DoD's $56.4M Remediation Services Contract Awarded to TETRA TECH EC, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $56,385,027 ($56.4M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-31
End Date: 2009-05-31
Contract Duration: 1,157 days
Daily Burn Rate: $48.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $56.4 million to TETRA TECH EC, INC. for work described as: Key points: 1. Significant contract value of $56.4 million for environmental remediation. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of over 3 years indicates a substantial, long-term need. 4. The 'AWARDED TO' (AW) code 'DO' suggests this is a defense-related procurement.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall cost-plus nature warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Environmental cleanup services are crucial for public health and ecological preservation. The use of taxpayer funds for environmental remediation highlights government responsibility. Long-term contracts can ensure continuity of essential services but require ongoing oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of specific performance metrics or benchmarks in the provided data.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract addresses essential environmental remediation needs.
- Clear contract start and end dates.
Sector Analysis
This contract falls within the environmental services sector, specifically remediation. Spending in this area is driven by regulatory requirements and the need to address past environmental damage. Benchmarks for remediation services vary widely based on scope and complexity.
Small Business Impact
The provided data indicates that small business participation (SB) was not a factor in this award (SS: false, SB: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the work precluded their involvement.
Oversight & Accountability
The contract's duration and cost-plus nature necessitate robust oversight from the Department of the Air Force to ensure efficient use of funds and effective completion of remediation services. Monitoring contractor performance and cost reporting is critical.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation noted.
- Long contract duration.
- Potential for cost overruns.
- Lack of detailed performance metrics in summary data.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.4 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 Air Force).
What is the total obligated amount?
The obligated amount is $56.4 million.
What is the period of performance?
Start: 2006-03-31. End: 2009-05-31.
What specific remediation activities are covered under this contract, and how do they align with the fixed fee structure to ensure value for money?
The provided data does not detail the specific remediation activities. A Cost Plus Fixed Fee (CPFF) contract means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Value for money depends on the government's ability to accurately estimate costs and the contractor's efficiency in performing the work within those cost expectations. Detailed statements of work and rigorous cost monitoring are essential.
Given the CPFF structure, what are the primary risks to the government regarding cost control and potential overruns for this remediation contract?
The primary risk with CPFF contracts is that the government bears the cost risk. If the contractor's actual costs exceed the government's estimate, the government pays more. This can be exacerbated by scope creep or unforeseen complexities in the remediation work. Effective oversight, clear contract modifications, and strong negotiation are crucial to mitigate these risks.
How does the government measure the effectiveness of TETRA TECH EC, INC.'s remediation services to ensure environmental compliance and public safety?
Effectiveness is typically measured through performance metrics outlined in the contract's Statement of Work (SOW), such as meeting cleanup standards, adherence to schedules, and compliance with environmental regulations. The government's quality assurance personnel would monitor progress, review reports, and conduct site inspections to verify that the remediation objectives are being met and that public safety is maintained.
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: 13
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
Start Date: 2006-03-31
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2010-07-22
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