DoD's $26.8M contract for munitions storage at Andrews AFB awarded to Charter Environmental, Inc

Contract Overview

Contract Amount: $26,813,154 ($26.8M)

Contractor: Charter Environmental, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-15

End Date: 2017-02-06

Contract Duration: 2,124 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MUNITIONS STORAGE AREA, ANDREWS AFB, MD

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02118

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to CHARTER ENVIRONMENTAL, INC. for work described as: MUNITIONS STORAGE AREA, ANDREWS AFB, MD Key points: 1. The contract value of $26.8 million represents a significant investment in critical infrastructure. 2. Competition dynamics indicate a full and open process after exclusion of sources, suggesting a deliberate selection. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (2124 days) suggests a substantial, long-term project. 5. The project falls under the broad category of commercial and institutional building construction. 6. The award was made by the Department of the Air Force, a key branch of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the scope of work and market conditions at the time of award. However, the fixed-price nature of the contract is a positive indicator for value, as it shifts cost risk to the contractor. The duration suggests a comprehensive project, and the price should be evaluated against similar large-scale construction projects for military installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was broad, there may have been specific criteria or pre-qualifications that led to the exclusion of certain potential bidders. The number of bids received (7) indicates a moderate level of competition, which is generally favorable for price discovery.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally leads to better pricing for taxpayers compared to sole-source awards. The fact that multiple firms participated suggests that the government likely received a range of price proposals, allowing for selection of a cost-effective option.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Andrews AFB, who will gain improved munitions storage capabilities. The services delivered include the construction and potentially outfitting of a munitions storage area. The geographic impact is localized to Andrews AFB, Maryland, enhancing its operational readiness. The contract likely supported jobs in the construction sector, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'exclusion of sources' limited competition more than intended.
Risk associated with the long contract duration, which could see material cost fluctuations.
Ensuring the final construction meets all stringent safety and security requirements for munitions storage.

Positive Signals

Fixed-price contract type limits the government's exposure to cost increases.
Award to a single contractor streamlines project management and accountability.
The competitive nature of the award process suggests a focus on achieving a fair market price.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on specialized facilities for defense purposes. The market for defense construction is characterized by stringent requirements, security protocols, and often involves large-scale projects. Comparable spending benchmarks would typically involve other military base construction or renovation projects, which can vary significantly in cost based on location, scope, and specific facility needs.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While the prime contractor, Charter Environmental, Inc., may be a small business, the contract itself was not specifically designated for small business set-aside. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this award summary. The overall impact on the small business ecosystem would depend on the extent of any subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
Air Force Civil Engineer Center projects

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration may expose project to market volatility.
Specialized nature of munitions storage requires strict adherence to safety and security standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to CHARTER ENVIRONMENTAL, INC.. MUNITIONS STORAGE AREA, ANDREWS AFB, MD

Who is the contractor on this award?

The obligated recipient is CHARTER ENVIRONMENTAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2011-04-15. End: 2017-02-06.

What specific types of munitions were intended to be stored in this facility, and what are the associated security and environmental requirements?

The provided data does not specify the types of munitions. However, munitions storage facilities typically require specialized construction to meet stringent safety regulations, including blast mitigation, climate control, fire suppression, and security measures to prevent unauthorized access or theft. Environmental requirements would focus on containment of hazardous materials and compliance with EPA regulations. The specific requirements would dictate the complexity and cost of the construction.

How does the per-square-foot construction cost of this facility compare to similar munitions storage projects at other military installations?

Without the square footage or detailed cost breakdowns, a direct per-square-foot cost comparison is not possible. However, the total award of $26.8 million for a munitions storage area suggests a substantial facility. To benchmark, one would need to identify comparable projects awarded around the same time (2011-2017) by the DoD or Air Force for similar storage needs, factoring in regional construction cost variations and specific security enhancements required for different classes of munitions.

What was the rationale for excluding certain sources from the full and open competition?

The exclusion of sources in a 'full and open competition after exclusion of sources' award typically implies that a Sources Sought notice or similar market research was conducted, and only those firms demonstrating specific capabilities, past performance, or meeting certain pre-qualification criteria were invited to submit proposals. This is often done to ensure that only technically capable contractors participate, potentially streamlining the evaluation process and ensuring a higher likelihood of successful project completion, though it can also limit the breadth of competition.

What is Charter Environmental, Inc.'s track record with large-scale DoD construction contracts, particularly for specialized facilities?

Charter Environmental, Inc.'s track record with large-scale DoD construction contracts, especially for specialized facilities like munitions storage, would need to be assessed through their past performance evaluations and contract history. Information on previous projects, their complexity, adherence to schedule and budget, and client satisfaction would be crucial. A review of their portfolio would indicate their experience in meeting the rigorous demands of military construction, including security and environmental compliance.

Were there any significant cost changes or contract modifications during the performance period of this contract?

The provided data indicates a firm-fixed-price contract type and a duration of 2124 days. While firm-fixed-price contracts aim to minimize changes, modifications can still occur due to unforeseen site conditions, changes in government requirements, or scope adjustments. A detailed contract modification history would be necessary to determine if significant cost changes occurred and the reasons behind them. Without this, we assume the initial award value remained largely consistent.

What were the key performance indicators (KPIs) used to evaluate the contractor's performance on this project?

Key performance indicators for a construction contract of this nature typically include adherence to schedule, quality of workmanship, safety compliance, and meeting all technical specifications outlined in the contract. Performance evaluations would likely involve regular site inspections, progress reports, and potentially client satisfaction surveys. Specific KPIs would be detailed within the contract's Performance Work Statement (PWS) or Statement of Work (SOW).

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 72 JONSPIN RD, WILMINGTON, MA, 01887

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $26,813,154

Exercised Options: $26,813,154

Current Obligation: $26,813,154

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890306D8503

IDV Type: IDC

Timeline