Army awards $216M contract for Hurricane Helene debris removal in North Carolina

Contract Overview

Contract Amount: $216,256,015 ($216.3M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-04

End Date: 2025-07-07

Contract Duration: 153 days

Daily Burn Rate: $1.4M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE MCDOWELL WATER WAY MISSION

Place of Performance

Location: UNION MILLS, MCDOWELL County, NORTH CAROLINA, 28167

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $216.3 million to ASHBRITT INC for work described as: HURRICANE HELENE MCDOWELL WATER WAY MISSION Key points: 1. Contract value represents a significant investment in disaster recovery efforts. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Short performance period indicates an urgent need for services. 5. Contractor's prior experience and performance will be key to successful execution. 6. Geographic focus on North Carolina highlights regional disaster response needs.

Value Assessment

Rating: good

The contract value of $216.26 million for debris removal services appears reasonable given the scale of a major hurricane event like Helene. Benchmarking against similar large-scale disaster recovery contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, assuming the scope of work is well-defined. The relatively short duration of 153 days suggests a focused and potentially efficient execution plan.

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. This approach typically fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a robust process was intended. The government's ability to secure competitive bids is crucial for achieving fair market value.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of qualified contractors to bid, potentially driving down costs.

Public Impact

Residents and businesses in North Carolina impacted by Hurricane Helene will benefit from the timely removal of debris, facilitating recovery and restoration of essential services. The contract ensures the provision of critical waste collection and disposal services in a disaster-stricken region. Geographic impact is concentrated in North Carolina, addressing specific needs following the hurricane. The contract may indirectly support local workforces through employment opportunities with the prime contractor and potential subcontractors involved in debris removal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial debris assessment is inaccurate.
Logistical challenges in coordinating large-scale debris removal operations.
Environmental compliance risks associated with debris disposal.
Ensuring equitable debris removal across diverse geographic areas within North Carolina.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Full and open competition suggests a competitive bidding process.
Clear performance period aids in schedule management.
Focus on a specific disaster event allows for targeted resource allocation.

Sector Analysis

The debris removal sector is a critical component of disaster response and recovery, often involving specialized equipment and logistics. This contract falls within the broader 'Other Waste Collection' NAICS code (562119). The market for disaster recovery services can be highly variable, driven by the frequency and severity of natural disasters. Government spending in this area is essential for mitigating the impact of such events and supporting community resilience. Comparable spending benchmarks would typically be assessed against other large-scale federal disaster response contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. For a contract of this magnitude, it is common for prime contractors to engage small businesses for various support roles, such as equipment rental, transportation, or specialized labor. The extent to which small businesses will participate will depend on the contractor's subcontracting strategy and any specific requirements outlined in the contract solicitation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting office and potentially the relevant program executive office. Accountability measures will be tied to the contract's performance work statement, delivery schedules, and quality standards. Transparency is typically facilitated through contract award announcements and public contract databases. Inspector General jurisdiction may 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
National Response Framework

Risk Flags

Potential for cost overruns if scope is underestimated.
Logistical challenges in a disaster zone.
Environmental compliance during debris disposal.
Contractor's capacity to meet aggressive timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $216.3 million to ASHBRITT INC. HURRICANE HELENE MCDOWELL WATER WAY MISSION

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 $216.3 million.

What is the period of performance?

Start: 2025-02-04. End: 2025-07-07.

What is the track record of Ashbritt Inc. in handling large-scale disaster recovery contracts?

Ashbritt Inc. has a significant history of performing large-scale debris removal and emergency management services for government agencies, particularly in response to major natural disasters. They have been awarded numerous contracts by FEMA and various state and local governments following hurricanes, floods, and other catastrophic events. Their experience often includes managing complex logistics, large fleets of equipment, and extensive workforces. While specific performance metrics for past contracts are not detailed here, their repeated selection for such critical missions suggests a demonstrated capability. However, as with any large contractor, past performance reviews and any disputes or challenges encountered on previous projects would be important to consider for a comprehensive assessment.

How does the $216 million contract value compare to typical spending for hurricane debris removal in North Carolina?

The $216.26 million contract value for Hurricane Helene debris removal in North Carolina is substantial and reflects the significant scale and cost associated with clearing widespread damage from a major storm. To benchmark this effectively, one would need to compare it against historical spending for comparable hurricane events in North Carolina or similarly affected states. For instance, Hurricane Florence (2018) resulted in significant debris removal costs, and Hurricane Matthew (2016) also necessitated extensive cleanup operations. The specific scope of work (e.g., types of debris, areas covered, duration) heavily influences cost. Without detailed historical data for North Carolina's specific debris removal expenditures post-major hurricanes, a precise comparison is difficult, but this figure indicates a significant federal commitment to recovery.

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

While firm-fixed-price contracts are designed to provide cost certainty for the government, they can introduce risks for the contractor, which may indirectly affect the government if not managed properly. For this debris removal contract, primary risks include: 1. Inaccurate Scope Estimation: If the volume or type of debris is significantly underestimated, the contractor may incur higher costs than anticipated, potentially leading to pressure for change orders or reduced service quality if they try to cut corners. 2. Unforeseen Site Conditions: Difficult terrain, hazardous materials, or access restrictions not identified during bidding can increase removal and disposal costs. 3. Schedule Delays: Weather events, permitting issues, or logistical bottlenecks could delay operations, increasing overhead costs for the contractor. 4. Disposal Site Availability: Securing adequate and compliant disposal sites can be challenging and costly. The government's risk is primarily ensuring the contractor has robust contingency planning and that the contract terms adequately address potential issues.

What does the short performance period (153 days) imply about the urgency and expected execution?

The short performance period of 153 days (approximately five months) for this $216 million debris removal contract strongly implies a high degree of urgency and an expectation for rapid execution. Hurricane Helene has likely caused immediate and widespread damage, necessitating swift action to clear roadways, restore access, and mitigate further hazards. This compressed timeline suggests that the government requires the contractor to mobilize resources, personnel, and equipment very quickly and operate efficiently to meet the deadline. It also indicates that the primary phase of debris removal is anticipated to be completed within this window, although follow-on activities or long-term restoration might be handled under separate contracts or phases. The contractor must demonstrate a robust operational plan capable of achieving significant results in a limited timeframe.

How might the 'Other Waste Collection' NAICS code (562119) influence the type of services expected under this contract?

The North American Industry Classification System (NAICS) code 562119, 'Other Waste Collection,' encompasses establishments primarily engaged in collecting and disposing of refuse or waste materials, excluding hazardous waste, medical waste, or sewage. For this contract, it suggests the scope will focus on the collection, transportation, and disposal of non-hazardous debris resulting from Hurricane Helene. This typically includes vegetative debris (trees, branches), construction and demolition debris (building materials), and possibly bulky waste (furniture, appliances). It implies that specialized services for hazardous waste management or sewage cleanup would likely fall under different NAICS codes and would need to be explicitly included or contracted separately if required. The code provides a general classification for the primary business activity related to the service.

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: $216,256,015

Exercised Options: $216,256,015

Current Obligation: $216,256,015

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