DoD's $21.75M Hurricane Sandy Debris Removal Contract Awarded to Environmental Chemical Corporation

Contract Overview

Contract Amount: $21,750,344 ($21.8M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2013-01-12

End Date: 2013-09-30

Contract Duration: 261 days

Daily Burn Rate: $83.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE PROPERTY DEBRIS REMOVAL FROM THE AREAS AFFECTED BY HURRICANE SANDY (NEW YORK)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: PRIVATE PROPERTY DEBRIS REMOVAL FROM THE AREAS AFFECTED BY HURRICANE SANDY (NEW YORK) Key points: 1. Contract awarded for debris removal services following Hurricane Sandy in New York. 2. The contract utilized full and open competition, indicating a broad search for qualified bidders. 3. The fixed-price contract type aims to control costs for the government. 4. The contract duration was 261 days, suggesting a focused, short-term recovery effort. 5. The award was made by the Department of the Army, part of the DoD. 6. The North American Industry Classification System (NAICS) code 562119 points to 'Other Waste Collection'.

Value Assessment

Rating: fair

The contract value of $21.75 million for debris removal services is substantial. Benchmarking this against similar disaster recovery contracts is challenging without more specific details on the scope of work, volume of debris, and geographic coverage. The firm fixed-price structure suggests an attempt to manage costs, but the ultimate value for money depends on the efficiency of the contractor and the actual costs incurred versus the fixed price. The awarded amount appears to be within a reasonable range for large-scale disaster response, but a detailed cost analysis would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With 23 bids received, this indicates a healthy level of interest and a competitive bidding process. A higher number of bidders generally suggests a more robust market for these services and can lead to better price discovery and potentially lower prices for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential disaster recovery services.

Public Impact

Residents and businesses in New York affected by Hurricane Sandy benefited from the removal of private property debris. The service delivered was the collection and disposal of debris, crucial for restoring normalcy after the storm. The geographic impact was focused on areas within New York affected by Hurricane Sandy. The contract supported the workforce involved in debris removal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price did not accurately reflect the total debris volume and complexity.
Ensuring timely and efficient debris removal to meet recovery timelines.
Environmental compliance during debris handling and disposal.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm fixed-price contract type helps in budget predictability.
Contract awarded to a single entity for focused execution of services.

Sector Analysis

The debris removal sector is a critical component of disaster response and recovery efforts, often involving specialized equipment and logistics. This contract falls under the broader waste management and remediation services industry. The market for disaster recovery services can be highly variable, driven by the frequency and severity of natural disasters. Government contracts in this space are essential for mobilizing resources quickly after catastrophic events. Comparable spending benchmarks are difficult to establish due to the unique nature and scale of each disaster.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the scale of the contract, it is possible that larger firms were the primary awardees, but subcontracting opportunities for small businesses in specialized areas like debris hauling or disposal may have existed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel. Accountability measures would include adherence to contract terms, performance standards, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Hurricane Recovery Contracts
Environmental Remediation Services
Department of Defense Disaster Response
New York State Emergency Management

Risk Flags

Potential for cost overruns if debris volume underestimated.
Ensuring compliance with environmental disposal regulations.
Timeliness of debris removal impacting recovery efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to ENVIRONMENTAL CHEMICAL CORPORATION. PRIVATE PROPERTY DEBRIS REMOVAL FROM THE AREAS AFFECTED BY HURRICANE SANDY (NEW YORK)

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 $21.8 million.

What is the period of performance?

Start: 2013-01-12. End: 2013-09-30.

What was the specific scope of 'private property debris removal' covered under this contract?

The contract focused on the removal of debris from private properties that were affected by Hurricane Sandy in designated areas of New York. This typically includes items like damaged building materials, personal belongings, trees, and other wreckage that accumulated on residential, commercial, and industrial land. The exact definition and boundaries of 'private property' and the types of debris eligible for removal would have been detailed in the contract's Statement of Work (SOW). The goal was to facilitate the recovery process by clearing these affected areas, making them safe and accessible for rebuilding and restoration efforts.

How does the awarded amount of $21.75 million compare to other large-scale debris removal contracts post-Hurricane Sandy?

Comparing the $21.75 million award to other Hurricane Sandy debris removal contracts requires access to a comprehensive database of all awards and their specific scopes. However, this figure represents a significant investment, indicative of a substantial debris removal operation. Contracts for large-scale disaster recovery can vary widely based on the geographic area impacted, the volume and type of debris, and the duration of the recovery effort. For instance, contracts for debris removal in New Jersey, which was also heavily impacted, likely involved similar or even larger sums depending on the specific needs and contracts awarded by different agencies (e.g., FEMA, Army Corps of Engineers). Without a direct comparison dataset, it's difficult to definitively state if this amount was high or low, but it falls within the expected range for major federal disaster response efforts.

What were the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

While specific KPIs are not detailed in the provided data, typical performance indicators for debris removal contracts include timeliness of removal (e.g., meeting deadlines for clearing specific zones), volume of debris removed (measured in cubic yards or tons), adherence to environmental regulations during collection and disposal, safety compliance on-site, and proper documentation of all removal activities. The contracting officer and their representatives would monitor these metrics throughout the contract period. Failure to meet key performance standards could result in penalties or impact future contract awards.

Were there any specific environmental considerations or disposal requirements mandated in the contract?

Yes, environmental considerations and disposal requirements are standard and critical components of debris removal contracts, especially those managed by the Department of Defense or other federal agencies. This contract likely mandated compliance with federal, state, and local environmental regulations regarding the handling, transportation, and disposal of debris. This would include proper segregation of hazardous materials (like asbestos or chemicals) from general debris, ensuring disposal sites were permitted and environmentally sound, and potentially requiring recycling or reuse of certain materials where feasible. The contractor would be responsible for managing these aspects and providing documentation of compliance.

What is the typical track record of Environmental Chemical Corporation in handling large-scale government contracts, particularly in disaster response?

Environmental Chemical Corporation (ECC) has a significant history of performing large-scale environmental and construction services for government agencies, including the Department of Defense and the Army Corps of Engineers. Their portfolio often includes remediation, demolition, hazardous waste management, and infrastructure support. While specific details on their performance for this particular Hurricane Sandy contract require deeper investigation, ECC is generally recognized as an experienced contractor in complex environmental projects and disaster recovery operations. Their track record typically involves managing significant budgets and adhering to stringent regulatory requirements, suggesting they possess the capacity for such undertakings.

How did the firm fixed-price (FFP) contract type influence the risk allocation between the government and the contractor?

A Firm Fixed-Price (FFP) contract shifts the majority of the cost risk to the contractor. In this scenario, Environmental Chemical Corporation agreed to perform the debris removal services for a predetermined price, regardless of their actual costs. This benefits the government by providing cost certainty and predictability. However, it also means the contractor bears the risk if their costs exceed the fixed price due to unforeseen challenges, material price increases, or inefficiencies. Conversely, if the contractor can perform the work for less than the fixed price, they realize a higher profit margin. This contract type incentivizes the contractor to manage costs efficiently and perform the work effectively to maximize their profit within the agreed-upon price.

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, 94010

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

Financial Breakdown

Contract Ceiling: $21,750,344

Exercised Options: $21,750,344

Current Obligation: $21,750,344

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P808D0051

IDV Type: IDC

Timeline