HHS awards $47.1M contract for Research Triangle Park chilled water generators to Environmental Chemical Corporation

Contract Overview

Contract Amount: $47,115,276 ($47.1M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2029-09-10

Contract Duration: 1,806 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GENERATORS FOR CAMPUS EMERGENCY CHILLED WATER SERVICE AT RESEARCH TRIANGLE PARK, NC

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $47.1 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: GENERATORS FOR CAMPUS EMERGENCY CHILLED WATER SERVICE AT RESEARCH TRIANGLE PARK, NC Key points: 1. The contract value of $47.1 million for generators over five years represents a significant investment in campus infrastructure. 2. Environmental Chemical Corporation secured this award through full and open competition, indicating a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but potential risks include unforeseen installation challenges. 4. This spending falls within the broader sector of Commercial and Institutional Building Construction, supporting essential facility operations.

Value Assessment

Rating: good

The contract value of $47.1 million over 1806 days averages approximately $26,088 per day. Benchmarking against similar infrastructure projects is difficult without more specific details on the generator specifications and installation complexity.

Cost Per Unit: $26,088/day

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best price for essential infrastructure upgrades.

Public Impact

Ensures reliable cooling for critical research facilities at NIH's Research Triangle Park campus. Supports ongoing research and operations by maintaining a stable environment. Investment in infrastructure contributes to the long-term operational efficiency of the campus. Potential for job creation within the construction and engineering sectors related to the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if installation proves more complex than anticipated.
Dependency on a single contractor for a critical infrastructure component.
Environmental Chemical Corporation's past performance and capacity for a project of this scale.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed price contract provides cost certainty.
Supports critical research infrastructure for NIH.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, specifically supporting the infrastructure needs of a large research campus. Spending benchmarks for such specialized generator systems can vary widely based on capacity, redundancy, and integration requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large construction project.

Oversight & Accountability

The contract is a definitive contract, suggesting a clear scope and terms. Oversight will be crucial to ensure timely completion, adherence to specifications, and effective management of the firm fixed price to prevent cost creep.

Related Government Programs

Commercial and Institutional Building Construction
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of specific technical details (capacity, redundancy) for value assessment.
No explicit mention of small business subcontracting goals.
Absence of detailed performance metrics (KPIs/SLAs) in summary data.
Unknown historical performance of the awarded contractor.
Potential for unforeseen installation complexities impacting cost and schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $47.1 million to ENVIRONMENTAL CHEMICAL CORPORATION. GENERATORS FOR CAMPUS EMERGENCY CHILLED WATER SERVICE AT RESEARCH TRIANGLE PARK, NC

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL CHEMICAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-09-10.

What is the specific capacity and redundancy level of the chilled water generators being procured, and how does this compare to industry standards for similar research facilities?

The provided data does not specify the capacity or redundancy level of the generators. This information is crucial for a thorough value assessment. Without it, it's difficult to benchmark against industry standards or determine if the $47.1 million price tag is justified for the required level of service and reliability needed by the NIH research campus.

What are the key performance indicators (KPIs) and service level agreements (SLAs) included in the contract to ensure the reliability and effectiveness of the generators?

The contract details do not explicitly list the KPIs or SLAs. Effective oversight would require clear performance metrics related to uptime, response times for maintenance, and energy efficiency. These would be essential to mitigate risks associated with equipment failure and ensure the long-term operational effectiveness of the critical cooling system.

What is the historical performance record of Environmental Chemical Corporation on similar large-scale infrastructure projects, particularly regarding budget adherence and project timelines?

The provided data does not include information on Environmental Chemical Corporation's historical performance. A review of past projects, client feedback, and any documented issues with budget or schedule adherence would be necessary to fully assess the risk associated with this award and the likelihood of successful project completion.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N99024R00090

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 AIRPORT BLVD STE 250, BURLINGAME, CA, 94010

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,115,276

Exercised Options: $47,115,276

Current Obligation: $47,115,276

Actual Outlays: $4,702,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline