EPA awarded $35.5M to Tetra Tech, Inc. for environmental consulting services under the Clean Water Act

Contract Overview

Contract Amount: $35,529,297 ($35.5M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2011-01-01

End Date: 2017-02-28

Contract Duration: 2,250 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: UNDER THE CLEAN WATER ACT, THE OFFICE OF WASTEWATER MANAGEMENT (OWM) WORKS IN PARTNERSHIP WITH EPA REGIONS, SATES AND TRIBES TO REGULATE DISCHARGES, AS DEFINED UNDER THE ACT, INTO APPLICABLE SURFACE WATERS, SUCH AS WETLANDS, LAKES, RIVERS, ESTUARIES, BAYS AND OCEANS. TYPICALLY OWM FOCUSES ON WATER THAT COLLECTS IN DISCRETE CONVEYANCES OR POINT SOURCES, TO INCLUDE WATER THAT COLLECTS IN PIPES, DITCHES, AND SANITARY OR STORM SEWERS. THIS METHODOLOGY OF ANALYZING IDENTIFIABLE POINT SOURCES WITHIN A DEFINED WATERSHED IS INTENDED TO MAXIMIZE CONTINUITY IN SOLUTION TO ADDRESS ALL POLLUTION PROBLEMS WITHIN A DEFINITIVE GEOGRAPHIC AREA. AGAIN, TARGETING POINT SOURCES OF POLLUTION, NATURAL OR OTHERWISE, A WATERSHED-BASED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) IS A BASIS TO QUALIFY AND MEASURE ALTERNATIVES THROUGH THE DEVELOPMENT OF ENVIRONMENTALLY SOUND PERMITS FOR MULTIPLE POINT SOURCES LOCATED WITHIN A WATERSHED SO AS TO EFFECTIVELY MEET WATER QUALITY STANDARDS. IN ADDITION, OWM REQUIRES SUPPORT IN THE DIRECTION AND PROMOTION OF THE PROGRAMS CONDUCTED UNDER THE CLEAN WATER STATE REVOLVING FUND, THE LARGEST SINGLE WATER QUALITY-FUNDING SOURCE, WHOSE EMPHASIS FOCUSES ON FUNDING WASTEWATER TREATMENT SYSTEMS, NONPOINT SOURCE PROJECTS, AND ESTUARY PROTECTION. IN MEETING THESE MISSION REQUIREMENTS, OWM REQUIRES TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES TO QUANTIFY AND EXTEND THE BASE OF KNOWLEDGE AND SPECIALIZED EXPERTISE NECESSARY FOR DECISION-MAKERS TO FULFILL THEIR STATUTORY RESPONSIBILITIES. THIS PERFORMANCE WORK STATEMENT (PWS) SHALL PRESENT THE SCOPE OF THOSE AREAS OF SUPPORT AND TECHNICAL EXPERIENCE THAT ARE REQUIRED BY OWM. IN ACCORDANCE WITH THE CONTRACT CLAUSE, WORK ASSIGNMENTS (EPAAR 1552.211-74), EPA SHALL PROVIDE THE CONTRACTOR WITH SPECIFIC PERIODIC REQUIREMENTS UNDER SPECIFIC, INDIVIDUAL WORK ASSIGNMENTS ISSUED FOR SERVICES DURING THE PERFORMANCE PERIODS OF THIS CONTRACT. THE CONTRACTOR'S SUPPORT SERVICES UNDER THIS PERFORMANCE WORK STATEMENT (PWS) WILL PARALLEL OWM'S PROGRAM RESPONSIBILITIES UNDER THE CLEAN WATER ACT (CWA) AND THE SAFE DRINKING WATER ACT (SDWA), TO INCLUDE SERVICES IN SUPPORT FOR THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES), BOTH MUNICIPAL AND INDUSTRIAL DISCHARGES FROM STORM WATER, SEWER SYSTEM OVERFLOWS, CONSTRUCTION, COMMERCIAL VESSELS, AND ANIMAL FEEDING OPERATIONS. IN ADDITION, THE CONTRACTOR SHALL PROVIDE SUPPORT SERVICES FOR EPA ACTIONS PURSUANT TO THE CLEAN WATER ACT, SECTION 316 [COOLING WATER INTAKE], THE NATIONAL PRETREATMENT PROGRAM, THE CLEAN WATER ACT STATE REVOLVING LOAN FUND, THE SAFE DRINKING WATER ACT STATE REVOLVING FUND, AND THE NATIONAL BIOSOLIDS PROGRAM. UNDER NO CIRCUMSTANCES SHALL THIS CONTRACT BE USED AS A VEHICLE TO CHANNEL FUNDS TO ASSISTANCE RECIPIENTS. THE CONTRACTOR SHALL PROVIDE PROFESSIONAL AND TECHNICAL SERVICES, TO INCLUDE ALL SUPPLIES, FACILITIES, AND EQUIPMENT REQUIRED TO PERFORM AND AFFECT THE REQUIRED PERFORMANCE WITHIN THE SCOPE OF THIS PWS IN ACCORDANCE WITH ALL APPLICABLE LAWS AND REGULATIONS, FEDERAL, STATE, AND LOCAL.

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $35.5 million to TETRA TECH, INC. for work described as: UNDER THE CLEAN WATER ACT, THE OFFICE OF WASTEWATER MANAGEMENT (OWM) WORKS IN PARTNERSHIP WITH EPA REGIONS, SATES AND TRIBES TO REGULATE DISCHARGES, AS DEFINED UNDER THE ACT, INTO APPLICABLE SURFACE WATERS, SUCH AS WETLANDS, LAKES, RIVERS, ESTUARIES, BAYS AND OCEANS. TYPICALLY OW… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2250 days (approx. 6 years) indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The agency's focus on point sources within watersheds aligns with a structured approach to pollution control. 5. Tetra Tech, Inc. is a significant player in the environmental consulting sector. 6. The contract value of $35.5M represents a substantial investment in environmental protection efforts.

Value Assessment

Rating: good

The contract value of $35.5M for environmental consulting services over approximately six years appears reasonable given the scope of work under the Clean Water Act. While specific benchmarks for this exact service are not provided, the agency's consistent engagement with contractors for similar services suggests a recognized market rate. The Cost Plus Fixed Fee structure, while carrying some risk of cost escalation, is often used for complex projects where exact costs are difficult to predict upfront. Further analysis would require comparing specific deliverables and performance metrics against other EPA contracts for similar environmental consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the EPA sought the best value from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and ensuring the government receives competitive pricing for essential environmental services.

Public Impact

The primary beneficiaries are the EPA and the public, through improved water quality and environmental protection. Services delivered include consulting related to regulating discharges into surface waters under the Clean Water Act. The geographic impact is national, as the EPA's mandate covers all applicable surface waters in the United States. Workforce implications include employment for environmental scientists, engineers, and consultants at Tetra Tech and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The long contract duration (2250 days) may reduce flexibility to adapt to changing environmental regulations or technologies.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The broad nature of 'Environmental Consulting Services' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract supports a critical environmental mandate under the Clean Water Act, addressing significant public health and ecological concerns.
Tetra Tech, Inc. is a well-established firm with a significant presence in the environmental services sector.
The long-term nature of the contract suggests a stable and ongoing need for these vital services.

Sector Analysis

The environmental consulting sector is a significant market driven by regulatory compliance, infrastructure development, and environmental stewardship initiatives. Federal agencies like the EPA are major clients, awarding substantial contracts for services ranging from impact assessments to regulatory support. This contract fits within the broader category of professional services supporting environmental protection and compliance, a market characterized by specialized expertise and a strong emphasis on scientific and technical proficiency. Comparable spending benchmarks would typically involve analyzing other large-scale environmental consulting contracts awarded by federal, state, and local governments.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large contract awarded to a major corporation (Tetra Tech, Inc.), it is possible that subcontracting opportunities may exist for specialized services. However, without further information on subcontracting goals or performance, the direct impact on the small business ecosystem remains unclear. Future analysis could investigate subcontracting reports associated with this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA), specifically the Office of Wastewater Management (OWM) and relevant EPA Regions, States, and Tribes. The contract type (Cost Plus Fixed Fee) necessitates diligent financial oversight to ensure costs are reasonable and allocable. Performance monitoring would be crucial to ensure Tetra Tech, Inc. is meeting the defined objectives under the Clean Water Act. Transparency is generally facilitated through contract award databases and agency reporting, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Clean Water Act Programs
National Pollutant Discharge Elimination System (NPDES)
EPA Water Quality Initiatives
Environmental Impact Assessments
Wastewater Management Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may limit flexibility and opportunities for innovation.
Lack of detailed performance metrics in provided data hinders effectiveness assessment.
Potential for scope creep in broad 'Environmental Consulting Services'.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $35.5 million to TETRA TECH, INC.. UNDER THE CLEAN WATER ACT, THE OFFICE OF WASTEWATER MANAGEMENT (OWM) WORKS IN PARTNERSHIP WITH EPA REGIONS, SATES AND TRIBES TO REGULATE DISCHARGES, AS DEFINED UNDER THE ACT, INTO APPLICABLE SURFACE WATERS, SUCH AS WETLANDS, LAKES, RIVERS, ESTUARIES, BAYS AND OCEANS. TYPICALLY OWM FOCUSES ON WATER THAT COLLECTS IN DISCRETE CONVEYANCES OR POINT SOURCES, TO INCLUDE WATER THAT COLLECTS IN PIPES, DITCHES, AND SANITARY OR STORM SEWERS. THIS METHODOLOGY OF ANALYZING IDENTIFIABLE POINT SOURCES WITHIN A

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2011-01-01. End: 2017-02-28.

What is Tetra Tech, Inc.'s track record with the EPA on similar environmental consulting contracts?

Tetra Tech, Inc. has a substantial history of contracting with the EPA and other federal agencies for environmental services. They are a major player in the environmental consulting and engineering space, frequently awarded contracts related to water quality, wastewater management, and environmental remediation. Their track record with the EPA includes numerous projects supporting the Clean Water Act and other environmental statutes. While this specific contract is for $35.5 million over approximately six years, Tetra Tech has managed contracts of varying sizes and complexities. A deeper dive into their past performance reviews, any past performance issues, and the scale of their previous EPA engagements would provide a more comprehensive understanding of their suitability and reliability for this particular award.

How does the $35.5 million contract value compare to other EPA environmental consulting contracts?

The $35.5 million contract value for environmental consulting services over roughly six years is a significant award, but it falls within the range of large-scale federal contracts for specialized professional services. The EPA, responsible for implementing complex environmental regulations like the Clean Water Act, regularly awards multi-million dollar contracts to support its mission. To benchmark this value effectively, one would need to compare it against contracts for similar services (e.g., regulatory support, water quality analysis, watershed management) awarded by the EPA or other environmental agencies (like the Army Corps of Engineers or Department of the Interior) over comparable timeframes. Factors such as the specific deliverables, the level of expertise required, and the duration of the contract heavily influence cost, making direct comparisons challenging without detailed scope information.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental consulting?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for environmental consulting, like the one awarded to Tetra Tech, Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit (the fixed fee) remains constant. This can incentivize less cost-consciousness from the contractor if oversight is not rigorous. For environmental consulting, risks can also include scope creep, where the project's objectives expand beyond the original agreement, leading to unforeseen costs. Effective oversight, clear definition of allowable costs, and robust performance monitoring are critical to mitigating these risks.

How effective are EPA's oversight mechanisms for large environmental consulting contracts?

The EPA generally employs a range of oversight mechanisms for its large environmental consulting contracts, including contract officers, technical monitors, and program managers who are responsible for overseeing performance, costs, and compliance. For CPFF contracts, financial oversight is particularly crucial to ensure that all reimbursed costs are allowable, reasonable, and allocable to the contract. Performance is typically monitored through regular progress reports, site visits, and reviews of deliverables. The agency also utilizes contract clauses that allow for termination for default or convenience if performance is unsatisfactory. However, the effectiveness can vary depending on the specific program, the resources allocated to oversight, and the clarity of the contract's performance work statement. Inspector General reports can also highlight areas of concern or successful oversight practices.

What is the historical spending pattern of the EPA on environmental consulting services under the Clean Water Act?

The EPA's historical spending on environmental consulting services under the Clean Water Act (CWA) has been substantial and generally increasing, reflecting the ongoing need to manage water quality, regulate discharges, and address pollution across the nation. The agency relies heavily on external expertise for technical analysis, research, policy development, and program implementation support. Spending patterns are influenced by legislative mandates, budget appropriations, and the complexity of emerging environmental challenges. While the $35.5 million awarded to Tetra Tech is a significant single award, it represents a portion of the EPA's overall budget allocated to CWA-related activities, which often includes numerous smaller contracts and grants alongside major service agreements. Analyzing multi-year spending trends would reveal the consistency and scale of investment in this sector.

What are the implications of awarding a long-term contract (2250 days) for environmental consulting services?

Awarding a long-term contract, such as this 2250-day (approximately six-year) agreement, for environmental consulting services has several implications. Positively, it provides stability and continuity for both the agency and the contractor, allowing for in-depth project execution and relationship building. It can lead to greater efficiency and cost savings over time as the contractor gains familiarity with the agency's processes and specific environmental challenges. However, a long duration also carries risks. It may reduce the agency's flexibility to adapt to evolving environmental regulations, new scientific findings, or changes in strategic priorities. Furthermore, locking into a single contractor for an extended period could potentially limit opportunities for innovation or cost reductions that might arise from periodic re-competition. Rigorous performance management throughout the contract's life is essential to ensure continued value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: PRCI1010450

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10306 EATON PL STE 340, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $70,375,693

Exercised Options: $45,379,967

Current Obligation: $35,529,297

Subaward Activity

Number of Subawards: 66

Total Subaward Amount: $3,875,259

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline