DoD awards $107M contract for Hurricane Helene debris removal, with limited competition

Contract Overview

Contract Amount: $107,375,195 ($107.4M)

Contractor: Bering Straits Global Innovations, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-21

End Date: 2025-07-08

Contract Duration: 137 days

Daily Burn Rate: $783.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE SUPPORT FOR WATERWAY DEBRIS REMOVAL FOR WATAUGA COUNTY

Place of Performance

Location: BANNER ELK, WATAUGA County, NORTH CAROLINA, 28604

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $107.4 million to BERING STRAITS GLOBAL INNOVATIONS, LLC for work described as: HURRICANE HELENE SUPPORT FOR WATERWAY DEBRIS REMOVAL FOR WATAUGA COUNTY Key points: 1. Contract value of $107M for debris removal services. 2. Limited competition raises questions about price discovery. 3. Short contract duration of 137 days. 4. Firm Fixed Price contract type. 5. Services to be performed in North Carolina. 6. Contractor is Bering Straits Global Innovations, LLC.

Value Assessment

Rating: fair

The contract value of $107M for debris removal services is substantial. Without comparable contract data for similar disaster relief efforts in North Carolina or for Hurricane Helene specifically, it is difficult to benchmark the value for money. The firm fixed price structure provides cost certainty, but the limited competition may have prevented optimal pricing. The benchmarked per-unit cost is not available due to the nature of debris removal services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating limited competition. The specific reasons for this limitation are not detailed in the provided data. A limited competition environment can lead to higher prices compared to full and open competition, as fewer vendors are considered, potentially reducing the incentive for aggressive bidding.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of robust competition, as the government did not leverage the full market to secure the most cost-effective solution.

Public Impact

Residents of Watauga County, North Carolina, will benefit from the removal of debris caused by Hurricane Helene. Services include debris removal from waterways, contributing to environmental and public safety. The geographic impact is focused on Watauga County, North Carolina. The contract supports the Department of the Army's disaster response capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Lack of detailed justification for limited competition.
Short contract duration may indicate urgency or a phased approach.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Contract awarded to a single entity for focused execution.
Services directly address critical post-disaster needs.

Sector Analysis

This contract falls under the Miscellaneous Waste Management Services sector (NAICS code 562998). This sector encompasses a wide range of waste management activities not elsewhere classified. The market for disaster debris removal is often characterized by rapid mobilization and specialized equipment, with contracts typically awarded on an as-needed basis following significant weather events. Benchmarking is challenging due to the event-driven nature and geographic specificity of such contracts.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false, and there is no mention of small business set-asides or subcontracting plans. This suggests that the contract was not specifically targeted towards small businesses, and their involvement in fulfilling this requirement is not explicitly mandated or detailed.

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 contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency regarding the justification for limited competition and performance monitoring would be key areas for oversight.

Related Government Programs

Hurricane Response Contracts
Disaster Relief Services
Waste Management Services
Department of Defense Emergency Support

Risk Flags

Limited Competition Justification
Contractor Performance History
Cost Reasonableness Analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.4 million to BERING STRAITS GLOBAL INNOVATIONS, LLC. HURRICANE HELENE SUPPORT FOR WATERWAY DEBRIS REMOVAL FOR WATAUGA COUNTY

Who is the contractor on this award?

The obligated recipient is BERING STRAITS GLOBAL INNOVATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $107.4 million.

What is the period of performance?

Start: 2025-02-21. End: 2025-07-08.

What is the track record of Bering Straits Global Innovations, LLC in performing similar disaster debris removal contracts?

Information regarding the specific track record of Bering Straits Global Innovations, LLC in performing disaster debris removal contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Without this, it is difficult to gauge their experience and capability in handling large-scale debris removal operations, especially in the context of waterway impacts.

How does the $107M contract value compare to typical costs for hurricane debris removal in North Carolina?

Direct comparison of the $107M contract value to typical costs for hurricane debris removal in North Carolina is challenging without specific data points. Debris removal costs are highly variable, depending on the volume and type of debris, the affected areas (including accessibility of waterways), and the duration of the removal effort. The 'NOT AVAILABLE FOR COMPETITION' status also suggests that a competitive bidding process, which usually helps establish market-based pricing, was not fully utilized, potentially impacting cost benchmarks.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract for disaster response?

The primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract for disaster response include potential overpayment due to lack of competitive pricing, reduced incentive for contractor efficiency, and limited assurance that the most capable vendor was selected. For taxpayers, this means a higher likelihood of paying more than necessary. For the government, it could mean receiving less value for the funds expended. Ensuring robust oversight and justification for the limited competition is crucial to mitigate these risks.

What is the expected effectiveness of this contract in addressing Hurricane Helene's debris impact on Watauga County waterways?

The effectiveness of this contract in addressing Hurricane Helene's debris impact on Watauga County waterways hinges on several factors not fully detailed in the provided data. These include the contractor's operational capacity, the specific scope of work beyond general debris removal (e.g., types of debris, specific waterway locations), and the adequacy of the contract duration (137 days) to complete the task. While the contract aims to restore waterway functionality and safety, its ultimate effectiveness will depend on execution and the actual volume of debris.

What are historical spending patterns for waterway debris removal in North Carolina or similar disaster events?

Historical spending patterns for waterway debris removal in North Carolina or similar disaster events are not available in the provided data. Such data would typically be found in government spending databases, agency reports, or FEMA disaster declarations. Understanding these patterns would allow for a more informed assessment of the current $107M contract's scale and cost-effectiveness relative to past expenditures on comparable recovery efforts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › All Other Miscellaneous Waste Management Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,375,195

Exercised Options: $107,375,195

Current Obligation: $107,375,195

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PM25D0002

IDV Type: IDC

Timeline