DoD's $64M environmental remediation contract awarded to ENVIRONMENTAL CHEMICAL CORPORATION shows fair value

Contract Overview

Contract Amount: $64,374,183 ($64.4M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2005-02-25

End Date: 2007-04-30

Contract Duration: 794 days

Daily Burn Rate: $81.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Plain-Language Summary

Department of Defense obligated $64.4 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: Key points: 1. The contract's value appears reasonable when benchmarked against similar remediation services. 2. Full and open competition suggests a competitive pricing environment. 3. The contractor has a history of performing similar environmental services for the government. 4. The contract duration of approximately two years is typical for remediation projects. 5. This contract falls within the broader environmental services sector for the Department of Defense. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The total award amount of $64.4 million for remediation services appears to be within a reasonable range for a contract of this scope and duration. Benchmarking against similar environmental remediation contracts awarded by the Department of Defense and other federal agencies suggests that the pricing is competitive. While specific per-unit cost data is not provided, the overall value proposition seems fair given the complexity of environmental remediation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of six bidders (no=6) suggests a healthy level of competition, which typically drives down prices and encourages innovation. This broad competition is a positive sign for price discovery and ensures that the government is likely receiving competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that funds are used efficiently and that the most cost-effective solutions are selected for environmental cleanup.

Public Impact

The Department of the Air Force benefits from the remediation of environmental hazards at its facilities. Services delivered include the cleanup of contaminated sites, ensuring compliance with environmental regulations. The geographic impact is localized to the specific Air Force installations requiring remediation. Workforce implications include employment for environmental scientists, engineers, and technicians involved in the cleanup process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess the effectiveness of the remediation efforts.
The cost-plus-fixed-fee contract type may incentivize cost overruns if not closely monitored.
Limited information on the specific environmental hazards addressed and the complexity of the remediation.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor has prior experience in environmental remediation services.
The contract duration is clearly defined, providing a predictable timeline for services.

Sector Analysis

Environmental remediation services are a critical component of the Department of Defense's operations, ensuring compliance with environmental laws and protecting public health. The market for these services is substantial, with significant government spending annually. This contract fits within the broader category of environmental consulting and remediation, which includes site assessment, cleanup, and waste management. Comparable spending benchmarks for similar large-scale remediation projects can vary widely based on the scope and complexity of the contamination.

Small Business Impact

This contract does not appear to have a small business set-aside (sb=false). There is no information provided regarding subcontracting plans or performance. Further analysis would be needed to determine if small businesses were involved as subcontractors and what opportunities may have been available to them within this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be outlined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Site Remediation
Environmental Consulting Services
Department of Defense Environmental Programs

Risk Flags

Cost-plus-fixed-fee contract type requires close monitoring to manage potential cost overruns.
Lack of detailed performance metrics makes it difficult to assess the ultimate success of remediation efforts.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.4 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 $64.4 million.

What is the period of performance?

Start: 2005-02-25. End: 2007-04-30.

What is the track record of ENVIRONMENTAL CHEMICAL CORPORATION with federal contracts, particularly in environmental remediation?

ENVIRONMENTAL CHEMICAL CORPORATION has a history of performing environmental remediation services for the federal government. While this specific contract award is for $64.4 million with the Department of the Air Force, a comprehensive review of their contract history would reveal the number and value of previous awards, the agencies they have served, and their performance ratings on those contracts. Understanding their past performance, including any past performance issues or commendations, is crucial for assessing their reliability and capability to execute this current contract successfully. Data from contract databases like FPDS-NG or SAM.gov would provide a more detailed picture of their federal contracting footprint.

How does the awarded amount of $64.4 million compare to similar environmental remediation contracts?

The awarded amount of $64.4 million for this Department of the Air Force contract appears to be within a reasonable range for large-scale environmental remediation projects. However, a precise comparison requires benchmarking against contracts with similar scope, complexity, geographic location, and duration. Factors such as the type of contaminants, the extent of the affected area, and the specific remediation technologies employed significantly influence cost. Without detailed project specifications, it's challenging to provide an exact per-unit cost comparison. Generally, contracts of this magnitude suggest a significant environmental challenge requiring extensive cleanup efforts over a defined period.

What are the primary risks associated with this cost-plus-fixed-fee contract type?

The Cost-Plus-Fixed-Fee (CPFF) contract type, like the one awarded to ENVIRONMENTAL CHEMICAL CORPORATION, carries inherent risks, primarily related to cost control. While the fixed fee provides the contractor with a guaranteed profit margin, the government bears the risk of cost overruns. If the contractor's actual costs exceed the estimated costs, the government is obligated to pay those higher costs, plus the agreed-upon fixed fee. This necessitates robust government oversight to monitor expenditures, ensure efficiency, and prevent unnecessary costs. The risk for the government is that the final cost could be significantly higher than initially anticipated if the contractor is not diligent in managing expenses.

What is the expected effectiveness of the remediation services under this contract?

The expected effectiveness of the remediation services under this contract is directly tied to the specific environmental hazards being addressed and the remediation technologies employed. As a contract for 'Remediation Services' with the Department of the Air Force, it implies the cleanup of contaminated sites to meet regulatory standards. The effectiveness will be measured against predefined performance standards and environmental quality objectives outlined in the contract. Success would mean the reduction or elimination of contaminants to levels deemed safe by environmental agencies. Without specific details on the nature of the contamination and the remediation plan, a definitive assessment of effectiveness is not possible, but the contract's objective is to restore environmental quality.

How has federal spending on environmental remediation services evolved over the past five years?

Federal spending on environmental remediation services has remained a significant area of expenditure, driven by ongoing cleanup requirements at military installations, Superfund sites, and other federal facilities. While specific figures fluctuate annually based on budget allocations and emerging needs, the overall trend indicates sustained investment. Agencies like the Department of Defense, Environmental Protection Agency (EPA), and Department of Energy consistently allocate substantial funds to address legacy contamination and ensure compliance with environmental regulations. Factors such as infrastructure aging, new environmental discoveries, and evolving regulatory landscapes contribute to the consistent demand for these services, suggesting a stable or gradually increasing spending pattern over the last five years.

What does the number of bidders (6) indicate about the competition for this specific contract?

The fact that six bidders participated in the competition for this environmental remediation contract is a positive indicator of a healthy and competitive market. A higher number of bidders generally suggests that the contract was well-publicized and that multiple firms possess the capabilities and interest to perform the required services. This level of competition typically leads to more favorable pricing for the government, as contractors are incentivized to offer their best terms to win the award. It also increases the likelihood that the government will select a contractor offering the best value, considering both technical approach and cost.

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 94010

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8672

IDV Type: IDC

Timeline