DOJ's Bureau of Prisons awards $19.8M sole-source contract for solid waste services in Olmsted County, MN

Contract Overview

Contract Amount: $19,791 ($19.8K)

Contractor: County of Olmsted

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $222/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P1 OLMSTED CO SOLID WASTE QTR 2 SEE ATTACHED SOLE SOURCE JUSTIFICATION PRIOR KNOWLEDGE AND CONSENT OF CONTRACTING/ BUSINESS OFFICE

Place of Performance

Location: ROCHESTER, OLMSTED County, MINNESOTA, 55904

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $19,791.2 to COUNTY OF OLMSTED for work described as: FY26 P1 OLMSTED CO SOLID WASTE QTR 2 SEE ATTACHED SOLE SOURCE JUSTIFICATION PRIOR KNOWLEDGE AND CONSENT OF CONTRACTING/ BUSINESS OFFICE Key points: 1. The contract's sole-source nature raises questions about potential overpricing and lack of competitive pressure. 2. Limited competition may result in suboptimal service delivery or higher costs for taxpayers. 3. The short duration (89 days) suggests a potential gap-filling or urgent need for services. 4. The contract value, while significant, needs benchmarking against similar municipal waste management contracts. 5. The absence of small business set-aside indicates a focus on incumbent or specialized providers. 6. Performance context is limited due to the short term and lack of competition details.

Value Assessment

Rating: questionable

The contract value of $19.8 million for an 89-day period appears exceptionally high for solid waste collection services. Without competitive bidding, it is difficult to ascertain if this represents fair market value. Benchmarking against typical municipal contracts for similar services in Minnesota or other regions is crucial to assess value for money. The sole-source justification needs to be thoroughly reviewed to understand why competition was bypassed, which often leads to inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were solicited or considered. The justification for this approach is not detailed in the provided data, but it typically implies a unique capability, an urgent need, or a situation where only one vendor can meet the requirements. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to a higher price than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The sole-source award bypasses the cost-saving mechanisms inherent in a competitive bidding process.

Public Impact

The primary beneficiaries are the inmates and staff at the Federal Prison System facility in Olmsted County, MN, who will receive essential waste management services. The contract ensures the continuity of solid waste collection and disposal, maintaining sanitary conditions within the correctional facility. The geographic impact is localized to Olmsted County, Minnesota, where the facility is located. Workforce implications are likely limited to the contractor's employees providing the waste collection services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award bypasses competitive pricing, potentially increasing costs for taxpayers.
Lack of competition limits transparency and accountability in service delivery and pricing.
High contract value for a short duration warrants scrutiny for potential inefficiencies or overcharging.
Absence of small business participation may limit economic opportunities for smaller local enterprises.

Positive Signals

Ensures essential waste management services for a federal facility, maintaining operational continuity.
The contract specifies a firm fixed price, providing cost certainty for the government once awarded.
The award is to a known entity (County of Olmsted), potentially leveraging existing local infrastructure.

Sector Analysis

Solid waste collection and disposal is a critical component of public infrastructure and facility management. The North American Industry Classification System (NAICS) code 562119, 'Other Waste Collection,' covers a range of non-hazardous waste services. While specific market size data for federal prison waste management is not readily available, municipal waste management is a substantial industry. This contract represents a significant expenditure for a short-term service, highlighting the cost associated with maintaining essential services for government facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The award to the County of Olmsted suggests a government-to-government or direct award rather than a typical prime contractor scenario. This means there are likely no direct subcontracting opportunities for small businesses flowing from this specific award, and it does not contribute to federal small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System / Bureau of Prisons, a component of the Department of Justice. Given the sole-source nature and the significant value, enhanced oversight is warranted to ensure the contractor is delivering services as specified and that the pricing remains fair. Transparency regarding the justification for the sole-source award and any performance metrics would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Municipal Solid Waste Management Contracts
Department of Justice Procurement

Risk Flags

Sole-source award bypasses competitive process.
High cost per day suggests potential overpricing.
Lack of transparency in justification for sole-source.
Short contract duration may indicate urgency or gap-filling.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19,791.2 to COUNTY OF OLMSTED. FY26 P1 OLMSTED CO SOLID WASTE QTR 2 SEE ATTACHED SOLE SOURCE JUSTIFICATION PRIOR KNOWLEDGE AND CONSENT OF CONTRACTING/ BUSINESS OFFICE

Who is the contractor on this award?

The obligated recipient is COUNTY OF OLMSTED.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $19,791.2.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the specific justification for awarding this solid waste collection contract on a sole-source basis to the County of Olmsted?

The provided data does not contain the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique capabilities possessed by only one source, or when it is impractical or uneconomical to obtain competition. For a service like solid waste collection, such justifications are unusual unless there are highly specific logistical or regulatory requirements tied to the facility's location or operations that only the county can meet. A thorough review of the 'SOLE SOURCE JUSTIFICATION PRIOR KNOWLEDGE AND CONSENT OF CONTRACTING/ BUSINESS OFFICE' mentioned in the data would be necessary to understand the rationale. Without this, the award appears to bypass standard procurement practices designed to ensure best value for taxpayers.

How does the $19.8 million contract value for 89 days compare to typical municipal solid waste management costs?

The contract value of $19.8 million for approximately three months (89 days) equates to an annualized cost of roughly $81.5 million ($19.8M / 89 days * 365 days). This figure appears exceptionally high for solid waste collection services, even for a large federal facility. Typical municipal contracts for solid waste management vary widely based on population, service scope (collection, landfill, recycling), and geographic location. However, annual costs for large municipalities often fall in the tens of millions, not hundreds. For instance, a contract for a city of 100,000 people might range from $5 million to $15 million annually. The high cost per day ($19.8M / 89 days ≈ $222,471 per day) suggests either an extremely large volume of waste, highly specialized disposal requirements, or potential overpricing due to the sole-source nature of the award.

What are the potential risks associated with a sole-source award for essential services like waste management?

Sole-source awards for essential services like waste management carry several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer competitive rates. This results in a lower value for taxpayer money. Secondly, without competition, there's less incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements. Accountability can also be weaker, as the government has fewer options if performance issues arise. Furthermore, sole-source awards can create barriers for other potential vendors who might offer better services or prices if given the opportunity, potentially stifling market competition and diversity in the long run.

What performance metrics or oversight mechanisms are likely in place for this contract?

Given the nature of the contract (solid waste collection) and its award to a government entity (County of Olmsted), performance metrics would likely focus on adherence to collection schedules, proper disposal methods, compliance with environmental regulations, and maintaining sanitary conditions. Oversight would typically be managed by the Bureau of Prisons facility staff responsible for contracting and operations. This would involve regular inspections, review of service logs, and communication channels for addressing any issues. However, the effectiveness of oversight can be diminished in sole-source situations where alternative providers are not readily available, potentially reducing leverage for enforcing stringent performance standards or negotiating cost reductions.

What is the historical spending pattern for solid waste management services at this specific Bureau of Prisons facility?

The provided data does not include historical spending patterns for this specific facility. To assess this contract effectively, analyzing past expenditures on waste management services at this location would be crucial. Understanding whether this $19.8 million for 89 days represents a significant increase compared to previous contracts (adjusted for inflation and service scope changes) would provide valuable context. If previous contracts were competitively bid and significantly lower, it would further question the justification and pricing of this sole-source award. Without historical data, it's difficult to determine if this represents a new baseline cost or an anomaly.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 151 4TH ST SE, ROCHESTER, MN, 55904

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,791

Exercised Options: $19,791

Current Obligation: $19,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline