DoD's $71.8M Debris Removal Contract Awarded to Environmental Chemical Corporation

Contract Overview

Contract Amount: $71,809,241 ($71.8M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2018-01-13

End Date: 2018-06-30

Contract Duration: 168 days

Daily Burn Rate: $427.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF ECC DEBRIS REMOVAL TO6

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $71.8 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: IGF::OT::IGF ECC DEBRIS REMOVAL TO6 Key points: 1. The contract's value represents a significant investment in environmental remediation services. 2. Full and open competition suggests a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The short performance period indicates a focused, short-term operational need. 5. The contract falls under the 'Other Waste Collection' NAICS code, highlighting specialized service delivery. 6. The award was made by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific debris removal contract is challenging without more granular data on the scope of work and market rates for similar emergency response services. The firm fixed-price structure is a positive indicator for cost control. However, the absence of detailed performance metrics or comparisons to other similar contracts makes a definitive value-for-money assessment difficult. The contract's duration and the specific nature of the debris (ECC DEBRIS REMOVAL TO6) would be key factors in determining if the $71.8 million was a competitive price.

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 suggests a robust bidding environment, which typically leads to better price discovery and potentially lower costs for the government. The number of bidders is not specified, but the open competition is a positive sign for market engagement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation among contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially affected communities requiring environmental cleanup. The services delivered involve debris removal, crucial for restoring operational capacity or environmental safety. The contract's geographic impact is specified as California (SN: CALIFORNIA). Workforce implications would involve specialized personnel for hazardous material handling and debris removal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge effectiveness.
Limited information on the exact nature of 'ECC DEBRIS REMOVAL TO6' raises questions about scope creep potential.
Short performance duration might indicate an emergency response, which can sometimes incur premium pricing.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Firm fixed-price contract type helps manage cost certainty.
Contract awarded to Environmental Chemical Corporation, a known entity in environmental services.

Sector Analysis

The environmental services sector is a critical component of government contracting, particularly for agencies like the Department of Defense that operate large facilities and may face environmental challenges. This contract falls under the 'Other Waste Collection' NAICS code (562119), which encompasses a range of waste management services beyond typical landfill or recycling operations. The market for environmental remediation and debris removal can be substantial, especially in regions prone to natural disasters or with extensive industrial legacies. Comparable spending benchmarks would depend on the specific type and scale of debris and the urgency of the removal.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (SS: false, SB: false). This suggests that the primary competition was likely among larger, established firms capable of handling the scale and complexity of the debris removal task. There is no explicit information on subcontracting plans for small businesses, which could mean limited opportunities for them on this particular contract, though this is not definitively stated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle (implied by 'TO6'), oversight might be managed at the task order level. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Emergency Response Contracts
Department of Defense Cleanup Operations
California Environmental Protection Agency Contracts

Risk Flags

Lack of detailed scope definition
Potential for unforeseen conditions in debris removal
Limited performance data available
Short contract duration may imply emergency response pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.8 million to ENVIRONMENTAL CHEMICAL CORPORATION. IGF::OT::IGF ECC DEBRIS REMOVAL TO6

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 $71.8 million.

What is the period of performance?

Start: 2018-01-13. End: 2018-06-30.

What is the specific nature of the 'ECC DEBRIS REMOVAL TO6' and the environmental conditions it addresses?

The designation 'ECC DEBRIS REMOVAL TO6' likely refers to a specific task order (TO6) issued under a broader contract vehicle, with Environmental Chemical Corporation (ECC) as the contractor, for debris removal. Without access to the specific task order details or the parent contract, the exact nature of the debris (e.g., hazardous materials, construction debris, natural disaster aftermath) and the environmental conditions requiring removal remain unspecified. This lack of detail hinders a precise understanding of the scope, risks, and the appropriateness of the $71.8 million award. Further investigation into the parent contract and task order documentation would be necessary to clarify the scope of work, the location within California, and the specific environmental hazards being addressed.

How does the $71.8 million contract value compare to similar debris removal contracts awarded by the DoD or other federal agencies?

Comparing the $71.8 million value requires identifying contracts with similar scope, scale, location, and urgency. Debris removal contracts can vary dramatically based on the type of debris (e.g., hazardous waste vs. general construction debris), the volume, the geographic area affected, and the required response time. For instance, contracts following major natural disasters might be significantly larger and more expensive due to widespread damage and immediate needs. Conversely, smaller, localized cleanup operations would be valued much lower. Without specific details on the nature of the debris and the context of the removal operation in California, a direct comparison is difficult. However, $71.8 million represents a substantial sum, suggesting a significant or complex cleanup effort.

What were the key performance indicators (KPIs) or success metrics defined for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for debris removal contracts, KPIs might include metrics such as the volume of debris removed within a certain timeframe, adherence to safety protocols (e.g., zero lost-time incidents), proper disposal methods meeting regulatory requirements, and completion of the site restoration to a specified standard. The firm fixed-price nature suggests that meeting the defined scope of work within budget is a primary success factor. However, the absence of explicit performance metrics in the summary data makes it challenging to assess the contractor's performance beyond basic completion.

What is Environmental Chemical Corporation's track record with similar large-scale debris removal contracts for the federal government?

Environmental Chemical Corporation (ECC) has a history of performing environmental services, including hazardous waste management and remediation, for government agencies. To assess their track record specifically for large-scale debris removal contracts comparable to this $71.8 million award, a review of their past performance evaluations, contract history (particularly with the Department of Defense and Army Corps of Engineers), and any reported issues or successes would be necessary. Information on their capacity, specialized equipment, and experience with emergency response or disaster recovery operations would be crucial. Without this detailed historical performance data, it's difficult to definitively gauge their suitability and past success on contracts of this magnitude.

What is the historical spending pattern for debris removal services by the Department of the Army in California?

Analyzing historical spending patterns for debris removal by the Department of the Army in California would require accessing comprehensive federal procurement data over several fiscal years. This would involve filtering awards by agency (Department of the Army), geographic location (California), and relevant service categories (e.g., waste collection, environmental remediation, disaster recovery). Such an analysis could reveal trends in contract values, frequency of awards, and the primary contractors utilized. It could also highlight periods of increased spending potentially linked to specific events like wildfires or other emergencies. The $71.8 million award would then be contextualized against this historical spending baseline to determine if it represents a typical, unusually high, or unusually low expenditure for similar services in the region.

What are the potential risks associated with a firm fixed-price contract for emergency debris removal?

While firm fixed-price (FFP) contracts are generally favored for cost control, they can introduce risks, especially in emergency debris removal scenarios. The primary risk is that unforeseen conditions or the dynamic nature of emergencies might lead to scope changes or require additional work not initially anticipated. If the contractor has underestimated the complexity or volume of debris, they might incur losses, potentially leading to pressure to cut corners on safety or environmental compliance. Conversely, if the initial scope was poorly defined, the government might end up paying a premium if the contractor identifies efficiencies or a simpler-than-expected task. Effective contract management, clear initial scope definition, and contingency planning are crucial to mitigate these risks in FFP emergency contracts.

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: $71,809,241

Exercised Options: $71,809,241

Current Obligation: $71,809,241

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P814D0028

IDV Type: IDC

Timeline