DoD's $129M hazardous substance cleanup contract with Tetra Tech EC, Inc. awarded in 2005, ending 2009

Contract Overview

Contract Amount: $25,306,430 ($25.3M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-03-30

End Date: 2009-05-31

Contract Duration: 1,523 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::21 2020::TAS 200512!500180!2100!W9125F!USA MATERIEL COMMAND ACQUISITION!DAAM0297D0012 !A!N! !Y!0238 ! !20050330!20080801!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!65245!001!08!ROCKY MOUNTAIN ARS !ADAMS !COLORADO !+000003100000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !000 !* !562910!E! !5!B!S! ! !D!20110930!B! ! !A! !A!U!U!2!006!A! !Z!N!Z! ! !N!C!N! ! ! !A!D!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COMMERCE CITY, ADAMS County, COLORADO, 80022

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to TETRA TECH EC, INC. for work described as: TAS::21 2020::TAS 200512!500180!2100!W9125F!USA MATERIEL COMMAND ACQUISITION!DAAM0297D0012 !A!N! !Y!0238 ! !20050330!20080801!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!65245!001!08!ROCKY M… Key points: 1. Contract value of $129.3 million for hazardous substance removal and cleanup services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of approximately 4 years (1523 days) suggests a significant, long-term need. 4. Services provided by Tetra Tech EC, Inc., a company with a substantial federal contracting history. 5. Geographic focus on Colorado, specifically Adams County, for cleanup operations. 6. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's total value of $129.3 million for hazardous substance removal services over roughly four years appears substantial. Benchmarking this against similar large-scale environmental cleanup contracts is difficult without more specific service details and geographic scope. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation if the fixed fee is not adequately justified by the scope of work and if contractor efficiencies are not realized. The final cost of $128.9 million, very close to the initial award amount, suggests reasonable cost control or accurate initial estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit bids. The data indicates 6 bids were received. This level of competition is generally positive for price discovery and ensuring the government receives competitive pricing. A higher number of bidders typically suggests a more robust market for the services and potentially better value for the government.

Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayer dollars were likely used efficiently, as the award was made to the most advantageous offer after a competitive process. This minimizes the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment in Colorado, through the cleanup of hazardous substances. Services delivered include hazardous substance removal, cleanup, and disposal, addressing environmental contamination. The geographic impact is concentrated in Colorado, specifically within Adams County. The contract supports the workforce of Tetra Tech EC, Inc. and potentially subcontractors involved in environmental services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not closely monitored.
The duration of the contract (over 4 years) requires sustained oversight to ensure performance and cost control.
Specific details on the nature and extent of hazardous substances are not provided, making a precise risk assessment difficult.

Positive Signals

Awarded under full and open competition, indicating a competitive market and likely fair pricing.
The final cost was very close to the initial award amount, suggesting good cost management.
Tetra Tech EC, Inc. is an established contractor, implying experience in handling such complex projects.

Sector Analysis

This contract falls within the environmental services sector, specifically hazardous substance remediation. The market for such services is driven by regulatory requirements and government cleanup initiatives. Comparable spending benchmarks would depend on the scale and complexity of the environmental challenges addressed. Major environmental consulting and remediation firms often compete for these types of large-scale government contracts.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions. Given the large contract value and specialized nature of hazardous substance removal, it is likely that prime contractors like Tetra Tech EC, Inc. would engage small businesses as subcontractors for specific tasks or support services, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer within the Department of the Army's acquisition command. Performance monitoring, cost reviews, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details might be sensitive.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
The specialized nature of hazardous substance cleanup necessitates robust quality assurance and safety protocols.
Long contract duration requires sustained monitoring of performance and contractor compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to TETRA TECH EC, INC.. TAS::21 2020::TAS 200512!500180!2100!W9125F!USA MATERIEL COMMAND ACQUISITION!DAAM0297D0012 !A!N! !Y!0238 ! !20050330!20080801!129280421!128974271!045224250!N!TETRA TECH EC, INC !143 UNION BLVD STE 1010 !LAKEWOOD !CO!80228!65245!001!08!ROCKY MOUNTAIN ARS !ADAMS !COLORADO !+000003100000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !000 !* !562910!E

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 Army).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2005-03-30. End: 2009-05-31.

What was the specific nature of the hazardous substances and the scope of the cleanup operations under this contract?

The provided data identifies the service as 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' (PSC 562910). However, it does not specify the exact types of hazardous substances (e.g., chemical, biological, radiological) or the geographic extent and complexity of the cleanup sites within Adams County, Colorado. Understanding these details would be crucial for a comprehensive assessment of the contract's value and the contractor's performance. Without this information, it's difficult to benchmark the $129.3 million cost against specific environmental challenges.

How did Tetra Tech EC, Inc.'s past performance on similar contracts influence this award?

While the data confirms Tetra Tech EC, Inc. as the contractor, it does not provide details on their past performance evaluations or how they specifically factored into the award decision for this $129.3 million contract. Typically, agencies assess past performance, including technical capability, cost control, and adherence to schedule, as a significant factor in competitive procurements. Given the company's established presence, it's probable they had a track record that supported their bid, but specific metrics are not available in this dataset.

What were the key performance metrics and deliverables outlined in the contract, and how was performance measured?

The provided data does not detail the specific performance metrics, key performance indicators (KPIs), or deliverables for this hazardous substance removal contract. Standard practice for such contracts involves defining measurable outcomes related to cleanup standards, environmental compliance, waste disposal protocols, and project timelines. The Department of the Army would have established a Quality Assurance Surveillance Plan (QASP) to monitor Tetra Tech EC, Inc.'s adherence to these requirements throughout the contract's duration.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for environmental remediation, and what are the associated risks?

The CPFF structure is often used for complex projects where the scope is not fully defined at the outset, allowing for flexibility. However, it carries a risk of cost overruns if the fixed fee doesn't adequately account for all potential costs or if contractor efficiencies are not achieved. For environmental remediation, other types like Firm-Fixed-Price (FFP) might be used for well-defined scopes, offering more cost certainty to the government but less flexibility for unforeseen issues. Indefinite Delivery/Indefinite Quantity (IDIQ) contracts with task orders are also common for ongoing environmental support needs.

What was the total spending on hazardous substance removal and cleanup services by the Department of the Army in the years surrounding this contract (2005-2009)?

The provided data focuses solely on this specific contract. To determine the Department of the Army's total spending on hazardous substance removal and cleanup during 2005-2009, one would need to analyze broader federal procurement databases (like FPDS-NG or USASpending.gov) for all contracts with relevant Product Service Codes (PSCs) and agencies during that period. This single contract represents a portion of that spending, but its proportion relative to the Army's total environmental remediation budget is not discernible from this data alone.

Were there any significant challenges or disputes encountered during the performance of this contract?

The available data does not contain information regarding specific challenges, disputes, or contract modifications beyond the initial award and final delivery order amounts. Contract performance issues, change orders, or claims would typically be documented within agency contract files or potentially in legal or administrative dispute resolution records, which are not included in this dataset.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAM0297D0012

IDV Type: IDC

Timeline