DoD's $238M Engineering Services Contract Awarded to TETRA TECH EC, INC. Under Full and Open Competition

Contract Overview

Contract Amount: $238,393,050 ($238.4M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-12-30

End Date: 2011-09-30

Contract Duration: 2,100 days

Daily Burn Rate: $113.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Plain-Language Summary

Department of Defense obligated $238.4 million to TETRA TECH EC, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2100 days (approx. 5.75 years) indicates a long-term need for engineering services. 3. The award value of $238.4 million represents a significant investment in engineering support for the Department of Defense. 4. The contract was awarded to a single entity, TETRA TECH EC, INC., which managed the entire scope. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The absence of small business set-aside flags suggests the primary award was not specifically targeted for small businesses.

Value Assessment

Rating: good

The contract's value of $238.4 million over approximately 5.75 years suggests an average annual value of roughly $41.5 million. Benchmarking this against similar large-scale engineering services contracts within the Department of Defense would provide a clearer picture of its value for money. The Firm Fixed Price contract type generally indicates a well-defined scope, allowing for better cost control and predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bidders indicates a healthy level of competition for this significant engineering services contract. A competitive process like this typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers benefited from competitive pricing, as multiple firms vied to win the award by offering their best terms.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential engineering services. Services likely include design, planning, and technical support for military infrastructure and projects. The geographic impact is likely widespread, supporting DoD operations across various locations. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to long contract duration.
Reliance on a single contractor for a large scope of critical services.
Risk of scope creep if not managed tightly under the fixed-price structure.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive environment that can drive efficiency.
Award to a single entity simplifies contract management and oversight.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential expertise for infrastructure development, maintenance, and modernization. This contract falls under the broader professional, scientific, and technical services industry. The market for defense engineering services is substantial, driven by the continuous need for specialized technical support for military operations and facilities. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by federal agencies, particularly within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award was likely made to a large business or a joint venture capable of handling the extensive scope and value of the engineering services required. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for potential small business participation and impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the Firm Fixed Price contract type, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases, though specific performance details may be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Contracts
Army Corps of Engineers Services
Professional and Technical Services Contracts
Infrastructure Support Services
Defense Infrastructure Modernization Programs

Risk Flags

Long contract duration may limit flexibility.
Single awardee for a large contract requires diligent oversight.
Potential for scope creep if not managed tightly under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $238.4 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 $238.4 million.

What is the period of performance?

Start: 2005-12-30. End: 2011-09-30.

What is the historical spending pattern for engineering services by the Department of the Army under NAICS code 541330?

Analyzing historical spending for the Department of the Army under NAICS code 541330 would reveal trends in the procurement of engineering services. This includes identifying the average contract values, the number of contracts awarded annually, and the primary contractors receiving these awards. Such an analysis would help contextualize the $238.4 million award to TETRA TECH EC, INC. by showing whether this represents a typical, larger, or smaller than average expenditure for this category of services. It would also highlight any shifts in spending over time, potentially indicating changes in defense priorities or contracting strategies. Understanding this historical context is crucial for assessing the significance and potential future trajectory of spending in this area.

How does the per-unit cost or average annual value of this contract compare to similar engineering services contracts awarded by the DoD?

To assess the value for money, the average annual value of this contract, approximately $41.5 million ($238.4M / 5.75 years), needs to be benchmarked against comparable engineering services contracts within the Department of Defense. This comparison should consider contracts with similar scopes of work, service types (e.g., design, consulting, project management), and contract durations. If similar contracts have significantly lower average annual values, it might suggest this contract is priced higher than the market average. Conversely, if comparable contracts are in a similar range or higher, it would indicate that the pricing is in line with market expectations for large-scale defense engineering support. This benchmarking is essential for determining if the government is receiving competitive pricing.

What is TETRA TECH EC, INC.'s track record with the Department of Defense for engineering services?

Evaluating TETRA TECH EC, INC.'s track record with the Department of Defense is crucial for understanding their performance and reliability. This involves reviewing their past contract history with the DoD, specifically for engineering services under NAICS code 541330. Key aspects to examine include the number and value of previous contracts, their performance ratings (if publicly available), any history of contract disputes, terminations, or awards for excellence. A strong track record with successful delivery of complex engineering projects for the DoD would indicate a lower performance risk for this current contract. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements effectively and on time.

What are the specific types of engineering services provided under this contract and their criticality to DoD operations?

The contract specifies 'Engineering Services' under NAICS code 541330. To fully understand the contract's impact, a detailed breakdown of the specific services is needed. This could range from architectural and engineering design for new facilities, environmental engineering, structural engineering, to program management and technical consulting. Understanding the criticality involves assessing how essential these services are to the DoD's mission readiness, infrastructure maintenance, and strategic objectives. For instance, engineering services for critical infrastructure upgrades or new operational bases would be highly critical, directly impacting military capabilities and personnel safety. A lack of specific service details limits a precise assessment of the contract's direct contribution.

What is the potential risk associated with awarding a contract of this magnitude to a single entity for an extended period?

Awarding a contract valued at $238.4 million to a single entity, TETRA TECH EC, INC., for a duration of approximately 5.75 years presents several potential risks. One primary concern is contractor dependency; the DoD becomes reliant on this single provider, potentially limiting flexibility if needs change or if the contractor's performance falters. There's also the risk of complacency or reduced innovation over time if competition is perceived as low after the initial award. Furthermore, if the contractor faces financial difficulties or significant operational challenges, it could lead to substantial disruptions in critical engineering services. Robust oversight and performance management are essential to mitigate these risks.

How does the Firm Fixed Price (FFP) contract type influence cost control and contractor performance in this context?

The Firm Fixed Price (FFP) contract type is generally favorable for the government in terms of cost control, as it places the risk of cost overruns on the contractor. For this $238.4 million engineering services contract, the FFP structure incentivizes TETRA TECH EC, INC. to manage its costs efficiently to maximize profit. This can lead to better budget predictability for the Department of the Army. However, it also means that the contractor must accurately estimate all costs upfront. If the scope of work is not well-defined or if unforeseen issues arise, the contractor might be tempted to cut corners on quality or service delivery to maintain profitability, necessitating strong government oversight to ensure performance standards are met.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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

Parent Contract

Parent Award PIID: W912DY04D0011

IDV Type: IDC

Timeline