from cost certainty, as the price is fixed unless modifications occur.

What is the expected effectiveness of this contract in achieving timely recovery in Buncombe County post-Hurricane Helene?

The effectiveness of this contract in achieving timely recovery hinges on several factors. The $150.6 million award and the 149-day performance period suggest a significant commitment of resources aimed at addressing the debris removal needs. Ashbritt Inc.'s experience in disaster response is a positive indicator. However, effectiveness will ultimately be measured by the speed and thoroughness of debris removal, the restoration of access to affected areas, and the minimization of secondary impacts like health hazards or prolonged disruption. Close monitoring by the contracting officer and adherence to performance standards will be critical to ensure the contract meets its objectives and contributes effectively to the community's recovery.

How does the historical spending on debris removal contracts by the Department of Defense compare to this award?

The Department of Defense (DoD), primarily through the Army Corps of Engineers, engages in debris removal contracts as part of its support to civil authorities during major disasters. Historical spending can vary widely year-to-year, depending on the number and severity of natural disasters requiring federal assistance. Large-scale debris removal contracts, especially those following significant hurricanes, can easily reach tens or hundreds of millions of dollars. This $150.6 million award for Hurricane Helene is substantial and aligns with the upper range of significant disaster response expenditures the DoD has undertaken in the past. Analyzing DoD's historical spending patterns for similar events would provide context on the scale and frequency of such large awards.

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: $150,594,676

Exercised Options: $150,594,676

Current Obligation: $150,594,676

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