Hurricane Sandy Debris Removal Contract Awarded to Environmental Chemical Corporation for Over $109 Million

Contract Overview

Contract Amount: $109,592,458 ($109.6M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2012-11-07

End Date: 2013-03-07

Contract Duration: 120 days

Daily Burn Rate: $913.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY13 HURRICANE SANDY DEBRIS REMOVAL

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $109.6 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: FY13 HURRICANE SANDY DEBRIS REMOVAL Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract value of over $109 million indicates a significant investment in disaster recovery. 3. The short performance period of 120 days highlights the urgency of post-disaster needs. 4. The contract was awarded by the Department of the Army, a component of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 562119 points to waste collection services. 6. The contract was awarded as a Firm Fixed Price type, providing cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable large-scale debris removal contracts from similar disaster events. The fixed-price nature suggests the government aimed for cost predictability. However, the total award amount of over $109 million for a 120-day period requires scrutiny to ensure efficient resource allocation and prevent cost overruns, especially given the emergency nature of the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 23 bids suggests a robust level of interest and competition for this significant disaster recovery effort. This broad competition is generally favorable for price discovery and potentially securing competitive pricing.

Taxpayer Impact: A competitive bidding process for essential disaster recovery services like debris removal helps ensure taxpayer funds are used efficiently and that the government receives the best possible value for its investment.

Public Impact

Residents and businesses in New York (NY) directly benefited from the expedited removal of debris following Hurricane Sandy. The contract facilitated the restoration of public safety and infrastructure by clearing affected areas. The geographic impact was concentrated in New York, addressing the specific needs of the disaster-stricken region. The contract supported the workforce involved in debris removal operations, contributing to local employment during a critical time.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in emergency response contracts, leading to increased costs beyond initial estimates.
Ensuring the quality and environmental compliance of debris removal and disposal activities.
Logistical challenges in coordinating a large-scale debris removal operation in a disaster zone.

Positive Signals

Awarded under full and open competition with a significant number of bidders (23), indicating market interest and potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Short performance period (120 days) suggests a focused and urgent response to a critical need.

Sector Analysis

The debris removal sector is a critical component of disaster response and recovery services. This contract falls under the broader waste management and remediation industry. The market for disaster recovery services can be highly variable, driven by the occurrence and severity of natural disasters. While specific market size data for debris removal is difficult to isolate, it is a significant sub-sector within environmental services, often involving specialized equipment and personnel.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale of the contract and the nature of debris removal, it is possible that larger firms with specialized equipment and resources were primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Given the emergency nature, rapid deployment and execution are prioritized. Transparency would be facilitated through contract award databases like FPDS. Accountability would be managed through performance monitoring and adherence to contract terms, with potential for Inspector General involvement if any irregularities arise.

Related Government Programs

Hurricane Sandy Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Disaster Assistance
Environmental Remediation Services
Public Works and Infrastructure Recovery

Risk Flags

Potential for cost overruns despite fixed-price contract due to emergency conditions.
Environmental compliance risks associated with debris handling and disposal.
Logistical complexities in a disaster zone impacting timely execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $109.6 million to ENVIRONMENTAL CHEMICAL CORPORATION. FY13 HURRICANE SANDY 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 $109.6 million.

What is the period of performance?

Start: 2012-11-07. End: 2013-03-07.

What was the contractor's track record with similar large-scale disaster recovery contracts prior to this award?

Information regarding Environmental Chemical Corporation's specific track record with large-scale disaster recovery contracts prior to the FY13 Hurricane Sandy debris removal award is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, other federal contract awards, and any reported issues or successes on similar projects. Understanding their experience with emergency response, large-scale logistics, and environmental compliance would be crucial for evaluating their capability and reliability on this significant contract.

How does the per-day cost of this debris removal contract compare to other disaster recovery efforts?

The total contract value was approximately $109.6 million over a 120-day period. This equates to a daily expenditure of roughly $913,270. Comparing this per-day cost to other disaster recovery debris removal contracts requires access to similar data for other events. Factors such as the type and volume of debris, geographic complexity, labor costs, and equipment needs vary significantly between disasters, making direct per-day cost comparisons challenging without detailed contextual information for each contract. However, this figure provides a benchmark for evaluating the efficiency of this specific operation.

What were the primary risks identified for this contract, and how were they mitigated?

Key risks for a contract of this nature would likely include logistical challenges in a disaster-stricken area, potential for environmental hazards during debris handling and disposal, scope creep due to the unpredictable nature of disaster aftermath, and ensuring timely completion within the short performance window. Mitigation strategies would typically involve robust project management, clear communication channels, adherence to strict environmental protocols, contingency planning for unforeseen issues, and close monitoring of progress against the schedule. The firm fixed-price nature also shifts some cost risk to the contractor.

What was the overall effectiveness of the debris removal services provided under this contract in restoring affected areas?

The effectiveness of the debris removal services is primarily measured by the contract's completion within the 120-day timeframe and the successful clearing of debris in the designated New York areas impacted by Hurricane Sandy. While the data confirms the award and duration, it does not provide qualitative assessments of the speed, thoroughness, or environmental compliance of the removal operations. Success would be indicated by the restoration of public access, safety, and the resumption of normal community functions in the affected zones following the contractor's work.

How has federal spending on debris removal services trended in the years surrounding Hurricane Sandy?

Analyzing federal spending trends on debris removal services requires a broader dataset than provided. Hurricane Sandy, occurring in late 2012, prompted a significant surge in federal spending on disaster recovery, including debris removal, in the subsequent fiscal years (FY13 and beyond). Generally, federal spending on such services is highly event-driven; large-scale natural disasters lead to sharp increases, while periods without major events see lower, more routine spending. Examining historical data from agencies like FEMA and the Army Corps of Engineers would reveal these cyclical patterns.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 90

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

Financial Breakdown

Contract Ceiling: $109,592,458

Exercised Options: $109,592,458

Current Obligation: $109,592,458

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P808D0051

IDV Type: IDC

Timeline