TETRA TECH EC, INC. awarded $14.46M contract for services, with a significant duration of 1278 days
Contract Overview
Contract Amount: $14,461,167 ($14.5M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-31
End Date: 2011-09-30
Contract Duration: 1,278 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FUNDING
Place of Performance
Location: COMMERCE CITY, ADAMS County, COLORADO, 80022
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to TETRA TECH EC, INC. for work described as: FUNDING Key points: 1. Contract value of $14.46M over 1278 days suggests a moderate daily burn rate. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Time and Materials, which can pose risks if not managed closely. 4. Performance period spans over three years, allowing for substantial project development. 5. The contractor, TETRA TECH EC, INC., has a history of federal contract awards. 6. The contract was awarded by the Department of Defense, specifically the Department of the Army. 7. The contract was awarded in 2008, with completion in 2011, reflecting past federal spending.
Value Assessment
Rating: fair
The contract value of $14.46M over 1278 days equates to approximately $11,315 per day. Without specific details on the services rendered, it is difficult to benchmark this against similar contracts. However, the duration and total value suggest a substantial project. The Time and Materials (T&M) contract type can lead to cost overruns if not diligently monitored, potentially impacting the overall value for money.
Cost Per Unit: $11,315 per day (estimated)
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The fact that there were 6 bids received further supports the notion of a competitive environment.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through a competitive bidding process, ensuring that the government receives the best possible value for its investment.
Public Impact
The Department of the Army benefits from the services provided under this contract. The contract likely supports military operations or infrastructure maintenance within the Department of Defense. The geographic impact is likely concentrated in Colorado, where the contract was awarded. The workforce implications could include employment opportunities for individuals with specialized skills required for the services rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not properly managed.
- Long contract duration (1278 days) requires sustained oversight to ensure performance and prevent scope creep.
- Lack of specific service details makes it challenging to assess the true value and necessity of the expenditure.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Multiple bids received (6) suggest a competitive market for these services.
- Contract awarded to a known entity (TETRA TECH EC, INC.) with federal contracting experience.
Sector Analysis
This contract falls within the professional services sector, likely supporting engineering, construction, or technical services for the Department of the Army. The federal government is a significant consumer of such services, particularly for infrastructure, maintenance, and specialized project management. Benchmarking this contract's value would require comparison to similar large-scale service contracts awarded by defense agencies.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless TETRA TECH EC, INC. actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. The Time and Materials nature of the contract necessitates close monitoring of labor hours and material costs to ensure accountability. Transparency would depend on the agency's reporting practices for contract performance and expenditures.
Related Government Programs
- Department of Defense Services Contracts
- Army Engineering and Technical Services
- Time and Materials Contracts
- Federal Professional Services
Risk Flags
- Time and Materials Contract Type
- Long Contract Duration
- Potential for Cost Overruns
- Lack of Specific Service Details
Tags
defense, department-of-defense, department-of-the-army, time-and-materials, full-and-open-competition, large-contract, professional-services, colorado, past-performance, contract-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to TETRA TECH EC, INC.. FUNDING
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 $14.5 million.
What is the period of performance?
Start: 2008-03-31. End: 2011-09-30.
What specific services were rendered under this $14.46M contract awarded to TETRA TECH EC, INC.?
The provided data does not specify the exact services rendered under this contract. However, given the contractor's profile (TETRA TECH EC, INC. is known for engineering and environmental services) and the awarding agency (Department of the Army), the services likely involved technical support, engineering, construction management, environmental remediation, or facility support. The Time and Materials (T&M) contract type suggests that the scope might have been less defined at the outset, or that flexibility was needed to adapt to evolving requirements. Further investigation into the contract's statement of work would be necessary to determine the precise nature of the services.
How does the daily cost of approximately $11,315 compare to industry benchmarks for similar services?
Benchmarking the daily cost of $11,315 is challenging without knowing the specific services provided. For T&M contracts, costs are typically driven by labor rates (which vary by skill set and location) and material markups. If the services involved highly specialized engineering or project management, this daily rate might be within a reasonable range. However, if the services were more general, it could indicate a higher-than-average cost. A proper benchmark would require comparing this rate against similar contracts awarded by the Department of Defense or other federal agencies for comparable tasks, considering factors like labor categories, overhead, and profit margins.
What are the potential risks associated with a Time and Materials contract of this duration?
Time and Materials (T&M) contracts, especially those with a long duration like 1278 days, carry inherent risks. The primary risk is cost escalation, as the government pays for the actual time and materials used, plus a fixed fee or labor-hour rate. Without stringent oversight, contractors may not be incentivized to control costs or work efficiently. Scope creep is another significant risk; as the project progresses, requirements can expand, leading to increased hours and material usage. For taxpayers, this means potential overspending if the contract is not meticulously managed, monitored, and if performance metrics are not clearly defined and enforced.
What does the fact that 6 bids were received under full and open competition imply for the government's value?
Receiving 6 bids under full and open competition is a positive signal for the government's value. It indicates that the contract was sufficiently advertised and that multiple companies were interested and capable of performing the required services. A higher number of bids generally leads to increased competition, which in turn tends to drive down prices and improve the quality of proposals. This competitive environment increases the likelihood that the government secured the services at a fair and reasonable price, maximizing the value for taxpayers. It also suggests a healthy market for the services being procured.
What is TETRA TECH EC, INC.'s track record with federal contracts, particularly with the Department of Defense?
TETRA TECH EC, INC. is a well-established government contractor with a significant history of awards across various federal agencies, including the Department of Defense. Their portfolio often includes engineering, environmental, infrastructure, and technical support services. While this specific contract was awarded in 2008, the company's continued presence in the federal contracting space suggests a generally positive track record. However, a comprehensive assessment would require reviewing their performance ratings on past contracts, any past performance issues or disputes, and their overall financial stability.
How does this contract's $14.46M value fit within the broader context of Department of the Army spending on similar services?
A $14.46M contract is a substantial award, but within the context of the Department of the Army's overall budget, it represents a moderate investment. The Army procures a vast array of services, from large-scale construction and logistics to highly specialized technical and R&D support. This contract likely falls into the category of professional services or support functions. To contextualize its size, one would need to compare it to the total annual spending by the Army on engineering, environmental, or facility management services, as well as the average size of contracts within these specific service categories. Without that broader data, it's difficult to definitively label it as large or small relative to the Army's total procurement.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
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
Financial Breakdown
Contract Ceiling: $14,461,167
Exercised Options: $14,461,167
Current Obligation: $14,461,167
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAM0297D0012
IDV Type: IDC
Timeline
Start Date: 2008-03-31
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2012-04-04
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