DoD's $44M Remediation Services Contract Awarded to TETRA TECH EC, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $44,284,234 ($44.3M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-10
End Date: 2009-07-31
Contract Duration: 1,208 days
Daily Burn Rate: $36.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $44.3 million to TETRA TECH EC, INC. for work described as: Key points: 1. Contract value of $44.3 million for environmental remediation services. 2. Awarded to TETRA TECH EC, INC. through full and open competition. 3. Potential risks include cost overruns in a cost-plus-fixed-fee structure. 4. The IT sector is not directly applicable; this falls under professional services.
Value Assessment
Rating: good
The contract's value of $44.3 million appears reasonable for extensive environmental remediation services. Benchmarking against similar large-scale remediation projects would provide a more precise assessment of its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The competitive bidding process likely ensured a fair price, minimizing unnecessary taxpayer expenditure for essential environmental cleanup services.
Public Impact
Environmental cleanup services ensure compliance with regulations and protect public health. The contract supports the Department of the Air Force's infrastructure and operational readiness. Successful remediation can lead to the repurposing of land for community or economic development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractor inefficiency if not closely monitored.
- Scope creep in remediation projects can lead to budget overruns.
- Long project durations increase the risk of unforeseen environmental challenges.
Positive Signals
- Full and open competition generally yields competitive pricing.
- The contract addresses critical environmental compliance needs.
- Experienced contractor selected through a competitive process.
Sector Analysis
Environmental remediation services are crucial for government agencies to manage legacy contamination and comply with environmental laws. Spending in this sector can vary significantly based on the scale of cleanup required and regulatory mandates.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify small business participation. Larger remediation projects often involve prime contractors who may subcontract to smaller specialized firms.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight is crucial for cost-plus-fixed-fee contracts to ensure efficient performance and prevent cost overruns.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus-fixed-fee structure requires diligent oversight to control costs.
- Long contract duration (over 3 years) increases exposure to changing conditions and potential cost escalations.
- Potential for scope creep in complex environmental remediation projects.
- Lack of specific detail on small business subcontracting opportunities.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.3 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 $44.3 million.
What is the period of performance?
Start: 2006-04-10. End: 2009-07-31.
What specific remediation activities are covered under this contract, and how do they align with the Air Force's environmental goals?
The contract covers 'Remediation Services,' which typically includes identifying, assessing, and cleaning up hazardous substances and contaminants at Air Force installations. These activities are critical for meeting federal environmental regulations (like CERCLA and RCRA) and supporting the Air Force's commitment to environmental stewardship and base realignment and closure initiatives.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this remediation project?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. This necessitates strong government oversight to monitor expenditures, prevent scope creep, and ensure efficient project execution to avoid budget overruns.
How effectively does the 'full and open competition' method ensure value for money in complex environmental remediation contracts?
Full and open competition is designed to maximize the number of potential bidders, fostering a competitive environment that typically drives down prices and encourages innovation. For complex remediation, this method allows for a wider pool of specialized expertise to be considered, increasing the likelihood of selecting a technically capable and cost-effective solution.
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: 18
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: 2006-04-10
Current End Date: 2009-07-31
Potential End Date: 2009-07-31 00:00:00
Last Modified: 2010-07-22
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