DoD Awards $855.6M Design-Build Contract for China Lake Airfield Projects to Environmental Chemical Corporation

Contract Overview

Contract Amount: $855,642,447 ($855.6M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-10

End Date: 2025-03-01

Contract Duration: 1,633 days

Daily Burn Rate: $524.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD SOUTH AIRFEILD MCON PROJECTS CHINA LAKE, CALIFORNIA

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $855.6 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: DESIGN-BUILD SOUTH AIRFEILD MCON PROJECTS CHINA LAKE, CALIFORNIA Key points: 1. Significant investment in critical infrastructure at China Lake Naval Air Weapons Station. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The project duration spans over 4 years, indicating a complex and lengthy undertaking. 4. No small business participation was reported, which could be a missed opportunity for economic inclusion.

Value Assessment

Rating: fair

The contract value of $855.6 million is substantial for a design-build project of this nature. Benchmarking against similar large-scale construction projects is difficult without more specific details on the scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final price is a firm fixed price, meaning the government bears less risk of cost overruns but may have paid a premium if competition was less robust than anticipated.

Taxpayer Impact: Taxpayer funds are being utilized for a large-scale infrastructure project. The effectiveness of the competition in securing the best value for taxpayers is a key consideration.

Public Impact

Enhances critical operational capabilities at a key naval facility. Supports regional economic activity through construction employment and material sourcing. Potential for long-term operational cost savings due to modern infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost overruns if scope is not well-defined.
Long project duration increases risk of unforeseen issues.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract limits government cost risk.
Addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Large federal construction projects often involve significant capital outlays and can be subject to market fluctuations and specialized labor availability.

Small Business Impact

The contract explicitly states no small business participation. This is a notable absence, as federal policy often encourages or mandates small business involvement in contracting opportunities to promote economic growth and diversity.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The long duration and significant value necessitate robust project management and regular performance reviews to ensure accountability and adherence to contract terms.

Related Government Programs

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

Risk Flags

Lack of small business participation.
Potential for scope creep despite fixed price.
Long project duration increases risk exposure.
Dependence on a single contractor for design and build.
Geographic concentration of risk at China Lake.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $855.6 million to ENVIRONMENTAL CHEMICAL CORPORATION. DESIGN-BUILD SOUTH AIRFEILD MCON PROJECTS CHINA LAKE, CALIFORNIA

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 $855.6 million.

What is the period of performance?

Start: 2020-09-10. End: 2025-03-01.

What specific design and construction elements are included in this $855.6 million contract to justify the significant investment?

The contract details are limited, but it pertains to 'DESIGN-BUILD SOUTH AIRFIELD MCON PROJECTS'. This suggests a comprehensive scope involving the design and construction of airfield-related facilities, potentially including runways, taxiways, aprons, support buildings, and associated infrastructure. The exact specifications and complexity of these elements would determine the overall cost justification.

Given the firm fixed price, what mechanisms are in place to ensure the contractor delivers quality construction within budget and schedule, especially over a five-year period?

Despite the firm fixed price, the Department of the Navy will likely employ rigorous contract administration, including regular progress reviews, site inspections, and performance monitoring. Milestones and quality control plans are crucial. The contractor assumes most of the cost risk, but the government must ensure the final product meets all specified requirements and standards.

How will the long duration of this project (2020-2025) impact the overall effectiveness and modernization goals for the China Lake Airfield?

A long duration can introduce risks such as material price escalation, technological obsolescence, and changes in operational requirements. However, it also allows for phased construction and integration of complex systems. Effective project management and flexibility in adapting to evolving needs will be critical to ensuring the project's long-term effectiveness and alignment with modernization goals.

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

Solicitation ID: N6247017R6016

Offers Received: 1

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: $855,642,447

Exercised Options: $855,642,447

Current Obligation: $855,642,447

Actual Outlays: $558,747,129

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