JBW Group LLC Awarded $96M for Hurricane Helene Waterway Debris Removal in North Carolina

Contract Overview

Contract Amount: $96,269,262 ($96.3M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-03-04

End Date: 2025-08-07

Contract Duration: 156 days

Daily Burn Rate: $617.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE WATERWAY DEBRIS REMOVAL FOR TRANSYLVANIA COUNTY

Place of Performance

Location: BALSAM GROVE, TRANSYLVANIA County, NORTH CAROLINA, 28708

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $96.3 million to JBW GROUP LLC for work described as: HURRICANE HELENE WATERWAY DEBRIS REMOVAL FOR TRANSYLVANIA COUNTY Key points: 1. Contract value of $96.3M for waterway debris removal indicates a significant scale of disaster response. 2. The contract's fixed-price nature aims to control costs, but the absence of competition raises concerns about optimal pricing. 3. Performance is concentrated in North Carolina, suggesting a targeted regional response to a specific event. 4. The short performance period of 156 days highlights the urgency of post-disaster recovery operations. 5. The primary service falls under 'Other Waste Collection,' a broad category that requires detailed understanding of specific debris types and removal methods.

Value Assessment

Rating: fair

The contract value of $96.3 million for debris removal is substantial, reflecting the potential scope of damage from Hurricane Helene. Without a competitive bidding process, it is difficult to benchmark the value for money effectively. However, the firm-fixed-price contract type suggests an attempt to cap costs. Further analysis would require comparing the per-unit costs of debris removal (e.g., per cubic yard or ton) to historical data from similar large-scale disaster recovery operations in other regions or previous events.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is often used in emergency situations where immediate action is required and a specific contractor possesses unique capabilities or is the only viable option under the circumstances. The lack of competition means that the government did not benefit from multiple bids to drive down prices or explore a wider range of solutions.

Taxpayer Impact: The absence of competition means taxpayers may not have received the lowest possible price for these critical services. Without bids from other qualified vendors, there is a risk that the awarded price is higher than it would have been in a competitive environment.

Public Impact

Residents and businesses in Transylvania County, North Carolina, will benefit from the restoration of waterway functionality and reduced flood risks. The primary service delivered is the removal of debris from waterways, crucial for preventing further environmental damage and restoring navigation. The geographic impact is focused on North Carolina, specifically areas affected by Hurricane Helene. The contract implies a need for a specialized workforce skilled in debris removal, potentially creating temporary employment opportunities in the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the urgency and necessity of avoiding a competitive process.
The broad 'Other Waste Collection' NAICS code may obscure specific cost drivers and efficiency metrics.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty.
Award addresses a critical post-disaster need, aiming to restore essential infrastructure.
Contract duration is defined, providing a clear timeframe for service delivery.

Sector Analysis

The waste collection and disposal services sector (NAICS 562119) is a critical component of infrastructure management, particularly in the aftermath of natural disasters. This contract falls within the broader environmental services market, which sees significant government spending, especially during emergency response. The scale of this contract suggests a major event requiring extensive cleanup efforts, potentially involving specialized equipment and personnel for waterway debris removal, which can be a niche within the broader waste management industry.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and the specialized nature of waterway debris removal, it is possible that larger firms or those with specific disaster response capabilities were prioritized. 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 would typically fall under the Department of the Army's contracting and program management offices. Transparency regarding the justification for the sole-source award and detailed reporting on debris removal progress and costs would be key oversight mechanisms. The Inspector General's office may also conduct audits or investigations into the contract's execution and financial management, particularly given the significant dollar amount.

Related Government Programs

FEMA Disaster Relief Fund
Army Corps of Engineers Civil Works Programs
Environmental Protection Agency (EPA) Superfund Program
State and Local Emergency Management Agency Contracts

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for cost overruns without competitive benchmarking.
Limited transparency on specific debris types and removal methods.
Contract duration may be insufficient for full recovery depending on damage extent.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.3 million to JBW GROUP LLC. HURRICANE HELENE WATERWAY DEBRIS REMOVAL FOR TRANSYLVANIA COUNTY

Who is the contractor on this award?

The obligated recipient is JBW GROUP 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 $96.3 million.

What is the period of performance?

Start: 2025-03-04. End: 2025-08-07.

What specific types of debris are anticipated for removal under this contract, and how does the pricing structure account for variations in debris composition and density?

The provided data does not specify the exact types of debris anticipated for removal. However, waterway debris following a hurricane typically includes fallen trees, branches, building materials, and potentially hazardous waste. The 'Other Waste Collection' NAICS code is broad. A firm-fixed-price contract suggests that JBW GROUP LLC has estimated these costs. Without a competitive process, it's difficult to assess if the pricing adequately reflects the expected debris types and removal challenges. Detailed contract line item numbers (CLINs) or task orders would typically break down pricing by debris type or removal method, but this information is not available in the summary data. Further inquiry would require accessing the full contract document to understand the pricing methodology and any provisions for handling unforeseen debris conditions.

What is the justification for awarding this contract on a sole-source basis, especially given the substantial value?

The justification for a sole-source award, particularly for a contract valued at $96.3 million, typically stems from urgent and compelling circumstances where competition is not feasible or would cause unacceptable delays. For disaster response, this could involve a situation where only one contractor possesses the necessary specialized equipment, personnel, and immediate availability to address a critical threat to public safety or infrastructure. Alternatively, it might be that the contractor is the only one capable of performing the work within the required timeframe. Without the full contract justification document, it's impossible to definitively state the reason. However, the nature of hurricane debris removal often requires rapid deployment and specific expertise that may limit the pool of qualified and available contractors.

How does the $96.3 million contract value compare to typical spending on waterway debris removal contracts of similar scale and scope?

Benchmarking this $96.3 million contract requires comparing it to similar large-scale waterway debris removal efforts following major natural disasters. Without access to a database of comparable contracts, a precise comparison is challenging. However, contracts of this magnitude are generally associated with widespread devastation from events like hurricanes or major floods. Factors influencing cost include the geographic area affected, the volume and type of debris, the accessibility of waterways, and the duration of the response. Given the sole-source nature, it's harder to assess if this represents a competitive market rate. Historical data from FEMA or the Army Corps of Engineers on previous hurricane responses could provide context, but specific per-unit cost data (e.g., cost per cubic yard of debris removed) would be needed for a robust comparison.

What are the potential risks associated with a sole-source award for disaster recovery services, and what mitigation strategies are in place?

The primary risk of a sole-source award for disaster recovery is the potential for inflated costs due to the lack of competitive pressure, leading to reduced value for taxpayer money. There's also a risk that the chosen contractor may not be the most efficient or effective provider. Mitigation strategies often include stringent contract oversight, detailed performance metrics, and clear deliverables. The government may also negotiate specific pricing terms or include clauses for independent cost reviews. For this contract, the firm-fixed-price structure provides some cost control. However, robust monitoring of work progress, adherence to scope, and quality of service by the contracting officer's representative (COR) are crucial to ensure the government receives fair value and that the recovery objectives are met efficiently.

What is the track record of JBW GROUP LLC in performing large-scale disaster response or waterway debris removal contracts?

Information regarding JBW GROUP LLC's specific track record in large-scale disaster response or waterway debris removal is not detailed in the provided summary data. While the company has been awarded this significant contract, its past performance on similar projects, its capacity to handle such an extensive operation, and its history of meeting deadlines and quality standards are critical factors that would typically be assessed during the pre-award phase, even for a sole-source justification. To evaluate their track record, one would need to consult past performance databases (like the Contractor Performance Assessment Reporting System - CPARS), news archives, or government accountability reports that might document their involvement in previous disaster recovery efforts.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3501 HORACE AVE, FORT WORTH, TX, 76244

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

Financial Breakdown

Contract Ceiling: $96,269,845

Exercised Options: $96,269,845

Current Obligation: $96,269,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PM25D0003

IDV Type: IDC

Timeline