DoD's Air Force awarded $187.9M for environmental services, with a significant portion for building construction

Contract Overview

Contract Amount: $18,790,000 ($18.8M)

Contractor: Environmental Chemical Corporation

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2008-07-01

Contract Duration: 643 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200612!002258!5700!FA3047!37CONS/CC !FA890306D8511 !A!N! !N!ZV01 ! !20060927!20060823!601293962!601293962!601293962!N!ENVIRONMENTAL CHEMICAL CORPORA!1240 BAYSHORE HGHWY !BURLINGAME !CA!94010!09066!081!06!BURLINGAME !SAN MATEO !CALIFORNIA!+000018790000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !4! ! ! ! ! !99990909!B! ! !N!Z!A!N!J!2!005!F! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to ENVIRONMENTAL CHEMICAL CORPORATION for work described as: 200612!002258!5700!FA3047!37CONS/CC !FA890306D8511 !A!N! !N!ZV01 ! !20060927!20060823!601293962!601293962!601293962!N!ENVIRONMENTAL CHEMICAL CORPORA!1240 BAYSHORE HGHWY !BURLINGAME !CA!94010!09066!081!06!BURLINGAME !SAN … Key points: 1. Contract focused on environmental remediation and building construction, indicating a broad scope of work. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 643 days points to a medium-term project. 4. The primary contractor, Environmental Chemical Corporation, has a track record in environmental services. 5. The contract's value places it in the upper tier for similar environmental service contracts. 6. The use of Firm Fixed Price contract type suggests defined scope and cost certainty.

Value Assessment

Rating: good

The awarded amount of $187.9 million for environmental services and construction appears substantial. Benchmarking against similar large-scale environmental remediation and construction projects within the Department of Defense would be necessary for a precise value-for-money assessment. However, the contract's scope, encompassing both chemical cleanup and building construction, suggests a complex and potentially high-cost undertaking. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for this significant environmental services and construction contract. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more competitive pricing structure, benefiting taxpayers by ensuring the government received the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially military personnel and surrounding communities benefiting from improved environmental conditions and facilities. Services delivered include environmental remediation, likely addressing chemical contamination, and construction of facilities. The geographic impact is centered around the specific Air Force installation where the work is performed, likely in Texas given the contractor's location and state code. The contract supports jobs in the environmental services and construction sectors, including skilled labor and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex environmental remediation projects.
Ensuring timely completion within the fixed-price contract to avoid cost overruns for the contractor.
Verification of environmental cleanup effectiveness and long-term sustainability of remediation efforts.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor's specialization in environmental services suggests relevant expertise.

Sector Analysis

This contract falls within the broader construction and environmental services sector. The market for environmental remediation and construction services for government facilities is substantial, driven by regulatory requirements and the need to maintain aging infrastructure. Comparable spending benchmarks would typically involve looking at other large-scale environmental cleanup and facility construction contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention a small business set-aside, the prime contractor, Environmental Chemical Corporation, may engage small businesses for subcontracting opportunities. The scale of the project suggests that specialized services or labor could be outsourced, potentially benefiting the small business ecosystem. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services and construction within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Military Construction
Base Realignment and Closure (BRAC) related environmental work
Federal Facilities Cleanup Program
Department of Defense Facilities Engineering

Risk Flags

Potential for cost overruns if scope is not precisely defined.
Risk of environmental contamination discovery during construction.
Dependence on specialized environmental expertise.
Schedule delays due to unforeseen site conditions or regulatory changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to ENVIRONMENTAL CHEMICAL CORPORATION. 200612!002258!5700!FA3047!37CONS/CC !FA890306D8511 !A!N! !N!ZV01 ! !20060927!20060823!601293962!601293962!601293962!N!ENVIRONMENTAL CHEMICAL CORPORA!1240 BAYSHORE HGHWY !BURLINGAME !CA!94010!09066!081!06!BURLINGAME !SAN MATEO !CALIFORNIA!+000018790000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !4! ! ! ! ! !999

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 Air Force).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2006-09-27. End: 2008-07-01.

What is the specific nature of the environmental chemical cleanup required under this contract?

The provided data does not detail the specific environmental chemicals or contaminants being addressed. However, the contract's classification as 'ENVIRONMENTAL CHEMICAL CORPORA' and the 'ENVIRONMENTAL CHEMICAL CORPORA' contractor name suggest a focus on hazardous material remediation, potentially including soil and groundwater contamination, asbestos abatement, or lead paint removal. Further investigation into the contract's statement of work (SOW) or related task orders would be necessary to ascertain the precise nature of the environmental cleanup activities.

How does the $187.9 million contract value compare to other environmental construction projects of similar scope?

The $187.9 million award is a significant sum, placing it among larger federal contracts for environmental services and construction. To benchmark effectively, one would compare this value against contracts for major environmental remediation efforts at military bases or large-scale construction projects involving hazardous material management. For instance, contracts related to Superfund sites or extensive infrastructure upgrades at major installations often reach similar or higher figures. The specific nature of the work (e.g., complex chemical remediation versus standard building construction) heavily influences cost, making direct comparisons challenging without detailed SOW analysis.

What are the key performance indicators (KPIs) used to assess the success of this contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for environmental remediation contracts, KPIs would include the percentage of contaminants removed or treated, compliance with environmental regulations (e.g., EPA standards), project completion timelines, safety incident rates, and budget adherence. For the construction component, KPIs would likely involve adherence to building codes, quality of workmanship, schedule milestones, and safety protocols. The contracting officer's representative (COR) would monitor these KPIs throughout the contract lifecycle.

What is Environmental Chemical Corporation's track record with similar federal contracts?

Environmental Chemical Corporation (ECC) has a history of performing environmental services and construction for federal agencies, including the Department of Defense. While this specific contract is for $187.9 million, ECC has likely managed numerous projects of varying sizes and complexities. Their track record would typically be assessed based on past performance evaluations, on-time delivery, adherence to budget, quality of work, and safety records on previous government contracts. A review of their contract history in federal procurement databases would provide a more comprehensive understanding of their performance.

What is the potential risk associated with the construction component of this contract?

The construction component of this contract carries several potential risks. These include unforeseen site conditions (e.g., underground utilities, soil instability), delays due to weather or material availability, labor shortages, and potential cost overruns if the scope is not perfectly defined, despite the firm fixed-price nature. For environmental construction, there's also the risk of encountering unexpected hazardous materials during excavation or demolition. Robust project management, contingency planning, and clear communication between the government and contractor are crucial to mitigate these risks.

How has spending on environmental services and construction for the Department of the Air Force trended over the years?

Spending on environmental services and construction by the Department of the Air Force has generally been substantial and consistent, driven by regulatory compliance, infrastructure maintenance, and modernization efforts. While this specific contract from 2006 represents a snapshot, overall trends show significant investment in areas like hazardous waste management, munitions response, building construction and renovation, and energy efficiency upgrades. Factors influencing spending include evolving environmental regulations, geopolitical needs, and the age of existing facilities. Analyzing historical spending data across multiple fiscal years would reveal specific trends and priorities.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HGHWY, BURLINGAME, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8511

IDV Type: IDC

Timeline