Air Force awards $42M construction contract for leadership development center at USAFA

Contract Overview

Contract Amount: $41,990,021 ($42.0M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2012-09-27

End Date: 2015-10-21

Contract Duration: 1,119 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE CENTER FOR CHARACTER&LEADERSHIP DEVELOPMENT (CCLD), PROJECT NO XQPZ 08-4017, AT THE UNITED STATES AIR FORCE ACADEMY (USAFA), COLORADO SPRINGS, COLORADO

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $42.0 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: CONSTRUCTION OF THE CENTER FOR CHARACTER&LEADERSHIP DEVELOPMENT (CCLD), PROJECT NO XQPZ 08-4017, AT THE UNITED STATES AIR FORCE ACADEMY (USAFA), COLORADO SPRINGS, COLORADO Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The project involves the construction of a new facility at the U.S. Air Force Academy. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract was over three years, indicating a substantial construction project. 5. The prime contractor, Environmental Chemical Corporation, is based in California. 6. The award was a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of approximately $42 million for a leadership development center appears within a reasonable range for a federal construction project of this scale. Benchmarking against similar institutional building construction projects at military installations would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that cost overruns beyond the agreed-upon price are the responsibility of the contractor, which is a positive indicator for cost control. However, without detailed project specifications and scope, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple firms to offer their best pricing and capabilities to secure the contract.

Public Impact

The primary beneficiaries are the U.S. Air Force Academy cadets and personnel who will utilize the new Center for Character & Leadership Development. The project delivers a new, dedicated facility for leadership training and development programs. The geographic impact is localized to the U.S. Air Force Academy in Colorado Springs, Colorado. The construction project likely created temporary jobs for skilled trades and labor in the Colorado Springs area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of unforeseen site conditions requiring change orders.
Contractor performance on similar large-scale federal projects needs review.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
Project aims to enhance critical leadership training capabilities for the Air Force.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Federal construction spending, particularly for military installations, represents a substantial portion of this market. The U.S. Air Force Academy is a high-profile facility, and projects like this often involve complex requirements and stringent quality standards. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by the Department of Defense or other federal agencies for educational or training facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was likely awarded to a larger firm capable of handling the scale of the project, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight activities are not always publicly disclosed. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Air Force Training and Education Programs
Federal Building Construction Contracts

Risk Flags

Potential for cost growth if scope changes significantly.
Contractor's past performance on similar projects needs verification.
Ensuring timely completion to meet Air Force training needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.0 million to ENVIRONMENTAL CHEMICAL CORPORATION. CONSTRUCTION OF THE CENTER FOR CHARACTER&LEADERSHIP DEVELOPMENT (CCLD), PROJECT NO XQPZ 08-4017, AT THE UNITED STATES AIR FORCE ACADEMY (USAFA), COLORADO SPRINGS, COLORADO

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 $42.0 million.

What is the period of performance?

Start: 2012-09-27. End: 2015-10-21.

What is the track record of Environmental Chemical Corporation on similar federal construction projects?

Environmental Chemical Corporation (ECC) has a history of performing federal construction contracts, including projects for various branches of the military. A review of their past performance would involve examining contract databases for awards, completion status, and any reported performance issues or accolades. For this specific project, the award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. Understanding ECC's experience with projects of similar size, complexity, and type (e.g., institutional or educational facilities) at military installations is crucial for assessing their capability and reliability in executing the USAFA CCLD project successfully.

How does the awarded price of $41.99 million compare to similar construction projects for leadership development centers or academic facilities at federal institutions?

Benchmarking the $41.99 million cost requires comparing it to similar projects in terms of size, scope, and location. Factors such as square footage, specific construction materials, complexity of systems (HVAC, IT, security), and prevailing labor costs in Colorado Springs would influence the price. Projects like the construction of academic buildings, training centers, or administrative facilities at other military bases or federal agencies could serve as comparators. Without detailed specifications for the CCLD, a precise comparison is difficult. However, the number of bidders (5) suggests the price was competitive within the market for such specialized construction.

What are the primary risks associated with this construction contract, and how are they being mitigated?

Key risks for this construction project include potential cost overruns (though mitigated by the firm fixed-price structure), schedule delays due to weather, unforeseen site conditions, or labor shortages, and performance issues related to quality of work. The firm fixed-price contract places the financial risk of cost overruns on the contractor. Mitigation for schedule and performance risks relies on robust project management, clear contract specifications, regular site inspections, and the contractor's own quality control processes. The Air Force's oversight and the potential for liquidated damages for delays also serve as risk mitigation tools.

What is the expected effectiveness of the new Center for Character & Leadership Development (CCLD) in enhancing Air Force leadership training?

The effectiveness of the CCLD is expected to be high, as it provides a dedicated, modern facility specifically designed for leadership development. The new center will likely offer improved training environments, technology integration, and space for collaborative learning, all of which can enhance the quality and impact of leadership programs. By centralizing these functions, the CCLD aims to streamline training delivery and foster a stronger culture of leadership development within the Air Force. Its success will ultimately be measured by the improved leadership competencies of Air Force officers and enlisted personnel graduating from its programs.

How has federal spending on construction at the U.S. Air Force Academy varied over the past decade?

Analyzing historical spending patterns at the U.S. Air Force Academy would require accessing detailed federal procurement data over the last ten years. This would involve looking at contracts awarded by the Air Force and potentially other agencies for construction, renovation, and facility maintenance at USAFA. Trends might reveal periods of increased investment in infrastructure, specific types of facilities (e.g., academic, residential, recreational), or fluctuations based on budget appropriations and strategic priorities. This specific $42 million contract represents a significant investment in a specialized facility during the period it was awarded (2012-2015).

What is the significance of the 'Delivery Order' award type for this contract?

The 'Delivery Order' award type indicates that this contract was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the government had already established terms, conditions, and potentially pricing structures with one or more contractors. A delivery order then specifies the exact quantity, delivery schedule, and sometimes price for a particular task or project, such as the construction of the CCLD. This method allows for flexibility and faster procurement for specific needs while leveraging a previously competed contract.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 94010

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

Financial Breakdown

Contract Ceiling: $41,990,021

Exercised Options: $41,990,021

Current Obligation: $41,990,021

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890306D8511

IDV Type: IDC

Timeline