DoD awards $201.7M contract for private property debris removal in North Carolina

Contract Overview

Contract Amount: $201,746,321 ($201.7M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-23

End Date: 2026-01-12

Contract Duration: 264 days

Daily Burn Rate: $764.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL #2

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $201.7 million to ASHBRITT INC for work described as: HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL #2 Key points: 1. Contract value represents a significant investment in disaster recovery infrastructure. 2. The firm-fixed-price structure aims to control costs for the government. 3. A single award suggests potential limitations in market competition or specific contractor capabilities. 4. The contract duration of 264 days indicates a substantial, multi-month recovery effort. 5. Geographic focus on North Carolina highlights regional disaster response needs. 6. The North American Industry Classification System (NAICS) code 562119 points to specialized waste collection services.

Value Assessment

Rating: fair

The contract value of $201.7 million for debris removal is substantial. Benchmarking this against similar large-scale disaster recovery contracts is challenging without more specific service details. However, the firm-fixed-price nature provides cost certainty for the government, which is a positive indicator for value. The contract's base award amount of $7,641,910 suggests an initial phase, with the remaining value likely representing options or task orders for extended services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should theoretically lead to better pricing. The award to a single contractor, Ashbritt Inc., may imply that while competition was open, Ashbritt offered the best overall value or possessed unique qualifications for this specific large-scale disaster response.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

Residents and businesses in Buncombe County, North Carolina, will benefit from the removal of debris following Hurricane Helene. The contract facilitates the restoration of public safety and infrastructure by clearing private properties. The geographic impact is concentrated in North Carolina, specifically Buncombe County. The contract supports a workforce engaged in disaster recovery and waste management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of debris removal exceeds initial estimates, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical disaster response function could pose risks if performance issues arise.
The large contract value may indicate a significant disaster event, raising concerns about the frequency and severity of such events.
Limited transparency on the specific metrics used to evaluate bids in the full and open competition process.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, protecting against unexpected price increases.
Awarding under full and open competition suggests a robust process designed to achieve best value.
The contract duration allows for a comprehensive and sustained debris removal effort.
The focus on private property debris removal addresses a critical aspect of post-disaster recovery often overlooked by public works.

Sector Analysis

The waste collection services sector, particularly disaster-related debris removal, is a critical component of emergency management. This contract falls under the broader environmental services industry. The market for large-scale disaster response is often dominated by a few specialized firms capable of mobilizing the necessary resources and personnel quickly. The size of this contract suggests a significant event requiring extensive cleanup efforts, potentially exceeding typical municipal capabilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. Given the large scale and specialized nature of private property debris removal, it is possible that larger, experienced contractors are prioritized. Further investigation would be needed to determine if Ashbritt Inc. has a subcontracting plan that includes small businesses or if any portion of the work was specifically set aside for them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature provides a degree of accountability by fixing the cost. Transparency would be enhanced by public reporting of performance metrics, progress reports, and any modifications to the contract. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Federal Emergency Management Agency (FEMA) Disaster Relief Fund
Army Corps of Engineers Emergency Operations
State and Local Disaster Recovery Grants

Risk Flags

Potential for scope creep impacting final cost.
Contractor performance risk in large-scale disaster operations.
Limited competition may affect long-term pricing.
Dependence on a single contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $201.7 million to ASHBRITT INC. HURRICANE HELENE BUNCOMBE COUNTY PRIVATE PROPERTY DEBRIS REMOVAL #2

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 $201.7 million.

What is the period of performance?

Start: 2025-04-23. End: 2026-01-12.

What is the historical spending pattern for Ashbritt Inc. with the Department of Defense and other federal agencies for disaster recovery services?

Ashbritt Inc. has a significant history of contracting with federal agencies, particularly the Department of Defense and FEMA, for disaster recovery and debris removal services. They have been awarded numerous contracts, often in the wake of major hurricanes and other natural disasters across the United States. Analyzing their past performance, contract values, and the types of services rendered can provide context for their current award. For instance, their involvement in large-scale operations in Puerto Rico after Hurricane Maria and in Florida after Hurricane Michael demonstrates their capacity for extensive operations. Understanding their track record helps assess their reliability and experience in managing contracts of this magnitude, potentially indicating a pattern of successful execution or areas where performance has been scrutinized.

How does the per-unit cost of debris removal under this contract compare to similar contracts awarded in other regions or by different agencies?

Determining a precise per-unit cost for debris removal is complex due to variations in debris type (e.g., vegetative, construction and demolition, hazardous), density, and the specific services required (e.g., collection, transportation, disposal, recycling). This contract's firm-fixed-price nature for the total value makes direct per-unit cost comparison difficult without detailed breakdowns of anticipated debris volumes and types. However, benchmarks from FEMA or Army Corps of Engineers contracts for similar disaster events can offer insights. For example, contracts might specify rates per cubic yard or per ton for different debris categories. If this contract's implied rates, once operationalized, are significantly higher than established benchmarks for comparable disasters, it could indicate a potential issue with value for money, assuming similar debris characteristics and logistical challenges.

What are the specific risk indicators associated with a single-source award for a large-scale debris removal contract, even if competed?

Even when a contract is awarded under full and open competition, a single award for a large-scale, critical service like disaster debris removal presents several risk indicators. Firstly, it concentrates operational risk with one entity; any performance failure, financial instability, or logistical breakdown by Ashbritt Inc. could severely hamper recovery efforts. Secondly, it reduces the government's leverage in negotiations or issue resolution, as there are no immediate alternative contractors readily available. Thirdly, it might suggest that the market for such specialized, large-scale services is inherently limited, potentially leading to higher prices over time if competition remains constrained. Finally, it necessitates robust government oversight to ensure the contractor meets all contractual obligations and performance standards, as the consequences of failure are amplified.

What is the projected effectiveness of this contract in achieving timely and complete debris removal in Buncombe County post-Hurricane Helene?

The effectiveness of this contract hinges on several factors. The contract duration of 264 days (approximately 9 months) suggests a planned, comprehensive approach to clearing private properties, which is crucial for long-term recovery. The firm-fixed-price structure incentivizes the contractor to complete the work efficiently within the allocated budget. Ashbritt Inc.'s established experience in disaster recovery is a positive indicator for their capability to manage such an operation. However, effectiveness will ultimately depend on the accuracy of the initial scope assessment, the contractor's resource mobilization, coordination with local authorities, and the actual volume and complexity of the debris. Unforeseen challenges, such as difficult terrain or hazardous materials, could impact timelines and completeness.

How does the $201.7 million contract value compare to the estimated economic impact or cleanup costs associated with Hurricane Helene in North Carolina?

The $201.7 million contract value represents a significant portion of the anticipated costs for Hurricane Helene's recovery in North Carolina, specifically for private property debris removal. To assess its proportionality, one would need to compare it against broader damage assessments and total recovery funding estimates for the hurricane. For instance, if the total estimated damage or required federal assistance for the state is in the billions, this contract, while large, might represent a reasonable allocation for a critical component of the recovery. Conversely, if the overall impact was assessed as lower, this contract's value could raise questions about cost-effectiveness or scope. Data from FEMA declarations and state emergency management agencies would be essential for this comparative analysis.

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: $201,746,321

Exercised Options: $201,746,321

Current Obligation: $201,746,321

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