DoD's SEWS 3 contract with Tetra Tech, valued at $66.9M, awarded via full and open competition

Contract Overview

Contract Amount: $66,921,414 ($66.9M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2026-01-31

Contract Duration: 1,279 days

Daily Burn Rate: $52.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: SHARED EARLY WARNING SYSTEMS 3 (SEWS 3)

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $66.9 million to TETRA TECH, INC. for work described as: SHARED EARLY WARNING SYSTEMS 3 (SEWS 3) Key points: 1. Contract awarded to Tetra Tech, Inc. for Engineering Services. 2. Significant value of $66.9 million over 1279 days. 3. Awarded under full and open competition, suggesting market availability. 4. Department of the Air Force is the contracting agency.

Value Assessment

Rating: good

The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes cost control. The award value of $66.9M for 1279 days needs comparison to similar engineering services contracts to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing services at a fair market price.

Public Impact

Supports critical early warning systems for the Department of Defense. Ensures continued operation and potential upgrades of vital defense infrastructure. Impacts national security through enhanced threat detection capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can sometimes lead to higher costs if not managed carefully.
The specific performance metrics and incentive structure for this CPIF contract are not detailed, posing a potential oversight risk.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Long-term contract (over 3 years) provides stability for critical systems.
Clear contracting agency (Dept. of the Air Force) and defined scope (Engineering Services).

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense infrastructure. Spending benchmarks for similar large-scale engineering support contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor is Tetra Tech, Inc., a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is managed by the Department of the Air Force. Oversight will be critical to ensure the CPIF structure effectively controls costs and that performance meets the requirements of the Shared Early Warning Systems 3 program.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Lack of detailed performance metrics and incentive structure visibility.
Dependence on a single large business prime contractor.
Need for robust government oversight to manage performance and costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.9 million to TETRA TECH, INC.. SHARED EARLY WARNING SYSTEMS 3 (SEWS 3)

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $66.9 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-01-31.

What are the specific performance objectives and incentive metrics tied to the Cost Plus Incentive Fee structure for SEWS 3?

The specific performance objectives and incentive metrics are not detailed in the provided data. Understanding these is crucial for assessing how effectively the CPIF contract will drive cost savings and performance improvements for the SEWS 3 program. Without this information, it's difficult to gauge the true value and potential risks associated with the incentive structure.

How does the $66.9M contract value compare to historical spending on similar early warning system maintenance and upgrade contracts?

Benchmarking the $66.9M contract value against historical spending for comparable early warning system contracts is essential for a comprehensive value assessment. Without this comparative data, it's challenging to determine if this award represents a fair market price or if there are potential cost efficiencies that could be achieved. This comparison would highlight any significant deviations and prompt further investigation.

What is the government's plan for ensuring continued competition or evaluating alternatives beyond the current contract duration?

The current contract was awarded via full and open competition, which is a positive sign. However, the government's long-term strategy for ensuring continued competition or exploring alternative solutions for SEWS 3 after the current contract expires is not specified. Proactive planning for future procurements is vital to maintain competitive pricing and leverage technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA872319R0001

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 3475 EAST FOOTHILL BOULEVARD, 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: $107,891,677

Exercised Options: $67,009,345

Current Obligation: $66,921,414

Actual Outlays: $401,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU138

IDV Type: IDC

Timeline