Environmental Chemical Corp. awarded $93.7M contract for debris removal services by the Department of the Army

Contract Overview

Contract Amount: $93,721,872 ($93.7M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2006-09-30

End Date: 2007-09-30

Contract Duration: 365 days

Daily Burn Rate: $256.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEBRIS REMOVAL

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $93.7 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: DEBRIS REMOVAL Key points: 1. Contract value of $93.7M for debris removal indicates significant scale of operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 365 days with a firm fixed price structure aims for cost certainty. 4. Awarded by the Department of the Army, indicating a focus on defense-related infrastructure or support. 5. The North American Industry Classification System (NAICS) code 562119 points to specialized waste collection services. 6. The contract's location in Louisiana (LA) suggests a regional focus for the debris removal efforts.

Value Assessment

Rating: fair

The contract value of $93.7 million for debris removal over one year is substantial. Benchmarking this against similar large-scale disaster recovery or environmental cleanup contracts would be necessary to fully assess value for money. Without specific details on the scope of work and the volume of debris, a precise comparison is difficult. However, the firm fixed-price nature suggests an attempt to control costs, but the overall value is contingent on the efficiency and effectiveness of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broadly open, certain sources may have been excluded for specific reasons. The presence of 'full and open' suggests multiple bidders were likely considered. The number of bidders and the specific reasons for exclusion would provide further insight into the level of competition and its impact on pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential debris removal services. The services delivered are critical for environmental cleanup and potentially disaster recovery operations. The geographic impact is localized to Louisiana, addressing specific regional needs. The contract supports the waste collection industry, potentially creating or sustaining jobs within that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of debris removal makes it difficult to assess efficiency.
The exclusion of sources, even in a full and open competition, warrants further investigation into the rationale.
The firm fixed-price contract could lead to cost overruns if unforeseen complexities arise in debris removal.

Positive Signals

The contract was awarded through a full and open competition, suggesting a broad search for qualified vendors.
The firm fixed-price contract provides cost certainty for the government.
The contract duration of one year allows for sustained service delivery.

Sector Analysis

The debris removal sector is often associated with environmental services and disaster response. Contracts in this area can range significantly in value depending on the scale of the event or project. This $93.7 million contract falls into the higher end for a single award, suggesting a substantial undertaking. The NAICS code 562119, 'Other Waste Collection,' encompasses a broad range of non-hazardous waste management services, including those related to cleanup and removal.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Environmental Chemical Corporation, is likely a larger entity. There is no explicit information on subcontracting requirements, but for a contract of this magnitude, it is common for prime contractors to engage small businesses for specialized tasks or to meet broader economic goals. Further analysis would be needed to determine if small business subcontracting plans were a component of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. The firm fixed-price structure provides a degree of financial oversight. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Disaster Recovery Contracts
Waste Management Services
Department of Defense Procurement

Risk Flags

Potential for cost overruns if scope is underestimated.
Risk of reduced quality or safety if contractor faces financial pressure.
Lack of detailed performance metrics in provided data.
Ambiguity in 'Exclusion of Sources' rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.7 million to ENVIRONMENTAL CHEMICAL CORPORATION. DEBRIS REMOVAL

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 $93.7 million.

What is the period of performance?

Start: 2006-09-30. End: 2007-09-30.

What specific types of debris were removed under this contract, and what was the volume?

The provided data does not specify the exact types or volume of debris removed under this contract. The NAICS code 562119, 'Other Waste Collection,' is broad and could encompass various materials. To understand the specifics, one would need to consult the contract's statement of work (SOW) or performance reports. This information is crucial for assessing the true scope of the services rendered and comparing the contract's value against the actual work performed. Without this detail, it's challenging to evaluate the efficiency and effectiveness of Environmental Chemical Corporation's performance.

How does the $93.7 million contract value compare to similar debris removal contracts awarded by the Department of Defense or other federal agencies?

The $93.7 million value for a one-year debris removal contract is substantial. To benchmark this, one would need to analyze historical contract data for similar services. For instance, contracts awarded in the aftermath of major natural disasters (hurricanes, floods) by agencies like FEMA or the Army Corps of Engineers often reach similar or higher figures. However, the specific context—whether this was for routine maintenance, a specific project, or disaster response—significantly impacts comparability. A direct comparison would require identifying contracts with similar scope, duration, and geographic focus. Without such a comparison, it's difficult to definitively state if this represents a particularly high or reasonable cost.

What were the specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be broad, specific vendors were intentionally excluded. The reasons for such exclusions can vary widely, including past performance issues, failure to meet pre-qualification criteria, or specific national security concerns. Without access to the solicitation documents or award justification, the precise reasons remain unknown. Understanding these exclusions is important for assessing the integrity of the competition and whether the most capable vendors were considered, which can indirectly impact pricing and service quality.

What is Environmental Chemical Corporation's track record with federal debris removal contracts?

The provided data only includes details for this specific $93.7 million contract awarded in 2006. It does not offer information on Environmental Chemical Corporation's broader track record with federal debris removal contracts. To assess their history, one would need to search federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity, noting their performance history, past issues, and experience in similar service areas. A strong track record with successful past performance on comparable contracts would generally be a positive indicator for future contract execution.

What are the potential risks associated with a firm fixed-price contract for debris removal services?

A firm fixed-price (FFP) contract, while offering cost certainty to the government, carries inherent risks, especially in complex service areas like debris removal. If the scope of work is underestimated or unforeseen challenges arise (e.g., hazardous materials, difficult terrain, unexpected volumes), the contractor may incur significant losses. This could incentivize the contractor to cut corners on quality or safety to maintain profitability, potentially impacting the effectiveness of the removal. Conversely, if the contractor is highly efficient and underestimates costs, the government might overpay relative to the actual effort. Careful scope definition and risk assessment are crucial for FFP contracts in this domain.

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: 1

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

Financial Breakdown

Contract Ceiling: $94,721,872

Exercised Options: $94,721,872

Current Obligation: $93,721,872

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912P805D0023

IDV Type: IDC

Timeline