DoD's $84.8M wildfire debris cleanup contract awarded to Environmental Chemical Corp. for California

Contract Overview

Contract Amount: $84,810,346 ($84.8M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2017-10-28

End Date: 2017-11-27

Contract Duration: 30 days

Daily Burn Rate: $2.8M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CA WILDFIRE DEBRIS 2017

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $84.8 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: CA WILDFIRE DEBRIS 2017 Key points: 1. Contract value represents a significant investment in disaster recovery efforts. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Short performance period indicates a focused, immediate response requirement. 4. The contract falls within the broader category of waste collection and disposal services. 5. Geographic focus on California highlights the state's vulnerability to wildfires. 6. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $84.8 million for a 30-day debris removal operation is substantial. Benchmarking against similar disaster recovery contracts is challenging due to the unique nature of wildfire debris and specific geographic needs. However, the fixed-price structure suggests an attempt to establish clear cost expectations. The awarded amount appears to be within a reasonable range for large-scale emergency response services, though a more granular comparison of per-unit costs for debris removal would provide deeper insight into value.

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, potentially leading to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation implies a robust process designed to maximize competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of qualified contractors to bid, potentially driving down costs.

Public Impact

Residents and businesses in California affected by the 2017 wildfires are the primary beneficiaries, receiving services that aid in recovery and rebuilding. The contract delivers essential debris removal and disposal services, crucial for restoring affected areas. The geographic impact is concentrated in California, specifically in areas impacted by the 2017 wildfires. While not directly a workforce development contract, it likely supports jobs in the environmental cleanup and waste management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during debris removal.
Ensuring environmental compliance during disposal of potentially hazardous wildfire debris.
Logistical challenges in coordinating large-scale cleanup operations within a tight timeframe.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially efficient and cost-effective award.
Short duration indicates a focused and urgent response to a critical need.

Sector Analysis

This contract falls within the broader environmental services sector, specifically focusing on waste collection and disposal. The market for disaster recovery and debris removal is often characterized by emergency procurements, where speed and capability are paramount. While specific market size data for wildfire debris removal is scarce, it is a critical component of disaster management infrastructure, often involving specialized equipment and expertise. Comparable spending benchmarks are difficult to establish due to the episodic and location-specific nature of such events.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses as prime contractors is likely minimal unless they were part of a joint venture or subcontracting team. Further analysis would be needed to determine subcontracting opportunities for small businesses within this large prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the fixed-price contract structure, which obligates the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases, although specific operational oversight details are not publicly detailed.

Related Government Programs

Federal Emergency Management Agency (FEMA) Disaster Relief Funds
Environmental Protection Agency (EPA) Superfund Sites
Army Corps of Engineers Civil Works Programs
State and Local Disaster Recovery Initiatives

Risk Flags

Potential for hazardous material discovery
Short performance timeline
Environmental compliance requirements
Geographic concentration of risk (California wildfires)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.8 million to ENVIRONMENTAL CHEMICAL CORPORATION. CA WILDFIRE DEBRIS 2017

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 Army).

What is the total obligated amount?

The obligated amount is $84.8 million.

What is the period of performance?

Start: 2017-10-28. End: 2017-11-27.

What is the track record of Environmental Chemical Corporation in handling large-scale disaster recovery contracts?

Environmental Chemical Corporation (ECC) has a history of performing environmental remediation and construction services for government agencies. While specific details on their past wildfire debris removal contracts are not immediately available in this data, ECC has experience with large federal contracts, including those involving hazardous materials and site cleanup. Their ability to successfully execute this $84.8 million contract within the specified 30-day period would depend on their project management capabilities, resource availability, and adherence to safety and environmental protocols. A deeper dive into their past performance reviews and contract history would provide a more comprehensive assessment of their track record in similar disaster scenarios.

How does the awarded amount compare to the estimated cost of debris removal for similar-sized wildfires?

Directly comparing the $84.8 million award to estimated costs for similar wildfires is complex due to numerous variables. Factors such as the density of destruction, the type of debris (e.g., vegetative, structural, hazardous materials), accessibility of affected areas, and the specific cleanup methodologies employed all significantly influence costs. Wildfire debris removal can range from relatively simple vegetative clearing to complex demolition and hazardous waste management. Without detailed cost breakdowns per ton or per structure, and without knowing the exact scope and location of the 2017 California wildfires this contract addressed, a precise benchmark is difficult. However, the scale of the award suggests a significant and widespread impact requiring substantial resources.

What are the primary risks associated with this type of debris removal contract?

Key risks include unforeseen hazardous materials (e.g., asbestos in destroyed homes, chemicals) requiring specialized handling and disposal, potentially increasing costs and timelines. Environmental compliance risks are also significant, ensuring that debris is disposed of properly to prevent further contamination. Logistical challenges, such as limited access to debris sites, transportation bottlenecks, and weather disruptions, can impede progress. Furthermore, the short 30-day performance period presents a risk of not completing the work on time if any of these issues escalate. Finally, public health and safety risks for cleanup crews and the surrounding community must be meticulously managed.

How effective was the debris removal process in facilitating the recovery of the affected California communities?

The effectiveness of this specific debris removal contract in facilitating community recovery is not directly quantifiable from the provided data. However, timely debris removal is a critical first step in the post-wildfire recovery process. It allows residents to begin rebuilding, clears the way for infrastructure repair, and mitigates ongoing environmental hazards. The successful and efficient completion of this contract would have directly contributed to the physical restoration of affected areas. Long-term community recovery also involves economic and social factors beyond the scope of this contract, but the foundational work of clearing the land is essential.

What are the historical spending patterns for wildfire debris removal contracts by the Department of Defense?

Historical spending patterns for wildfire debris removal by the Department of Defense (DoD) are not detailed in the provided data. However, the DoD's involvement in domestic disaster response, including debris removal, typically occurs when state and local resources are overwhelmed or when specific military expertise is required. Such contracts are often awarded on an emergency or urgent basis. Spending can fluctuate significantly year-to-year depending on the severity and frequency of wildfires. While the DoD is not the primary agency for disaster response (FEMA holds that role), they do provide support, and their spending on such activities would reflect the scale of natural disasters impacting areas where they have a presence or mandate.

Were there any specific environmental regulations or concerns that influenced the contract's scope or execution?

While the provided data does not explicitly detail specific environmental regulations, wildfire debris often contains hazardous materials (e.g., asbestos, lead paint from structures, household chemicals) and potentially contaminated soil. Therefore, contracts for such services typically require strict adherence to EPA regulations (like RCRA for hazardous waste) and potentially state-specific environmental protection laws. The scope likely included identification, segregation, transportation, and disposal of both general debris and any hazardous components. The contractor would be expected to follow established protocols for environmental sampling, monitoring, and reporting to ensure compliance and minimize ecological impact.

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 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: $84,810,346

Exercised Options: $84,810,346

Current Obligation: $84,810,346

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P814D0028

IDV Type: IDC

Timeline