DoD's $210M Hazardous Waste Contract with ECC Constructors LLC Lacks Competition

Contract Overview

Contract Amount: $210,389,514 ($210.4M)

Contractor: ECC Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-03-31

Contract Duration: 576 days

Daily Burn Rate: $365.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TDS SITE OPERATION & MAINTENANCE AND PRIVATE PROPERTY DEBRIS REMOVAL (PPDR).

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $210.4 million to ECC CONSTRUCTORS LLC for work described as: TDS SITE OPERATION & MAINTENANCE AND PRIVATE PROPERTY DEBRIS REMOVAL (PPDR). Key points: 1. Significant contract value of over $210 million for hazardous waste management. 2. ECC Constructors LLC is the sole awardee, raising concerns about competition. 3. Potential risk of inflated costs due to the lack of competitive bidding. 4. The contract falls under the Hazardous Waste Treatment and Disposal sector.

Value Assessment

Rating: questionable

The contract's value of $210.39 million over approximately 1.5 years appears high given the lack of competitive bidding. Benchmarking against similar hazardous waste management contracts would be necessary to determine true value, but the sole-source nature suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition in this substantial contract raises concerns about the efficient use of taxpayer funds, potentially leading to overspending.

Public Impact

Taxpayers may be overpaying for essential hazardous waste services due to the absence of competition. The long-term implications for environmental safety and regulatory compliance are significant. Future contracts in this sector may be influenced by this sole-source award, potentially perpetuating non-competitive practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of Competition
  • Potential for Overpricing
  • Sole-Source Award

Positive Signals

  • Essential Service Provided
  • Clear Contract Duration

Sector Analysis

This contract for hazardous waste treatment and disposal is critical for environmental safety and regulatory compliance. Spending benchmarks for such services can vary widely based on location, volume, and specific waste types, but large sole-source awards warrant scrutiny.

Small Business Impact

The contract data indicates that small businesses were not involved in this award, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this sole-source agreement.

Oversight & Accountability

The sole-source nature of this contract suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not competed and if adequate justification exists.

Related Government Programs

  • Hazardous Waste Treatment and Disposal
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award lacks competitive justification.
  • Potential for inflated pricing due to no competition.
  • Limited transparency on contractor selection rationale.
  • No small business participation noted.
  • Significant contract value raises oversight concerns.

Tags

hazardous-waste-treatment-and-disposal, department-of-defense, hi, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $210.4 million to ECC CONSTRUCTORS LLC. TDS SITE OPERATION & MAINTENANCE AND PRIVATE PROPERTY DEBRIS REMOVAL (PPDR).

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 $210.4 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-03-31.

What is the justification for awarding this significant hazardous waste contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's unclear why ECC Constructors LLC was the only viable option for this $210 million contract. This lack of transparency hinders the assessment of fair pricing and effective use of funds.

What are the risks associated with a sole-source contract of this magnitude for hazardous waste management?

The primary risk is financial: without competition, the government may pay a premium. There's also a risk of complacency from the contractor, potentially impacting service quality or responsiveness over time. Furthermore, it limits opportunities for other qualified firms to demonstrate their capabilities and potentially offer better value.

How does this sole-source award impact the effectiveness of government spending in the hazardous waste sector?

Sole-source awards generally reduce the effectiveness of government spending by eliminating the downward price pressure competition provides. This $210 million contract, awarded without competition, likely means less value for taxpayer dollars. It also sets a precedent that could discourage future competitive bidding in this critical sector.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesWaste Treatment and DisposalHazardous Waste Treatment and Disposal

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128A24R0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 AIRPORT BLVD STE 250, 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: $210,389,514

Exercised Options: $210,389,514

Current Obligation: $210,389,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-09-01

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2025-12-18

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