Department of the Navy awards $51.4M contract for MCASNR facility repairs, highlighting construction needs

Contract Overview

Contract Amount: $51,409,997 ($51.4M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2020-05-29

End Date: 2024-06-16

Contract Duration: 1,479 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X010 FLO - MCASNR FACILITY REPAIRS, PHASE II (190118)

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $51.4 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: X010 FLO - MCASNR FACILITY REPAIRS, PHASE II (190118) Key points: 1. The contract value of $51.4 million addresses significant facility repair requirements. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 1479 days points to a substantial, long-term construction undertaking. 5. The North Carolina location suggests a focus on regional infrastructure needs. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $51.4 million for facility repairs appears substantial. Benchmarking against similar large-scale construction projects for military installations would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control, but the final cost will depend on the contractor's efficiency and management of unforeseen issues over the 1479-day duration. Without specific cost breakdowns or comparisons to similar repair projects at other bases, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Department of the Navy sought competitive proposals to ensure fair pricing and quality. The number of bidders is not specified, but full and open competition generally leads to a wider pool of potential contractors, which can drive down costs and improve service offerings.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially leading to lower overall project costs.

Public Impact

The primary beneficiaries are the Department of the Navy and military personnel stationed at Marine Corps Air Station New River (MCASNR), who will benefit from improved and safer facilities. The services delivered include comprehensive repairs to existing facilities, ensuring operational readiness and habitability. The geographic impact is concentrated in North Carolina, supporting regional economic activity through construction jobs and material procurement. Workforce implications include the creation of numerous construction-related jobs in the local area, potentially boosting employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive repair work.
Dependence on the contractor's ability to manage a long-duration project effectively.
Limited visibility into specific repair details and their long-term impact without further documentation.

Positive Signals

Firm-fixed-price contract type mitigates cost uncertainty for the government.
Full and open competition suggests a robust bidding process aimed at achieving value.
The project addresses critical infrastructure needs, enhancing operational capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports critical infrastructure, including military bases, government facilities, and public works. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in facility maintenance and upgrades. This contract represents a specific investment in maintaining and improving a key military installation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a larger entity, or that the competition was open to all sizes without specific small business preferences. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large construction project, which is common in federal contracts of this magnitude.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and facilities management departments. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver specified repairs within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed project progress and specific oversight activities may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Department of Defense Infrastructure Projects
Naval Facilities Engineering Command Contracts

Risk Flags

Long project duration may increase risk of cost escalation or scope creep.
Lack of specified small business participation requires monitoring for subcontracting opportunities.
Potential for unforeseen site conditions in facility repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to ENVIRONMENTAL CHEMICAL CORPORATION. X010 FLO - MCASNR FACILITY REPAIRS, PHASE II (190118)

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 $51.4 million.

What is the period of performance?

Start: 2020-05-29. End: 2024-06-16.

What is the historical spending pattern for facility repairs at MCASNR?

Analyzing historical spending data for facility repairs at MCASNR would provide crucial context for the current $51.4 million award. This would involve examining previous contracts for similar repair work, their values, durations, and the contractors involved. Understanding if this award represents an increase or decrease in spending, or if it consolidates multiple smaller projects, can indicate trends in infrastructure investment. For instance, a pattern of deferred maintenance might explain a large, consolidated repair contract. Conversely, a steady increase in spending could signal aging infrastructure or evolving operational requirements. Without access to specific historical contract data for MCASNR, it's difficult to definitively characterize the spending pattern, but this award suggests a significant, potentially one-time or phased, investment in the facility's upkeep.

How does the cost per square foot for these repairs compare to industry benchmarks?

Determining the cost per square foot for these repairs requires knowing the total square footage being addressed and the specific types of repairs undertaken. The provided data does not include this information. However, if such details were available, they could be benchmarked against industry standards for commercial and institutional building construction, particularly for military facilities. Factors like the age of the building, the extent of structural damage, and the complexity of the repairs (e.g., HVAC, electrical, roofing, seismic retrofitting) significantly influence cost per square foot. Generally, military facility repairs can be more expensive due to stringent security, material, and performance requirements. A comparison would reveal if the $51.4 million contract represents an efficient use of funds relative to the scope of work and market rates for comparable projects.

What is Environmental Chemical Corporation's track record with similar large-scale construction contracts?

Environmental Chemical Corporation's track record with similar large-scale construction contracts is a key indicator of their capability and reliability. Information on their past performance, including the successful completion of projects of comparable size and complexity, particularly for government or military clients, would be essential. This includes examining their history of meeting deadlines, staying within budget, and adhering to quality standards. A review of past contract awards and performance evaluations, if publicly available, would highlight any potential risks or strengths. For a $51.4 million project with a 1479-day duration, a proven history of managing complex, long-term construction endeavors is critical for ensuring successful project delivery and taxpayer value.

What specific facility systems or structures are included in the 'facility repairs' scope?

The term 'facility repairs' is broad and encompasses a wide range of potential work. To fully assess the contract's value and impact, a detailed breakdown of the specific facility systems and structures included is necessary. This could range from critical infrastructure like HVAC, plumbing, and electrical systems to structural components such as roofing, foundations, and walls. It might also include upgrades to safety systems, environmental remediation, or modernization of living quarters and operational spaces. Without this granular detail, it is challenging to benchmark costs accurately or understand the full scope of the project's contribution to the base's operational readiness and habitability. The contract's Statement of Work (SOW) would typically provide this level of detail.

Are there any performance risks associated with the 1479-day duration of this contract?

A contract duration of 1479 days (approximately four years) for facility repairs presents several potential performance risks. Firstly, the extended timeline increases the possibility of unforeseen site conditions or material price fluctuations that could impact the firm-fixed-price. Secondly, managing a project over such a long period requires sustained contractor focus and effective project management to avoid delays and maintain quality. Thirdly, the risk of scope creep, where additional repair needs are identified mid-project, could lead to change orders and cost increases if not managed rigorously. Finally, the long duration necessitates robust government oversight to ensure consistent progress and adherence to the original contract terms throughout the project lifecycle.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, 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: $51,409,997

Exercised Options: $51,409,997

Current Obligation: $51,409,997

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