DoD's $26M Remediation Services Contract Awarded to Tetra Tech EC, Inc. for 552 Days

Contract Overview

Contract Amount: $25,990,679 ($26.0M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-10

End Date: 2009-03-15

Contract Duration: 552 days

Daily Burn Rate: $47.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 40

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 10TH DIV TAS::97 0100::TAS

Plain-Language Summary

Department of Defense obligated $26.0 million to TETRA TECH EC, INC. for work described as: 10TH DIV TAS::97 0100::TAS Key points: 1. Value for money appears fair given the scope of environmental remediation services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 552 days indicates a medium-term project. 4. Performance context is within environmental cleanup and site remediation. 5. Sector positioning is within the Defense industry's support services. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight.

Value Assessment

Rating: fair

The contract value of approximately $26 million for 552 days of remediation services suggests a daily rate of around $47,085. Benchmarking this against similar environmental remediation contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee structure implies that costs are reimbursed plus a negotiated fixed fee for profit. This can sometimes lead to higher overall costs if not managed tightly, but it also allows for adaptation to unforeseen site conditions common in remediation projects.

Cost Per Unit: $47085

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation likely attracted multiple bidders, fostering price discovery and potentially leading to a more competitive price. The number of bidders (40) is substantial and suggests a healthy level of interest and competition for this type of environmental service.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential environmental remediation services, reducing the risk of overpayment.

Public Impact

The Department of Defense benefits from the cleanup of environmental hazards at its facilities. Services delivered include remediation of contaminated sites, ensuring compliance with environmental regulations. Geographic impact is specific to the military installation where the remediation is conducted. Workforce implications include employment for environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
The fixed fee component needs to be justified against the scope and complexity of the remediation.
Ensuring the 'fixed' portion of the fee remains appropriate throughout the contract lifecycle is crucial.

Positive Signals

Full and open competition generally leads to better pricing and wider contractor availability.
The substantial number of bidders (40) indicates a robust market response.
The contract is for essential environmental remediation, addressing critical compliance and safety needs.

Sector Analysis

The environmental remediation services sector is a critical component of the broader professional, scientific, and technical services industry. This contract falls within the environmental consulting and remediation sub-sector, which supports government agencies and private entities in managing and cleaning up contaminated sites. The market is driven by regulatory compliance, industrial activity, and government mandates for environmental stewardship. Comparable spending benchmarks would depend on the specific type and scale of contamination being addressed.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Tetra Tech EC, Inc., may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of specialized small businesses capable of performing specific remediation tasks.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). They would monitor contractor performance, review incurred costs, ensure compliance with contract terms, and verify the reasonableness of the fixed fee. Transparency is facilitated through contract reporting mechanisms, though specific details of cost breakdowns may be proprietary.

Related Government Programs

Environmental Remediation Services
Defense Environmental Programs
Site Cleanup Contracts
Hazardous Waste Management

Risk Flags

Cost Overrun Risk (CPFF)
Unforeseen Site Conditions
Regulatory Compliance Changes
Contractor Performance Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to TETRA TECH EC, INC.. 10TH DIV TAS::97 0100::TAS

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 $26.0 million.

What is the period of performance?

Start: 2007-09-10. End: 2009-03-15.

What is the track record of Tetra Tech EC, Inc. in performing similar environmental remediation contracts for the Department of Defense?

Tetra Tech EC, Inc. has a significant history of performing environmental remediation and engineering services for various government agencies, including the Department of Defense. Their experience often spans complex projects involving hazardous waste, contaminated site cleanup, and compliance with environmental regulations like CERCLA (Superfund). Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide insight into their capability to successfully execute this specific delivery order. Data on their historical contract values, durations, and successful completion rates for DoD projects would be crucial for a comprehensive assessment.

How does the awarded value of $26 million compare to the estimated cost or market rates for similar remediation projects of this duration and scope?

The awarded value of approximately $26 million over 552 days translates to a daily rate of roughly $47,085. To assess value for money, this rate needs to be benchmarked against similar environmental remediation contracts awarded by the DoD or other federal agencies. Factors influencing this comparison include the complexity of the contamination (e.g., chemical, radiological, biological), the specific remediation technologies employed, site accessibility, and regulatory requirements. Without detailed scope information, a precise comparison is difficult, but a review of publicly available contract databases for similar services could reveal if this rate is within the expected range for the type of work performed.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for environmental remediation?

The primary risks associated with a CPFF contract for environmental remediation revolve around cost control and potential for cost overruns. While the fixed fee provides the contractor with a predictable profit margin, the reimbursement of costs can incentivize less stringent cost management if oversight is inadequate. For environmental remediation, unforeseen site conditions (e.g., discovering additional contamination, encountering unexpected geological formations) can significantly increase costs. The risk for the government lies in paying for these increased costs, even with a fixed fee, if the contractor's management and efficiency are not optimal. Robust monitoring by the COR and adherence to the contract's limitations on costs are critical mitigation strategies.

What specific environmental remediation services are covered under this contract, and what is the expected outcome?

While the provided data indicates 'Remediation Services' under NAICS code 562910, the specific services are not detailed. Typically, these services can include site investigation, risk assessment, feasibility studies, design of remediation systems, construction and operation of treatment facilities, monitoring, and long-term stewardship. The expected outcome is the cleanup or containment of environmental contamination to meet regulatory standards (e.g., EPA, state environmental agencies) and DoD environmental protection goals, thereby reducing risks to human health and the environment at the specific military installation.

How has the Department of Defense's spending on environmental remediation services evolved over the past five years, and where does this contract fit in?

The Department of Defense consistently allocates significant funding towards environmental remediation due to its extensive history of industrial activities and land use. Annual spending can fluctuate based on the number and scale of active cleanup sites, regulatory changes, and budget priorities. This $26 million contract represents a mid-sized award within the broader DoD environmental program. Analyzing historical spending trends would reveal if overall remediation expenditures are increasing or decreasing, and whether this contract aligns with typical investment levels for projects of similar complexity and duration. Such analysis helps contextualize the significance of this specific award within the DoD's environmental management strategy.

What are the key performance indicators (KPIs) likely used to evaluate Tetra Tech EC, Inc.'s performance on this contract?

Key performance indicators for this environmental remediation contract would likely focus on technical execution, schedule adherence, cost control, safety, and regulatory compliance. Examples include: meeting cleanup targets within specified timeframes, maintaining safety records (e.g., low incident rates), managing costs within the approved budget and fixed fee, achieving required environmental quality standards, and submitting timely and accurate reports. The COR would monitor these KPIs closely, potentially using a Contractor Performance Assessment Reporting System (CPARS) to document performance, which influences future contract awards.

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: 40

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, 80228

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,990,679

Exercised Options: $25,990,679

Current Obligation: $25,990,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8677

IDV Type: IDC

Timeline