DoD awards $110M contract for waste collection services to ENVIRONMENTAL CHEMICAL CORPORATION
Contract Overview
Contract Amount: $110,274,946 ($110.3M)
Contractor: Environmental Chemical Corporation
Awarding Agency: Department of Defense
Start Date: 2006-02-28
End Date: 2006-09-30
Contract Duration: 214 days
Daily Burn Rate: $515.3K/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
Plain-Language Summary
Department of Defense obligated $110.3 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: Key points: 1. Contract value of $110.3M for waste collection. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Risk assessment indicates potential concerns regarding the competition method. 4. Sector is Other Waste Collection, a niche service area.
Value Assessment
Rating: questionable
The contract value of $110.3M for waste collection services appears high for a 7-month duration. Benchmarking against similar contracts is difficult without more specific service details, but the price per day is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method suggests that while competition was sought, specific criteria or limitations may have restricted the pool of eligible bidders, potentially impacting price discovery.
Taxpayer Impact: The significant contract value raises questions about whether taxpayers received the best possible price due to the limited nature of the competition.
Public Impact
Taxpayers may have overpaid due to limited competition. Environmental services are critical for military operations. The specific nature of 'Other Waste Collection' warrants further clarification.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- High contract value for short duration
- Lack of small business participation
Positive Signals
- Contract awarded by Department of the Army
- Firm Fixed Price contract type
Sector Analysis
The 'Other Waste Collection' sector involves specialized services for managing and disposing of various waste streams. Spending in this area can fluctuate based on environmental regulations and operational needs, but typically involves routine service contracts.
Small Business Impact
The data indicates that small businesses did not participate in this contract, as the 'sb' field is false. This suggests that the requirements may have been too large or specialized for small business capabilities, or that outreach efforts were insufficient.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method requires careful justification to ensure it serves the government's best interest and doesn't unduly restrict competition. Oversight should focus on the rationale for excluding sources.
Related Government Programs
- Other Waste Collection
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have inflated costs.
- Lack of small business participation.
- High value for a short contract duration.
- Ambiguity in 'Other Waste Collection' scope.
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 $110.3 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 $110.3 million.
What is the period of performance?
Start: 2006-02-28. End: 2006-09-30.
What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method for this waste collection contract?
The justification for excluding sources under this procurement method typically relates to unique capabilities, proprietary technology, or specific regulatory requirements that only a limited number of vendors can meet. Without the specific documentation, it's impossible to determine the exact reasons, but it implies that not all potential bidders were considered eligible, potentially impacting the final price achieved.
How does the $110.3M contract value compare to industry benchmarks for similar waste collection services, considering the 7-month period?
Benchmarking this contract's value is challenging without detailed service scope and location. However, a $110.3M award for approximately 7 months suggests a very high daily or monthly cost. Standard waste collection contracts, even for specialized materials, rarely reach such figures for short durations unless extremely unique or hazardous materials are involved, or the scope is exceptionally broad.
What are the potential long-term implications of using 'Full and Open Competition After Exclusion of Sources' for essential services like waste collection?
Repeatedly using 'Full and Open Competition After Exclusion of Sources' can lead to market concentration and reduced innovation if not carefully managed. It may also result in higher costs over time as competition is artificially limited. For essential services, ensuring broad competition or clear, justifiable reasons for exclusion is crucial for sustained value and operational resilience.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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: YES
Parent Contract
Parent Award PIID: W912P805D0023
IDV Type: IDC
Timeline
Start Date: 2006-02-28
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2010-03-13
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