VA awards $913K contract for medical waste services in Pennsylvania, emphasizing full and open competition

Contract Overview

Contract Amount: $9,130 ($9.1K)

Contractor: Neie Medical Waste Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-07-01

End Date: 2027-06-30

Contract Duration: 364 days

Daily Burn Rate: $25/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REGULATED MEDICAL WASTE TRANSPORTATION AND DISPOSAL FOR VISN 4. BUTLER VAMC OP #2

Place of Performance

Location: BUTLER, BUTLER County, PENNSYLVANIA, 16001

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9,130 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: REGULATED MEDICAL WASTE TRANSPORTATION AND DISPOSAL FOR VISN 4. BUTLER VAMC OP #2 Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a robust bidding process. 2. The contract value of $913,000 over one year suggests a moderate investment in essential healthcare support services. 3. The fixed-price nature of the contract helps mitigate cost overrun risks for the government. 4. This service is critical for maintaining sanitary conditions and compliance at the Butler VAMC. 5. The award to NEIE MEDICAL WASTE SERVICES, LLC signifies a specific provider chosen through a competitive process. 6. The contract duration of approximately one year allows for regular reassessment of service needs and provider performance.

Value Assessment

Rating: good

The contract value of $913,000 for a one-year period for regulated medical waste transportation and disposal appears reasonable for the services rendered. Benchmarking against similar contracts for VAMC facilities of comparable size and service scope would provide a more precise value assessment. However, the fixed-price structure is a positive indicator for cost control. The absence of significant performance issues in publicly available data for the contractor suggests a potentially good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific solicitation type indicates that while the competition was intended to be open, certain sources may have been initially excluded, possibly due to specific requirements or prior performance issues, before the final open competition phase. The number of bidders is not specified, but the 'full and open' nature suggests multiple entities had the opportunity to compete, which generally promotes competitive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages a wider range of providers to bid, potentially leading to lower prices and better service quality through market forces.

Public Impact

Veterans receiving care at the Butler VAMC in Pennsylvania benefit from safe and compliant medical waste management. Ensures the proper transportation and disposal of regulated medical waste, preventing health hazards and environmental contamination. Supports the operational continuity of the Butler VAMC by securing essential support services. The contract supports the healthcare infrastructure within Pennsylvania, specifically for the Department of Veterans Affairs. Indirectly supports jobs within the medical waste management sector through the awarded contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition becomes less robust.
Reliance on a single contractor for a critical service introduces a risk if performance falters.
The 'exclusion of sources' clause warrants further investigation to understand any limitations on competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding environment.
Fixed-price contract type helps control costs and provides budget certainty.
The contractor, NEIE MEDICAL WASTE SERVICES, LLC, has been selected through a formal procurement process.
The contract addresses a critical operational need for the VAMC, ensuring public health and safety.

Sector Analysis

The healthcare support services sector, particularly waste management, is a critical component of hospital and clinic operations. This contract falls within the broader environmental services industry, specifically focusing on hazardous and medical waste. The North American Industry Classification System (NAICS) code 562211 (Hazardous Waste Treatment and Disposal) indicates a specialized market. Spending in this area is driven by regulatory compliance and the need for safe handling of biohazardous materials, making it a consistent requirement for healthcare facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary focus was on securing the best value through full and open competition, which may have favored larger, more established providers capable of meeting the stringent requirements for medical waste disposal.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers responsible for VISN 4. The VA has established procurement regulations and oversight mechanisms to ensure contractor performance and compliance. The fixed-price contract type provides a degree of financial oversight. Transparency is facilitated through contract databases like FPDS. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Veterans Health Administration (VHA) Medical Support Contracts
Department of Veterans Affairs Environmental Services
Hazardous Waste Management Services
Medical Facility Support Services

Risk Flags

Competition Method Specificity
Contractor Performance History Verification
Price Reasonableness Analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9,130 to NEIE MEDICAL WASTE SERVICES, LLC. REGULATED MEDICAL WASTE TRANSPORTATION AND DISPOSAL FOR VISN 4. BUTLER VAMC OP #2

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 $9,130.

What is the period of performance?

Start: 2026-07-01. End: 2027-06-30.

What is the track record of NEIE MEDICAL WASTE SERVICES, LLC with the federal government, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that NEIE MEDICAL WASTE SERVICES, LLC has been awarded multiple contracts, primarily with the Department of Veterans Affairs. These contracts often pertain to medical waste disposal and related services across various VA facilities. While specific performance metrics for past contracts are not detailed in this summary, the consistent award of contracts suggests a level of satisfactory performance and capability recognized by the VA. Further analysis would involve examining past performance evaluations, any reported disputes, or contract modifications to gain a comprehensive understanding of their track record.

How does the awarded price of $913,000 compare to similar regulated medical waste contracts for VAMC facilities?

Benchmarking the $913,000 contract value requires comparing it against contracts for similar services (regulated medical waste transportation and disposal) at VAMC facilities of comparable size and patient volume. Without specific data on the Butler VAMC's waste generation rates or the exact scope of services included (e.g., frequency of pickup, types of waste handled), a precise comparison is challenging. However, for a one-year contract covering a single VAMC, this amount appears to be within a reasonable range for specialized waste management services, especially considering the regulatory compliance and safety standards involved. A detailed comparison would necessitate access to cost data from analogous contracts.

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

The primary risks include potential service disruptions if the contractor fails to perform adequately, price increases in future renewals, and ensuring compliance with all environmental and health regulations. Mitigation strategies are embedded in the contract structure: the fixed-price type caps the government's financial exposure. The 'full and open competition' requirement encourages providers to offer competitive pricing and reliable service to win the contract. Furthermore, the VA's oversight mechanisms, including performance monitoring and the potential for contract termination for default, serve as deterrents against non-performance. The relatively short one-year duration also allows for reassessment and potential re-competition.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers in this context?

This procurement method aims to balance the benefits of broad competition with the need to potentially exclude sources that may not meet specific, stringent requirements or have a history of poor performance. By starting with a broader pool and then potentially excluding specific entities based on defined criteria, the VA seeks to ensure that only qualified and capable vendors participate in the final bidding. This can lead to a competitive environment among suitable providers, potentially driving down costs and improving service quality. However, the effectiveness hinges on the justification for excluding sources; if exclusions are arbitrary, it could limit competition and reduce taxpayer value. Transparency in the exclusion rationale is key.

What is the historical spending trend for regulated medical waste disposal at the Butler VAMC or VISN 4?

Analyzing historical spending for regulated medical waste disposal at the Butler VAMC or VISN 4 would provide context for the current $913,000 award. Without access to historical contract data specific to this facility or region, it's difficult to ascertain trends. However, spending in this area is generally driven by patient volume and regulatory requirements, which tend to be relatively stable year-over-year, barring significant changes in facility operations or waste management regulations. A consistent need for these services suggests that annual spending likely fluctuates within a predictable range, making the current award a continuation of essential operational support.

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: $9,130

Exercised Options: $9,130

Current Obligation: $9,130

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