DoD's $21.3M radiological cleanup contract awarded to Tetra Tech EC, Inc. shows fair value

Contract Overview

Contract Amount: $21,282,241 ($21.3M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-10

End Date: 2014-08-31

Contract Duration: 1,451 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RADIOLOGICAL EMAC

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to TETRA TECH EC, INC. for work described as: RADIOLOGICAL EMAC Key points: 1. The contract achieved a reasonable price point, aligning with industry benchmarks for environmental remediation. 2. Full and open competition ensured a competitive bidding process, likely driving cost efficiencies. 3. The contractor, Tetra Tech EC, Inc., has a substantial track record in environmental services. 4. Performance was generally satisfactory, though specific details on project milestones and outcomes require deeper analysis. 5. This contract falls within the broader environmental services sector, supporting critical government cleanup missions. 6. The fixed-price contract structure transferred some risk to the contractor, potentially benefiting the government. 7. No small business set-aside was utilized, indicating a focus on large-scale remediation capabilities.

Value Assessment

Rating: good

The contract's total value of $21.3 million for radiological remediation services appears reasonable when benchmarked against similar large-scale environmental cleanup projects. The firm-fixed-price structure suggests that the contractor bore the primary risk for cost overruns, which is generally favorable for the government. While specific performance metrics are not detailed here, the successful completion of the contract within its awarded value indicates a degree of cost control and effective execution. Further analysis of the scope of work and comparison to per-unit remediation costs would provide a more granular assessment of 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 bids. The presence of 3 bidders indicates a healthy level of competition for this specialized service. This competitive environment is crucial for ensuring that the government receives the best possible pricing and service offerings, as contractors are incentivized to propose competitive terms to win the award. The number of bidders suggests that the market for radiological remediation services is sufficiently robust to support competitive procurement.

Taxpayer Impact: The full and open competition process likely resulted in taxpayer savings by driving down the contract price through competitive bidding. It also ensures that the government is not locked into a single provider, fostering a more dynamic and cost-effective marketplace for essential services.

Public Impact

The Department of Defense, specifically the Department of the Navy, benefits from the cleanup of radiological contamination. Services delivered include the remediation of hazardous radiological materials, ensuring environmental safety and compliance. The contract's geographic impact is focused on the specific site(s) requiring radiological cleanup within California. The contract supported specialized labor in environmental science and engineering, contributing to the skilled workforce in this niche sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination complexities arise, though mitigated by fixed-price structure.
Dependence on contractor expertise for complex radiological safety protocols.
Limited visibility into granular performance metrics without further data.
Lack of small business participation may limit broader economic impact.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract shifts cost risk to the contractor.
Contractor has demonstrated experience in environmental remediation.
Successful completion within awarded value implies effective project management.

Sector Analysis

The environmental remediation sector is a critical component of government contracting, particularly for agencies managing legacy sites or requiring hazardous material cleanup. This contract for radiological remediation falls under the broader environmental services industry, which includes a wide range of activities from waste management to site restoration. The market is characterized by specialized expertise and stringent regulatory compliance. Comparable spending benchmarks for large-scale environmental cleanup projects can vary significantly based on the type and extent of contamination, location, and regulatory requirements. Government spending in this sector is often driven by environmental mandates and the need to address historical contamination.

Small Business Impact

This contract did not include a small business set-aside, indicating that the primary focus was on securing the necessary expertise and capacity for large-scale radiological remediation, which is often handled by larger, specialized firms. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The absence of a set-aside means that opportunities for small businesses to participate in this particular contract were limited to potential unsolicited subcontracting by the prime contractor, if deemed necessary for specific tasks.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy, likely through contracting officers and technical representatives responsible for monitoring performance, adherence to scope, and compliance with safety and environmental regulations. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Department of Defense Cleanup Programs
Radiological Site Cleanup
Navy Environmental Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Complexity of radiological material handling and disposal.
Strict adherence to environmental and safety regulations required.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 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 $21.3 million.

What is the period of performance?

Start: 2010-09-10. End: 2014-08-31.

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 significant history in environmental services, including radiological remediation. They have been involved in numerous large-scale cleanup projects for government agencies, often dealing with complex environmental challenges. Their experience includes work at former military bases, nuclear facilities, and industrial sites requiring the removal and management of radioactive materials. While specific project details and performance outcomes for each contract would require further investigation, their consistent presence in this specialized field suggests a capacity to manage such projects. Benchmarking their past performance against industry standards and client feedback would provide a more comprehensive assessment of their track record.

How does the awarded price compare to industry benchmarks for radiological remediation services of this scope?

The awarded value of $21.3 million for radiological remediation services appears to be within a reasonable range when compared to similar large-scale environmental cleanup contracts. However, a precise benchmark is difficult without detailed knowledge of the specific contaminants, the volume of material to be remediated, the geographic location, and the applicable regulatory requirements. Generally, firm-fixed-price contracts aim to secure competitive pricing, and the fact that this contract was awarded under full and open competition with multiple bidders suggests that the price was deemed fair and reasonable at the time of award. Further analysis would involve comparing per-unit costs (e.g., cost per cubic yard of contaminated soil removed) against industry averages for comparable projects.

What were the primary risk indicators associated with this contract, and how were they managed?

Primary risk indicators for radiological remediation contracts often include the potential for unforeseen subsurface conditions, the complexity of the contamination, stringent safety and regulatory compliance requirements, and the possibility of cost overruns due to the hazardous nature of the work. For this contract, the firm-fixed-price structure inherently transferred a significant portion of the cost risk to Tetra Tech EC, Inc. The management of safety and regulatory risks would have relied heavily on the contractor's established protocols, adherence to government oversight, and potentially specialized insurance. The limited number of bidders (3) could also be an indicator of market concentration or high barriers to entry, suggesting a need for careful contractor vetting.

How effective was the competition process in ensuring value for money for taxpayers?

The contract was awarded under full and open competition with three bidders, which is a positive indicator for value for money. This level of competition typically drives down prices as contractors vie for the award. The firm-fixed-price contract type further enhances value by capping the government's financial exposure and incentivizing the contractor to manage costs efficiently. While the exact savings achieved through competition cannot be quantified without a baseline estimate, the process itself is designed to yield competitive pricing. The long duration of the contract (over 3 years) also suggests that the initial competitive pricing was sustained throughout the project lifecycle.

What is the historical spending pattern for radiological remediation services by the Department of the Navy or DoD?

The Department of the Navy and the broader Department of Defense have historically allocated significant funds towards environmental remediation, including radiological cleanup, due to the legacy of past military activities and industrial operations on numerous sites. Spending patterns in this area are often driven by federal environmental laws (like CERCLA/Superfund) and specific cleanup mandates. While this $21.3 million contract represents a specific investment, overall DoD spending on environmental restoration has fluctuated over the years, influenced by budget priorities, regulatory changes, and the identification of new cleanup requirements. Analyzing broader DoD environmental budgets and other similar remediation contracts would provide context for this specific award's place within historical spending.

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: 3

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: $21,282,241

Exercised Options: $21,282,241

Current Obligation: $21,282,241

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $11,535,941

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D0809

IDV Type: IDC

Timeline