DoD's $84.5M environmental remediation contract awarded to Environmental Chemical Corporation shows fair value with 27 offers

Contract Overview

Contract Amount: $84,548,426 ($84.5M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2004-11-04

End Date: 2008-09-30

Contract Duration: 1,426 days

Daily Burn Rate: $59.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 27

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Plain-Language Summary

Department of Defense obligated $84.5 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: Key points: 1. The contract's value appears reasonable given the scope of environmental remediation services. 2. Strong competition with 27 offers suggests a healthy market for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns. 4. Performance duration of 1426 days indicates a long-term commitment to site cleanup. 5. The contract aligns with the Department of Defense's ongoing environmental stewardship responsibilities. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total award amount of $84.5 million over approximately four years for environmental remediation services appears to be within a reasonable range for large-scale projects. Benchmarking against similar large-scale environmental cleanup contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The CPFF structure, while common for complex projects, warrants scrutiny for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with a significant number of 27 offers received. This high level of competition is a positive indicator, suggesting that the marketplace has sufficient capacity and interest in providing these specialized remediation services. A robust bidding process generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive proposals, maximizing the value of federal funds allocated for environmental cleanup.

Public Impact

The primary beneficiaries are the Department of Defense and potentially surrounding communities impacted by environmental contamination. Services delivered include the remediation of hazardous substances and pollutants at military installations. The geographic impact is specific to the military sites requiring cleanup, contributing to environmental restoration. Workforce implications include employment for environmental scientists, engineers, technicians, and construction labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs to achieve a higher fixed fee, potentially leading to cost overruns if not managed diligently.
Lack of specific performance metrics or quality indicators in the provided data makes it difficult to assess the effectiveness of the remediation efforts.
The long duration of the contract (1426 days) increases the risk of scope creep or unforeseen environmental challenges that could impact the final cost and timeline.

Positive Signals

Awarded under full and open competition with 27 offers, indicating a robust and competitive bidding process.
The contract addresses critical environmental remediation needs for the Department of Defense, contributing to environmental compliance and safety.
The contractor, Environmental Chemical Corporation, has a history of performing environmental services, suggesting relevant experience.

Sector Analysis

Environmental remediation services represent a significant sector within government contracting, driven by regulatory requirements and the need to address historical contamination at federal facilities. The market includes specialized firms capable of handling hazardous waste, site assessment, and cleanup operations. Spending in this sector is often influenced by environmental regulations, agency cleanup mandates, and the age of federal infrastructure. This contract fits within the broader category of environmental services, which can range from consulting and monitoring to large-scale remediation projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting by Environmental Chemical Corporation, if they choose to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Environmental Restoration, Superfund
Hazardous Waste Management
Site Remediation Services
Defense Environmental Programs

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Unforeseen Site Conditions
Regulatory Compliance Changes
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.5 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 Air Force).

What is the total obligated amount?

The obligated amount is $84.5 million.

What is the period of performance?

Start: 2004-11-04. End: 2008-09-30.

What is the track record of Environmental Chemical Corporation in performing similar large-scale environmental remediation contracts for the Department of Defense?

Environmental Chemical Corporation has a history of performing environmental remediation services for various government agencies, including the Department of Defense. Their experience often includes hazardous waste management, site assessment, and cleanup operations. To fully assess their track record for this specific contract, a deeper dive into past performance reviews, any documented issues or successes on similar projects, and their financial stability would be necessary. Reviewing contract databases for past awards and performance evaluations can provide insights into their reliability and capability in executing complex environmental projects within budget and schedule.

How does the awarded amount of $84.5 million compare to the average cost of similar environmental remediation projects for the Department of Defense?

The awarded amount of $84.5 million for environmental remediation services over approximately four years is substantial, reflecting the complexity and scale typical of DoD cleanup projects. Without specific details on the scope of work (e.g., type of contaminants, size of the affected area, remediation technologies employed), a direct comparison is challenging. However, large-scale environmental remediation contracts for federal agencies can range from tens to hundreds of millions of dollars. Factors influencing cost include regulatory requirements, site conditions, and the chosen remediation approach. A benchmark analysis against contracts with similar scope, duration, and geographic location would be needed for a precise value assessment.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this environmental remediation project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost incurred. If not managed diligently through robust oversight and cost controls, this can lead to cost overruns. For environmental remediation, unforeseen site conditions, changes in regulatory requirements, or the need for more extensive cleanup than initially anticipated can significantly increase costs, and the CPFF structure means the government bears the brunt of these increases while the contractor's fee is protected.

What is the expected impact of this contract on environmental quality at the specific military installation(s) involved?

This contract is expected to significantly improve environmental quality by addressing and remediating hazardous substances and pollutants at designated military installation(s). The specific impact will depend on the nature of the contamination and the effectiveness of the remediation technologies employed. Successful execution should lead to the reduction or elimination of environmental risks, compliance with federal and state environmental regulations (such as CERCLA/Superfund), and the restoration of affected land and water resources. This contributes to the overall environmental stewardship mission of the Department of Defense and can mitigate long-term environmental liabilities.

How has federal spending on environmental remediation services for the Department of Defense trended over the past five years?

Federal spending on environmental remediation services for the Department of Defense has historically been significant, driven by the vast number of active and former military sites requiring cleanup. While specific year-over-year trends can fluctuate based on budget allocations, regulatory changes, and the prioritization of cleanup sites, the overall spending remains substantial. Factors such as increased focus on PFAS remediation, aging infrastructure, and evolving environmental standards can influence spending levels. Analyzing historical data from sources like USAspending.gov or agency budget reports would reveal detailed trends, including peaks and troughs in obligated amounts for environmental restoration and remediation categories.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 27

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8672

IDV Type: IDC

Timeline