DoD's $17.1M Engineering Services Contract with Tetra Tech Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $17,175,407 ($17.2M)
Contractor: Tetra Tech Inc
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2015-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REM SERVICES - BASE YEAR
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101
Plain-Language Summary
Department of Defense obligated $17.2 million to TETRA TECH INC for work described as: REM SERVICES - BASE YEAR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for engineering services, a critical component of defense infrastructure. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was a Delivery Order, implying it's part of a larger contract vehicle. 6. The contractor, Tetra Tech Inc., has experience in providing engineering services. 7. The contract is managed by the Department of the Navy, a major component of the DoD. 8. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services.
Value Assessment
Rating: good
Benchmarking the value of this $17.1 million contract requires more detailed cost breakdowns and comparisons to similar engineering service contracts within the Department of Defense. However, the firm fixed-price structure is generally favorable for cost control. Without specific performance metrics or a comparison to industry benchmarks for similar engineering services, a definitive value assessment is challenging. The duration of the contract suggests a sustained need, which could imply consistent value if performance meets expectations.
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 bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While more bidders could potentially drive prices lower, a competitive process was indeed followed, which is a positive sign for price discovery and achieving a fair market price.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best possible pricing and quality by allowing a wide range of contractors to compete, thereby fostering a more efficient use of public funds.
Public Impact
The Department of the Navy benefits from essential engineering services to support its operations and infrastructure. This contract likely supports various military construction, maintenance, and upgrade projects. The services provided contribute to the readiness and operational capability of naval forces. The geographic impact is primarily within California, where the contract is managed. The contract supports the engineering workforce, potentially creating or sustaining jobs in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of engineering work expands beyond initial estimates, despite the fixed-price nature.
- Dependence on a single contractor for critical engineering services could pose a risk if performance issues arise.
- The long-term nature of the contract might lead to complacency if not actively managed and overseen.
- Ensuring the contractor maintains up-to-date expertise in evolving engineering technologies is crucial.
Positive Signals
- The firm fixed-price contract structure transfers significant cost risk to the contractor.
- Award through full and open competition suggests a robust and fair bidding process.
- The contractor, Tetra Tech Inc., is likely experienced in delivering engineering services, reducing performance risk.
- The contract duration indicates a stable, long-term requirement, allowing for efficient planning and resource allocation.
- The delivery order mechanism suggests integration within a broader contracting framework, potentially offering efficiencies.
Sector Analysis
The engineering services sector is a vital component of the broader professional services industry, supporting government and private sector infrastructure development and maintenance. The NAICS code 541330 specifically covers establishments primarily engaged in providing architectural, engineering, and related services. Spending in this sector by the Department of Defense is substantial, reflecting the vast infrastructure and complex operational needs of the military. Comparable spending benchmarks would typically involve analyzing the average cost per project or contract value for similar engineering services across different government agencies.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Tetra Tech Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without such details, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve subcontracting opportunities that could benefit small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to manage costs effectively. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Naval Facilities Engineering Command Contracts
- Professional Services Contracts
- Infrastructure Support Contracts
- Defense Infrastructure Modernization Programs
Risk Flags
- Potential for scope creep over the 5-year duration.
- Contractor performance risk, despite fixed-price structure.
- Adequacy of competition level for optimal price discovery.
- Ensuring long-term relevance of engineering expertise.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, tetra-tech-inc, firm-fixed-price, full-and-open-competition, delivery-order, california, professional-services, naics-541330, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to TETRA TECH INC. REM SERVICES - BASE YEAR
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 Navy).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2010-10-01. End: 2015-09-30.
What is Tetra Tech Inc.'s track record with the Department of Defense, particularly for engineering services?
Tetra Tech Inc. has a significant history of contracting with the Department of Defense and its various branches, including the Navy, Army, and Air Force. Their portfolio often includes a wide range of services such as environmental consulting, engineering, construction management, and technical support. For engineering services specifically, they have been involved in numerous projects related to infrastructure design, facility upgrades, and base support. Analyzing their past performance on similar contracts, including on-time delivery, budget adherence, and quality of work, would provide a clearer picture of their reliability and capability in fulfilling the requirements of this $17.1 million contract.
How does the $17.1 million value of this contract compare to similar engineering service contracts awarded by the Department of the Navy?
The $17.1 million value for this 5-year engineering services contract falls within a common range for significant, but not exceptionally large, service contracts within the Department of the Navy. The Navy frequently awards contracts in the tens of millions for specialized engineering support, particularly for base infrastructure, shipyards, and operational facilities. To provide a precise comparison, one would need to analyze the scope of work, duration, and specific engineering disciplines covered by other comparable contracts. However, this amount suggests a substantial, multi-year commitment to engineering expertise.
What are the primary risks associated with a 5-year firm fixed-price contract for engineering services?
A primary risk with a 5-year firm fixed-price contract for engineering services is the potential for scope creep. While the fixed price aims to cap costs, if the project requirements evolve significantly over the five years, the contractor may face challenges in delivering the expanded scope without additional compensation, potentially leading to disputes or reduced quality. Another risk is that the fixed price might not adequately account for unforeseen technical challenges or escalating material/labor costs over such a long period, impacting the contractor's profitability and motivation. Conversely, if the initial price was set too high due to overly conservative estimates, taxpayers could be overpaying. Effective project management and change control are crucial to mitigate these risks.
How effective is the 'full and open competition' approach in ensuring value for money in engineering service contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that reflect fair market prices. This process encourages innovation and efficiency as contractors strive to differentiate themselves based on price, technical approach, and past performance. While it requires a robust solicitation and evaluation process, it typically leads to better outcomes for taxpayers compared to sole-source or limited competition scenarios, provided the evaluation criteria are well-defined and impartially applied.
What is the historical spending trend for engineering services by the Department of the Navy?
The Department of the Navy consistently allocates significant portions of its budget to engineering services, reflecting its vast infrastructure, complex operational requirements, and ongoing modernization efforts. Historical spending trends show a steady demand for these services, driven by new construction, maintenance of existing facilities, environmental compliance, and support for advanced platforms. Spending can fluctuate based on defense priorities, budget cycles, and specific large-scale projects. Analyzing multi-year spending data would reveal patterns related to specific types of engineering support (e.g., civil, mechanical, electrical) and geographic concentrations of investment.
What are the implications of the NAICS code 541330 (Engineering Services) for this contract's scope and potential contractor pool?
The NAICS code 541330 signifies that this contract is for establishments primarily engaged in providing architectural, engineering, and related services. This broad category encompasses a wide range of specialized disciplines, including civil, mechanical, electrical, structural, and environmental engineering. For this contract, it implies the scope could involve design, planning, consulting, and potentially project management for various infrastructure or facility-related projects. The contractor pool for this code is extensive, comprising numerous firms ranging from small specialized consultancies to large multinational engineering corporations, ensuring a competitive market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247310R2206
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc. (UEI: 045224250)
Address: 1230 COLUMBIA ST STE 1000, SAN DIEGO, CA, 92101
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,175,407
Exercised Options: $17,175,407
Current Obligation: $17,175,407
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0346L
IDV Type: FSS
Timeline
Start Date: 2010-10-01
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-10-25
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