DoD awards $129M contract for Iraq building maintenance to Tetra Tech EC, Inc

Contract Overview

Contract Amount: $20,811,055 ($20.8M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-05

End Date: 2007-10-31

Contract Duration: 574 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200607!000666!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0048 ! !20060405!20061015!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* !IRAQ !+000005987668!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !562910!E! !5!B!M! !A!D!20081120!B! ! !A! !A!U!U!2!005!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to TETRA TECH EC, INC. for work described as: 200607!000666!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0048 ! !20060405!20061015!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* … Key points: 1. The contract was awarded under full and open competition. 2. Tetra Tech EC, Inc. is the sole awardee. 3. The contract is for maintenance of office buildings in Iraq. 4. The total value is over $129 million. 5. The contract duration is approximately 574 days.

Value Assessment

Rating: fair

The contract value of $129,280,421 for approximately 1.5 years of service appears high, especially given the location and nature of the services. Benchmarking against similar construction and maintenance contracts in austere environments is difficult but necessary for a full assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing structure (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly, potentially impacting the final price discovered through competition.

Taxpayer Impact: The significant expenditure for building maintenance in a conflict zone raises questions about cost-effectiveness and the ultimate burden on taxpayers for services in a high-risk environment.

Public Impact

Taxpayer funds are being used for essential services in a deployed environment. The contract supports military operations by ensuring functional facilities. The success of the contract impacts the safety and efficiency of personnel in Iraq. Potential for cost overruns in a Cost Plus Fixed Fee contract warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for services in a challenging location.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Limited transparency on specific performance metrics and outcomes.
Geopolitical risks associated with operating in Iraq.

Positive Signals

Awarded under full and open competition.
Contract addresses critical infrastructure needs.
Established contractor with experience in similar environments.

Sector Analysis

This contract falls within the Construction sector, specifically related to facility maintenance and operations. Spending benchmarks for similar services in deployed, high-risk environments are difficult to establish due to unique logistical and security costs.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, Tetra Tech EC, Inc., is a large business.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA). Ensuring robust oversight is crucial for Cost Plus Fixed Fee contracts to control costs and verify performance, especially in remote locations.

Related Government Programs

Remediation Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

High contract value.
Cost Plus Fixed Fee contract type.
Operations in a high-risk environment (Iraq).
Potential for cost overruns.
Limited detail on specific services and cost drivers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to TETRA TECH EC, INC.. 200607!000666!5700!FA8903!HSW/PKV !FA890304D8677 !A!N! !N!0048 ! !20060405!20061015!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!00000! !IZ!* !* !IRAQ !+000005987668!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2006-04-05. End: 2007-10-31.

What specific maintenance and repair services are included under this contract, and how were the costs for these services determined to be fair and reasonable?

The contract specifies 'MAINT/OFFICE BUILDINGS'. Detailed cost breakdowns for specific services like HVAC repair, structural maintenance, plumbing, and electrical work are not provided in this summary. Determining fair and reasonable costs would involve comparing proposed labor rates, material costs, and overhead against historical data, industry standards, and potentially other bids received during the full and open competition.

What are the primary risks associated with performing construction and maintenance services in Iraq, and what mitigation strategies are in place?

Key risks include security threats to personnel and equipment, logistical challenges in delivering materials and personnel, political instability, and potential for unforeseen site conditions. Mitigation strategies likely involve robust security protocols, detailed logistical planning, coordination with local authorities and military commands, and contingency planning for unexpected events.

How effectively has Tetra Tech EC, Inc. managed similar contracts in deployed environments, and what performance metrics are being tracked?

Information on Tetra Tech EC, Inc.'s past performance on similar contracts is not detailed here. Effective management would be assessed through metrics such as on-time completion of tasks, adherence to budget (within the fixed fee), quality of work, safety record, and responsiveness to client needs. The contracting officer's representative (COR) would typically monitor these metrics.

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: 5

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