DoD's $187.6M Contract for Other Waste Collection Awarded to Environmental Chemical Corporation

Contract Overview

Contract Amount: $187,593,922 ($187.6M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2005-10-05

End Date: 2006-02-28

Contract Duration: 146 days

Daily Burn Rate: $1.3M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $187.6 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: Key points: 1. The contract value of $187.6 million is substantial for waste collection services. 2. Full and open competition after exclusion of sources suggests a specific, potentially limited, market. 3. The short duration (146 days) may indicate a need for immediate service or a pilot program. 4. The contract was awarded to a single entity, Environmental Chemical Corporation. 5. The North American Industry Classification System (NAICS) code 562119 covers Other Waste Collection.

Value Assessment

Rating: fair

The contract value of $187.6 million for a 146-day period appears high on a daily basis. Benchmarking against similar waste collection contracts would be necessary to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' indicates that while the competition was open, certain sources were initially excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The significant contract value suggests a considerable taxpayer investment in waste collection services.

Public Impact

Taxpayers are funding a large contract for essential waste management services. The specific nature of 'Other Waste Collection' may involve specialized environmental or hazardous waste handling. The short contract duration could lead to frequent re-solicitation and associated administrative costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • High contract value for a short duration.
  • Limited competition indicated by 'exclusion of sources'.
  • Lack of small business participation.

Positive Signals

  • Awarded under full and open competition.
  • Clear service requirement for waste collection.

Sector Analysis

The waste collection sector, particularly for government contracts, often involves specialized services and stringent regulatory compliance. Benchmarks for similar large-scale waste management contracts would provide further context.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'SB' (Small Business) flag is false. This suggests the contract may have been too large or specialized for small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms would apply, but the short duration might limit long-term performance monitoring.

Related Government Programs

  • Other Waste Collection
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • High cost per day.
  • Potential for limited competition due to source exclusion.
  • No small business participation.
  • Short contract duration may indicate urgency or a temporary solution, requiring further investigation.

Tags

other-waste-collection, department-of-defense, la, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $187.6 million to ENVIRONMENTAL CHEMICAL CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL CHEMICAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $187.6 million.

What is the period of performance?

Start: 2005-10-05. End: 2006-02-28.

What specific types of waste are covered under 'Other Waste Collection' for this contract, and how does this impact the cost?

The 'Other Waste Collection' category (NAICS 562119) is broad and can encompass specialized services like hazardous waste, industrial waste, or medical waste. The specific nature of the waste dictates handling, transportation, and disposal requirements, significantly influencing costs due to regulatory compliance, specialized equipment, and disposal fees. Without this detail, a precise cost assessment is difficult.

What were the reasons for excluding certain sources in the 'full and open competition after exclusion of sources' process, and did this impact the final price?

Excluding sources typically occurs when specific capabilities, certifications, or past performance are required that only a subset of potential bidders possess. This can limit competition, potentially leading to higher prices if the remaining bidders face less pressure to offer the lowest cost. The impact on price depends on the number of bidders remaining and the competitiveness of their proposals.

Given the $187.6 million value and 146-day duration, what is the assessed value for money and potential for cost savings?

The daily cost implied by this contract is exceptionally high, suggesting either highly specialized services or potential overpricing. Without detailed service requirements and market benchmarks for similar urgent or specialized waste collection, it's difficult to definitively assess value for money. Opportunities for savings might exist through more competitive bidding processes or by breaking down the requirement into smaller, more manageable contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesWaste CollectionOther Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY, BURLINGAME, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P805D0023

IDV Type: IDC

Timeline

Start Date: 2005-10-05

Current End Date: 2006-02-28

Potential End Date: 2006-02-28 00:00:00

Last Modified: 2010-03-13

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