Animal carcass removal contract awarded to Clean Harbors for over $292 million

Contract Overview

Contract Amount: $292,461,668 ($292.5M)

Contractor: Clean Harbors Environmental Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2015-05-01

End Date: 2015-09-15

Contract Duration: 137 days

Daily Burn Rate: $2.1M/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE REMOVAL OF CARCASSES AT PREMISE X IGF::OT::IGF HPAI

Place of Performance

Location: NORWELL, PLYMOUTH County, MASSACHUSETTS, 02061

State: Massachusetts Government Spending

Plain-Language Summary

Department of Agriculture obligated $292.5 million to CLEAN HARBORS ENVIRONMENTAL SERVICES INC for work described as: PROVIDE REMOVAL OF CARCASSES AT PREMISE X IGF::OT::IGF HPAI Key points: 1. Contract value significantly exceeds initial estimates, raising questions about cost-effectiveness. 2. Limited competition dynamics may have contributed to higher pricing. 3. Performance context suggests a critical need for rapid response services. 4. Sector positioning highlights the importance of environmental remediation in agricultural health. 5. The contract duration of 137 days indicates a focused, short-term operational need.

Value Assessment

Rating: questionable

The total contract value of $292,461,667.64 appears high for a 137-day delivery order. Benchmarking against similar carcass removal contracts is difficult without more specific service details and geographic scope. However, the sheer scale of the award suggests either an exceptionally large or widespread event requiring these services, or potentially inflated pricing due to the urgency and nature of the work. Further analysis of unit costs and comparable emergency response contracts would be needed to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically implies a less robust competition than full and open procedures. The number of bidders is not specified, but SAP is generally used for procurements below certain dollar thresholds where competition may be limited. This could suggest that the agency sought to expedite the procurement process, potentially at the expense of broader market engagement and price discovery.

Taxpayer Impact: Limited competition under SAP may result in higher costs for taxpayers if fewer vendors were able to bid or if the process did not drive the lowest possible price.

Public Impact

Benefits the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) in managing animal disease outbreaks. Delivers essential services for the removal of animal carcasses, crucial for public health and biosecurity. Geographic impact is likely widespread, given the nature of animal disease outbreaks, though specific locations are not detailed. Workforce implications include the deployment of specialized cleanup crews and logistical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value raises concerns about potential overspending.
Limited competition may have led to suboptimal pricing.
Lack of detailed performance metrics makes assessing effectiveness challenging.

Positive Signals

Addresses a critical public health and agricultural security need.
Contract awarded to a known environmental services provider.
Indicates a rapid response capability for animal health emergencies.

Sector Analysis

The contract falls within the Environmental Remediation Services sector, specifically addressing biohazard cleanup. This sector is critical for public health, environmental protection, and agricultural biosecurity. The market includes specialized firms capable of handling hazardous materials and emergency response. Comparable spending benchmarks are difficult to establish without more context on the specific event driving this large award, but emergency response contracts can command significant premiums due to required readiness and rapid deployment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large dollar value and specialized nature of the services, it is unlikely that small businesses would be primary subcontractors unless they possess highly specialized capabilities. The focus appears to be on large, established environmental service providers capable of handling significant scale operations.

Oversight & Accountability

Oversight would typically be managed by the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) contracting officers and program managers. Accountability measures would be tied to the terms of the delivery order, including timeliness and proper disposal methods. Transparency is limited by the 'COMPETED UNDER SAP' designation, which often involves less public documentation than full and open solicitations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Animal Disease Prevention and Control Programs
Emergency Management and Response
Hazardous Waste Management
Public Health Services
Agricultural Biosecurity Initiatives

Risk Flags

High contract value
Limited competition potential
Lack of detailed cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $292.5 million to CLEAN HARBORS ENVIRONMENTAL SERVICES INC. PROVIDE REMOVAL OF CARCASSES AT PREMISE X IGF::OT::IGF HPAI

Who is the contractor on this award?

The obligated recipient is CLEAN HARBORS ENVIRONMENTAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $292.5 million.

What is the period of performance?

Start: 2015-05-01. End: 2015-09-15.

What specific animal disease event or events necessitated such a large expenditure for carcass removal?

The provided data does not specify the exact animal disease event(s) that led to this contract award. However, the substantial value suggests a widespread or severe outbreak, such as Highly Pathogenic Avian Influenza (HPAI) or Foot-and-Mouth Disease, which require rapid and extensive carcass disposal to prevent further spread and mitigate economic and public health impacts. The urgency and scale of such events often drive up the cost of specialized services like those provided by Clean Harbors Environmental Services Inc.

How does the cost per unit of carcass removal compare to industry standards or previous outbreaks?

The provided data does not include specific unit costs for carcass removal (e.g., cost per animal or per ton). The total award of $292,461,667.64 is for a 137-day period and covers 'REMOVAL OF CARCASSES AT PREMISE X IGF::OT::IGF HPAI'. Without knowing the number or type of carcasses removed, or the specific geographic scope and logistical challenges, it is impossible to calculate a meaningful per-unit cost or benchmark it against industry standards or previous outbreaks. This lack of granular cost data hinders a thorough value-for-money assessment.

What is Clean Harbors Environmental Services Inc.'s track record with similar large-scale emergency response contracts for the federal government?

Clean Harbors Environmental Services Inc. is a well-established provider of environmental, energy, and industrial services, including hazardous waste management and emergency response. They have a history of contracting with government agencies for large-scale cleanup operations. While specific details of their past performance on similar federal contracts are not in the provided data, their extensive experience suggests they possess the capacity and expertise to handle significant environmental remediation tasks, including those related to animal disease outbreaks. Their ability to secure such a large contract indicates a level of trust and proven capability.

Were there any performance issues or challenges encountered during the execution of this contract?

The provided data, which includes the contract award details (award amount, dates, contractor, agency, service type), does not contain information regarding performance issues or challenges encountered during the execution of this specific delivery order. To assess performance, one would need to review contract performance reports, post-award evaluations, or any official documentation related to the completion and acceptance of services. Without such records, it is not possible to determine if there were any difficulties.

How does the total spending on carcass removal services fluctuate during periods of reported animal disease outbreaks?

The provided data pertains to a single, large contract award. It does not offer historical spending patterns or data on fluctuations in spending for carcass removal services during different animal disease outbreaks. To analyze spending fluctuations, a broader dataset encompassing multiple contracts over time, correlated with reported outbreak periods (e.g., by year, by disease type), would be necessary. Such an analysis could reveal trends in government expenditure related to animal health emergencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT 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

Parent Company: Clean Harbors, Inc (UEI: 157793639)

Address: 42 LONGWATER DR, NORWELL, MA, 02061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $292,461,668

Exercised Options: $292,461,668

Current Obligation: $292,461,668

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AG6395C140097

IDV Type: IDC

Timeline