State Department awards $138M contract for unexploded ordnance neutralization in Iraq

Contract Overview

Contract Amount: $138,279,274 ($138.3M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of State

Start Date: 2018-12-21

End Date: 2023-12-23

Contract Duration: 1,828 days

Daily Burn Rate: $75.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UNDER THIS TASK ORDER THE CONTRACTOR PROVIDES ALL SERVICES, EQUIPMENT, AND SUPPLIES TO NEUTRALIZE UNEXPLODED AND ABANDONED ORDNANCE AND IEDS THROUGHOUT IRAQ.

Plain-Language Summary

Department of State obligated $138.3 million to TETRA TECH, INC. for work described as: UNDER THIS TASK ORDER THE CONTRACTOR PROVIDES ALL SERVICES, EQUIPMENT, AND SUPPLIES TO NEUTRALIZE UNEXPLODED AND ABANDONED ORDNANCE AND IEDS THROUGHOUT IRAQ. Key points: 1. Contract addresses critical safety and security needs in post-conflict environments. 2. Full and open competition suggests a robust market for these specialized services. 3. Long duration indicates a sustained requirement for ordnance disposal. 4. Time and Materials pricing structure may pose cost control challenges. 5. Contractor's performance will be key to successful mission accomplishment. 6. Geographic focus on Iraq highlights specific regional security concerns.

Value Assessment

Rating: fair

The contract value of $138.3 million over five years for ordnance neutralization services in Iraq appears substantial. Benchmarking this against similar international demining or explosive ordnance disposal contracts is challenging due to the unique operational context and specific requirements in Iraq. The Time and Materials (T&M) pricing model, while offering flexibility, can lead to less predictable costs compared to fixed-price contracts. Without detailed cost breakdowns or comparisons to industry standards for specific services (e.g., per-item disposal, personnel hours), a definitive value-for-money assessment is difficult. However, the scale of the operation and the critical nature of the service suggest a significant investment is necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest and capability within the market for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages efficiency among contractors, ultimately aiming to secure the best value for public funds.

Public Impact

Iraqi civilians and infrastructure benefit from the removal of dangerous unexploded ordnance and IEDs, enhancing safety and enabling reconstruction. The contract delivers essential services for neutralizing explosive hazards across Iraq. The geographic impact is nationwide, addressing a critical security issue throughout the country. Workforce implications include employment opportunities for specialized personnel, potentially including local Iraqi hires, in hazardous duty environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
The long duration of the contract (5 years) requires sustained oversight to ensure continued performance and value.
Operating in a high-risk environment like Iraq presents inherent security and logistical challenges.
The specific nature of ordnance neutralization requires highly specialized skills and equipment, limiting the pool of qualified contractors.

Positive Signals

Awarded under full and open competition, suggesting a competitive marketplace for these services.
The contract addresses a critical national security and humanitarian need.
The contractor, Tetra Tech, Inc., likely possesses relevant expertise in environmental and engineering services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental remediation and hazardous material management. The market for explosive ordnance disposal (EOD) and demining services is specialized, often driven by government contracts in post-conflict zones or areas with historical contamination. While specific market size data for Iraqi ordnance neutralization is not readily available, global spending on EOD and mine action is significant, driven by international security and humanitarian efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized and high-risk nature of ordnance neutralization, it is common for such large-scale contracts to be awarded to larger, established firms with the necessary expertise, resources, and security clearances. Subcontracting opportunities for small businesses may exist in supporting roles, such as logistics, security, or specialized equipment provision, but are not explicitly detailed in this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Political-Military Affairs, which manages security assistance and programs. Accountability measures would include performance metrics tied to the successful neutralization of ordnance, adherence to safety protocols, and timely reporting. Transparency is facilitated through contract award databases, but detailed operational reporting is likely classified or sensitive due to security concerns. Inspector General jurisdiction would apply to audits and investigations of waste, fraud, and abuse.

Related Government Programs

Department of Defense - Explosive Ordnance Disposal Programs
United Nations Mine Action Service (UNMAS) Programs
State Department - Foreign Military Financing (related to security sector reform)
USAID - Humanitarian Demining Programs

Risk Flags

High-risk operational environment
Time and Materials contract type
Long contract duration
Potential for cost overruns
Security and logistical complexities

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $138.3 million to TETRA TECH, INC.. UNDER THIS TASK ORDER THE CONTRACTOR PROVIDES ALL SERVICES, EQUIPMENT, AND SUPPLIES TO NEUTRALIZE UNEXPLODED AND ABANDONED ORDNANCE AND IEDS THROUGHOUT IRAQ.

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 $138.3 million.

What is the period of performance?

Start: 2018-12-21. End: 2023-12-23.

What is Tetra Tech, Inc.'s track record with similar ordnance neutralization contracts, particularly in high-risk environments?

Tetra Tech, Inc. has a broad portfolio in environmental engineering, remediation, and infrastructure support. While specific details on their ordnance neutralization contracts are not publicly itemized in this award, the company has experience in hazardous material management and complex project execution globally. Their past performance on Department of Defense and other government contracts, often involving environmental cleanup and site remediation, suggests a capacity to manage large, technically demanding projects. Assessing their specific experience in active ordnance neutralization, especially in a volatile region like Iraq, would require a deeper dive into their contract history and client testimonials beyond this single award notice.

How does the per-unit cost of ordnance neutralization under this contract compare to industry benchmarks or similar international efforts?

Determining a precise per-unit cost for ordnance neutralization under this contract is not feasible with the provided data. The contract is awarded on a Time and Materials (T&M) basis, meaning costs are based on labor hours, materials used, and equipment, rather than a fixed price per item neutralized. Benchmarking is further complicated by the varied nature of ordnance (IEDs vs. unexploded shells), the specific geographic challenges in Iraq, and the associated security and logistical overhead. International demining efforts often report costs per hectare cleared or per item found, but direct comparison requires detailed cost breakdowns and an understanding of the specific operational tempo and risk factors involved in this particular State Department contract.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks include security threats to personnel and equipment in Iraq, potential cost overruns due to the T&M pricing structure, logistical challenges in remote or unstable areas, and the inherent dangers of ordnance disposal. Mitigation strategies likely involve robust security protocols, close monitoring of labor hours and material usage by the contracting agency (Department of State), contingency planning for logistical disruptions, and strict adherence to safety procedures by the contractor, Tetra Tech, Inc. The long contract duration also presents a risk of performance degradation or evolving threats requiring adaptive strategies.

How effective has Tetra Tech, Inc. been in managing similar large-scale environmental or hazardous material contracts for the U.S. government?

Tetra Tech, Inc. has a history of managing large-scale environmental and engineering contracts for various U.S. government agencies, including the EPA and DoD. Their performance generally involves complex remediation projects, infrastructure development, and environmental consulting. While specific metrics for effectiveness on ordnance neutralization are not detailed here, their sustained presence and repeated awards in related fields suggest a generally positive performance record. A comprehensive assessment would involve reviewing past performance evaluations and client feedback across their contract portfolio.

What is the historical spending trend for ordnance neutralization or similar services by the Department of State in Iraq?

Historical spending data for ordnance neutralization specifically by the Department of State in Iraq is not readily available in public databases. However, the Department of State, through its various bureaus (e.g., Political-Military Affairs, Humanitarian Response), does fund programs related to security, stability, and post-conflict reconstruction in Iraq. Spending on demining and ordnance clearance is often part of broader security assistance or humanitarian aid packages. This $138 million award represents a significant, multi-year commitment, suggesting a sustained or increasing focus on addressing the unexploded ordnance and IED threat in the region by the U.S. government.

What are the key performance indicators (KPIs) used to measure the success of this ordnance neutralization contract?

Key performance indicators for this contract would likely focus on the successful and safe neutralization of identified unexploded ordnance and IEDs, adherence to project timelines, effective resource management (personnel, equipment), compliance with safety regulations, and accurate reporting. The Department of State would establish specific metrics, potentially including the volume of ordnance cleared, the number of hazardous sites remediated, incident rates (zero tolerance for accidents is ideal), and overall impact on reducing the threat to civilian populations and infrastructure. Performance evaluations would assess Tetra Tech, Inc.'s ability to meet these defined KPIs throughout the contract period.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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: $139,556,945

Exercised Options: $138,906,945

Current Obligation: $138,279,274

Actual Outlays: $51,912,191

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $25,721,588

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