DoD's $10.1M storm drain contract awarded to TETRA TECH EC, INC. for remediation services in California

Contract Overview

Contract Amount: $10,126,077 ($10.1M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-27

End Date: 2009-08-31

Contract Duration: 1,008 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: STORM DRAIN & SEWER LINE RAD RA

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to TETRA TECH EC, INC. for work described as: STORM DRAIN & SEWER LINE RAD RA Key points: 1. The contract's value of $10.1 million for storm drain and sewer line remediation services appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract type (Cost Plus Award Fee) can lead to cost overruns if not carefully managed, posing a potential risk. 4. Performance occurred over a nearly three-year period, indicating a sustained need for these specialized environmental services. 5. This contract falls within the broader environmental remediation and infrastructure maintenance sector for the Department of Defense. 6. The award to TETRA TECH EC, INC. represents a significant investment in maintaining critical environmental infrastructure for naval operations.

Value Assessment

Rating: good

The $10.1 million contract value for storm drain and sewer line remediation services over approximately 3 years is within a reasonable range for such specialized environmental work. Benchmarking against similar remediation contracts for the Department of Defense suggests that the pricing structure, while a Cost Plus Award Fee, was likely competitive due to the full and open competition. The award fee component incentivizes performance, which can contribute to value for money if managed effectively. However, without specific details on the scope of work and the actual award fees paid, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the agency initially considered excluding certain sources but ultimately opened the competition. The presence of 3 bidders suggests a moderate level of competition. While not the highest number of bidders, it indicates that multiple firms were interested and capable of performing the required services. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing, though a higher number of bidders could potentially lead to even more aggressive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it allows for a wider pool of potential contractors, increasing the likelihood of receiving competitive bids and potentially lower prices. This process ensures that taxpayer funds are used efficiently by selecting the most cost-effective solution.

Public Impact

Naval facilities in California benefit from improved environmental infrastructure, ensuring compliance with environmental regulations and operational continuity. Specialized services for storm drain and sewer line maintenance and repair were delivered, preventing potential environmental hazards and system failures. The geographic impact is localized to naval installations within California where these services were performed. The contract supported specialized environmental engineering and remediation services, potentially involving a skilled workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPA) contract type carries inherent risks of cost escalation if performance metrics and cost controls are not rigorously managed.
The 'After Exclusion of Sources' clause in the competition type warrants further investigation to understand the initial rationale for exclusion and the subsequent decision to open competition.

Positive Signals

The contract was awarded through full and open competition, indicating a commitment to leveraging market forces for best value.
The award fee structure incentivizes contractor performance, potentially leading to higher quality service delivery and efficiency gains.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of infrastructure maintenance and compliance for government agencies. The market for these services is driven by regulatory requirements, aging infrastructure, and the need for specialized expertise in handling environmental challenges. Comparable spending in this sector often involves significant investments in cleaning up contaminated sites, managing waste, and maintaining essential utility systems like storm drains and sewer lines, particularly at large federal installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, TETRA TECH EC, INC., is likely a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of the Navy. The Cost Plus Award Fee structure necessitates close monitoring of costs and performance against defined award criteria. Transparency is generally maintained through contract reporting mechanisms, though specific details of award fee determinations are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Storm Water Management
Sewer System Maintenance
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns due to CPA contract type.
Need for clear performance metrics in CPA to ensure value.
Understanding the rationale behind 'Exclusion of Sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to TETRA TECH EC, INC.. STORM DRAIN & SEWER LINE RAD RA

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 $10.1 million.

What is the period of performance?

Start: 2006-11-27. End: 2009-08-31.

What was the specific scope of work for storm drain and sewer line remediation under this contract?

The contract data indicates the scope was 'STORM DRAIN & SEWER LINE RAD RA,' which likely refers to Remedial Action (RA) for storm drains and sewer lines. This could encompass a range of activities such as inspection, cleaning, repair, lining, or replacement of damaged or failing sections of the storm drain and sewer systems. The 'RAD' might suggest radiological assessment or remediation if contamination was a concern, though this is less common for standard storm drain work. The specific tasks would have been detailed in the contract's Statement of Work (SOW), outlining the precise environmental remediation actions required at the specified naval facilities in California.

How does the $10.1 million contract value compare to similar remediation projects for the Department of Defense?

The $10.1 million contract value for storm drain and sewer line remediation over approximately 3 years is a substantial but not extraordinary amount for a Department of Defense project of this nature. Large federal agencies often engage in multi-million dollar contracts for infrastructure maintenance and environmental services due to the scale and complexity of their facilities. Benchmarking against similar contracts for environmental remediation, particularly those involving utility systems at military bases, suggests this figure is within a reasonable range. Factors influencing cost include the geographic location (California can have higher labor costs), the specific environmental conditions, the extent of the system requiring work, and the required remediation techniques. Without detailed SOWs for comparison, it's difficult to provide a precise benchmark, but the value aligns with typical DoD spending for such services.

What are the potential risks associated with the Cost Plus Award Fee (CPA) contract type used for this award?

The Cost Plus Award Fee (CPA) contract type, while offering flexibility, introduces specific risks. The primary risk is cost escalation, as the contractor is reimbursed for allowable costs plus a fee that is a percentage of those costs. The 'award' portion means the contractor can earn an additional fee based on meeting or exceeding certain performance objectives. If these objectives are poorly defined, or if oversight is lax, contractors may incur higher costs to maximize their performance score and thus their award fee. This can lead to spending more than initially anticipated. Effective management requires clear performance metrics, robust cost tracking, and diligent oversight by the government to ensure that the award fee is truly earned through superior performance and not simply through cost accumulation.

What does the 'After Exclusion of Sources' clause in the competition type imply for this contract?

The 'Full and Open Competition After Exclusion of Sources' designation suggests an initial intent or process where certain potential sources were considered for exclusion from bidding. However, the agency ultimately decided to proceed with full and open competition. This could imply that after an initial review or market research, it was determined that opening the competition broadly was more advantageous, or perhaps the reasons for exclusion were not sufficiently compelling to limit the field. It might also indicate a procedural step where specific requirements were initially thought to limit the pool, but the final solicitation was broadened. Understanding the precise 'why' behind this designation would require reviewing the contract's justification documents or pre-award assessments.

What is the significance of awarding this contract to TETRA TECH EC, INC. in the context of their track record?

TETRA TECH EC, INC. is a well-established engineering and construction firm with extensive experience in environmental services, including remediation, for government agencies. Awarding this contract to them suggests the Department of the Navy found their qualifications, past performance, and technical approach to be suitable for the complex task of storm drain and sewer line remediation. Their track record in similar projects, particularly within the defense sector, likely played a significant role in the evaluation process. This award aligns with their known capabilities in providing environmental engineering and infrastructure support services.

How does this contract fit into the broader spending patterns for environmental services within the Department of Defense?

This $10.1 million contract for storm drain and sewer line remediation is part of the Department of Defense's substantial and ongoing investment in environmental compliance, infrastructure maintenance, and facility management. The DoD spends billions annually on environmental services, encompassing cleanup of contaminated sites, hazardous waste management, natural resource management, and infrastructure upkeep like that covered by this contract. Contracts for utility systems, stormwater management, and wastewater treatment are common across military branches to ensure operational readiness and environmental stewardship. This specific award represents a focused expenditure within the larger portfolio of environmental and infrastructure-related 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 3

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: $10,126,077

Exercised Options: $10,126,077

Current Obligation: $10,126,077

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247306D2201

IDV Type: IDC

Timeline