VA awards $1.6M for regulated medical waste services, with one bid received

Contract Overview

Contract Amount: $160,398 ($160.4K)

Contractor: Neie Medical Waste Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $439/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REGULATED MEDICAL WASTE VISN WIDE

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26301

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $160,397.63 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: REGULATED MEDICAL WASTE VISN WIDE Key points: 1. The contract value of $1.6M appears reasonable for a national scope, but specific service metrics are needed for a full value assessment. 2. Limited competition (one bid) raises concerns about potential overpricing and reduced incentive for cost efficiency. 3. The firm-fixed-price contract type shifts risk to the contractor, which is generally positive for the government. 4. Performance is for a one-year period, allowing for re-evaluation of competition and pricing in the future. 5. This contract falls within the hazardous waste collection sector, a critical but often overlooked area of government operations. 6. The award was made under the Simplified Acquisition Procedures (SAP), indicating an expectation of a smaller, less complex procurement.

Value Assessment

Rating: fair

The contract value of $1.6M for regulated medical waste services across a VISN (Veterans Integrated Service Network) is difficult to benchmark without more granular data on the volume and types of waste handled. However, given the critical nature of medical waste disposal and the regulatory compliance involved, the price may be within a reasonable range. The firm-fixed-price structure is advantageous for the government, locking in costs. Further analysis would require comparing per-pound or per-facility costs to similar contracts in other VISNs or federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for less formal competition. Only one bid was received, indicating potentially limited market interest or a lack of outreach to potential vendors. While SAP is designed for smaller procurements, the low number of bids suggests that the competition dynamics may not have been optimal for price discovery. This could be due to the specialized nature of the service, the geographic scope, or the specific requirements of the solicitation.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most competitive pricing. With only one offer, the VA had less leverage to negotiate a lower price, potentially leading to higher costs than if multiple vendors had competed.

Public Impact

Veterans receiving care within the specified VISN will benefit from safe and compliant disposal of regulated medical waste, ensuring a sanitary healthcare environment. The services delivered include the collection and disposal of hazardous medical waste, a critical public health function. The geographic impact is VISN-wide, covering facilities and operations within West Virginia. This contract supports the operational infrastructure of the VA healthcare system, indirectly impacting healthcare professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) may result in higher costs for taxpayers.
Lack of robust competition could reduce incentives for the contractor to innovate or improve service efficiency.
The specialized nature of medical waste disposal might limit the pool of qualified and willing bidders.

Positive Signals

Firm-fixed-price contract type transfers cost overrun risk to the contractor.
Award under SAP suggests a streamlined process for a procurement of this size.
Ensures compliance with critical environmental and health regulations for medical waste.

Sector Analysis

The hazardous waste collection industry is a specialized segment of the broader waste management sector. It involves the collection, transportation, treatment, and disposal of waste materials that pose a substantial or potential threat to public health or the environment. Federal agencies, particularly those in healthcare like the VA, are significant consumers of these services due to the nature of medical operations. Market size for hazardous waste disposal is substantial, driven by regulatory requirements and industrial activity. This contract fits within the government's need for essential, regulated services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the limited competition and the specialized nature of regulated medical waste disposal, it is unlikely that small businesses were significantly impacted as subcontractors unless they are specialized providers within this niche. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature of the contract means that the government's primary oversight concern will be ensuring the contractor meets the defined service requirements and performance standards. Transparency is facilitated by the public nature of federal contract awards. While no specific Inspector General jurisdiction is mentioned, the VA Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Medical Waste Disposal Services
Hazardous Waste Management
Veterans Affairs Healthcare Operations
Environmental Services Contracts

Risk Flags

Limited competition
Potential for price inflation due to single bid

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $160,397.63 to NEIE MEDICAL WASTE SERVICES, LLC. REGULATED MEDICAL WASTE VISN WIDE

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 $160,397.63.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern for regulated medical waste services within this VA VISN?

Analyzing historical spending for regulated medical waste services within this specific VA VISN is crucial for context. Without access to prior contract data for this VISN, it's difficult to establish a baseline. However, if previous contracts were significantly lower or higher, it would warrant further investigation. A consistent increase in spending could indicate rising costs or expanding service needs, while a decrease might suggest improved efficiency or reduced scope. Understanding the trend allows for a more informed assessment of the current $1.6M award's value and whether it represents an anomaly or a continuation of a pattern.

How does the per-unit cost of this contract compare to similar medical waste disposal contracts awarded by other federal agencies or VISNs?

Benchmarking the per-unit cost against similar contracts is essential for evaluating value for money. Since 'per-unit' is not explicitly defined in the provided data (e.g., per pound, per facility, per pickup), a direct comparison is challenging. However, if data were available on the volume of waste handled or the number of facilities serviced, we could derive approximate unit costs. For instance, if other VISNs or agencies of similar size are paying significantly less for comparable services, it would suggest that this contract may be overpriced due to the limited competition. Conversely, if costs are in line or lower, it indicates potentially fair pricing despite the single bid.

What specific services are included in the 'regulated medical waste' and how are they quantified for this contract?

The term 'regulated medical waste' encompasses a range of biohazardous materials, including sharps, cultures, contaminated items, and pathological waste. For this contract, understanding the specific breakdown and quantification is key to assessing value. Does the $1.6M cover a fixed number of pickups, a maximum weight limit, or a comprehensive service for all facilities within the VISN? Without this detail, it's hard to determine if the price is justified. If the contract is for an indefinite quantity or based on actual usage, the $1.6M represents an estimated ceiling. A detailed service level agreement (SLA) and clear metrics for waste generation and disposal are necessary for a thorough evaluation.

What is the track record of NEIE MEDICAL WASTE SERVICES, LLC in performing similar government contracts?

Evaluating the track record of NEIE MEDICAL WASTE SERVICES, LLC is important for assessing performance risk. Information on past performance, including contract history, customer satisfaction ratings, and any instances of disputes or contract terminations, would provide insight into their reliability and capability. If the company has a history of successful, on-time delivery of similar services to government entities, it would increase confidence in their ability to meet the requirements of this VA contract. Conversely, a history of performance issues would raise concerns about potential disruptions to critical medical waste disposal services.

What efforts were made by the VA to solicit bids from a wider range of qualified vendors for this requirement?

Given that only one bid was received under Simplified Acquisition Procedures (SAP), understanding the VA's solicitation strategy is important. SAP allows for less formal competition, but agencies are still expected to conduct market research and reach out to potential sources. It would be beneficial to know if the solicitation was posted on relevant government contracting portals (like SAM.gov), if specific outreach was made to known providers of medical waste services, or if there were any unique requirements in the solicitation that might have deterred other bidders. The level of effort in outreach directly impacts the quality of competition achieved.

Are there any specific regulatory or logistical challenges in West Virginia that might explain the limited competition for medical waste services?

The geographic location (West Virginia) and the nature of regulated medical waste disposal could present unique challenges that explain the limited competition. Factors such as the density of healthcare facilities, the availability of licensed disposal sites, transportation logistics, and state-specific environmental regulations could influence the number of capable and willing bidders. If West Virginia has a limited number of licensed medical waste disposal companies operating within the state or serving its facilities, it could naturally lead to fewer offers. Understanding these regional factors is key to determining if the single bid was an anomaly or a reflection of market realities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Hazardous Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12 WEST 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: $203,984

Exercised Options: $203,984

Current Obligation: $160,398

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24521D0007

IDV Type: IDC

Timeline