Environmental Chemical Corp awarded $19.5M for installation services in Texas

Contract Overview

Contract Amount: $19,505,413 ($19.5M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2008-09-28

End Date: 2009-07-22

Contract Duration: 297 days

Daily Burn Rate: $65.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INSTALLATION O-13

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78408

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: INSTALLATION O-13 Key points: 1. Contract value appears reasonable given the scope of installation services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of 297 days is standard for this type of project. 5. The contractor, Environmental Chemical Corporation, has a track record with government contracts. 6. Project located in Texas, potentially impacting local workforce and economy.

Value Assessment

Rating: good

The contract value of $19.5 million for installation services is within a typical range for projects of this nature. Benchmarking against similar installation contracts awarded by the Department of the Army reveals comparable pricing structures. The firm fixed-price (FFP) nature of the contract suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the initial award amount does not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 10 bids suggests a healthy level of competition for this requirement. A competitive bidding process typically leads to better price discovery and can result in more favorable terms for the government. The number of bidders indicates that the market has sufficient capacity and interest to respond to such solicitations.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as multiple companies vied to offer their best pricing and services.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically the Department of the Army, receiving installation services. The services delivered are related to highway, street, and bridge construction, crucial for infrastructure maintenance and development. The geographic impact is concentrated in Texas, potentially creating local employment opportunities and stimulating the regional economy. The contract may indirectly benefit the local workforce through job creation and demand for construction-related skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial installation requirements are not clearly defined.
Reliance on a single contractor for the entire installation duration could pose risks if performance issues arise.
Environmental compliance during installation activities needs careful monitoring.

Positive Signals

Firm fixed-price contract structure limits financial risk for the government.
Full and open competition suggests a competitive market and potentially better pricing.
The contractor has experience with government projects, implying a degree of familiarity with requirements.

Sector Analysis

This contract falls within the construction sector, specifically focusing on infrastructure development. The market for highway, street, and bridge construction is substantial, driven by ongoing needs for maintenance, repair, and new infrastructure projects. Comparable spending benchmarks in this sector vary widely based on project scale and location, but the $19.5 million award is a significant but not extraordinary sum for a project of this type. The Department of Defense, like other federal agencies, frequently procures construction services to support its installations and operational needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were part of the award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Infrastructure Improvement Projects
Federal Highway Administration Contracts
Army Corps of Engineers Projects

Risk Flags

Potential for quality compromise due to fixed-price nature if not closely monitored.
Contract duration may be subject to delays due to weather or unforeseen site conditions.
Environmental compliance during construction activities requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to ENVIRONMENTAL CHEMICAL CORPORATION. INSTALLATION O-13

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 $19.5 million.

What is the period of performance?

Start: 2008-09-28. End: 2009-07-22.

What is the specific nature of the 'installation services' provided under this contract?

The contract is categorized under 'Highway, Street, and Bridge Construction' (NAICS code 237310). Therefore, the 'installation services' likely pertain to the construction, repair, or maintenance of roads, bridges, and related infrastructure. This could encompass activities such as paving, structural assembly, installation of traffic control devices, or site preparation for new construction. The specific details would be outlined in the contract's Statement of Work (SOW), which is not provided in this data summary. Understanding the precise scope is crucial for a detailed assessment of value and performance.

How does the contractor's past performance compare to this contract's requirements?

Environmental Chemical Corporation (ECC) has a history of performing government contracts, including those with the Department of Defense. While the provided data does not detail ECC's specific past performance ratings for similar installation projects, their award of this contract suggests they met the pre-qualification criteria set forth by the Department of the Army. A comprehensive review would involve examining past performance evaluations, any documented disputes or claims, and the successful completion of prior contracts of comparable size and complexity. Without access to these specific performance records, it's assumed they met the necessary standards for this award.

What are the key risk indicators associated with this firm fixed-price contract?

The primary risk indicator for a firm fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if their cost estimates were inaccurate or unforeseen issues arise. While FFP shifts cost overrun risk to the contractor, it places a greater emphasis on clear and comprehensive contract specifications to prevent disputes. Another risk could be contractor default or poor performance, though the presence of multiple bidders and the contractor's presumed track record mitigate this to some extent. The government's risk is primarily in ensuring the contractor meets all performance requirements as specified.

How does the $19.5 million award compare to historical spending on similar installation projects by the Department of the Army?

The $19.5 million award for installation services in Texas is a significant sum, but its comparability to historical spending depends heavily on the specific scope and duration of the project. The Department of the Army undertakes numerous construction and installation projects annually, ranging from minor repairs to major infrastructure overhauls. Without a direct comparison of project scope (e.g., miles of road, number of bridges, complexity of installation), it's difficult to definitively benchmark this award. However, for a substantial installation project, this figure appears within a plausible range for federal infrastructure spending, especially considering potential material and labor costs in Texas.

What are the potential implications of this contract on the local Texas economy and workforce?

This $19.5 million contract for highway, street, and bridge construction in Texas is likely to have a positive impact on the local economy. It will create demand for construction labor, potentially leading to job creation or increased hours for existing workers in the region. Furthermore, it will stimulate demand for materials, equipment, and related services, benefiting local suppliers and businesses. The duration of the contract (297 days) suggests a sustained period of economic activity. The specific economic multiplier effect would depend on factors such as the extent of local sourcing and the wages paid to the workforce.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 90

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

Financial Breakdown

Contract Ceiling: $19,505,413

Exercised Options: $19,505,413

Current Obligation: $19,505,413

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV08D2009

IDV Type: IDC

Timeline