DoD awards $28.6M contract for runway repair at Basa Air Base, highlighting construction needs

Contract Overview

Contract Amount: $28,569,555 ($28.6M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2024-03-27

Contract Duration: 545 days

Daily Burn Rate: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: D/B UFC REPAIR OF RUNWAY AND OVERRUN, BASA AIR BASE

Plain-Language Summary

Department of Defense obligated $28.6 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: D/B UFC REPAIR OF RUNWAY AND OVERRUN, BASA AIR BASE Key points: 1. Contract addresses critical infrastructure maintenance for military operations. 2. Competition was robust, suggesting a competitive market for airfield construction. 3. Fixed-price contract type aims to control costs and manage contractor risk. 4. Project duration of 545 days indicates a significant scope of work. 5. Focus on runway repair underscores the importance of aviation readiness. 6. Geographic location in the Philippines suggests strategic international basing.

Value Assessment

Rating: good

The contract value of $28.6 million for runway repair appears reasonable given the scope and location. Benchmarking against similar airfield construction projects globally, especially those involving foreign military bases, would provide a more precise value assessment. The firm fixed-price structure suggests an expectation of cost certainty, which is generally favorable for the government if the contractor accurately priced the risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest from qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for obtaining the best value by encouraging a wide range of offers and potentially lower prices.

Public Impact

Enhances operational capabilities for U.S. Air Force and allied forces at Basa Air Base. Supports critical infrastructure necessary for strategic power projection in the Indo-Pacific region. Ensures the safety and efficiency of aircraft operations. Potentially creates local employment opportunities during the construction phase. Contributes to the long-term sustainability of U.S. military presence in the Philippines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price terms.
Geopolitical risks associated with operating in an international location.
Dependency on timely delivery of materials and specialized labor.
Ensuring compliance with local environmental and labor regulations.

Positive Signals

Clear definition of work scope for runway repair.
Fixed-price contract mitigates budget uncertainty.
Awarded under full and open competition, suggesting competitive pricing.
Strategic importance of the base ensures project priority.
Experienced contractor likely selected through competitive process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on airfield infrastructure. The global market for military airfield construction and maintenance is substantial, driven by defense budgets and the need to maintain operational readiness across numerous bases worldwide. This project represents a significant investment in maintaining critical aviation assets in a strategically important region.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is Environmental Chemical Corporation, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses will have opportunities to participate in the subcontracting effort.

Oversight & Accountability

The Department of the Navy, as the awarding agency, is responsible for oversight. The firm fixed-price contract type provides a degree of cost control. Transparency is facilitated by the public nature of contract awards. Inspector General oversight would apply to ensure proper execution and prevent fraud, waste, and abuse throughout the contract lifecycle.

Related Government Programs

Airfield Pavement Repair
Military Base Infrastructure Modernization
Department of Defense Construction Contracts
Indo-Pacific Region Military Support

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Geopolitical and logistical complexities of international contract performance.
Dependency on specialized labor and materials sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to ENVIRONMENTAL CHEMICAL CORPORATION. D/B UFC REPAIR OF RUNWAY AND OVERRUN, BASA AIR BASE

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 $28.6 million.

What is the period of performance?

Start: 2022-09-29. End: 2024-03-27.

What is the track record of Environmental Chemical Corporation in performing similar large-scale construction projects, particularly for the Department of Defense?

Environmental Chemical Corporation (ECC) has a significant history of performing large-scale construction and engineering projects, including many for the Department of Defense and other federal agencies. Their portfolio often includes infrastructure development, environmental remediation, and facility construction. While specific details on runway repair projects of this exact scale are not immediately available without deeper database access, ECC's general experience suggests they possess the capability to manage complex projects. A review of their past performance ratings and any contract disputes or terminations would provide further insight into their reliability for this specific type of work.

How does the awarded amount of $28.6 million compare to the estimated cost or budget for this runway repair project?

The provided data does not include the government's estimate or the initial budget allocated for this runway repair project. Therefore, a direct comparison to determine if the awarded amount represents a favorable or unfavorable outcome relative to expectations is not possible. Typically, the relationship between the awarded price and the government estimate (if available) can indicate the effectiveness of the competition and the accuracy of contractor bidding. Without this benchmark, assessing the value-for-money solely based on the award amount is challenging.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include unforeseen subsurface conditions at the Basa Air Base that could increase repair costs, potential delays due to logistical challenges in the Philippines, and ensuring compliance with local regulations and environmental standards. The firm fixed-price contract structure inherently shifts some cost risk to the contractor, incentivizing them to manage these factors efficiently. Mitigation strategies likely involve thorough site investigations prior to award, robust project management plans by the contractor, and close government oversight to address issues proactively. The contract duration of 545 days also allows for some buffer against minor delays.

What is the strategic importance of Basa Air Base, and how does this contract support its mission?

Basa Air Base is a key facility for the Philippine Air Force and hosts U.S. military rotational forces, playing a crucial role in regional security and power projection within the Indo-Pacific. Maintaining a functional and safe runway is paramount for supporting air operations, including fighter jets, transport aircraft, and potential humanitarian aid missions. This contract directly supports the base's mission by ensuring its primary aviation infrastructure is sound, thereby enhancing operational readiness, enabling joint training exercises, and reinforcing strategic partnerships in a vital geopolitical area.

What has been the historical spending trend for runway maintenance and repair at Department of Defense facilities globally over the past five years?

Historical spending on runway maintenance and repair across the Department of Defense globally has been substantial and generally increasing over the past five years. Factors contributing to this trend include aging infrastructure requiring more frequent upkeep, increased operational tempo leading to greater wear and tear, and a growing emphasis on modernizing airfields to accommodate advanced aircraft. While specific figures for global runway repair contracts fluctuate annually based on identified needs and budget allocations, the overall category represents a consistent and significant portion of the DoD's facilities maintenance budget, reflecting the critical nature of airbase infrastructure.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $28,569,555

Exercised Options: $28,569,555

Current Obligation: $28,569,555

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