DoD's $42.8M Engineering Services Contract Awarded to TETRA TECH EC, INC. for 452 Days

Contract Overview

Contract Amount: $42,806,039 ($42.8M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-03

End Date: 2005-08-29

Contract Duration: 452 days

Daily Burn Rate: $94.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: Other

Plain-Language Summary

Department of Defense obligated $42.8 million to TETRA TECH EC, INC. for work described as: Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. The full and open competition suggests a robust market for these services. 3. The contract duration of 452 days indicates a substantial project scope. 4. Awarded under a Time and Materials pricing structure, cost control will be key. 5. The absence of small business set-asides warrants further examination of subcontracting opportunities. 6. This contract falls within the broader category of professional services for defense infrastructure.

Value Assessment

Rating: good

The contract value of $42.8 million for 452 days of engineering services appears reasonable given the scope. Benchmarking against similar large-scale engineering contracts within the Department of Defense would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, necessitates diligent oversight to ensure costs remain aligned with the expected value and do not escalate beyond initial projections. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the scale suggests a complex and critical need.

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 bidders had the opportunity to submit proposals. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that 15 proposals were received suggests a healthy level of interest and capability within the market for these engineering services.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down costs through market forces, leading to a more efficient use of public funds.

Public Impact

The Department of the Army benefits from specialized engineering services to support its operational and infrastructure needs. The services delivered likely encompass design, planning, and technical consultation for military projects. The geographic impact is likely concentrated around military installations or project sites managed by the Army. The contract supports a workforce of engineers and technical specialists, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited transparency on specific deliverables and performance metrics.
Lack of explicit small business participation may limit broader economic impact.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Significant contract value indicates a critical need and trust in the contractor.
Contract duration suggests a well-defined, albeit lengthy, project scope.

Sector Analysis

The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to research and development. This contract, valued at approximately $42.8 million, falls within the professional services category, specifically engineering. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of activities, and this award suggests a substantial project requiring specialized expertise. Comparable spending benchmarks in this sector often involve large-scale infrastructure projects, defense systems development, and complex technical consulting.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of a specific small business subcontracting plan in the provided data. This suggests that the primary contractor, TETRA TECH EC, INC., will likely perform the majority of the work. Further investigation into subcontracting opportunities would be necessary to determine the extent of small business involvement and its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be tied to the contract's performance requirements and milestones. Transparency is generally facilitated through contract award databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Contracts
Army Corps of Engineers Projects
Professional Services Procurement
Infrastructure Development Contracts
Defense Support Services

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of explicit small business subcontracting requirements
Need for detailed performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to TETRA TECH EC, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TETRA TECH EC, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.8 million.

What is the period of performance?

Start: 2004-06-03. End: 2005-08-29.

What is the track record of TETRA TECH EC, INC. with the Department of Defense and similar engineering contracts?

TETRA TECH EC, INC. has a substantial history of contracting with the Department of Defense and other federal agencies, often securing large-value contracts for engineering and technical services. Their track record typically includes work on infrastructure, environmental services, and defense-related projects. Analyzing their past performance on similar Time and Materials contracts would be crucial to assess their ability to manage costs effectively and deliver within scope. A review of past performance evaluations and any documented disputes or contract modifications would provide further insight into their reliability and efficiency as a contractor for complex federal projects.

How does the awarded amount of $42.8 million compare to similar engineering services contracts awarded by the DoD in recent years?

The $42.8 million award for engineering services is a significant sum, placing it among larger contracts within this category. To benchmark effectively, one would compare this value against contracts for similar scope, duration, and complexity awarded by the Department of Defense or other agencies for engineering services (NAICS 541330). For instance, contracts for major military base infrastructure upgrades, complex system design, or large-scale environmental remediation projects often fall within this value range. A detailed comparison would involve looking at the number of bidders, the pricing structures used (e.g., fixed-price vs. T&M), and the specific services rendered to ascertain if this award represents a competitive and fair market price.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract of this magnitude is the potential for cost escalation if not managed rigorously. Unlike fixed-price contracts, T&M contracts do not have a predetermined total cost, making them susceptible to scope creep and inefficient labor utilization. For the government, this means the final cost could significantly exceed the initial estimate. Key risks include the contractor not exercising due diligence in managing labor hours, using less efficient methods, or adding unapproved work. Robust oversight, detailed tracking of hours and materials, and clear definition of work requirements are essential to mitigate these risks and ensure value for taxpayer money.

What specific engineering services are likely included under this contract, given the DoD context?

Given the context of a Department of Defense contract for engineering services (NAICS 541330), the scope likely includes a broad range of technical support. This could encompass preliminary design, detailed engineering, construction management, site assessments, environmental engineering, systems engineering, and technical consulting related to military infrastructure, facilities, or equipment. The specific services would depend on the Army's immediate needs, potentially involving upgrades to existing bases, planning for new construction, or specialized technical studies for defense systems. The 452-day duration suggests a project requiring sustained effort over more than a year.

How does the competition level (full and open) for this contract potentially impact its overall value and efficiency?

The full and open competition for this $42.8 million engineering services contract is a positive indicator for value and efficiency. It signifies that the Department of the Army cast a wide net, allowing all capable contractors to bid, thereby fostering a competitive environment. This typically drives down prices as contractors vie for the award. Furthermore, a broad competition increases the likelihood of selecting a contractor with the most innovative solutions and best technical approach at a competitive price. The receipt of 15 proposals suggests a robust market response, reinforcing the benefits of open competition in achieving better value for the government and, by extension, the taxpayer.

What are the implications of this contract not having a small business set-aside for the small business ecosystem?

The absence of a small business set-aside for this $42.8 million contract means that small businesses were not specifically targeted for a portion of the work through a dedicated set-aside. While TETRA TECH EC, INC. may voluntarily subcontract with small businesses, there is no contractual mandate requiring them to do so. This could limit the direct opportunities for small businesses to participate in this specific project, potentially impacting their revenue streams and growth. However, it also means that the primary contract award was based purely on the best value offered by any responsible bidder, regardless of size. The overall impact on the small business ecosystem depends on the prime contractor's subcontracting practices and the broader market opportunities available to small firms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 4960 COPORATE DR STE 140, HUNTSVILLE, AL, 05

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY04D0011

IDV Type: IDC

Timeline