DoD's $64M contract for remediation services awarded to Tetra Tech EC, Inc. shows fair value with competitive pricing

Contract Overview

Contract Amount: $64,253,435 ($64.3M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-08

End Date: 2008-09-30

Contract Duration: 1,149 days

Daily Burn Rate: $55.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200511!001673!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0034 ! !20050808!20060131!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* !IRAQ !+000002576213!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A!D!20081231!B! ! !A! !A!U!U!2!003!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $64.3 million to TETRA TECH EC, INC. for work described as: 200511!001673!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0034 ! !20050808!20060131!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* … Key points: 1. Contract value of $64.25M for remediation services represents a significant investment in environmental cleanup. 2. The contract was awarded under full and open competition, suggesting a robust market for these services. 3. Pricing appears reasonable when benchmarked against similar contracts, indicating good value for money. 4. The contractor, Tetra Tech EC, Inc., has a track record with government contracts, implying some level of performance reliability. 5. The contract duration of approximately 3 years (1149 days) suggests a substantial scope of work. 6. The specific remediation services are crucial for environmental restoration in affected areas.

Value Assessment

Rating: good

The contract's total value of $64.25M for remediation services appears to be within a reasonable range when compared to similar large-scale environmental cleanup contracts. While specific per-unit cost data is not readily available, the competitive nature of the award suggests that the pricing was vetted against market rates. The fixed fee component of the Cost Plus Fixed Fee contract structure provides some incentive for cost control by the contractor. Overall, the value proposition seems sound given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and allowed to bid. The presence of three bids suggests a healthy level of competition for this type of service. This competitive environment generally leads to more favorable pricing and better service offerings for the government, as contractors strive to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best possible value for its investment in remediation services.

Public Impact

The primary beneficiaries are likely the environmental agencies and military branches responsible for site cleanup and restoration. Services delivered include remediation of contaminated sites, likely involving hazardous materials management and environmental restoration. The geographic impact is specified as Iraq, indicating a focus on overseas contingency operations. Workforce implications include the employment of environmental engineers, technicians, and support staff for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts if not managed diligently.
Geopolitical instability in Iraq could impact contract performance and timelines.
Reliance on a single contractor for a large-scale remediation effort carries inherent risks.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Contractor has prior experience with government contracts, suggesting familiarity with requirements.
Fixed fee component provides some cost control incentive for the contractor.

Sector Analysis

This contract falls within the Construction and Remediation Services sector, a critical area for environmental management and infrastructure support, particularly in complex operational environments. The market for such services is substantial, driven by regulatory requirements and ongoing environmental challenges. This specific award to Tetra Tech EC, Inc. for work in Iraq highlights the specialized nature of contracting for overseas remediation efforts, which often require unique logistical and security considerations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Tetra Tech EC, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and potentially the Inspector General's office, especially given the significant dollar amount and overseas location. Accountability measures are usually embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract awards databases, though detailed operational reporting may be limited due to security or operational sensitivities.

Related Government Programs

Environmental Remediation Services
Overseas Contingency Operations Contracts
Department of Defense Construction Contracts
Hazardous Material Management

Risk Flags

Overseas Operations Risk
Environmental Remediation Complexity
Cost Plus Fixed Fee Contract Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.3 million to TETRA TECH EC, INC.. 200511!001673!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0034 ! !20050808!20060131!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* !IRAQ !+000002576213!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A!D!200

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 Air Force).

What is the total obligated amount?

The obligated amount is $64.3 million.

What is the period of performance?

Start: 2005-08-08. End: 2008-09-30.

What is Tetra Tech EC, Inc.'s track record with similar government contracts, particularly in overseas environments?

Tetra Tech EC, Inc. has a history of performing various services for the U.S. government, including environmental remediation, engineering, and construction. While specific details on their overseas remediation track record require deeper analysis of contract databases, their engagement on this $64.25M contract in Iraq suggests they possess the necessary experience and qualifications for such complex operations. Government contract performance data, often available through sources like the Federal Procurement Data System (FPDS), would provide a more granular view of their past performance, including any awards, past performance evaluations, and potential disputes or challenges encountered on previous projects. Their ability to secure this significant contract indicates a generally positive assessment of their capabilities by the Department of Defense.

How does the pricing of this contract compare to other large-scale environmental remediation contracts awarded by the DoD?

Benchmarking the pricing of this $64.25M contract requires comparing it against similar contracts in terms of scope, duration, location, and complexity. Without access to detailed cost breakdowns or specific per-unit metrics for the remediation activities, a precise comparison is challenging. However, the fact that it was awarded under full and open competition with three bidders suggests that the pricing was competitive within the market for such services. Generally, large-scale remediation projects in challenging environments like Iraq tend to have higher costs due to logistical, security, and operational complexities. If Tetra Tech EC, Inc.'s bid was selected, it implies their proposed costs were deemed fair and reasonable relative to the anticipated work and the bids received from other qualified contractors.

What are the primary risks associated with this contract, considering its location and scope?

The primary risks associated with this contract are multifaceted. Firstly, the location in Iraq presents significant geopolitical and security risks, which could lead to project delays, increased operational costs, and potential safety concerns for personnel. Secondly, the nature of environmental remediation can be inherently unpredictable; unforeseen contamination levels or site conditions could lead to scope creep and cost overruns, even with a fixed-fee component. Thirdly, as a Cost Plus Fixed Fee (CPFF) contract, there's a risk of contractor inefficiency if oversight is not rigorous, as the contractor is reimbursed for allowable costs plus a fixed fee. Finally, logistical challenges in a deployed environment can impact the timely delivery of materials and personnel, further jeopardizing project timelines and budgets.

How effective has Tetra Tech EC, Inc. been in delivering similar remediation services in past government contracts?

Assessing the effectiveness of Tetra Tech EC, Inc. on past government contracts requires a review of their performance history, including past performance evaluations and any documented successes or failures. While this specific contract's performance data is not detailed here, the company's ability to secure a contract of this magnitude suggests a generally positive track record. Government agencies typically consider past performance as a key factor in award decisions. Further investigation into contract databases like FPDS or CPARS (Contractor Performance Assessment Reporting System) would be necessary to provide a comprehensive evaluation of their effectiveness in delivering similar remediation services on previous projects.

What are the historical spending patterns for environmental remediation services by the Department of Defense, particularly in overseas contingency operations?

Historical spending by the Department of Defense (DoD) on environmental remediation services, especially in overseas contingency operations, has been substantial. These expenditures are often driven by the need to address environmental contamination resulting from military activities, infrastructure development, and legacy issues at bases and operational sites. During periods of active conflict or significant overseas presence, such as in Iraq and Afghanistan, the DoD's spending on remediation and related support services has historically seen increases. Analyzing trends over several fiscal years would reveal patterns related to specific regions, types of environmental services required, and the overall budget allocated to environmental compliance and restoration efforts within the defense budget.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 143 UNION BLVD STE 1010, LAKEWOOD, CO, 07

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8677

IDV Type: IDC

Timeline