Army awards $11.2M for Bolivar Marsh design-build project, impacting Houston-Galveston Navigation Channel

Contract Overview

Contract Amount: $33,009,648 ($33.0M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2010-05-21

End Date: 2012-12-12

Contract Duration: 936 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3136::TAS $11,186,043.00 FOR DESIGN BUILD BOLIVAR MARSH 288 ACRE MARSH FOR HOUSTON GALVESTON NAVIGATION CHANNEL.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77077

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.0 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: TAS::96 3136::TAS $11,186,043.00 FOR DESIGN BUILD BOLIVAR MARSH 288 ACRE MARSH FOR HOUSTON GALVESTON NAVIGATION CHANNEL. Key points: 1. Project aims to improve the Houston-Galveston Navigation Channel through marshland design and construction. 2. Environmental Chemical Corporation secured the contract, indicating a specific capability in environmental services. 3. The contract was awarded under full and open competition, suggesting a robust price discovery process. 4. The project duration of 936 days highlights a significant, long-term infrastructure investment.

Value Assessment

Rating: good

The award amount of $11,186,043.00 for a design-build marsh project appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. This method allows all qualified contractors to bid, fostering a healthy market.

Taxpayer Impact: The $11.2 million investment is intended to improve a critical navigation channel, which is expected to yield long-term economic benefits for the region and the nation through enhanced trade and transportation efficiency.

Public Impact

Enhances critical maritime infrastructure for the Houston-Galveston Navigation Channel. Supports environmental restoration and development in a key coastal area. Potential for job creation in the construction and environmental services sectors. Contributes to the economic vitality of the Texas Gulf Coast region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term construction projects.
  • Environmental risks associated with marshland development.
  • Dependency on a single contractor for project completion.

Positive Signals

  • Clear project objective for infrastructure improvement.
  • Competitive bidding process likely secured favorable pricing.
  • Experienced contractor selected for specialized work.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, specifically focusing on environmental design and build aspects. Spending in this sector is often driven by infrastructure needs and environmental regulations.

Small Business Impact

The contract was awarded to Environmental Chemical Corporation. There is no explicit indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Army, through the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure accountability and proper execution of the project.

Related Government Programs

  • Highway, Street, and Bridge Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Project duration
  • Environmental impact
  • Contractor performance over time
  • Potential for scope creep

Tags

highway-street-and-bridge-construction, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.0 million to ENVIRONMENTAL CHEMICAL CORPORATION. TAS::96 3136::TAS $11,186,043.00 FOR DESIGN BUILD BOLIVAR MARSH 288 ACRE MARSH FOR HOUSTON GALVESTON NAVIGATION CHANNEL.

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 $33.0 million.

What is the period of performance?

Start: 2010-05-21. End: 2012-12-12.

What specific environmental benefits are expected from the Bolivar Marsh design-build project?

The project is anticipated to enhance the ecological health of the Bolivar Marsh, potentially improving water quality, creating or restoring habitats for wildlife, and mitigating coastal erosion. These environmental improvements are crucial for the long-term sustainability of the navigation channel and surrounding ecosystems.

What are the primary risks associated with the long duration of this construction project?

The 936-day duration presents risks such as potential cost escalation due to inflation or material price fluctuations, unforeseen site conditions that could delay work, and the possibility of changes in environmental regulations impacting the project scope. Contractor performance over an extended period also needs careful monitoring.

How does this project contribute to the overall effectiveness of the Houston-Galveston Navigation Channel?

By improving the marshland adjacent to the channel, the project likely aims to enhance navigational safety, reduce sedimentation, and potentially increase the channel's capacity or efficiency. This contributes to the overall effectiveness by ensuring smoother, more reliable maritime traffic and supporting regional economic activity.

Industry Classification

NAICS: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, 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, 94010

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

Financial Breakdown

Contract Ceiling: $33,009,648

Exercised Options: $33,009,648

Current Obligation: $33,009,648

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV08D2009

IDV Type: IDC

Timeline

Start Date: 2010-05-21

Current End Date: 2012-12-12

Potential End Date: 2012-12-12 00:00:00

Last Modified: 2020-10-03

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