DoD's $24.8M radiological cleanup contract awarded to Tetra Tech EC, Inc. for California remediation
Contract Overview
Contract Amount: $24,843,771 ($24.8M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-09
End Date: 2012-12-31
Contract Duration: 844 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RADIOLOGICAL EMAC
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of Defense obligated $24.8 million to TETRA TECH EC, INC. for work described as: RADIOLOGICAL EMAC Key points: 1. Contract value represents a significant investment in environmental remediation services. 2. The firm-fixed-price structure aims to control costs for the government. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract duration of 844 days indicates a substantial, multi-year project. 5. Focus on radiological remediation highlights a critical environmental safety concern. 6. The contract falls under the Navy's purview within the Department of Defense.
Value Assessment
Rating: fair
The contract value of $24.8 million for radiological remediation services appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise assessment of value for money. The firm-fixed-price contract type suggests an effort to cap costs, but the final expenditure could still vary based on unforeseen site conditions. Without detailed cost breakdowns or comparisons to industry standards for specific remediation tasks, a definitive value assessment is challenging.
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 two bids suggests a moderate level of competition for this specific remediation project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality services.
Public Impact
The primary beneficiaries are the Department of Defense and the Navy, ensuring compliance with environmental regulations and safety standards. Services delivered include the remediation of radiological contamination, crucial for environmental protection and public health. The geographic impact is focused on a specific site in California requiring cleanup. Workforce implications include the employment of specialized environmental technicians, engineers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen contamination is discovered.
- Dependence on a limited number of bidders could impact future competition.
- Ensuring adequate oversight for complex radiological remediation activities.
Positive Signals
- Awarded through full and open competition, promoting a fair marketplace.
- Firm-fixed-price contract provides cost certainty for the government.
- Focus on critical environmental remediation addresses long-term safety concerns.
Sector Analysis
The environmental remediation sector is a significant market driven by regulatory compliance, industrial cleanup needs, and government contracts. This contract falls within the broader environmental services industry, specifically focusing on hazardous material management and cleanup. The Department of Defense is a major client for such services due to its extensive historical operations and land holdings. Comparable spending benchmarks would involve analyzing other large-scale environmental remediation contracts awarded by federal agencies for similar types of contamination.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the specialized nature and scale of radiological remediation, it is likely that larger, established firms with specific expertise and resources were best positioned to bid. Subcontracting opportunities for small businesses may exist, but they would depend on the prime contractor's strategy and the specific needs of the project. The overall impact on the small business ecosystem for this particular contract appears minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Department of Defense Environmental Programs
- Navy Environmental Restoration Program
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Ensuring adequate safety protocols for radiological material handling.
- Complexity of regulatory compliance for environmental remediation.
Tags
sector-other, agency-department-of-defense, sub-agency-department-of-the-navy, contract-type-firm-fixed-price, competition-full-and-open, geography-california, service-remediation, service-radiological, contract-value-large, duration-multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to TETRA TECH EC, INC.. RADIOLOGICAL EMAC
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 Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2010-09-09. End: 2012-12-31.
What is the track record of Tetra Tech EC, Inc. in handling radiological remediation projects of similar scale and complexity?
Tetra Tech EC, Inc. has a substantial history in environmental engineering and remediation. They have been involved in numerous large-scale projects, including those involving hazardous waste and radiological contamination for government agencies and private sector clients. Their experience often includes site investigation, risk assessment, remediation design, and construction. Specific details on their performance for projects directly comparable to this $24.8 million DoD contract would require a deeper dive into their project portfolio and client feedback. However, their general presence in the market suggests they possess the requisite capabilities for such work. It's important to note that past performance is a key factor in contract awards, and their selection implies a favorable assessment by the Navy.
How does the awarded amount of $24.8 million compare to the estimated cost or market rates for similar radiological remediation projects?
Benchmarking the $24.8 million award against similar radiological remediation projects is challenging without specific details on the scope of work, the type and extent of contamination, and the geographic location. However, large-scale environmental remediation contracts, especially those involving radiological materials for federal agencies, can easily run into tens or hundreds of millions of dollars. The firm-fixed-price nature of this contract suggests that the government sought to establish a clear ceiling on costs. Market rates for specialized environmental services are influenced by labor costs, equipment, regulatory compliance, and the inherent risks involved. A detailed cost-benefit analysis comparing this contract's value proposition against industry benchmarks would be necessary for a precise assessment.
What are the primary risks associated with this radiological remediation contract, and how are they being managed?
Key risks include the potential for unforeseen subsurface conditions or contamination levels exceeding initial assessments, which could lead to cost overruns despite the firm-fixed-price structure. There's also the risk of delays due to regulatory hurdles, permitting issues, or contractor performance. Safety risks inherent in handling radiological materials require stringent protocols and oversight. Management of these risks would typically involve thorough site characterization, robust project management plans, contingency planning, adherence to strict safety and environmental regulations, and active oversight by the contracting officer's representative. The contractor's experience and the contract terms themselves are designed to mitigate many of these risks.
How effective is the firm-fixed-price contract type in ensuring value for money for this specific radiological remediation project?
The firm-fixed-price (FFP) contract type is generally favored by the government for its cost control benefits, as it shifts the risk of cost overruns to the contractor. For a project like radiological remediation, where the scope of work can be clearly defined, an FFP contract can be effective in ensuring value for money by establishing a ceiling on expenditure. However, if unforeseen complexities arise that significantly alter the scope, the FFP structure might lead to disputes or change orders. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to manage costs within the fixed price. Robust oversight is still crucial to ensure the contractor is meeting performance standards within the agreed price.
What is the historical spending pattern for radiological remediation services by the Department of the Navy or similar agencies?
The Department of the Navy, like other branches of the DoD, has a long history of spending on environmental remediation due to its extensive operational footprint and legacy sites. Historical spending patterns for radiological remediation are often substantial, driven by regulatory requirements (e.g., CERCLA, RCRA) and the need to address contamination from past activities. Agencies like the Navy allocate significant budgets annually to environmental restoration programs. Analyzing historical spending data from sources like the Federal Procurement Data System (FPDS) or agency budget reports would reveal trends in contract awards, average contract values, and the frequency of such procurements, indicating a consistent need for these services over time.
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 › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247309R2614
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc. (UEI: 045224250)
Address: 1230 COLUMBIA ST STE 750, SAN DIEGO, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,843,771
Exercised Options: $24,843,771
Current Obligation: $24,843,771
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $16,645,786
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247310D0809
IDV Type: IDC
Timeline
Start Date: 2010-09-09
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2012-12-05
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