Environmental Chemical Corp. awarded $14.3M for GIWW levee work, highlighting infrastructure needs

Contract Overview

Contract Amount: $14,349,881 ($14.3M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2010-12-31

Contract Duration: 457 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3135::TAS GULF INTRACOASTAL WATER WAY (GIWW) TO HIGH ISLAND PASS, MOBILIZATION AND DEMOBILIZATION, LEVEES EMBANKMENT, STANDING DRAIN I

Place of Performance

Location: HIGH ISLAND, GALVESTON County, TEXAS, 77623

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: TAS::96 3135::TAS GULF INTRACOASTAL WATER WAY (GIWW) TO HIGH ISLAND PASS, MOBILIZATION AND DEMOBILIZATION, LEVEES EMBANKMENT, STANDING DRAIN I Key points: 1. Contract value of $14.3 million for critical infrastructure maintenance. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 457 days indicates a significant scope of work. 5. Geographic focus on Texas highlights regional infrastructure priorities. 6. No small business set-aside indicates a focus on larger, established contractors.

Value Assessment

Rating: good

The contract value of $14.3 million for levee construction and maintenance appears reasonable given the scope of work on the GIWW. Benchmarking against similar Army Corps of Engineers projects for coastal protection and waterway maintenance would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for government spending efficiency.

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 bids. The fact that there were 8 bidders suggests a healthy level of competition for this type of infrastructure project. This broad competition is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers by driving down bids. It also suggests that the government had a good selection of qualified contractors to choose from, increasing the likelihood of successful project completion.

Public Impact

Benefits the U.S. Army Corps of Engineers in maintaining vital waterway infrastructure. Delivers essential levee and embankment construction services for flood control. Geographic impact is concentrated in Texas, specifically along the GIWW. Workforce implications include employment for construction laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Environmental risks associated with construction in a sensitive waterway ecosystem.
Contractor performance risks if mobilization/demobilization or construction quality is subpar.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market.
Project addresses critical infrastructure needs for navigation and flood protection.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, specifically addressing civil works and infrastructure maintenance. The U.S. Army Corps of Engineers is a major player in this sector, awarding numerous contracts for waterway improvements, flood control, and coastal defense. Spending in this area is often driven by federal infrastructure priorities and the need to maintain aging assets.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Environmental Chemical Corporation, is likely a larger entity capable of handling the full scope of the project. The absence of small business participation in this specific award may limit opportunities for smaller firms in this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers contracting office and project managers. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for non-performance or delays. Transparency is generally maintained through contract award databases, though specific project-level oversight details are not publicly detailed.

Related Government Programs

U.S. Army Corps of Engineers Civil Works Programs
Intracoastal Waterway Maintenance Contracts
Flood Control Infrastructure Projects
Coastal Protection and Restoration Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Environmental impact risks during construction.
Contractor performance and schedule adherence.
Adequacy of competition for long-term infrastructure needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to ENVIRONMENTAL CHEMICAL CORPORATION. TAS::96 3135::TAS GULF INTRACOASTAL WATER WAY (GIWW) TO HIGH ISLAND PASS, MOBILIZATION AND DEMOBILIZATION, LEVEES EMBANKMENT, STANDING DRAIN I

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 $14.3 million.

What is the period of performance?

Start: 2009-09-30. End: 2010-12-31.

What is Environmental Chemical Corporation's track record with the U.S. Army Corps of Engineers?

Environmental Chemical Corporation has a history of performing work for the U.S. Army Corps of Engineers, as evidenced by this contract. To fully assess their track record, a review of past performance evaluations, any past disputes or claims, and the successful completion of previous similar projects would be necessary. Analyzing their portfolio of completed Army Corps contracts, particularly those involving levee construction or waterway maintenance, would provide insight into their capabilities and reliability in executing complex infrastructure projects.

How does the $14.3 million award compare to similar GIWW levee projects?

The $14.3 million award for the GIWW levee work needs to be benchmarked against comparable projects to assess its value. Factors such as the length of levee repaired or constructed, the scope of work (e.g., embankment, drainage), and the specific geographic location within the GIWW influence project costs. A comparison with other Army Corps of Engineers contracts for similar levee rehabilitation or construction along the GIWW or other coastal waterways would reveal if this price is within the expected range. Without specific comparable data, it's difficult to definitively state if this represents excellent or fair value.

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

The primary risks associated with this type of infrastructure contract include unforeseen subsurface conditions (e.g., soil instability, buried debris) that could increase costs or delay the project, despite the firm fixed-price nature. Environmental risks, such as encountering protected species or impacting sensitive habitats during construction, could lead to work stoppages or additional mitigation requirements. Contractor performance risk is also present, relating to the quality of construction, adherence to schedule, and effective management of mobilization and demobilization. Furthermore, potential for scope creep or changes in project requirements could introduce risk if not managed properly.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined and risks are understood. For this GIWW levee project, the FFP structure places the burden of cost control on the contractor, Environmental Chemical Corporation. This incentivizes efficient performance and minimizes the risk of cost overruns for the government, provided the initial scope and specifications are accurate. However, if significant unforeseen conditions arise, the contractor may seek change orders, potentially increasing the total cost, though the FFP aims to limit this.

What is the historical spending trend for GIWW levee maintenance by the Army Corps of Engineers?

Analyzing historical spending trends for GIWW levee maintenance by the Army Corps of Engineers is crucial for context. This involves examining annual or multi-year expenditures on similar projects along the GIWW. Trends might indicate increasing or decreasing investment in waterway infrastructure, potential budget fluctuations, or a shift in project types (e.g., new construction vs. rehabilitation). Understanding these patterns helps in assessing whether the $14.3 million award is consistent with past investment levels or represents a significant deviation, potentially signaling a change in program priorities or funding availability.

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: $14,349,881

Exercised Options: $14,349,881

Current Obligation: $14,349,881

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV08D2020

IDV Type: IDC

Timeline