VA awards $516K contract for regulated medical waste removal to NEIE Medical Waste Services

Contract Overview

Contract Amount: $515,997 ($516.0K)

Contractor: Neie Medical Waste Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-09

End Date: 2027-03-08

Contract Duration: 364 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TVHS REGULATED MEDICAL WASTE AND SHARPS REMOVAL

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $515,997.12 to NEIE MEDICAL WASTE SERVICES, LLC for work described as: TVHS REGULATED MEDICAL WASTE AND SHARPS REMOVAL Key points: 1. Contract awarded for essential medical waste services, ensuring compliance and safety. 2. Competition dynamics indicate a potentially competitive bidding process for this service. 3. Performance period extends over one year, suggesting ongoing need for waste management. 4. The contract falls within the hazardous waste collection sector, a critical public service. 5. Fixed-price contract type helps manage cost certainty for the agency.

Value Assessment

Rating: good

The contract value of approximately $516,000 for a one-year period for regulated medical waste and sharps removal appears reasonable given the critical nature of the service. Benchmarking against similar contracts for hazardous waste collection by the VA or other federal agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract offers cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process for awards under $250,000, though this award is above that threshold. The data indicates it was 'COMPETED UNDER SAP', which typically implies multiple bids were solicited and evaluated. The level of competition, while not explicitly detailed in terms of bidder count, is presumed to be adequate for this service category under SAP.

Taxpayer Impact: A competed award under SAP generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

Beneficiaries include veterans receiving care at VA facilities in Tennessee. Services delivered are the collection, transportation, and disposal of regulated medical waste and sharps. Geographic impact is focused on Tennessee, serving specific VA medical centers or clinics. Workforce implications are minimal, primarily involving specialized waste management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if waste volumes exceed initial estimates under a firm fixed-price contract.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Contract ensures compliance with stringent environmental and health regulations for medical waste.
Fixed-price contract provides budget certainty for the Department of Veterans Affairs.
Competition under SAP suggests a reasonable market price was likely achieved.

Sector Analysis

The hazardous waste collection industry (NAICS 561720) is a vital component of environmental services, ensuring safe disposal of potentially infectious materials. This contract fits within the broader waste management sector, which is characterized by specialized services and regulatory compliance. Spending in this area is driven by healthcare facility needs and environmental protection mandates. Comparable spending benchmarks would typically be assessed based on contract size, service scope, and geographic region.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if NEIE Medical Waste Services, LLC is a small business. Further analysis would be needed to determine subcontracting opportunities for small businesses and the overall impact on the small business ecosystem within this sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Veterans Affairs. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Waste Disposal Contracts
Federal Hazardous Waste Management
Healthcare Environmental Services

Risk Flags

Potential for service disruption if contractor fails to perform.
Regulatory compliance risks associated with medical waste disposal.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $515,997.12 to NEIE MEDICAL WASTE SERVICES, LLC. TVHS REGULATED MEDICAL WASTE AND SHARPS REMOVAL

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 $515,997.12.

What is the period of performance?

Start: 2026-03-09. End: 2027-03-08.

What is the track record of NEIE Medical Waste Services, LLC with federal contracts?

A review of federal procurement data indicates that NEIE Medical Waste Services, LLC has been awarded contracts primarily within the Department of Veterans Affairs and other health-related federal agencies. Their contract history often involves services related to medical waste management, sharps disposal, and similar environmental health services. The value and duration of these contracts vary, but they generally align with the specialized nature of medical waste handling. Analyzing the performance history, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and capability in fulfilling federal requirements. Without specific performance metrics from past contracts, it's difficult to definitively assess their track record beyond the types of services they have provided.

How does the awarded price compare to similar regulated medical waste removal contracts?

Benchmarking this $516,000 contract against similar regulated medical waste and sharps removal contracts requires access to a broader dataset of federal procurements with comparable service scopes, geographic locations, and contract durations. The provided data indicates a one-year firm fixed-price contract. To assess value for money, one would compare the per-pound or per-container cost, or a cost per facility served, against similar contracts awarded by the VA or other agencies like HHS or DoD. Given that this is a critical, highly regulated service, prices can vary significantly based on the volume and type of waste, as well as local disposal costs and transportation distances. A preliminary assessment suggests the value is within a typical range for such specialized services, but a detailed comparison is necessary for a definitive conclusion.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance failures by the contractor, such as missed pickups, improper disposal, or non-compliance with regulations, which could lead to health hazards and regulatory penalties for the VA. Another risk is cost escalation if the volume of regulated medical waste significantly exceeds projections, although the firm fixed-price structure aims to mitigate this for the government. Contractor viability is also a risk; if NEIE Medical Waste Services, LLC faces financial difficulties or operational disruptions, it could interrupt essential services. Finally, there's a risk of regulatory changes impacting disposal methods or costs, which could affect the contract's execution or require modifications.

How effective is the competition level in ensuring fair pricing for taxpayers?

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures). While SAP is designed for smaller purchases (typically under $250,000), it can be used for larger amounts if justified. The fact that it was competed suggests that multiple offers were solicited and evaluated, which generally promotes fair pricing. However, the specific number of bidders and the evaluation process under SAP are less transparent than full and open competition. If only a few bidders participated, or if the market for specialized medical waste removal in Tennessee is limited, the competition might not have driven prices down to the absolute lowest possible level. Nonetheless, competition, even under SAP, is generally more favorable for taxpayers than a sole-source award.

What is the historical spending pattern for regulated medical waste removal by the VA?

Historical spending by the Department of Veterans Affairs on regulated medical waste removal and similar hazardous waste services is substantial, reflecting the extensive network of VA healthcare facilities nationwide. Annual spending can fluctuate based on facility needs, contract renewals, and the number of active contracts. The VA consistently procures these services to ensure compliance with health and environmental regulations. Analyzing past spending trends would reveal patterns in contract values, durations, and the types of competition utilized. This specific contract's value of approximately $516,000 for one year appears consistent with the scale of services required for a regional or specific facility need within the VA system.

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: SIMPLIFIED ACQUISITION

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: $2,301,558

Exercised Options: $1,404,056

Current Obligation: $515,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24924D0049

IDV Type: IDC

Timeline