Tetra Tech awarded $44.2M for humanitarian mine action in Laos, with potential for multi-year support

Contract Overview

Contract Amount: $44,200,257 ($44.2M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of State

Start Date: 2023-11-05

End Date: 2025-11-04

Contract Duration: 730 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAOS HUMANITARIAN MINE ACTION/UXO RESPONSE TASK ORDER WITH A BASE YR AND 4-OPTION YEARS.

Plain-Language Summary

Department of State obligated $44.2 million to TETRA TECH, INC. for work described as: LAOS HUMANITARIAN MINE ACTION/UXO RESPONSE TASK ORDER WITH A BASE YR AND 4-OPTION YEARS. Key points: 1. Contract value appears reasonable given the scope of humanitarian mine action and UXO response. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price structure shifts cost risk to the contractor, a positive indicator for the government. 4. This contract supports critical demining efforts in Laos, addressing a significant humanitarian need. 5. The duration of the base year plus four option years allows for sustained program support.

Value Assessment

Rating: good

The contract value of $44.2 million for a base year with four option years for humanitarian mine action in Laos seems aligned with the complexities of such operations. Benchmarking against similar demining contracts is challenging due to the specialized nature of the work and varying geographic risks. However, the firm-fixed-price (FFP) contract type is generally favorable for the government as it caps costs and transfers risk to the contractor, Tetra Tech, Inc. The absence of reported overruns or significant issues in publicly available data suggests a potentially good value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process typically involves a robust solicitation and evaluation, aiming to secure the best value for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should drive pricing towards market rates.

Taxpayer Impact: A competitive bidding process like full and open competition generally benefits taxpayers by fostering price discovery and encouraging multiple contractors to offer their best terms, potentially leading to cost savings compared to less competitive award methods.

Public Impact

The primary beneficiaries are the citizens of Laos, who will experience reduced risk from landmines and unexploded ordnance (UXO). Services delivered include mine and UXO clearance, risk education, and potentially mine-victim assistance. The geographic impact is focused on Laos, a country heavily affected by historical conflict. Workforce implications include the potential for local employment in clearance operations and support roles, alongside specialized international personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the full extent of UXO contamination is underestimated.
Geopolitical instability in the region could impact operational continuity.
Challenges in ensuring consistent quality and safety standards across all clearance activities.

Positive Signals

Tetra Tech has experience in complex international development and environmental services.
The firm-fixed-price contract structure provides cost certainty for the government.
The multi-year option structure allows for sustained impact and program development.

Sector Analysis

Humanitarian mine action and UXO clearance is a specialized sector within the broader environmental remediation and international development services industry. This contract fits within the U.S. government's efforts to address the legacy of conflict in Southeast Asia. While direct spending benchmarks for humanitarian mine action are scarce, the overall market for environmental remediation services is substantial, with significant government contracts awarded annually for hazardous material management and site cleanup.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Tetra Tech, Inc. is a large business. Therefore, the primary impact on small businesses would likely be through potential subcontracting opportunities, if any are offered by the prime contractor. Without further information on subcontracting plans, it is difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. The firm-fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State - Humanitarian Demining Programs
USAID - Peacekeeping and Conflict Prevention Programs
Department of Defense - UXO Clearance and Remediation

Risk Flags

Potential for unforeseen contamination levels
Operational risks in a challenging environment
Geopolitical stability concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $44.2 million to TETRA TECH, INC.. LAOS HUMANITARIAN MINE ACTION/UXO RESPONSE TASK ORDER WITH A BASE YR AND 4-OPTION YEARS.

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 $44.2 million.

What is the period of performance?

Start: 2023-11-05. End: 2025-11-04.

What is Tetra Tech's track record in humanitarian mine action and UXO clearance, particularly in Southeast Asia?

Tetra Tech, Inc. has a significant portfolio in environmental engineering, remediation, and international development. While specific details on their humanitarian mine action projects in Laos are not immediately available in this summary, the company has a history of managing complex, large-scale projects globally, including those involving hazardous materials and environmental restoration. Their experience in similar regions and with government contracts suggests a capacity to undertake such a task. Further investigation into their past performance reports and project history with agencies like the Department of State and USAID would provide a more detailed assessment of their specific expertise in demining and UXO clearance operations.

How does the $44.2 million contract value compare to similar humanitarian mine action efforts in other countries?

Directly comparing the $44.2 million value to similar contracts is challenging due to the highly specialized nature of humanitarian mine action and UXO clearance, coupled with significant variations in geographic scope, contamination levels, and operational risks across different countries. Contracts for demining can range widely, from a few million dollars for smaller, localized projects to tens or even hundreds of millions for large-scale, multi-year national programs. The value of this contract appears substantial, reflecting the complexity and duration of addressing landmine and UXO contamination in Laos. Benchmarking would require detailed analysis of the specific tasks, deliverables, and operational environments of comparable international demining initiatives.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include the physical dangers inherent in mine and UXO clearance, potential underestimation of the contamination extent, environmental hazards during operations, and geopolitical instability in the region. Mitigation strategies likely involve rigorous safety protocols, detailed survey and mapping of hazardous areas, adherence to international mine action standards, and contingency planning for unforeseen circumstances. The firm-fixed-price contract shifts some financial risk to Tetra Tech, incentivizing efficient and safe execution. The Department of State's oversight and the contractor's experience are crucial for managing these risks.

What is the expected effectiveness of this contract in achieving its humanitarian goals in Laos?

The effectiveness of this contract hinges on the successful clearance of mines and UXO, thereby reducing civilian casualties and enabling the safe return of land for productive use. The contract's duration, with options for multiple years, suggests a commitment to sustained effort, which is critical for comprehensive demining. Success will be measured by the area cleared, the number of hazardous items removed, the reduction in reported accidents, and the community's perception of safety. The involvement of an experienced contractor like Tetra Tech, under a competitive and well-defined contract, increases the likelihood of achieving these humanitarian objectives.

What are the historical spending patterns for humanitarian mine action by the Department of State, and how does this contract fit?

The Department of State has consistently allocated funds towards humanitarian demining programs globally, recognizing the significant impact of landmines and UXO on post-conflict recovery and development. Historical spending reflects a commitment to addressing these threats in various regions, including Southeast Asia. This $44.2 million contract for Laos represents a significant, but not unprecedented, investment within the context of the State Department's broader demining portfolio. It aligns with the agency's strategic goals of promoting stability and security by mitigating the dangers posed by unexploded ordnance.

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

Solicitation ID: 19AQMM23R0262

Pricing Type: FIRM FIXED PRICE (J)

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: $80,457,228

Exercised Options: $49,065,686

Current Obligation: $44,200,257

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