DOE's $54M waste disposal contract awarded to Allied Waste Transportation Inc. for Arizona services
Contract Overview
Contract Amount: $54,224 ($54.2K)
Contractor: Allied Waste Transportation Inc
Awarding Agency: Department of Energy
Start Date: 2024-05-06
End Date: 2027-05-06
Contract Duration: 1,095 days
Daily Burn Rate: $50/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DSW MULTIPLE TRASH REMOVAL AND WASTE DISPOSAL SERVICES (BASE PLUS FOUR OPTION YEARS) WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85009
State: Arizona Government Spending
Plain-Language Summary
Department of Energy obligated $54,223.68 to ALLIED WASTE TRANSPORTATION INC for work described as: DSW MULTIPLE TRASH REMOVAL AND WASTE DISPOSAL SERVICES (BASE PLUS FOUR OPTION YEARS) WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION Key points: 1. Contract aims for efficient waste management, potentially reducing disposal costs through a fixed-price structure. 2. Competition dynamics suggest a potentially competitive bidding process, though details are limited. 3. Risk indicators include potential for cost overruns if waste volumes exceed projections or unforeseen disposal challenges arise. 4. Performance context relies on the contractor's ability to meet service level agreements for timely and compliant waste removal. 5. Sector positioning places this contract within the broader environmental services industry, supporting federal agency operational needs.
Value Assessment
Rating: fair
The contract value of $54.2 million over five years for waste disposal services in Arizona appears within a reasonable range for federal contracts of this nature. Benchmarking against similar solid waste landfill services (NAICS 562212) for federal agencies indicates that pricing is often influenced by geographic location, service scope, and contract duration. Without specific details on the volume of waste or types of disposal required, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty for the government, assuming the estimated volumes are accurate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for acquisitions below a certain threshold. While SAP allows for streamlined processes, it generally aims to maximize competition. The number of bidders is not specified, but the 'COMPETED UNDER SAP' designation suggests that multiple offers were likely solicited and considered, contributing to price discovery and potentially favorable pricing for the government.
Taxpayer Impact: A competed contract under SAP generally benefits taxpayers by fostering competition, which tends to drive down prices and encourage efficient service delivery. This approach helps ensure that federal funds are used judiciously.
Public Impact
The primary beneficiary is the Western Area Power Administration (WAPA) within the Department of Energy, ensuring compliant and efficient waste disposal for its operations in Arizona. Services delivered include the collection, transportation, and disposal of solid waste from WAPA facilities. The geographic impact is concentrated in the Desert Southwest Region of Arizona, supporting federal infrastructure and personnel. Workforce implications are likely to involve local employment opportunities for collection, transportation, and disposal personnel within the Arizona region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for increased costs if waste generation exceeds estimates.
- Dependence on contractor's operational efficiency and compliance with environmental regulations.
- Geographic remoteness of some WAPA facilities could impact service delivery timelines and costs.
Positive Signals
- Firm-fixed-price contract provides budget certainty.
- Competition under SAP suggests potential for good value.
- Contract duration allows for stable service provision.
Sector Analysis
This contract falls within the Environmental Services sector, specifically focusing on solid waste management and disposal. The market for these services is substantial, driven by regulatory requirements and the operational needs of various entities, including government agencies. Comparable spending benchmarks for federal waste disposal contracts vary widely based on location, volume, and service complexity. This contract represents a typical procurement for essential operational support within the federal government's energy sector.
Small Business Impact
The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Allied Waste Transportation Inc. chooses to engage small businesses for any portion of the services. Without specific subcontracting plans, the direct impact on small businesses is unclear.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the Department of Energy's Western Area Power Administration. Accountability measures are embedded in the contract's performance standards and the firm-fixed-price structure, which incentivizes the contractor to meet service requirements within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed operational oversight are internal to the agency.
Related Government Programs
- Federal Waste Management Services
- Department of Energy Operational Support
- Environmental Services Contracts
- Western Area Power Administration Operations
Risk Flags
- Potential for cost increases if waste volumes exceed projections.
- Dependence on contractor's compliance with environmental regulations.
- Limited visibility into specific performance metrics and contractor history.
Tags
waste-disposal, solid-waste-landfill, department-of-energy, western-area-power-administration, arizona, purchase-order, firm-fixed-price, competed-under-sap, environmental-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $54,223.68 to ALLIED WASTE TRANSPORTATION INC. DSW MULTIPLE TRASH REMOVAL AND WASTE DISPOSAL SERVICES (BASE PLUS FOUR OPTION YEARS) WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION
Who is the contractor on this award?
The obligated recipient is ALLIED WASTE TRANSPORTATION INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $54,223.68.
What is the period of performance?
Start: 2024-05-06. End: 2027-05-06.
What is the historical spending pattern for waste disposal services by the Western Area Power Administration in Arizona?
Historical spending data for waste disposal services by the Western Area Power Administration (WAPA) in Arizona is not directly available in the provided data. However, the current contract, valued at approximately $54.2 million over five years, suggests a consistent need for these services. Federal agencies typically award multi-year contracts for essential services like waste management to ensure continuity and leverage economies of scale. Analyzing past solicitations and awards for similar services within WAPA's Desert Southwest Region would provide a clearer picture of historical spending trends, including contract values, durations, and incumbent contractors. This would help in assessing whether the current award represents an increase, decrease, or stable level of expenditure for these services.
How does the pricing of this contract compare to similar federal waste disposal contracts in the region?
A precise comparison of pricing for this $54.2 million waste disposal contract to similar federal contracts in Arizona is challenging without access to detailed pricing structures and service volumes for comparable contracts. The contract uses a firm-fixed-price (FFP) model, which offers budget certainty but requires accurate volume estimations. Benchmarking would involve analyzing contracts with similar NAICS codes (e.g., 562212 - Solid Waste Landfill) awarded by agencies operating in Arizona. Factors such as the specific types of waste, frequency of collection, distance to disposal sites, and regulatory compliance costs significantly influence pricing. Given that this contract was competed under Simplified Acquisition Procedures (SAP), it suggests an effort to achieve competitive pricing, but a detailed cost-benefit analysis against peer contracts would require more granular data on service scope and unit costs.
What are the key performance indicators (KPIs) for this contract, and how will they be monitored?
Key Performance Indicators (KPIs) for this waste disposal contract are not explicitly detailed in the provided data but are typically established within the contract's Performance Work Statement (PWS). Common KPIs for such services include timely waste collection, adherence to disposal regulations, proper documentation of waste manifests, and maintaining clean and safe work areas. Monitoring these KPIs is usually the responsibility of the Contracting Officer's Representative (COR) or a designated government official. They would likely review contractor reports, conduct site inspections, and track service delivery metrics against the PWS requirements. Failure to meet KPIs could result in contract deficiencies, penalties, or non-renewal, ensuring contractor accountability.
What is the track record of Allied Waste Transportation Inc. in performing similar federal contracts?
Information regarding the specific track record of Allied Waste Transportation Inc. in performing similar federal contracts is not provided in the data. A comprehensive assessment would require reviewing the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for past performance evaluations. These systems typically contain ratings and feedback on a contractor's history related to cost control, schedule adherence, technical performance, and management of resources. Without this information, it is difficult to definitively assess the contractor's reliability and past success in fulfilling government requirements for waste disposal or similar logistical services.
What are the potential risks associated with the firm-fixed-price (FFP) contract type for this service?
The primary risk associated with a firm-fixed-price (FFP) contract for waste disposal services is the potential for the government to overpay if the estimated waste volumes are significantly higher than actual volumes generated. Conversely, the contractor bears the risk if actual costs exceed the fixed price due to unforeseen circumstances like increased fuel prices, labor shortages, or unexpected disposal fees. For the government, effective monitoring of waste generation and service utilization is crucial to ensure the FFP structure remains advantageous. The contractor's incentive is to manage costs efficiently to maintain profit margins, which can lead to cost savings for the government if managed well. However, there's also a risk that the contractor might cut corners on service quality to maintain profitability if not adequately overseen.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Solid Waste Landfill
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 89503124QWA000285
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Republic Services Inc
Address: 2217 E 13TH ST, YUMA, AZ, 85365
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $815,867
Exercised Options: $349,657
Current Obligation: $54,224
Actual Outlays: $21,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-05-06
Current End Date: 2027-05-06
Potential End Date: 2029-05-06 00:00:00
Last Modified: 2026-04-06
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