DoD's $83.7M Remediation Services Contract Awarded to TETRA TECH EC, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $83,679,974 ($83.7M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-03-25
End Date: 2010-08-30
Contract Duration: 2,715 days
Daily Burn Rate: $30.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of Defense obligated $83.7 million to TETRA TECH EC, INC. for work described as: Key points: 1. Significant contract value of $83.7 million for remediation services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract duration of 2715 days (over 7 years) indicates a long-term need. 4. The sector is environmental remediation, crucial for government operations and compliance.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar remediation contracts is needed to assess if the award fee structure incentivized efficient performance and reasonable cost accumulation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing, though the CPAF structure requires careful oversight to ensure cost control.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, but the CPAF structure necessitates vigilance to prevent cost overruns and ensure value for money.
Public Impact
Environmental cleanup services ensure compliance with regulations and protect public health. Long-term contract provides stability for a critical service provider. Potential for environmental improvements in California where the contract is performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize higher costs.
- Long contract duration increases risk of cost escalation.
- No specific small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Addresses critical environmental remediation needs.
- Significant contract value indicates important service delivery.
Sector Analysis
The environmental remediation sector is vital 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 provided data does not indicate any specific set-aside for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight from the Department of the Navy to ensure contractor performance meets objectives and costs remain reasonable. Monitoring award fee criteria and expenditures is crucial for accountability.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Long contract duration increases risk exposure.
- Lack of explicit small business participation.
- Environmental remediation projects can face unforeseen challenges and cost increases.
Tags
remediation-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.7 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 Navy).
What is the total obligated amount?
The obligated amount is $83.7 million.
What is the period of performance?
Start: 2003-03-25. End: 2010-08-30.
What specific remediation activities were performed under this contract, and how did they align with the initial scope and objectives?
The contract was for Remediation Services, likely encompassing activities such as site assessment, hazardous material removal, soil and groundwater cleanup, and long-term monitoring. The effectiveness would be measured against the specific environmental challenges at the sites, regulatory compliance achieved, and the restoration of affected areas to safe conditions.
How effectively did the award fee structure incentivize TETRA TECH EC, INC. to control costs while achieving high-quality remediation outcomes?
The effectiveness of the CPAF structure hinges on the clarity and measurability of the award criteria. If criteria were well-defined and tied to both cost efficiency and performance quality, it likely encouraged the contractor to optimize operations. However, without detailed performance reports, it's difficult to definitively assess the cost control impact.
What was the overall environmental impact and taxpayer value derived from this $83.7 million investment in remediation services?
The primary value lies in mitigating environmental hazards and ensuring regulatory compliance, which has long-term public health and ecological benefits. Taxpayer value is determined by comparing the achieved environmental improvements against the total cost, considering the competitive award and the necessity of the services.
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 › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc. (UEI: 045224250)
Address: 1230 COLUMBIA ST STE 750, SAN DIEGO, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,226,042
Exercised Options: $3,226,042
Current Obligation: $83,679,974
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6871198D5713
IDV Type: IDC
Timeline
Start Date: 2003-03-25
Current End Date: 2010-08-30
Potential End Date: 2010-08-30 00:00:00
Last Modified: 2011-08-03
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