DoD's $95M P001 Master Time Clocks Contract Awarded to Environmental Chemical Corp

Contract Overview

Contract Amount: $95,093,059 ($95.1M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-16

End Date: 2026-09-15

Contract Duration: 2,556 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P001 MASTER TIME CLOCKS&OPERATIONS FACILITY MILCON

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20392

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $95.1 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: P001 MASTER TIME CLOCKS&OPERATIONS FACILITY MILCON Key points: 1. The contract is for construction of a Master Time Clocks & Operations Facility. 2. Awarded by the Department of the Navy, a branch of the DoD. 3. The contract has a duration of 2556 days, ending in September 2026. 4. The total value is over $95 million. 5. The contract was awarded using full and open competition.

Value Assessment

Rating: fair

The contract value of $95,093,059.41 for a large-scale facility construction project appears within a reasonable range for a major military construction (MILCON) effort. Benchmarking against similar large-scale DoD construction projects would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Military readiness and operational capabilities may be enhanced by the new facility. Construction activities could create local employment opportunities. The project's scale indicates a significant investment in military infrastructure. Potential for disruption to local communities during the extended construction period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2556 days) increases exposure to cost fluctuations.
Firm Fixed Price contract may not fully account for unforeseen construction challenges.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Clear project scope for a critical facility.
Department of Defense contract indicates strategic importance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a military construction (MILCON) project. Large-scale MILCON projects often involve significant capital investment and complex logistical requirements, with spending benchmarks varying widely based on project type and location.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and there is no explicit information on subcontracting plans for small businesses.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. Given the significant value and long duration, robust oversight mechanisms, including regular progress reviews and quality assurance checks, are crucial to ensure project completion and taxpayer value.

Related Government Programs

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

Risk Flags

Long contract duration increases risk exposure.
Firm Fixed Price for a long-term construction project.
No stated small business participation.
Potential for cost escalation over 7 years.
Lack of detailed project scope in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.1 million to ENVIRONMENTAL CHEMICAL CORPORATION. P001 MASTER TIME CLOCKS&OPERATIONS FACILITY MILCON

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 $95.1 million.

What is the period of performance?

Start: 2019-09-16. End: 2026-09-15.

What is the specific purpose and operational necessity of the 'Master Time Clocks & Operations Facility' to justify its $95M cost?

The specific purpose of the 'Master Time Clocks & Operations Facility' is not detailed in the provided data. However, its designation as a MILCON project by the Department of the Navy suggests it is critical for supporting essential military operations, potentially involving secure time synchronization, command and control systems, or critical infrastructure management. The substantial cost reflects the complexity and scale typically associated with secure, high-availability military facilities.

What are the key risks associated with a 2556-day Firm Fixed Price construction contract for a military facility?

A 2556-day (approximately 7-year) Firm Fixed Price (FFP) contract for military construction carries significant risks. These include potential cost overruns due to inflation, material price volatility, unforeseen site conditions, design changes, and labor shortages over the extended period. The FFP structure places the burden of these risks primarily on the contractor, potentially leading to claims for equitable adjustments or, in extreme cases, contractor default if not managed effectively.

How does the lack of small business participation impact the overall value and effectiveness of this contract?

The lack of explicit small business participation (prime or subcontracting) in this contract means potential benefits like innovation, specialized expertise, and economic development opportunities within the small business sector are not being leveraged. While a large contractor may have the capacity for such a large project, it limits the distribution of contract funds and potentially reduces competition in future large-scale contracting opportunities by not fostering a pipeline of capable small businesses.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $95,093,059

Exercised Options: $95,093,059

Current Obligation: $95,093,059

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