Army awards $27.4M MATOC for fence projects in Texas, with 8 delivery orders issued

Contract Overview

Contract Amount: $27,359,891 ($27.4M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2008-08-11

End Date: 2011-03-31

Contract Duration: 962 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MATOC FOR MARFA SECTOR FENCE PROJECTS

Place of Performance

Location: SIERRA BLANCA, HUDSPETH County, TEXAS, 79851

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: MATOC FOR MARFA SECTOR FENCE PROJECTS Key points: 1. Value for money appears fair given the firm-fixed-price contract type and the competitive nature of the award. 2. Competition dynamics show a full and open process, suggesting a healthy market for these services. 3. Risk indicators are moderate, with a defined scope and fixed pricing mitigating some potential cost overruns. 4. Performance context is tied to specific fence projects, indicating a focused operational objective. 5. Sector positioning places this contract within the construction industry, specifically for infrastructure related to defense installations.

Value Assessment

Rating: fair

The total contract value of $27.4 million was awarded through multiple delivery orders, indicating a phased approach to project execution. Benchmarking against similar MATOCs for construction services suggests the overall value is within a reasonable range, especially considering the firm-fixed-price nature which limits cost escalation. The average value per delivery order was approximately $3.04 million, which is typical for specialized construction tasks.

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 bids. The issuance of 8 delivery orders suggests that multiple projects were executed under this MATOC. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing for fence construction services.

Public Impact

The primary beneficiaries are the Department of the Army, which receives necessary infrastructure improvements for its facilities. Services delivered include the construction and repair of fences, enhancing security and operational capabilities at military installations. The geographic impact is concentrated in Texas, where the projects were located. Workforce implications include employment opportunities for construction workers and related trades within the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep across multiple delivery orders if not managed tightly.
Ensuring consistent quality across all fence projects awarded under the MATOC.
Managing contractor performance across potentially diverse project sites within Texas.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Full and open competition likely drove competitive pricing.
MATOC structure allows for flexibility in awarding task orders as needed.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS 237310), though its application is specific to defense infrastructure. The market for construction services, particularly for government contracts, is substantial. MATOCs are common vehicles for agencies needing a range of construction services over a period, allowing for streamlined procurement of various projects under a single overarching agreement. Comparable spending benchmarks for similar defense construction MATOCs would typically range in the tens to hundreds of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear, though prime contractors may engage small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army contracting command. Accountability measures are embedded in the firm-fixed-price contract terms and delivery order requirements. Transparency is generally maintained through contract award databases, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Base Infrastructure Projects
Defense Construction Services
MATOC Awards
Texas Construction Contracts
Fence and Barrier Construction

Risk Flags

Contract Duration
Delivery Order Management
Scope Definition
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to ENVIRONMENTAL CHEMICAL CORPORATION. MATOC FOR MARFA SECTOR FENCE PROJECTS

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 $27.4 million.

What is the period of performance?

Start: 2008-08-11. End: 2011-03-31.

What was the contractor's track record prior to this award?

Environmental Chemical Corporation (ECC) has a history of performing various construction and environmental services for government agencies. While specific details on their performance for this particular MATOC are not provided in the summary data, ECC has been involved in numerous federal contracts. A deeper dive into their past performance ratings, any past disputes, or awards on similar projects would provide a more comprehensive understanding of their suitability and reliability for this type of work. Analyzing their financial stability and capacity to handle multiple concurrent projects under this MATOC would also be crucial.

How does the average delivery order value compare to similar construction contracts?

The average delivery order value for this MATOC was approximately $3.04 million ($27,359,890.64 / 8 orders). This value is within a typical range for specialized construction tasks awarded under a Multiple Award Task Order Contract (MATOC). MATOCs are designed to procure a variety of construction services, and individual task orders can vary significantly in scope and cost. Compared to standalone, large-scale construction projects, these individual orders are smaller, reflecting the modular nature of MATOCs. However, when aggregated, the total contract value is substantial, indicating significant investment in fence projects.

What are the primary risks associated with this type of MATOC contract?

Key risks for this MATOC include potential scope creep if the requirements for each delivery order are not clearly defined and managed. There's also a risk of inconsistent quality across different projects if oversight is not rigorous. Contractor performance management across multiple, potentially dispersed sites in Texas could also pose challenges. Furthermore, ensuring timely completion of all delivery orders within the contract period is critical. The firm-fixed-price nature mitigates cost overrun risks for the government, but contractor profitability could be impacted if unforeseen issues arise.

How effective has the Army been in managing similar construction MATOCs?

The effectiveness of the Army in managing construction MATOCs can vary widely depending on the specific program, contracting office, and project managers involved. Generally, MATOCs are favored for their flexibility and efficiency in procuring a range of services. However, effective management requires robust oversight, clear task order definitions, diligent performance monitoring, and proactive risk mitigation. Historical data on Army construction contracts, including delivery order completion rates, cost performance, and quality metrics, would be needed for a definitive assessment of effectiveness in this specific context.

What are the historical spending patterns for fence construction by the Department of the Army?

Historical spending patterns for fence construction by the Department of the Army are likely substantial, given the security requirements of military installations. This MATOC represents a portion of that spending, totaling approximately $27.4 million over its period of performance. Analyzing broader spending trends would involve examining annual reports, budget allocations for military construction (MILCON), and procurement data for similar security infrastructure projects across different Army commands and installations. Spending can fluctuate based on security needs, base realignment and closure (BRAC) actions, and infrastructure upgrade initiatives.

What is the typical duration and value range for construction MATOCs?

Construction MATOCs typically have a base period and option periods, often spanning several years. The duration of this contract was approximately 962 days (roughly 2.6 years) from award to end date, which is a common timeframe. The total value of $27.4 million is moderate for a construction MATOC; larger, more comprehensive MATOCs can reach hundreds of millions of dollars and cover broader geographic areas or a wider array of construction services. The value is influenced by the agency's anticipated needs, the scope of services covered, and the number of awards made under the MATOC.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 94010

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $27,359,891

Exercised Options: $27,359,891

Current Obligation: $27,359,891

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2035

IDV Type: IDC

Timeline