DoD's $22.5M Sewer Remediation Contract with Tetra Tech EC, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $22,523,715 ($22.5M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-12-18
End Date: 2010-04-30
Contract Duration: 1,229 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: X111 PARCEL DE (SEWER REMOVAL AND SURVEYS) AND PARCEL B AT HPS
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of Defense obligated $22.5 million to TETRA TECH EC, INC. for work described as: X111 PARCEL DE (SEWER REMOVAL AND SURVEYS) AND PARCEL B AT HPS Key points: 1. Contract awarded for sewer removal and surveys in California. 2. Tetra Tech EC, Inc. is the sole contractor. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 5. Sector is Remediation Services, a critical environmental function.
Value Assessment
Rating: fair
The contract type (Cost Plus Award Fee) can lead to higher costs if not managed tightly. Benchmarking against similar remediation contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure requires robust oversight to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are utilized for environmental remediation services. The effectiveness of competition and oversight will determine the value for money.
Public Impact
Ensures environmental compliance by addressing sewer infrastructure issues. Supports military base operations by maintaining essential services. Potential for job creation in the environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Lack of specific performance metrics makes it hard to assess award fee justification.
- Contract duration is long, increasing exposure to potential cost overruns.
Positive Signals
- Awarded under full and open competition.
- Addresses critical environmental remediation needs.
- Contractor has experience in the field.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, which is crucial for maintaining operational readiness and environmental compliance for government facilities. Spending benchmarks vary widely based on project scope and complexity.
Small Business Impact
The data indicates no specific set-aside for small businesses. Larger contracts like this often involve prime contractors who may subcontract, potentially creating opportunities for small businesses.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong government oversight to ensure contractor performance aligns with award criteria and to prevent cost overruns. Regular audits and performance reviews are essential.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee structure requires vigilant oversight.
- Long contract duration increases risk of cost escalation.
- Potential for contractor inefficiency if award criteria are not stringent.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
remediation-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to TETRA TECH EC, INC.. X111 PARCEL DE (SEWER REMOVAL AND SURVEYS) AND PARCEL B AT HPS
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 $22.5 million.
What is the period of performance?
Start: 2006-12-18. End: 2010-04-30.
How effectively did the full and open competition drive down costs compared to other contract types for similar remediation projects?
While full and open competition is a positive indicator for price discovery, the Cost Plus Award Fee (CPAF) structure introduces variability. Without detailed cost data and comparison to fixed-price contracts, it's difficult to definitively state cost savings. CPAF can sometimes lead to higher initial costs if the award fee criteria are not tightly defined or if the government's oversight is insufficient to prevent scope creep or inefficient practices.
What are the primary risks associated with the Cost Plus Award Fee structure in this specific remediation contract?
The primary risks with CPAF include potential for contractor inefficiency if award criteria are too lenient, and the government paying higher costs than necessary if oversight is weak. There's also a risk of 'gaming the system' where contractors focus on meeting easily achievable award fee targets rather than optimal project outcomes. Effective management and clear performance metrics are crucial to mitigate these risks.
How does the long contract duration (1229 days) impact the overall effectiveness and cost control of this remediation project?
A long duration can be effective for complex, multi-phase projects like extensive remediation. However, it significantly increases the risk of cost escalation due to inflation, changing regulations, or unforeseen site conditions. Effective cost control requires robust change order management, regular price adjustments based on market rates, and continuous performance monitoring throughout the project lifecycle.
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 › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Tetra Tech, Inc. (UEI: 045224250)
Address: 1050 NE HOSTMARK ST STE 202, POULSBO, WA, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,523,715
Exercised Options: $22,523,715
Current Obligation: $22,523,715
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4425501D2000
IDV Type: IDC
Timeline
Start Date: 2006-12-18
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2010-04-29
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