State Dept. Awards $50.2M for Weapons Destruction Support to Tetra Tech, Inc

Contract Overview

Contract Amount: $50,249,962 ($50.2M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of State

Start Date: 2018-06-05

End Date: 2023-11-04

Contract Duration: 1,978 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LAOS WEAPONS DESTRUCTION SUPPORT SERVICES

Plain-Language Summary

Department of State obligated $50.2 million to TETRA TECH, INC. for work described as: LAOS WEAPONS DESTRUCTION SUPPORT SERVICES Key points: 1. The contract value of $50.2M is significant for remediation services. 2. Tetra Tech, Inc. secured this contract through full and open competition. 3. The contract duration of 1978 days indicates a long-term need. 4. The use of Time and Materials pricing may pose a risk to cost control.

Value Assessment

Rating: fair

The contract value of $50.2M for remediation services over nearly 2000 days appears reasonable given the scope. However, the Time and Materials pricing structure warrants scrutiny for potential cost overruns compared to fixed-price contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing, but the Time and Materials (T&M) contract type can obscure true costs until completion.

Taxpayer Impact: Taxpayers benefit from competitive bidding, but the T&M structure introduces uncertainty regarding the final cost, potentially leading to higher-than-expected expenditures.

Public Impact

Supports critical national security objectives by ensuring safe destruction of weapons. Provides employment opportunities within the remediation and technical services sector. Ensures compliance with international treaties and safety regulations. Potential for environmental remediation and hazard reduction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns.
Long contract duration may not reflect current market efficiencies.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded through full and open competition.
Supports critical national security mission.
Long-term engagement indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically remediation. Spending in this area is often driven by regulatory requirements, environmental concerns, and national security needs. Benchmarks are difficult without specific service details, but large-scale remediation contracts can range from tens to hundreds of millions.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, Tetra Tech, Inc., is a large corporation. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. The long duration and T&M nature suggest a need for diligent oversight to manage costs and ensure performance standards are met. Further details on reporting and accountability mechanisms are not provided.

Related Government Programs

Remediation Services
Department of State Contracting
Department of State Programs

Risk Flags

Time and Materials pricing structure.
Potential for cost overruns.
Lack of detailed performance metrics.
Long contract duration.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $50.2 million to TETRA TECH, INC.. LAOS WEAPONS DESTRUCTION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $50.2 million.

What is the period of performance?

Start: 2018-06-05. End: 2023-11-04.

What specific metrics are used to evaluate Tetra Tech's performance under this Time and Materials contract to ensure cost-effectiveness and mission success?

Performance evaluation under Time and Materials contracts typically relies on detailed tracking of labor hours, material costs, and adherence to project milestones. The Department of State likely employs contract officers and technical representatives to monitor progress, review invoices for reasonableness, and ensure deliverables meet specified quality standards. Specific metrics would include on-time completion of phases, adherence to safety protocols, and successful destruction of targeted materials, with performance impacting future task orders or contract renewals.

How does the Department of State mitigate the inherent risks of cost escalation associated with a Time and Materials contract for weapons destruction services?

Mitigation strategies for T&M contracts often include establishing ceiling prices for labor categories and specific task orders, requiring detailed justification for all hours and materials, and implementing robust oversight to prevent scope creep. The Department may also incorporate clauses that incentivize efficiency or penalize excessive costs. Regular audits and performance reviews help identify potential overruns early, allowing for corrective actions or renegotiation of terms if necessary to protect taxpayer interests.

What is the long-term strategy for weapons destruction support services, and how does this contract align with future needs and potential technological advancements?

This contract's duration suggests it addresses a significant, ongoing need. The long-term strategy likely involves maintaining capability for existing threats while remaining adaptable to new technologies or changing geopolitical landscapes. The Department of State may be evaluating emerging destruction methods or seeking more cost-effective solutions. This contract could serve as a baseline, with future procurements potentially incorporating lessons learned or soliciting innovative approaches to ensure efficient and effective weapons destruction.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3475 E FOOTHILL BLVD, PASADENA, CA, 91107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,537,024

Exercised Options: $53,858,804

Current Obligation: $50,249,962

Actual Outlays: $21,784,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM18D0080

IDV Type: IDC

Timeline