DoD awards $65M for California wildfire debris removal, highlighting significant post-disaster recovery needs

Contract Overview

Contract Amount: $65,087,272 ($65.1M)

Contractor: ECC Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-11

End Date: 2026-01-07

Contract Duration: 241 days

Daily Burn Rate: $270.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CALIFORNIA WILDFIRES 2025 - ELIGIBLE NON-RESIDENTIAL PROPERTY DEBRIS REMOVAL

Place of Performance

Location: PACIFIC PALISADES, LOS ANGELES County, CALIFORNIA, 90272

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $65.1 million to ECC CONSTRUCTORS LLC for work described as: CALIFORNIA WILDFIRES 2025 - ELIGIBLE NON-RESIDENTIAL PROPERTY DEBRIS REMOVAL Key points: 1. Contract value indicates substantial resources allocated for environmental remediation and infrastructure rebuilding. 2. Full and open competition suggests a robust market for disaster recovery services. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. Contract duration of 241 days points to a focused, time-sensitive recovery effort. 5. Geographic focus on California underscores the ongoing impact of wildfires in the region. 6. The North American Industry Classification System (NAICS) code 562119 points to specialized waste collection services.

Value Assessment

Rating: good

The contract value of $65.1 million for debris removal appears reasonable given the scale of potential wildfire damage in California. Benchmarking against similar large-scale disaster recovery contracts would provide further context, but the fixed-price nature suggests an effort to establish clear cost expectations. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the amount reflects the significant logistical and environmental challenges of post-wildfire cleanup.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This competitive process is expected to drive fair pricing and encourage efficiency. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and capability for this type of specialized service.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to result in a more cost-effective outcome for this essential disaster recovery service.

Public Impact

Residents and businesses in California affected by wildfires will benefit from the expedited removal of debris, facilitating rebuilding efforts. The contract supports the restoration of affected communities by clearing hazardous materials and damaged structures. Geographic impact is concentrated in California, specifically areas impacted by the 2025 wildfires. The contract implies a need for a specialized workforce in waste management, environmental remediation, and heavy equipment operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental hazards are encountered during debris removal.
Logistical challenges in coordinating large-scale cleanup operations across potentially widespread disaster areas.
Ensuring timely completion within the contract period to support community recovery timelines.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a capable market and potential for competitive pricing.
Clear focus on a critical post-disaster need demonstrates responsiveness to environmental and community recovery.

Sector Analysis

This contract falls within the broader environmental services sector, specifically focusing on disaster recovery and waste management. The market for such services is often driven by unpredictable events like natural disasters. While specific market size data for non-residential wildfire debris removal is not readily available, the recurring nature of wildfires in regions like California indicates a sustained demand for these specialized capabilities. Comparable spending might be found in contracts related to hurricane or earthquake recovery efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of large-scale debris removal, prime contracts are often awarded to larger firms. However, the prime contractor, ECC Constructors LLC, may engage small businesses as subcontractors for specific tasks, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the full impact on small businesses.

Oversight & Accountability

Oversight for this contract would likely be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms, scope, and quality standards. The fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for undiscovered hazardous materials
Logistical complexity of large-scale operations
Schedule adherence in a time-sensitive recovery environment
Environmental compliance during debris handling and disposal

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.1 million to ECC CONSTRUCTORS LLC. CALIFORNIA WILDFIRES 2025 - ELIGIBLE NON-RESIDENTIAL PROPERTY DEBRIS REMOVAL

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 $65.1 million.

What is the period of performance?

Start: 2025-05-11. End: 2026-01-07.

What is the track record of ECC Constructors LLC in handling large-scale disaster recovery contracts, particularly for wildfire debris removal?

Information regarding ECC Constructors LLC's specific track record in large-scale disaster recovery, especially for wildfire debris removal, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Examining their experience with environmental remediation, hazardous material handling, and managing complex logistics under emergency conditions would be crucial. Without this specific data, it's difficult to definitively assess their capability and past performance in this specialized area.

How does the awarded amount of $65.1 million compare to the estimated costs of similar wildfire debris removal contracts in California or other disaster-prone regions?

Benchmarking the $65.1 million award against similar contracts is essential for a value assessment. While specific comparable data isn't provided, the cost of wildfire debris removal can vary significantly based on the scale of destruction, types of materials (e.g., hazardous waste, asbestos), accessibility of sites, and duration of the contract. Contracts for large-scale events like hurricanes or major wildfires can range from tens to hundreds of millions of dollars. The fixed-price nature of this contract suggests an attempt to cap costs, but a detailed comparison with contracts of similar scope, duration, and geographic challenges would be necessary to determine if this award represents excellent, good, or fair value.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include unforeseen environmental hazards (e.g., asbestos, hazardous waste) requiring specialized handling, potential delays due to weather or site access issues, and the possibility of cost increases if the scope expands beyond initial estimates, despite the fixed-price structure. Mitigation strategies likely involve thorough site assessments prior to work commencement, contingency planning for environmental discoveries, robust project management to ensure timely execution, and clear communication protocols between the contractor and the contracting officer's representative. The contract's duration and fixed-price nature aim to manage financial and schedule risks.

How effective is the 'full and open competition' approach likely to be in ensuring cost-effectiveness and quality for this specific debris removal contract?

Full and open competition is generally considered the most effective method for achieving cost-effectiveness and quality, as it allows the widest possible pool of qualified contractors to bid. This increases the likelihood of receiving competitive pricing and innovative solutions. For a specialized service like wildfire debris removal, it ensures that the government selects a contractor with proven capabilities and capacity. The effectiveness hinges on the clarity of the solicitation requirements and the rigor of the evaluation process. If well-executed, it should lead to a fair price and a contractor capable of meeting the demanding timelines and environmental standards.

What is the historical spending pattern for wildfire debris removal contracts awarded by the Department of Defense or other federal agencies in recent years?

Historical spending on wildfire debris removal by federal agencies, particularly the Department of Defense, has seen fluctuations tied to the severity and frequency of wildfires, especially in Western states. While specific aggregate data isn't provided here, agencies like the Army Corps of Engineers often play a significant role in post-disaster recovery, including debris removal. Spending can range from millions to hundreds of millions of dollars annually, depending on the disaster landscape. This $65.1 million contract is indicative of a substantial, localized recovery effort, aligning with trends of increased federal investment in disaster response and resilience.

Industry Classification

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

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

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 HWY STE 301, 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: $99,970,160

Exercised Options: $99,970,160

Current Obligation: $65,087,272

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EK23D0011

IDV Type: IDC

Timeline