DoD's $19.1M radiological cleanup contract awarded to Tetra Tech EC, Inc. at Hunters Point Shipyard
Contract Overview
Contract Amount: $19,126,849 ($19.1M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-04-19
End Date: 2012-03-03
Contract Duration: 1,049 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: BASEWIDE RADIOLOGICAL SUPPORT, HUNTERS POINT SHIPYARD, SAN FRANCISCO, CA
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of Defense obligated $19.1 million to TETRA TECH EC, INC. for work described as: BASEWIDE RADIOLOGICAL SUPPORT, HUNTERS POINT SHIPYARD, SAN FRANCISCO, CA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Award Fee (CPAF), allows for performance-based incentives. 3. The duration of 1049 days indicates a significant, long-term environmental remediation effort. 4. The contract was awarded by the Department of the Navy, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 562910 points to hazardous waste treatment and disposal services. 6. The contract was awarded as a Delivery Order (DO), implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task order.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without comparable radiological cleanup contracts from the same period and region. The Cost Plus Award Fee (CPAF) structure means the final cost could vary based on performance, making a direct price comparison difficult. However, the total award amount of $19.1 million for a nearly three-year environmental remediation project at a major shipyard suggests a substantial investment in addressing hazardous waste.
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 task order. While more than one bidder participated, the exact number of potential bidders and the intensity of the competition are not detailed, which could influence price discovery.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors. The fact that at least two companies vied for this contract suggests that taxpayer funds were likely used more efficiently than in a sole-source scenario.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially the surrounding community by addressing environmental hazards at a former shipyard. The services delivered involve radiological support and remediation, crucial for environmental safety and compliance. The geographic impact is localized to Hunters Point Shipyard in San Francisco, California. This contract likely supported a workforce skilled in environmental remediation, hazardous material handling, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) contract type can sometimes lead to higher costs if not managed rigorously, as contractor profits are tied to performance metrics.
- The specific details of the award fee criteria and how they were met are not provided, making it difficult to assess the true value achieved.
- The duration of the contract (1049 days) suggests a complex and potentially lengthy remediation process, which inherently carries risks of cost overruns or schedule delays.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- The contract includes award fee provisions, incentivizing the contractor to perform effectively and efficiently.
- The project addresses critical environmental remediation needs at a significant federal facility.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical component of the broader professional, scientific, and technical services industry. The market for environmental cleanup, particularly at former industrial and military sites, is substantial, driven by regulatory requirements and historical land use. Spending in this sector is often characterized by long-term, complex projects requiring specialized expertise, with significant government contracts awarded to large, established firms.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Larger prime contractors typically handle these types of extensive environmental remediation projects.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency would be subject to federal procurement regulations and Freedom of Information Act (FOIA) requests, though specific performance details might be considered sensitive.
Related Government Programs
- Environmental Remediation Services
- Department of Defense Contracts
- Naval Facilities Engineering Command Contracts
- Hazardous Waste Management
Risk Flags
- Potential for cost overruns inherent in CPAF contracts.
- Complexity of radiological contamination remediation.
- Long-term nature of environmental cleanup projects.
- Need for rigorous government oversight to ensure value for money.
Tags
defense, department-of-defense, department-of-the-navy, environmental-remediation, radiological-support, full-and-open-competition, cost-plus-award-fee, san-francisco, california, large-contract, hazardous-waste
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to TETRA TECH EC, INC.. BASEWIDE RADIOLOGICAL SUPPORT, HUNTERS POINT SHIPYARD, SAN FRANCISCO, CA
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 $19.1 million.
What is the period of performance?
Start: 2009-04-19. End: 2012-03-03.
What was the specific scope of 'radiological support' provided under this contract?
The term 'radiological support' in the context of Hunters Point Shipyard likely refers to services related to the identification, assessment, monitoring, and remediation of radioactive contamination. This could include site surveys, radiation detection, containment of radioactive materials, decontamination of affected areas, and waste disposal in compliance with environmental regulations. Given the shipyard's history, the scope might have involved legacy contamination from past naval operations, requiring specialized expertise in handling and mitigating radiological hazards to ensure environmental safety and public health.
How does the $19.1 million award compare to other radiological cleanup contracts awarded by the DoD around 2009?
Comparing the $19.1 million award requires access to a broader dataset of DoD contracts from the same period. However, for a multi-year, complex environmental remediation project at a major federal facility like a shipyard, $19.1 million represents a significant but not necessarily outlier sum. Large-scale environmental cleanup projects, especially those involving hazardous materials like radiological contaminants, are inherently costly due to the specialized labor, equipment, and regulatory compliance required. Without specific benchmarks for similar projects (e.g., cleanup of other naval bases, Superfund sites), it's difficult to definitively state if this represents high or low value, but it indicates a substantial commitment to addressing environmental liabilities.
What were the key performance indicators (KPIs) used to determine the 'award fee' for Tetra Tech EC, Inc.?
The provided data does not specify the key performance indicators (KPIs) used for the award fee determination under this Cost Plus Award Fee (CPAF) contract. Typically, for environmental remediation contracts, KPIs might include adherence to project schedules, meeting environmental quality standards (e.g., radiation levels below regulatory limits), effective cost management, safety performance (e.g., incident rates), successful waste disposal, and overall project completion milestones. The specific metrics and their weighting would have been defined in the contract's Statement of Work (SOW) and award fee plan.
What is the historical spending pattern for radiological support at Hunters Point Shipyard?
Historical spending data for radiological support at Hunters Point Shipyard prior to this $19.1 million contract (awarded April 2009) is not detailed here. However, Hunters Point Shipyard has a long history of naval operations, including activities that could have resulted in radiological contamination. Consequently, it is plausible that significant prior investments were made in environmental assessments and remediation efforts over many years. This $19.1 million contract likely represents a specific phase or a continuation of ongoing remediation efforts rather than a one-time expenditure, suggesting a pattern of sustained federal investment in addressing the site's environmental legacy.
What is Tetra Tech EC, Inc.'s track record with similar environmental remediation contracts?
Tetra Tech EC, Inc. (now part of Tetra Tech) has a substantial track record in environmental engineering and remediation services, including work for government agencies. They have been involved in numerous large-scale projects involving hazardous waste, contaminated site cleanup, and environmental compliance. While specific details of their performance on this particular $19.1 million radiological support contract at Hunters Point Shipyard are not elaborated here, the company's general profile suggests they possess the necessary expertise and experience for such complex environmental challenges. A deeper dive into their contract history, past performance evaluations, and any associated litigation or disputes would provide a more comprehensive assessment.
What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract for environmental remediation?
CPAF contracts, while incentivizing performance, carry inherent risks. For the government, there's a risk that the 'cost-plus' aspect could lead to higher overall expenditures if contractor costs are not tightly controlled or if the scope expands unexpectedly. The 'award fee' component introduces subjectivity; ensuring the criteria are objective and fairly applied is crucial to prevent disputes and ensure true value. For environmental remediation, risks include unforeseen site conditions (e.g., discovering more contamination than initially assessed), regulatory changes impacting cleanup standards, and potential delays, all of which can increase costs and complicate the achievement of award fee targets. Effective government oversight is paramount to mitigate these risks.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6247307R3211
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,126,849
Exercised Options: $19,126,849
Current Obligation: $19,126,849
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247307D3211
IDV Type: IDC
Timeline
Start Date: 2009-04-19
Current End Date: 2012-03-03
Potential End Date: 2012-03-03 00:00:00
Last Modified: 2013-10-15
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