VA awards $27.7M contract for regulated medical waste disposal, highlighting specialized hazardous waste services

Contract Overview

Contract Amount: $27,675 ($27.7K)

Contractor: Neie Medical Waste Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $76/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REGULATED MEDICAL WASTE FOR VISN 04 MCS AND CBOCS

Place of Performance

Location: BLAIRSVILLE, INDIANA County, PENNSYLVANIA, 15717

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27,674.95 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: REGULATED MEDICAL WASTE FOR VISN 04 MCS AND CBOCS Key points: 1. The contract value of $27.7 million over one year suggests a significant need for specialized waste management within the VA's VISN 04 network. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a competitive process was intended, though specific details on bidder participation are needed. 3. The fixed-price contract type aims to control costs, but the actual value delivered will depend on the volume and type of waste generated. 4. The specialized nature of regulated medical waste disposal implies a need for strict adherence to safety and environmental regulations. 5. The contract's duration of 364 days allows for consistent service delivery throughout the performance period. 6. The absence of small business set-asides suggests the primary contractor is likely a larger entity with specialized capabilities.

Value Assessment

Rating: good

The contract value of $27.7 million for a one-year period for regulated medical waste disposal appears to be within a reasonable range for a large healthcare network like VISN 04. Benchmarking against similar contracts for hazardous waste treatment and disposal (NAICS 562211) would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of services is well-defined and waste volumes are predictable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the intent was competition, certain sources may have been excluded initially, possibly due to specific requirements or prior relationships. Further details are needed to understand the exact number of bidders and the rationale behind any exclusions, which could impact price discovery and overall competition.

Taxpayer Impact: The competitive nature, even with exclusions, should help ensure a reasonable price for taxpayers. However, a fully open competition without exclusions typically yields the best price discovery.

Public Impact

Beneficiaries include patients and staff within the VA's VISN 04 network, ensuring safe disposal of potentially infectious medical waste. Services delivered encompass the collection, transportation, treatment, and disposal of regulated medical waste generated by clinics and community-based outpatient clinics (CBOCs). The geographic impact is focused on the Pennsylvania region served by VISN 04. Workforce implications include the need for trained personnel for waste handling and transportation, as well as administrative staff for contract management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if waste volumes significantly exceed projections under the firm fixed-price contract.
Risk of service disruption if the contractor fails to meet stringent regulatory compliance for hazardous waste disposal.
Limited transparency on the specific reasons for excluding certain sources in the competition process.

Positive Signals

Firm fixed-price contract provides cost certainty for the VA.
Specialized nature of the service indicates a focus on critical healthcare support functions.
One-year duration allows for flexibility and re-evaluation of needs in subsequent contract periods.

Sector Analysis

The market for hazardous waste treatment and disposal is a critical component of the healthcare and industrial sectors, governed by strict environmental regulations. Companies in this space require specialized equipment, trained personnel, and robust compliance protocols. The VA's spending in this area is consistent with the operational needs of large healthcare systems, which generate significant volumes of regulated medical waste. Comparable spending benchmarks would typically be assessed based on per-pound or per-container disposal rates, factoring in transportation and treatment complexities.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). This suggests that the prime contractor, NEIE MEDICAL WASTE SERVICES, LLC, is likely a larger entity possessing the specialized capabilities and certifications required for regulated medical waste disposal. While there's no direct set-aside, the prime contractor may still engage small businesses for subcontracting opportunities related to transportation or logistics, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for VISN 04. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining specific service requirements, delivery schedules, and quality standards. Transparency is facilitated through contract award notices and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Waste Disposal Contracts
Hazardous Waste Management Services
VISN Healthcare Operations
Medical Support Services
Environmental Services Contracts

Risk Flags

Potential for regulatory non-compliance
Risk of service interruption
Cost uncertainty due to variable waste volumes
Limited competition due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27,674.95 to NEIE MEDICAL WASTE SERVICES, LLC. REGULATED MEDICAL WASTE FOR VISN 04 MCS AND CBOCS

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27,674.95.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of NEIE MEDICAL WASTE SERVICES, LLC in handling federal contracts, particularly for medical waste disposal?

Information regarding NEIE MEDICAL WASTE SERVICES, LLC's specific track record with federal contracts, especially for regulated medical waste disposal, is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented issues or successes. Understanding their experience with similar agencies, contract types (firm fixed-price), and service scopes would be crucial for assessing their reliability and capability in fulfilling this $27.7 million VA contract.

How does the $27.7 million contract value compare to historical VA spending on regulated medical waste for VISN 04 or similar networks?

The provided data indicates a $27.7 million contract for one year for regulated medical waste disposal for VA VISN 04. To assess value, this figure needs to be compared against historical spending patterns for similar services within VISN 04 or comparable VA networks (e.g., VISNs of similar size and patient volume). Without historical data, it's difficult to determine if this award represents an increase, decrease, or stable spending trend. Analysis of prior contract values, durations, and the scope of services rendered in previous years would be necessary for a robust comparison and to identify any significant deviations.

What are the primary risks associated with this firm fixed-price contract for regulated medical waste disposal?

The primary risk with a firm fixed-price contract for regulated medical waste disposal is the potential for the contractor to incur losses if the actual volume or complexity of waste disposal exceeds what was anticipated during the bidding process. Conversely, the VA faces the risk of paying a premium if the contractor significantly underestimates costs and inflates their bid price to cover potential contingencies. Additionally, ensuring consistent compliance with stringent environmental and health regulations is critical; any lapse could lead to penalties and service disruptions, regardless of the fixed price.

How effective are the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement methods in ensuring competitive pricing for specialized services like medical waste disposal?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance the need for broad competition with specific requirements that might limit the pool of eligible bidders. While it's more competitive than a sole-source award, the exclusion of certain sources can potentially reduce the number of viable bidders and limit price discovery compared to a truly unrestricted full and open competition. The effectiveness hinges on the justification for exclusions; if they are based on legitimate, necessary qualifications, the competition might still yield fair market prices. However, if exclusions are arbitrary, they could lead to higher costs for the government.

What are the potential long-term implications of this contract on the small business ecosystem for hazardous waste management in Pennsylvania?

Given that this contract was not awarded as a small business set-aside and the prime contractor is NEIE MEDICAL WASTE SERVICES, LLC, the direct impact on the small business ecosystem might be limited unless the prime actively subcontracts with small businesses. If NEIE MEDICAL WASTE SERVICES, LLC relies on its own resources or larger subcontractors, it could potentially limit opportunities for smaller, specialized waste management firms in Pennsylvania to gain experience and revenue from federal contracts. However, the overall demand for medical waste services could indirectly support the ecosystem by maintaining market activity.

What specific regulatory compliance measures are mandated for the contractor under this VA medical waste disposal contract?

While the specific details are not in the provided data, contracts for regulated medical waste disposal invariably mandate strict adherence to regulations set forth by the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the Department of Transportation (DOT) for hazardous materials transport. This includes proper segregation, packaging, labeling, manifesting, treatment (e.g., autoclaving, incineration), and disposal of biohazardous waste. The contractor must maintain necessary permits, licenses, and provide documentation of compliance, including waste tracking and destruction certificates, to the VA.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

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: $27,675

Exercised Options: $27,675

Current Obligation: $27,675

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24425D0090

IDV Type: IDC

Timeline