VA awards $54.7M contract for regulated medical waste services in Pennsylvania to NEIE Medical Waste Services

Contract Overview

Contract Amount: $54,730 ($54.7K)

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: $150/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: COATESVILLE, CHESTER County, PENNSYLVANIA, 19320

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54,730 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: REGULATED MEDICAL WASTE TRANSPORTATION AND DISPOSAL FOR VISN 4: COATESVILLE OP #2. Key points: 1. The contract value of $54.7M over one year is significant for specialized waste disposal. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The fixed-price contract type aims to control costs for hazardous waste treatment and disposal. 4. This service falls under the broader 'Hazardous Waste Treatment and Disposal' sector.

Value Assessment

Rating: good

The contract value of $54.7M for a 364-day duration indicates a substantial annual cost. Benchmarking against similar regulated medical waste contracts would be necessary to fully assess pricing, but the fixed-price structure suggests an attempt at cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while open to all, specific criteria or prior exclusions were applied. This method aims for competitive pricing while ensuring specialized capabilities.

Taxpayer Impact: The fixed-price nature of the contract helps taxpayers by establishing a clear cost ceiling for essential medical waste services.

Public Impact

Ensures safe and compliant disposal of regulated medical waste for Veterans Affairs facilities in VISN 4. Supports public health by preventing the spread of infectious materials. Provides essential services to healthcare operations, maintaining facility functionality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if initial bids did not fully account for all disposal complexities.
Dependence on a single vendor for a critical service could pose supply chain risks.
Ensuring compliance with all environmental and safety regulations for hazardous waste is paramount.

Positive Signals

Contract awarded after full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the VA.
Long-term contract (ending 2027) offers stability for service provision.

Sector Analysis

This contract falls under hazardous waste treatment and disposal, a critical but niche sector. Spending benchmarks for such specialized services can vary widely based on volume, type of waste, and geographic location.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger contracts would apply, focusing on performance, compliance, and financial accountability.

Related Government Programs

Hazardous Waste Treatment and Disposal
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for high costs associated with specialized hazardous waste handling.
Risk of service disruption if the sole awardee faces operational issues.
Ensuring strict adherence to environmental and safety regulations is critical.
Complexity of managing regulated medical waste requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54,730 to NEIE MEDICAL WASTE SERVICES, LLC. REGULATED MEDICAL WASTE TRANSPORTATION AND DISPOSAL FOR VISN 4: COATESVILLE 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 $54,730.

What is the period of performance?

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

What specific factors contributed to the 'exclusion of sources' in this full and open competition, and how did this impact the final price?

The 'exclusion of sources' likely refers to pre-qualification criteria or specific technical requirements that narrowed the field of eligible bidders, even within a full and open framework. This could be due to specialized equipment, certifications, or past performance requirements for handling regulated medical waste. While intended to ensure capability, such exclusions can sometimes limit the number of bidders, potentially influencing price discovery. A thorough review of the solicitation documents would clarify the exact exclusions and their pricing implications.

How does the $54.7M annual cost compare to industry benchmarks for regulated medical waste disposal in the Pennsylvania region?

Benchmarking this $54.7M contract against regional industry standards requires detailed analysis of waste volumes, types (e.g., sharps, biohazards), treatment methods, and transportation distances specific to VISN 4 facilities. Without this granular data, a direct comparison is difficult. However, the significant value suggests a large operational scale or complex disposal needs, warranting a detailed cost-benefit analysis against comparable contracts or service providers in similar healthcare markets.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the effectiveness and compliance of NEIE Medical Waste Services?

Effective oversight likely involves rigorous tracking of waste pickup schedules, chain-of-custody documentation, proper disposal manifests, and adherence to all federal (EPA, OSHA) and state environmental regulations. Key performance indicators would probably include on-time service delivery, waste segregation accuracy, incident reporting (spills, breaches), and compliance audit results. The VA's contracting officer and quality assurance personnel would be responsible for monitoring these KPIs and ensuring NEIE Medical Waste Services meets all contractual obligations.

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: $54,730

Exercised Options: $54,730

Current Obligation: $54,730

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