DOE's $22.9M Depleted Uranium Hexafluoride Project Management Services Awarded to Tetra Tech HEI, Inc
Contract Overview
Contract Amount: $22,934,260 ($22.9M)
Contractor: Tetra Tech HEI, Inc.
Awarding Agency: Department of Energy
Start Date: 2004-01-01
End Date: 2011-01-15
Contract Duration: 2,571 days
Daily Burn Rate: $8.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROJECT MANAGEMENT SERVICES FOR THE DEPLETED URANIUM HEXAFLUORIDE PROJECT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40513
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $22.9 million to TETRA TECH HEI, INC. for work described as: PROJECT MANAGEMENT SERVICES FOR THE DEPLETED URANIUM HEXAFLUORIDE PROJECT Key points: 1. The contract, valued at $22.9 million, was awarded for project management services related to the Depleted Uranium Hexafluoride Project. 2. Tetra Tech HEI, Inc. secured this contract, indicating their expertise in administrative and general management consulting. 3. The project duration was 2571 days, spanning from January 2004 to January 2011. 4. This award falls under the Administrative Management and General Management Consulting Services NAICS code (541611).
Value Assessment
Rating: fair
The contract was awarded as a delivery order under a larger contract. Without knowing the terms of the base contract or other competing bids for this specific order, a precise pricing assessment is difficult. However, the Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order. This suggests that multiple vendors likely had the opportunity to bid, leading to a degree of price discovery. The specific competition details and the number of bids received are not provided, which limits a full assessment of the competitive landscape.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a reasonable price, though the efficiency of the Time and Materials contract type warrants careful oversight to prevent cost escalation.
Public Impact
Management of hazardous materials like depleted uranium hexafluoride requires stringent safety protocols and specialized expertise. The project's success impacts environmental cleanup efforts and national security related to nuclear materials. Long-term management of such projects can have significant implications for future government spending on environmental remediation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns.
- Long project duration increases risk of scope creep and cost escalation.
- Management of hazardous materials requires continuous vigilance and robust safety measures.
Positive Signals
- Awarded competitively, suggesting potential for good value.
- Experienced contractor likely possesses necessary expertise.
- Project addresses a critical environmental and national security concern.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar project management contracts can vary widely based on project complexity, duration, and the specific services required. The $22.9 million value over approximately 7 years suggests a significant, long-term undertaking.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
As a delivery order under a larger contract, oversight would typically be managed by the contracting agency (Department of Energy). The long duration and nature of the project necessitate consistent monitoring of performance, cost, and adherence to safety regulations to ensure accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Long project duration increases risk of scope creep and schedule delays.
- Complexity and hazardous nature of depleted uranium hexafluoride require stringent oversight.
- Lack of detailed competition data limits full assessment of value.
- Potential for significant long-term environmental and financial liabilities.
Tags
administrative-management-and-general-ma, department-of-energy, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $22.9 million to TETRA TECH HEI, INC.. PROJECT MANAGEMENT SERVICES FOR THE DEPLETED URANIUM HEXAFLUORIDE PROJECT
Who is the contractor on this award?
The obligated recipient is TETRA TECH HEI, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $22.9 million.
What is the period of performance?
Start: 2004-01-01. End: 2011-01-15.
What were the specific performance metrics used to evaluate Tetra Tech HEI, Inc.'s success on this project?
Performance metrics would likely have included adherence to project timelines, budget management, successful completion of project milestones, compliance with safety and environmental regulations, and overall quality of project management services delivered. The Department of Energy's contract oversight would have tracked these against the contract's statement of work and performance standards.
How did the Time and Materials pricing structure impact the final cost compared to a fixed-price contract for this project?
A Time and Materials contract allows the contractor to bill for direct labor hours and costs, plus a fixed amount for overhead and profit. This structure can be beneficial for projects with uncertain scope, but it carries a higher risk of cost escalation if not tightly managed. A fixed-price contract would have offered more cost certainty for the government but might have been less suitable if the project's requirements were highly fluid.
What is the long-term environmental and financial liability associated with the depleted uranium hexafluoride project managed under this contract?
Depleted uranium hexafluoride is a hazardous material requiring specialized long-term storage and eventual disposal. The liability includes potential environmental contamination, health risks to workers and the public, and significant costs for safe management and remediation. This contract likely addressed the initial phases of management, with ongoing liabilities extending far beyond the contract's end date.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Tetra Tech, Inc.
Address: 1009 COMMERCE PARK DR, OAK RIDGE, TN, 37830
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $25,923,336
Exercised Options: $25,923,336
Current Obligation: $22,934,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0018K
IDV Type: FSS
Timeline
Start Date: 2004-01-01
Current End Date: 2011-01-15
Potential End Date: 2011-01-15 00:00:00
Last Modified: 2025-08-27
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