DoD Awards $142M for Hurricane Helene Waterway Debris Removal to Bering Straits Global Innovations

Contract Overview

Contract Amount: $142,471,418 ($142.5M)

Contractor: Bering Straits Global Innovations, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-21

End Date: 2025-06-30

Contract Duration: 129 days

Daily Burn Rate: $1.1M/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: CRESTON, ASHE County, NORTH CAROLINA, 28615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $142.5 million to BERING STRAITS GLOBAL INNOVATIONS, LLC for work described as: HURRICANE HELENE SUPPORT FOR WATERWAY DEBRIS REMOVAL FOR ASHE COUNTY Key points: 1. Significant contract value for disaster recovery operations. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on debris removal highlights critical infrastructure resilience needs. 4. Geographic focus on North Carolina for post-hurricane support.

Value Assessment

Rating: questionable

The contract value of $142M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar debris removal contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition for a large contract like this could lead to inflated prices, impacting taxpayer funds negatively.

Public Impact

Ensures critical waterway infrastructure is cleared after Hurricane Helene. Supports economic recovery in affected North Carolina communities. Provides essential services for public safety and environmental health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Supports disaster recovery
Addresses critical infrastructure needs

Sector Analysis

This contract falls under miscellaneous waste management services, often utilized during natural disaster recovery. Spending in this sector can fluctuate significantly based on weather events and federal response.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing effectively and that costs are reasonable, despite the lack of competition.

Related Government Programs

All Other Miscellaneous Waste Management Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits price competition.
Potential for higher costs due to lack of bidding.
No small business participation identified.
High contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $142.5 million to BERING STRAITS GLOBAL INNOVATIONS, LLC. HURRICANE HELENE SUPPORT FOR WATERWAY DEBRIS REMOVAL FOR ASHE 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 $142.5 million.

What is the period of performance?

Start: 2025-02-21. End: 2025-06-30.

What specific factors justified the sole-source award for this debris removal contract?

The justification for a sole-source award typically involves urgent and compelling circumstances where competition is not feasible or would result in unacceptable delays or costs. For disaster response, this might include immediate needs following a catastrophic event like Hurricane Helene, where a specific contractor possesses unique capabilities or is the only viable option to address the critical situation promptly.

What is the potential cost overrun risk given the sole-source nature and high value?

The risk of cost overruns is elevated with sole-source contracts due to the absence of competitive pressure to offer the lowest price. The government must rely heavily on contractor-provided cost data and robust oversight to manage expenditures. Without benchmarks from competing bids, it's harder to identify and challenge potentially inflated costs throughout the contract's duration.

How effective is this contract likely to be in restoring waterway access and safety?

The effectiveness hinges on the contractor's capabilities and the clarity of contract requirements. Given the significant funding and the nature of debris removal, the contract is likely to be effective in clearing waterways if managed properly. However, the sole-source aspect means effectiveness in terms of value for money cannot be fully assessed without comparative data.

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: $142,471,418

Exercised Options: $142,471,418

Current Obligation: $142,471,418

Actual Outlays: $66,357,424

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