DoD Awards $20.3M for NAS Sigonella Taxiway Upgrades, Awarded to Environmental Chemical Corporation

Contract Overview

Contract Amount: $20,291,410 ($20.3M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2023-02-03

End Date: 2026-06-30

Contract Duration: 1,243 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILITARY CONSTRUCTION P-118 TAXIWAY AND APRON UPGRADES NAVAL AIR STATION SIGONELLA ITALY

Plain-Language Summary

Department of Defense obligated $20.3 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: MILITARY CONSTRUCTION P-118 TAXIWAY AND APRON UPGRADES NAVAL AIR STATION SIGONELLA ITALY Key points: 1. The contract focuses on construction for military infrastructure, specifically taxiway and apron upgrades. 2. Environmental Chemical Corporation, a non-small business, secured the award. 3. The project carries risks associated with large-scale construction and environmental factors. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The award amount of $20.3 million for a multi-year construction project appears reasonable given the scope. Benchmarking against similar military construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure upgrades, ensuring operational readiness at a key naval installation.

Public Impact

Enhances operational capabilities at Naval Air Station Sigonella, a critical hub in the Mediterranean. Supports the U.S. Navy's strategic presence and mission readiness in the region. Invests in aging infrastructure to prevent potential disruptions and ensure safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large construction projects.
  • Environmental compliance challenges during construction.
  • Schedule delays due to unforeseen site conditions or weather.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type limits cost risk.
  • Strategic importance of the infrastructure being upgraded.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar military construction projects would indicate if this award is within typical cost ranges.

Small Business Impact

The contract was awarded to a non-small business, and there is no indication of small business subcontracting goals being set or met in the provided data.

Oversight & Accountability

Standard oversight for military construction projects is expected, involving contract management by the Department of the Navy to ensure compliance with terms and specifications.

Related Government Programs

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

Risk Flags

  • Potential for construction cost overruns.
  • Risk of schedule delays.
  • Environmental compliance challenges.
  • Contract awarded to a non-small business.

Tags

commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to ENVIRONMENTAL CHEMICAL CORPORATION. MILITARY CONSTRUCTION P-118 TAXIWAY AND APRON UPGRADES NAVAL AIR STATION SIGONELLA ITALY

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 $20.3 million.

What is the period of performance?

Start: 2023-02-03. End: 2026-06-30.

What is the historical performance of Environmental Chemical Corporation on similar government contracts?

Assessing Environmental Chemical Corporation's past performance on comparable government contracts is crucial. Reviewing their track record for on-time delivery, adherence to budget, and quality of work on similar infrastructure projects would provide insight into their reliability and potential risks for this specific contract.

Are there specific environmental risks associated with the Sigonella site that could impact project cost or timeline?

The nature of the ground at Naval Air Station Sigonella and the specific upgrade work (taxiway and apron) may present unique environmental challenges. Understanding potential soil contamination, groundwater issues, or protected species habitats is vital to accurately forecast project costs and timelines, and to ensure compliance with environmental regulations.

How does the firm-fixed-price contract structure mitigate potential cost escalations for this project?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must adhere to, regardless of their actual costs. This structure shifts most of the cost risk to the contractor, protecting the government from unexpected price increases due to inflation or contractor inefficiencies, thereby enhancing budget predictability.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247021R0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY, 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: $20,291,410

Exercised Options: $20,291,410

Current Obligation: $20,291,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-02-03

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2025-11-05

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