DoD Awards $28M for Marine Corps Air Station New River Facility Repairs, Phase III to Environmental Chemical Corporation

Contract Overview

Contract Amount: $28,079,565 ($28.1M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2020-04-07

End Date: 2025-04-23

Contract Duration: 1,842 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB MARINE CORPS AIR STATION NEW RIVER FACILITY REPAIRS, PHASE III

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: DB MARINE CORPS AIR STATION NEW RIVER FACILITY REPAIRS, PHASE III Key points: 1. The contract focuses on construction services for facility repairs at a major military installation. 2. Environmental Chemical Corporation is the sole awardee for this specific delivery order. 3. The contract duration is substantial, spanning over 1800 days, indicating a large-scale project. 4. The project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The award amount of $28M for facility repairs is significant. Benchmarking against similar large-scale construction projects for military bases is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting a competitive bidding process. However, it is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where the initial competition occurred.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the total cost over the contract's life needs monitoring.

Public Impact

Ensures operational readiness and infrastructure integrity at a critical Marine Corps installation. Supports local employment and economic activity in North Carolina through construction services. Addresses necessary repairs and upgrades to aging military facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration could lead to cost overruns if not managed effectively.
  • Potential for scope creep in large-scale facility repair projects.
  • Reliance on a single contractor for the duration of the delivery order.

Positive Signals

  • Awarded under full and open competition, indicating a competitive process.
  • Addresses critical infrastructure needs for national defense.
  • Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar military facility repair projects would provide better context for the $28M award.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in this particular delivery order. Further analysis of the parent IDIQ contract, if applicable, would be needed.

Oversight & Accountability

Oversight will be crucial given the project's scale and duration. Regular performance reviews and financial audits are necessary to ensure accountability and prevent cost overruns.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Long contract duration (1842 days).
  • Potential for cost escalation over the contract period.
  • Single awardee for this delivery order.
  • Lack of specific small business participation noted.
  • Scope of 'facility repairs' can be broad and subject to change.

Tags

commercial-and-institutional-building-co, department-of-defense, nc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to ENVIRONMENTAL CHEMICAL CORPORATION. DB MARINE CORPS AIR STATION NEW RIVER FACILITY REPAIRS, PHASE III

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 Navy).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2020-04-07. End: 2025-04-23.

What is the historical performance of Environmental Chemical Corporation on similar government contracts, particularly regarding cost, schedule, and quality?

Assessing Environmental Chemical Corporation's past performance is vital. Reviewing their track record on previous DoD or similar construction projects can reveal their ability to manage complex repairs, adhere to budgets, and meet deadlines. Positive indicators include successful completion of projects on time and within budget, while red flags might include significant cost overruns, delays, or quality issues.

How does the per-square-foot cost of these repairs compare to industry benchmarks for similar military facility upgrades?

Comparing the cost per square foot against industry and government benchmarks for similar military facility repairs is essential for value assessment. If the cost is significantly higher, it could indicate inefficiencies, an overly broad scope, or a lack of competitive pressure. Conversely, costs in line with or below benchmarks suggest good value for the taxpayer.

What mechanisms are in place to ensure the long-term effectiveness and durability of the repairs performed under this contract?

Ensuring the long-term effectiveness requires understanding the warranty provisions, material specifications, and quality assurance processes outlined in the contract. The government should have robust inspection protocols and performance metrics to verify that the repairs meet durability standards and will withstand expected usage and environmental conditions, minimizing future repair needs.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247017R6016

Offers Received: 2

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,079,565

Exercised Options: $28,079,565

Current Obligation: $28,079,565

Actual Outlays: $8,079,908

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247019D8025

IDV Type: IDC

Timeline

Start Date: 2020-04-07

Current End Date: 2025-04-23

Potential End Date: 2025-04-23 00:00:00

Last Modified: 2025-07-01

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