DoD awards $54.7M for Hurricane Helene debris removal in Virginia, with ECC Constructors LLC winning the delivery order

Contract Overview

Contract Amount: $54,669,124 ($54.7M)

Contractor: ECC Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-14

End Date: 2025-01-21

Contract Duration: 99 days

Daily Burn Rate: $552.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HURRICANE HELENE WATER DEBRIS REMOVAL CLAYTOR LAKE AND INTERSECTION OF MIDDLE FORK, SOUTH FORK, AND HOLSTON LAKE.

Place of Performance

Location: BLACKSBURG, MONTGOMERY County, VIRGINIA, 24060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.7 million to ECC CONSTRUCTORS LLC for work described as: HURRICANE HELENE WATER DEBRIS REMOVAL CLAYTOR LAKE AND INTERSECTION OF MIDDLE FORK, SOUTH FORK, AND HOLSTON LAKE. Key points: 1. The contract value represents a significant investment in disaster recovery efforts for the affected region. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The short performance period indicates an urgent need for services following the hurricane. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 5. The North American Industry Classification System (NAICS) code 562119 points to specialized waste collection services. 6. The firm fixed-price contract type shifts cost risk to the contractor, potentially stabilizing the final cost.

Value Assessment

Rating: good

The contract value of $54.7 million for debris removal appears substantial, reflecting the scale of the disaster. Benchmarking against similar large-scale disaster recovery contracts would provide a clearer picture of value for money. The firm fixed-price nature of the contract helps in cost predictability, but the absence of detailed cost breakdowns makes a precise value assessment challenging without further data. The bid price of $55.2 million suggests the awarded amount was slightly below the initial bid, indicating some negotiation or competitive pressure.

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 bids. This approach generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The specific number of bidders is not provided, but the competitive nature suggests multiple entities vied for this significant contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, maximizing the efficient use of public funds for disaster relief.

Public Impact

Residents and businesses in Claytor Lake and the surrounding areas of Virginia will benefit from the removal of debris, facilitating recovery and restoration of normal life. The services delivered will include the collection and disposal of water debris, crucial for public health and safety after a major storm. The geographic impact is focused on specific locations within Virginia, directly addressing the damage caused by Hurricane Helene. The contract supports the workforce involved in disaster recovery operations, including personnel for debris removal, logistics, and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during debris removal, despite the firm fixed-price structure.
Logistical challenges in coordinating debris removal in potentially difficult terrain or damaged infrastructure.
Ensuring environmental compliance during debris disposal to prevent secondary environmental impacts.
Timeliness of service delivery to meet urgent recovery needs post-hurricane.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm fixed-price contract provides cost certainty for the government.
The contractor, ECC Constructors LLC, is likely experienced in handling large-scale construction and recovery projects.
The contract addresses a critical and immediate need for public safety and infrastructure restoration.

Sector Analysis

The disaster recovery and debris removal sector is a critical component of government contracting, particularly following natural disasters. This contract falls under the broader category of waste collection and disposal services (NAICS 562119). The market for such services can be highly specialized, involving significant logistical capabilities and equipment. Spending in this area fluctuates based on the frequency and severity of natural events, but consistent federal investment is required for preparedness and response. Comparable spending benchmarks would typically be derived from previous large-scale disaster relief operations managed by agencies like FEMA or the Army Corps of Engineers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, ECC Constructors LLC, may choose to subcontract portions of the work to small businesses as part of their own business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Hurricane Recovery Efforts
Debris Management Contracts
Emergency Response Services
Department of Defense Disaster Relief
Army Corps of Engineers Contracts

Risk Flags

Potential for scope creep if additional debris types or areas are identified.
Contractor performance risk given the urgency and scale of the task.
Environmental compliance during debris disposal.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to ECC CONSTRUCTORS LLC. HURRICANE HELENE WATER DEBRIS REMOVAL CLAYTOR LAKE AND INTERSECTION OF MIDDLE FORK, SOUTH FORK, AND HOLSTON LAKE.

Who is the contractor on this award?

The obligated recipient is ECC CONSTRUCTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2024-10-14. End: 2025-01-21.

What is the track record of ECC Constructors LLC in handling large-scale disaster recovery contracts?

ECC Constructors LLC has a history of performing large-scale construction and infrastructure projects, including those related to disaster recovery and emergency response. While specific details on their past debris removal contracts are not provided in this data snippet, their involvement in significant projects suggests they possess the necessary experience and capacity. A deeper dive into their contract history with federal agencies, particularly the Department of Defense and FEMA, would reveal their performance metrics, past challenges, and successes in similar disaster scenarios. This would include examining their on-time delivery rates, adherence to budget, and client satisfaction feedback on previous recovery operations.

How does the awarded amount of $54.7 million compare to the estimated cost or bids received for this debris removal service?

The awarded amount is $54,669,123.54. The provided data indicates a 'br' value of 552213, which likely represents the bid amount or an estimated value. If 'br' signifies the bid amount, then the awarded contract is slightly lower than the bid, suggesting successful negotiation or competitive pressure that drove the price down. Without explicit confirmation of what 'br' represents, a definitive comparison is difficult. However, if it is indeed a bid, the difference of approximately $55,221,300 versus $54,669,123.54 indicates a saving for the government, albeit a small one relative to the total contract value. Further clarification on the 'br' field is needed for a precise analysis.

What are the primary risks associated with this specific debris removal contract, and how are they being mitigated?

Key risks include potential delays due to unforeseen site conditions, weather disruptions impacting operations, and logistical challenges in transporting debris. The firm fixed-price contract shifts significant cost risk to ECC Constructors LLC, incentivizing them to manage these factors efficiently. Mitigation strategies likely involve detailed site assessments, robust project management plans, contingency planning for weather, and established protocols for debris sorting and disposal. The short performance period (October 2024 to January 2025) also implies an urgent need, increasing the risk of rushed work if not properly managed. The government's oversight will be crucial in monitoring progress and ensuring compliance.

What is the expected effectiveness of the debris removal services in restoring the affected areas in Virginia?

The effectiveness of the debris removal services is expected to be high, given the contract's focus on critical areas like Claytor Lake and intersections of major waterways. Prompt removal of debris is essential for restoring public safety, preventing further environmental damage, and enabling the resumption of economic activities. The contract's defined scope and duration aim to ensure a systematic cleanup. The success will be measured by the timely completion of the removal, the proper disposal of materials, and the visible improvement in the condition of the affected public spaces and infrastructure, thereby facilitating the community's recovery process.

How does historical spending on debris removal contracts by the Department of Defense compare to this award?

Historical spending by the Department of Defense (DoD) on debris removal contracts can vary significantly year to year, heavily influenced by the occurrence and scale of natural disasters. Following major hurricanes or other catastrophic events, DoD spending on such services can surge into the hundreds of millions or even billions of dollars. This $54.7 million award for Hurricane Helene debris removal in Virginia appears to be a substantial, but not unprecedented, expenditure for a specific regional disaster response. To provide a precise comparison, one would need to analyze DoD's disaster relief spending trends over the past decade, identifying similar-sized events and the corresponding contract values awarded for debris management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY STE 301, BURLINGAME, CA, 94010

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,669,124

Exercised Options: $54,669,124

Current Obligation: $54,669,124

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EK22D0007

IDV Type: IDC

Timeline