Department of the Army awards $50M contract for vegetative non-urban waste collection to JBW Group LLC

Contract Overview

Contract Amount: $49,959,967 ($50.0M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-26

End Date: 2025-12-08

Contract Duration: 165 days

Daily Burn Rate: $302.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 16 VEGETATIVE NON-URBAN

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to JBW GROUP LLC for work described as: 16 VEGETATIVE NON-URBAN Key points: 1. The contract's value of approximately $50 million represents a significant investment in waste management services. 2. The award to JBW Group LLC suggests a specific capability or existing relationship relevant to the service. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The short duration of the delivery order (under 7 months) indicates an immediate or short-term need. 5. The service category (Other Waste Collection) is essential for maintaining operational readiness and environmental compliance. 6. The contract's geographic focus on North Carolina highlights regional service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and the geographic area covered. The raw dollar amount of $49,959,967.08 is substantial for waste collection. However, without comparable contracts for similar vegetative non-urban waste collection in North Carolina or other regions, it's difficult to definitively assess if this represents excellent value. The fixed-price nature of the contract provides some cost control, but the overall value proposition depends heavily on the efficiency and effectiveness of JBW Group LLC's service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of providing the required service, or in specific circumstances where competition is not feasible or advantageous. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or spurred innovation from multiple offerors. The justification for a sole-source award would need to be carefully reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are the Department of the Army and its installations in North Carolina, which will receive essential waste collection services. The services delivered include the collection and disposal of vegetative non-urban waste, crucial for maintaining environmental standards and operational efficiency. The geographic impact is concentrated within North Carolina, supporting military operations and potentially local environmental health in those areas. Workforce implications may include employment opportunities for JBW Group LLC in the North Carolina region for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The sole-source nature limits opportunities for small businesses to participate in this contract.
The short contract duration may indicate a stop-gap measure, potentially leading to future contract instability or higher costs if a long-term solution isn't found.

Positive Signals

The contract ensures the provision of essential waste management services, supporting military readiness and environmental compliance.
The fixed-price contract type offers predictability in government spending for this service.
The award to JBW Group LLC suggests they possess the necessary qualifications and capacity to perform the required services.

Sector Analysis

The waste collection industry is a vital component of infrastructure, supporting both public and private sectors. Within the federal government, contracts for waste management services are common across various agencies and installations. This particular contract falls under the 'Other Waste Collection' NAICS code (562119), which encompasses services not elsewhere classified, such as hazardous waste treatment and disposal, and collection of refuse and recyclable materials. The market for waste management is diverse, ranging from large national corporations to smaller regional providers. Federal spending in this sector is driven by the need to maintain facilities, comply with environmental regulations, and support operational activities.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless JBW Group LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring JBW Group LLC to deliver the specified services within the agreed-upon cost. Transparency regarding the justification for the sole-source award and performance metrics would be crucial for public accountability. While specific Inspector General (IG) jurisdiction isn't detailed here, the DoD IG typically has oversight over all DoD contracts to investigate fraud, waste, and abuse.

Related Government Programs

Department of Defense Waste Management Contracts
Environmental Services Contracts
Base Operations Support Contracts
Federal Waste Disposal Services

Risk Flags

Sole-source award may limit price competition.
Lack of small business participation.
Short contract duration could indicate temporary solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to JBW GROUP LLC. 16 VEGETATIVE NON-URBAN

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 $50.0 million.

What is the period of performance?

Start: 2025-06-26. End: 2025-12-08.

What is the specific scope of 'vegetative non-urban waste collection' covered by this contract?

The term 'vegetative non-urban waste collection' typically refers to the removal and disposal of organic waste materials originating from natural vegetation in areas outside of typical urbanized zones. This could include grass clippings, leaves, branches, and other plant-based debris generated from landscaping, grounds maintenance, or natural occurrences on military installations or surrounding non-urban federal lands. The exact definition and scope would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's difficult to ascertain the precise types of waste, collection frequencies, and disposal methods required. This specificity is crucial for understanding the true value and complexity of the services being procured.

What is the historical spending pattern for similar vegetative non-urban waste collection services by the Department of the Army?

Analyzing historical spending patterns for similar services is essential for benchmarking. However, without specific contract details or broader category data, it's challenging to provide a precise historical context for 'vegetative non-urban waste collection.' Federal procurement databases often categorize waste management broadly. To assess historical spending, one would typically look at previous contracts awarded by the Department of the Army (or other DoD branches) for grounds maintenance, landscaping waste removal, or specialized non-hazardous waste collection in similar geographic regions or for comparable installation sizes. A review of past contract values, durations, and competition levels for these related services would reveal trends in pricing and vendor performance, helping to determine if the current $50 million award is consistent with historical investments or represents a significant deviation.

What is JBW Group LLC's track record with federal government contracts, particularly in waste management?

JBW Group LLC's track record with federal contracts is a key indicator of their capability and reliability. A thorough review would involve examining their past performance on similar contracts, including the types of services rendered, contract values, duration, and any reported performance issues or accolades. Information on their past performance can often be found in federal procurement databases like SAM.gov or through specific past performance questionnaires. Understanding their experience with the Department of the Army or other federal agencies, especially in waste management or related logistical services, provides insight into their operational capacity, compliance history, and ability to meet government requirements. Any history of contract disputes, terminations, or positive performance reviews would be critical factors in assessing the risk associated with this award.

What are the potential risks associated with a sole-source award for this type of service?

Sole-source awards, while sometimes necessary, carry inherent risks. The primary risk is the potential for inflated pricing due to the absence of competitive bidding, which can lead to reduced value for taxpayer money. Another risk is a lack of incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements, as there is no direct competition to outperform. Furthermore, sole-source awards can limit opportunities for other qualified vendors, including small businesses, to enter the federal market or expand their footprint. There's also a risk that the justification for the sole-source award might be based on incomplete information or could be challenged, leading to potential procurement delays or disputes. Ensuring the sole-source justification is robust and accurately reflects a genuine lack of viable alternatives is critical to mitigating these risks.

How does this contract's value compare to the overall federal spending on waste management services?

The $49.96 million awarded to JBW Group LLC for vegetative non-urban waste collection is a significant sum for a single delivery order. However, to contextualize it within overall federal spending on waste management, a broader analysis is needed. Federal agencies collectively spend billions annually on a wide array of services, including waste collection, disposal, recycling, and environmental remediation. This contract represents a portion of the Department of the Army's budget allocated to facility maintenance and environmental services. Comparing it to the total federal expenditure on waste management would require aggregating data across all agencies and service types. While this contract is substantial for its specific niche, it is likely a small fraction of the total federal outlay for all waste-related services nationwide. Understanding this broader context helps in assessing the relative scale of this particular award.

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: $49,959,967

Exercised Options: $49,959,967

Current Obligation: $49,959,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PM25D0011

IDV Type: IDC

Timeline