DoD awards $21.5M construction contract to ECCI-C METAG JV, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $21,452,953 ($21.5M)

Contractor: Ecci-C Metag JV

Awarding Agency: Department of Defense

Start Date: 2011-05-30

End Date: 2023-04-30

Contract Duration: 4,353 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE CLIN:

Plain-Language Summary

Department of Defense obligated $21.5 million to ECCI-C METAG JV for work described as: BASE CLIN: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long contract duration (over 10 years) indicates a sustained need for construction services. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. The contract falls under commercial and institutional building construction, a broad category. 5. No specific small business set-aside was noted, potentially limiting direct small business participation. 6. The award value is moderate within the context of large federal construction projects.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or scope. However, the firm fixed-price structure offers predictability. Comparing it to similar large-scale construction projects awarded by the Department of the Army would provide better context on pricing efficiency. The duration suggests a significant scope of work, and the value appears reasonable for a multi-year construction effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specific award. While multiple bidders participated, the exact number and the nature of their proposals would be needed to fully assess the competitive dynamics and their impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better value for services rendered.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, receiving construction services. The contract supports the maintenance and development of federal infrastructure. Geographic impact is likely localized to the facilities managed by the Department of the Army where construction is performed. Workforce implications include employment opportunities for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and timeliness of construction.
The long duration could lead to scope creep or cost overruns if not managed effectively.
Limited transparency on the specific construction projects undertaken under this contract.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Awarded through full and open competition, indicating a structured procurement process.
Long-term award suggests a consistent need and potential for building a reliable contractor relationship.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. Federal spending in this area is crucial for maintaining and upgrading government facilities, including military bases, administrative buildings, and research centers. Comparable spending benchmarks would involve analyzing other large construction contracts awarded by federal agencies for similar types of structures.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This means that while small businesses could have bid, there was no explicit requirement for a portion of the work to be subcontracted to them. The absence of a small business set-aside or subcontracting plan might limit direct opportunities for small businesses on this particular contract, though they could potentially participate as subcontractors to the prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is generally provided through contract award databases, but detailed project-specific oversight information may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building and Facilities Maintenance
Department of Defense Procurement

Risk Flags

Long contract duration may increase risk of cost escalation and scope creep.
Limited information on specific deliverables and performance metrics.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to ECCI-C METAG JV. BASE CLIN:

Who is the contractor on this award?

The obligated recipient is ECCI-C METAG JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2011-05-30. End: 2023-04-30.

What specific types of construction projects were undertaken under this contract?

The provided data identifies the contract under NAICS code 236220, 'Commercial and Institutional Building Construction.' This broad category suggests projects could range from new building construction, renovations, repairs, to additions for various types of non-residential facilities. Examples might include barracks, administrative offices, maintenance facilities, or training structures on Army installations. Without access to the detailed contract statement of work or delivery orders, the precise nature and scope of individual construction projects remain unspecified in the summary data. Further analysis would require reviewing the contract's official documentation.

How does the awarded value compare to similar construction contracts for the Department of the Army?

The awarded value of approximately $21.5 million for this contract is a moderate figure within the spectrum of federal construction projects. To benchmark effectively, one would need to compare it against other firm fixed-price, full-and-open competition contracts awarded by the Department of the Army for similar types of commercial and institutional building construction over the past few years. Factors such as project complexity, geographic location, and prevailing market rates for labor and materials would need to be considered. A direct comparison with contracts of similar duration and scope would offer the most meaningful insight into whether this award represents good value for money.

What are the potential risks associated with a contract of this duration (over 10 years)?

Contracts spanning over a decade carry inherent risks. One primary risk is the potential for cost escalation beyond initial projections, especially if the contract terms do not adequately account for inflation or changes in material and labor costs over such an extended period. Scope creep is another significant risk, where the project's requirements may expand beyond the original agreement, leading to increased costs and delays. Furthermore, the long duration might reduce the contractor's incentive to innovate or optimize processes if they are assured of continued work. Finally, changes in technology or operational needs within the Department of the Army could render the constructed facilities less suitable over time, requiring further investment.

What is the track record of ECCI-C METAG JV in performing federal construction contracts?

Information regarding the specific track record of 'ECCI-C METAG JV' in performing federal construction contracts is not detailed in the provided summary data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with similar projects, their on-time and on-budget completion rates, and client satisfaction would be crucial for evaluating their reliability and capability for this significant construction award.

How has federal spending in commercial and institutional building construction evolved over the past five years?

Federal spending in the commercial and institutional building construction sector (NAICS 236220) has generally remained robust, driven by the need to maintain and modernize government facilities across various agencies. While specific year-over-year trends can fluctuate based on budget appropriations, economic conditions, and national priorities, there has been a consistent demand for construction services. Factors such as aging infrastructure, security upgrades, and the need for energy-efficient buildings contribute to sustained federal investment in this sector. Analyzing historical spending data from agencies like the Department of Defense, GSA, and others would reveal patterns and potential growth or contraction in this market segment.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W917PM09R0112

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Environmental Chemical Corporation

Address: 1240 BAYSHORE HWY, BURLINGAME, CA, 94010

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,452,953

Exercised Options: $21,452,953

Current Obligation: $21,452,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9JE10D0007

IDV Type: IDC

Timeline