DoD awards $7.3M environmental remediation contract to Environmental Chemical Corporation for Tennessee sites

Contract Overview

Contract Amount: $7,365,301 ($7.4M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2024-11-06

End Date: 2026-11-05

Contract Duration: 729 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIATION AT HSAAP, MLAAP, AND VOAAP IN TN.

Place of Performance

Location: KINGSPORT, SULLIVAN County, TENNESSEE, 37660

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: ENVIRONMENTAL REMEDIATION AT HSAAP, MLAAP, AND VOAAP IN TN. Key points: 1. Contract focuses on critical environmental cleanup at three Army installations. 2. The firm-fixed-price structure aims to control costs for the government. 3. Competition was conducted after excluding sources, suggesting potential limitations. 4. The contract duration of approximately two years allows for focused remediation efforts. 5. This award falls within the broader category of environmental services for federal agencies.

Value Assessment

Rating: good

The contract value of $7.3 million for environmental remediation services appears reasonable given the scope of work at three distinct sites. While specific benchmarks for multi-site remediation are not provided, the firm-fixed-price (FFP) type suggests a defined cost ceiling, which is advantageous for the government. The award to a single contractor implies a thorough evaluation process to ensure value for money. Further analysis would require comparing per-site remediation costs to similar projects within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation was open, certain sources were excluded prior to the final award decision. The exact reasons for exclusion are not detailed, but this approach can sometimes limit the pool of potential bidders. The number of bidders is not specified, making it difficult to fully assess the level of competition achieved.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may have reduced competitive pressure, potentially impacting the final price achieved for taxpayers. A more robust competition with a wider range of eligible bidders could have led to more aggressive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, ensuring compliance with environmental regulations at their facilities. Services delivered include environmental remediation, crucial for mitigating hazardous substances at the specified Army installations. The geographic impact is concentrated in Tennessee, specifically at the HSAAP, MLAAP, and VOAAP sites. This contract supports specialized environmental cleanup jobs, contributing to the skilled workforce in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires further investigation to ensure it did not unduly restrict competition and lead to suboptimal pricing.
Lack of specific details on the remediation scope per site makes it challenging to benchmark the value effectively.
The contract type is firm-fixed-price, which is generally good, but the specific performance metrics and quality control measures are not detailed here.

Positive Signals

The contract is awarded to a single entity, suggesting a focused and potentially efficient execution of the remediation tasks.
The firm-fixed-price contract type provides cost certainty for the government, minimizing the risk of cost overruns.
The contract addresses critical environmental compliance needs for Department of Defense installations.

Sector Analysis

Environmental remediation services represent a significant segment within the broader professional, scientific, and technical services sector. Federal agencies, particularly the Department of Defense, are major clients due to the extensive footprint of military installations requiring ongoing environmental management and cleanup. The market includes specialized firms capable of handling hazardous materials and complex site restoration. Comparable spending benchmarks would typically involve analyzing the cost per acre or per cubic yard of contaminated material remediated across similar federal projects.

Small Business Impact

There is no indication that this contract includes a small business set-aside. The primary contractor, Environmental Chemical Corporation, is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides appears minimal. However, the potential for subcontracting opportunities for small businesses within the environmental services niche should be explored, though not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability by setting a clear cost ceiling. Transparency is facilitated by the public nature of contract awards, though detailed performance reports and inspection findings may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Services
Defense Environmental Cleanup
Hazardous Waste Management
Site Remediation

Risk Flags

Potential for limited competition due to source exclusion.
Scope of work complexity across multiple sites.
Ensuring adherence to strict environmental cleanup standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to ENVIRONMENTAL CHEMICAL CORPORATION. ENVIRONMENTAL REMEDIATION AT HSAAP, MLAAP, AND VOAAP IN TN.

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 $7.4 million.

What is the period of performance?

Start: 2024-11-06. End: 2026-11-05.

What is the specific nature of the environmental contamination at HSAAP, MLAAP, and VOAAP, and what remediation techniques are planned?

The provided data does not specify the exact nature of the environmental contamination at the Health Services Assistance Program (HSAAP), Military Logistics Assistance Program (MLAP), and Vehicle Operations and Assistance Program (VOAAP) sites in Tennessee. Environmental remediation contracts typically address a range of contaminants, including petroleum hydrocarbons, heavy metals, volatile organic compounds (VOCs), and other hazardous substances resulting from past industrial activities, spills, or improper disposal. The remediation techniques employed would depend on the type and extent of contamination, site geology, and regulatory requirements. Common methods include excavation and off-site disposal, in-situ treatment (e.g., bioremediation, chemical oxidation), soil vapor extraction, groundwater pump-and-treat systems, and containment measures. The specific plan would be detailed in the contract's Statement of Work (SOW).

How does the $7.3 million contract value compare to historical spending on environmental remediation at these specific Army installations?

The provided data does not include historical spending figures for environmental remediation at HSAAP, MLAAP, and VOAAP. To assess this, one would need to access historical contract databases (like FPDS or USASpending.gov) and search for previous awards related to these installations and the North American Industry Classification System (NAICS) code 562910 (Remediation Services). Comparing the current $7.3 million award against past expenditures would reveal whether this represents an increase, decrease, or consistent level of investment. Factors influencing historical spending could include the progression of cleanup phases (from investigation to long-term monitoring), changes in regulatory standards, or the discovery of new contamination.

What are the key performance indicators (KPIs) and quality assurance measures included in this contract to ensure effective remediation?

The provided award data does not detail the specific Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. However, in typical environmental remediation contracts, KPIs often include meeting cleanup standards within specified timeframes, achieving target contaminant reduction levels, minimizing environmental impact during remediation activities, and adhering to safety protocols. QA measures usually involve rigorous sampling and analysis plans, independent verification of results, regular site inspections, progress reporting, and adherence to established environmental management systems. The contracting officer's representative (COR) would be responsible for monitoring performance against these metrics.

What is the track record of Environmental Chemical Corporation in handling similar large-scale environmental remediation projects for the Department of Defense?

The provided data identifies Environmental Chemical Corporation (ECC) as the contractor but does not offer details on their specific track record. To assess ECC's performance, one would need to research their past contracts, particularly those with the Department of Defense (DoD) or other federal agencies, for similar environmental remediation services. This would involve checking contract databases for past performance evaluations, any reported disputes or claims, and the scale and complexity of projects they have successfully completed. A positive track record with relevant experience would increase confidence in their ability to execute this current contract effectively.

What are the potential risks associated with the 'full and open competition after exclusion of sources' procurement method for this contract?

The 'full and open competition after exclusion of sources' method, while intended to be competitive, carries specific risks. The primary risk is that excluding certain sources, even if justified by the agency, might inadvertently limit the pool of highly qualified bidders or innovative solutions. This could potentially lead to less competitive pricing than if all capable sources were allowed to compete. Furthermore, if the exclusion criteria are perceived as overly restrictive or not clearly justified, it could raise concerns about fairness and potentially lead to protests. The agency must have a documented justification for any exclusions to mitigate these risks and ensure the integrity of the procurement process.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9124J22R0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY, BURLINGAME, CA, 94010

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,490,830

Exercised Options: $7,891,611

Current Obligation: $7,365,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J24D0009

IDV Type: IDC

Timeline