Chemical waste disposal contract awarded to Clean Harbors for $68.6M, covering remediation services

Contract Overview

Contract Amount: $68,627 ($68.6K)

Contractor: Clean Harbors Environmental Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-06-25

End Date: 2027-06-09

Contract Duration: 714 days

Daily Burn Rate: $96/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHEMICAL WASTE DISPOSAL

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $68,627.25 to CLEAN HARBORS ENVIRONMENTAL SERVICES INC for work described as: CHEMICAL WASTE DISPOSAL Key points: 1. Contract value of $68.6 million for chemical waste disposal and remediation services. 2. Competition dynamics indicate a full and open competition process. 3. Risk indicators are moderate, given the specialized nature of hazardous waste management. 4. Performance context involves remediation services, suggesting a focus on environmental cleanup. 5. Sector positioning is within environmental services, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $68.6 million for chemical waste disposal and remediation services appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but the open competition is a positive sign for price discovery and ensuring the government receives competitive pricing. This approach typically leads to a wider range of solutions and potentially better value.

Taxpayer Impact: A full and open competition process maximizes the potential for competitive pricing, which directly benefits taxpayers by ensuring funds are used efficiently for essential services.

Public Impact

Benefits federal agencies requiring hazardous chemical waste disposal and environmental remediation. Services delivered include the safe and compliant management of chemical waste. Geographic impact is focused on North Dakota, where the services will be rendered. Workforce implications may involve specialized environmental technicians and hazardous material handlers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen environmental hazards requiring additional remediation efforts.
Dependence on specialized equipment and personnel for safe waste handling.
Regulatory compliance complexities in hazardous waste disposal.

Positive Signals

Firm fixed-price contract limits cost escalation risks for the government.
Full and open competition suggests a competitive bidding process.
Contract duration provides stability for essential environmental services.

Sector Analysis

The environmental services sector, particularly hazardous waste management and remediation, is a critical but specialized area. Government contracts in this space often involve significant regulatory oversight and require specialized expertise. The market size for such services is substantial, driven by industrial activity and environmental protection mandates. This contract fits within the broader category of government support services, ensuring compliance with environmental regulations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business subcontracting is not explicitly mentioned as a requirement. This suggests that the primary awardee is likely a large business. Further analysis would be needed to determine if opportunities exist for small businesses to participate as subcontractors within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Agricultural Research Service, and potentially the Inspector General's office for audits and investigations. Transparency is facilitated through contract award databases. Accountability measures are inherent in the firm fixed-price contract type, which places performance obligations on the contractor.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Chemical Disposal Contracts
Agricultural Research Service Contracts

Risk Flags

Potential for environmental contamination
Worker safety hazards
Regulatory compliance complexity
Specialized equipment and personnel required

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $68,627.25 to CLEAN HARBORS ENVIRONMENTAL SERVICES INC. CHEMICAL WASTE DISPOSAL

Who is the contractor on this award?

The obligated recipient is CLEAN HARBORS ENVIRONMENTAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $68,627.25.

What is the period of performance?

Start: 2025-06-25. End: 2027-06-09.

What is the historical spending pattern for chemical waste disposal services by the Agricultural Research Service?

Analyzing historical spending patterns for chemical waste disposal by the Agricultural Research Service (ARS) is crucial for understanding budget trends and identifying potential cost efficiencies. While specific historical data for ARS's chemical waste disposal spending is not provided in this single contract award, a comprehensive review would involve examining contract databases like FPDS-NG or USASpending.gov for previous awards related to 'remediation services,' 'hazardous waste disposal,' and similar NAICS codes (e.g., 562910). This analysis would reveal the total expenditure over several fiscal years, the number and types of contracts awarded, and the primary contractors. It would also highlight any significant fluctuations in spending that might correlate with changes in research activities, facility expansions, or evolving environmental regulations. Understanding these patterns helps in forecasting future needs and negotiating better terms for new contracts.

How does the per-unit cost of this contract compare to similar remediation projects?

Determining the per-unit cost for this chemical waste disposal contract requires a clear definition of 'unit.' Since the contract is for remediation services with a total value of $68.6 million and a duration of approximately two years, a direct per-unit cost comparison is challenging without more granular data on the volume or type of waste handled, or the specific remediation activities performed. However, a benchmark analysis could be conducted by comparing the total contract value against the scope of work and comparing it to similar large-scale environmental remediation contracts awarded by federal agencies. Factors such as the complexity of the waste, the geographic location (North Dakota), and the specific remediation techniques employed would influence cost. If specific metrics like cost per ton of waste treated or cost per acre remediated were available for comparable contracts, a more precise comparison could be made. The firm fixed-price nature suggests that the contractor has priced these variables into their bid.

What is Clean Harbors Environmental Services Inc.'s track record with federal government contracts, particularly in remediation?

Clean Harbors Environmental Services Inc. is a well-established company with a significant presence in the environmental services sector, including extensive experience with federal government contracts. A review of federal procurement data would likely show numerous awards to Clean Harbors across various agencies for services such as hazardous waste management, emergency response, and site remediation. Their track record typically includes managing complex environmental projects, often under stringent regulatory requirements. Assessing their performance would involve examining past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), looking for any history of disputes, contract modifications, or performance issues. Generally, companies of this size and specialization are awarded contracts based on demonstrated capability, past performance, and competitive pricing, suggesting a generally positive track record, though specific contract details would need to be verified.

What are the primary risks associated with managing chemical waste for the Agricultural Research Service?

The primary risks associated with managing chemical waste for the Agricultural Research Service (ARS) are multifaceted and stem from the nature of the materials handled and the operational environment. These include significant environmental risks, such as potential soil or water contamination from spills or improper disposal, which could lead to costly cleanup liabilities and regulatory penalties. Health and safety risks for workers involved in handling, transporting, and disposing of hazardous chemicals are paramount, requiring strict adherence to safety protocols and the use of specialized protective equipment. There are also regulatory risks, as ARS must comply with a complex web of federal, state, and local environmental laws (e.g., RCRA, CERCLA). Operational risks include the potential for equipment failure, transportation accidents, and unforeseen challenges during remediation activities. Finally, financial risks can arise from unexpected increases in disposal costs or the need for extensive, unplanned remediation efforts.

How does the duration of this contract (714 days) align with typical remediation service contracts?

The duration of this contract, approximately 714 days (or about 23.5 months), aligns reasonably well with typical federal contracts for ongoing environmental remediation and waste management services. Such contracts often span multiple years to ensure continuity of service and allow for the completion of complex projects. Shorter contracts might be suitable for emergency response or specific, time-bound cleanup tasks, while longer durations (e.g., 5+ years) are sometimes seen in large-scale, multi-phase remediation efforts or indefinite-delivery/indefinite-quantity (IDIQ) vehicles. A duration of around two years provides sufficient time for planning, execution, and completion of routine chemical waste disposal and remediation activities, while also allowing the agency to re-evaluate needs and market conditions for future requirements. The specific duration is likely tailored to the anticipated scope and pace of the remediation work at the ARS facilities in North Dakota.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clean Harbors, Inc.

Address: 42 LONGWATER DR, NORWELL, MA, 02061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $171,641

Exercised Options: $68,627

Current Obligation: $68,627

Actual Outlays: $2,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA22D00A8

IDV Type: FSS

Timeline