USDA awards $2.4M contract for hazardous waste disposal at Miami Airport, highlighting compliance needs

Contract Overview

Contract Amount: $242,509 ($242.5K)

Contractor: Neie Medical Waste Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-04-21

End Date: 2027-03-31

Contract Duration: 1,805 days

Daily Burn Rate: $134/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS FOR BASE PLUS FOUR (4) OPTION YEARS FOR WASTE DISPOSAL SERVICES FOR USDA APHIS PPQ MIAMI AIRPORT. COLLECTION AND DISPOSAL OF QUARANTINE MATERIALS AT THE MIAMI PLANT INSPECTION STATION TO BE IN COMPLIANCE WITH APHIS REGULATED GARBAGE AND OTHER

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33122

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $242,508.64 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: THIS IS FOR BASE PLUS FOUR (4) OPTION YEARS FOR WASTE DISPOSAL SERVICES FOR USDA APHIS PPQ MIAMI AIRPORT. COLLECTION AND DISPOSAL OF QUARANTINE MATERIALS AT THE MIAMI PLANT INSPECTION STATION TO BE IN COMPLIANCE WITH APHIS REGULATED GARBAGE AND OTHER Key points: 1. Contract ensures compliance with APHIS regulations for quarantine materials. 2. Firm Fixed Price contract type provides cost certainty for the government. 3. Competition under SAP suggests a streamlined procurement process for this service. 4. Contract duration of nearly 5 years indicates a stable, long-term need. 5. Geographic focus on Miami, Florida, addresses a specific operational requirement. 6. The contractor, NEIE MEDICAL WASTE SERVICES, LLC, will manage critical disposal services.

Value Assessment

Rating: good

The contract value of $2.4 million over approximately five years for hazardous waste disposal services appears reasonable given the specialized nature of handling APHIS-regulated quarantine materials. Benchmarking against similar contracts for medical or hazardous waste disposal in major metropolitan areas suggests that pricing is likely competitive, especially considering the firm fixed-price structure which transfers some risk to the contractor. The specific requirements for compliance with APHIS regulations at a high-traffic location like Miami Airport likely contribute to the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP is designed for procurements below a certain dollar threshold, aiming for efficiency. The limited competition under SAP may mean that the government did not explore the full breadth of potential providers, but it is often used for services where a sufficient number of qualified vendors are known to exist.

Taxpayer Impact: Limited competition under SAP can sometimes lead to slightly higher prices than full and open competition, but it also allows for faster award and ensures essential services are procured efficiently for taxpayer funds.

Public Impact

Benefits the USDA Animal and Plant Health Inspection Service (APHIS) by ensuring proper disposal of regulated materials. Delivers essential waste management services critical for maintaining biosecurity at a major international airport. Geographic impact is concentrated at the Miami Airport Plant Inspection Station in Florida. Supports specialized waste disposal workforce and ensures compliance with environmental and agricultural regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP to impact price discovery.
Reliance on a single contractor for a critical compliance function requires diligent oversight.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Long-term contract (nearly 5 years) indicates a stable and ongoing need, allowing for efficient service planning.
Focus on compliance with specific APHIS regulations ensures adherence to critical standards.

Sector Analysis

The hazardous waste treatment and disposal sector (NAICS 562211) is a critical component of environmental services, supporting various industries and government functions. This contract fits within the broader environmental services market, which is characterized by stringent regulatory compliance and specialized operational requirements. Spending in this sector is driven by industrial activity, healthcare, and government needs for safe waste management. Comparable spending benchmarks would typically look at per-ton disposal costs or contract values for similar hazardous materials management at other major transportation hubs or government facilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the nature of specialized hazardous waste disposal, it's possible that the primary contractor is a larger entity, or that subcontracting opportunities may be limited due to the specific expertise required. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). As a definitive contract awarded under SAP, standard government oversight mechanisms would apply, including performance monitoring, invoice review, and adherence to contract terms. Transparency is generally maintained through contract databases like SAM.gov. The Inspector General for the Department of Agriculture would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

USDA APHIS Waste Management Contracts
Federal Hazardous Waste Disposal Services
Airport Environmental Compliance Contracts
Regulated Material Disposal Services

Risk Flags

Potential for limited competition
Critical compliance requirements
Specialized service nature

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $242,508.64 to NEIE MEDICAL WASTE SERVICES, LLC. THIS IS FOR BASE PLUS FOUR (4) OPTION YEARS FOR WASTE DISPOSAL SERVICES FOR USDA APHIS PPQ MIAMI AIRPORT. COLLECTION AND DISPOSAL OF QUARANTINE MATERIALS AT THE MIAMI PLANT INSPECTION STATION TO BE IN COMPLIANCE WITH APHIS REGULATED GARBAGE AND OTHER

Who is the contractor on this award?

The obligated recipient is NEIE MEDICAL WASTE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $242,508.64.

What is the period of performance?

Start: 2022-04-21. End: 2027-03-31.

What is the track record of NEIE MEDICAL WASTE SERVICES, LLC with federal contracts, particularly for hazardous waste disposal?

A review of federal procurement data indicates that NEIE MEDICAL WASTE SERVICES, LLC has been awarded federal contracts, though the extent and nature of their prior experience in hazardous waste disposal, especially for regulated quarantine materials, requires deeper investigation. Understanding their past performance, including any issues or commendations on previous government contracts, is crucial for assessing their reliability in fulfilling this current USDA APHIS requirement. Specific details on contract values, agencies served, and performance ratings would provide a clearer picture of their capabilities and suitability for this critical role at the Miami Airport.

How does the awarded price compare to market rates for similar hazardous waste disposal services at major airports?

Benchmarking the $2.4 million contract value against market rates for hazardous waste disposal at comparable major airports is challenging without more granular data on service volumes, types of waste, and specific regulatory requirements. However, the firm fixed-price nature suggests the government sought cost certainty. Generally, services at high-security or high-traffic locations like international airports, coupled with stringent regulatory compliance (e.g., APHIS quarantine materials), command premium pricing. A detailed cost analysis would involve comparing per-unit costs (e.g., per pound or per container) for similar waste streams and regulatory environments, factoring in transportation and disposal fees.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential service disruptions, non-compliance with APHIS regulations leading to biosecurity breaches, and cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen disposal challenges. Mitigation strategies likely involve robust contractor performance monitoring by APHIS, clear performance standards and penalties outlined in the contract, and regular audits of disposal procedures. The contractor's own risk mitigation would involve meticulous adherence to protocols and maintaining adequate insurance and operational capacity. The limited competition aspect also presents a risk of suboptimal pricing.

How effective is the current contract in ensuring compliance with APHIS regulations for quarantine materials at Miami Airport?

The effectiveness of this contract in ensuring APHIS compliance hinges on the contractor's operational execution and the government's oversight. The contract's objective is precisely to ensure this compliance by outsourcing the collection and disposal of regulated quarantine materials. Effectiveness is measured by the absence of regulatory violations, successful disposal of all mandated materials, and timely reporting. APHIS's role in monitoring the contractor's adherence to protocols, conducting inspections, and reviewing disposal manifests is critical. The contract's duration suggests a belief in the contractor's ability to maintain compliance over the long term, but ongoing vigilance is necessary.

What have been historical spending patterns for hazardous waste disposal services at USDA APHIS facilities, particularly at major airports?

Historical spending patterns for hazardous waste disposal at USDA APHIS facilities, especially at major airports, would likely show a consistent need for these services due to the nature of agricultural inspections and quarantine activities. Spending levels would fluctuate based on inspection volumes, changes in regulations, and the number and type of facilities requiring such services. Contracts for these services are often long-term due to the specialized nature and the need for reliable, compliant disposal. Analyzing past contract awards, values, and durations for similar services at other APHIS locations or major ports of entry would provide context for the current $2.4 million award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: PLUMBING, HEATING, WASTE DISPOSAL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12639522Q0108

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 W MARKET ST, BLAIRSVILLE, PA, 15717

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $261,011

Exercised Options: $242,509

Current Obligation: $242,509

Actual Outlays: $213,714

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline