State Department awards $59.7M engineering services contract to Tetra Tech, Inc. for overseas operations

Contract Overview

Contract Amount: $59,707,663 ($59.7M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of State

Start Date: 2017-08-28

End Date: 2023-01-27

Contract Duration: 1,978 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $59.7 million to TETRA TECH, INC. for work described as: OVERSEAS CONTRACT Key points: 1. Contract value of $59.7M over 5 years suggests significant investment in overseas engineering capabilities. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The contract's duration of 1978 days (approx. 5.4 years) points to a long-term need for these services. 4. Engineering services are critical for infrastructure and operational support in complex overseas environments. 5. The use of Time and Materials pricing may introduce cost variability if not closely managed. 6. Awarding agency is the Department of State, highlighting the focus on diplomatic and foreign policy support.

Value Assessment

Rating: good

The contract value of $59.7 million over approximately 5.4 years averages to about $11 million annually. Benchmarking this against similar large-scale engineering services contracts for overseas operations is challenging without more specific service details. However, the duration and scope suggest a substantial investment. The Time and Materials pricing structure necessitates careful oversight to ensure cost-effectiveness and prevent scope creep, which could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method is generally preferred for maximizing competition and achieving fair market prices. The data indicates 2 bids were received, which is a moderate level of competition. While more bidders could potentially lead to even greater price discovery, two bids still provide a basis for comparison and negotiation.

Taxpayer Impact: A competitive bidding process, even with two bidders, is generally favorable for taxpayers as it encourages contractors to offer competitive pricing to win the award.

Public Impact

The primary beneficiaries are likely U.S. diplomatic missions and personnel operating overseas, who rely on robust engineering support for facilities and infrastructure. Services delivered likely include design, construction oversight, maintenance, and potentially specialized engineering solutions for unique overseas environments. Geographic impact is global, focusing on U.S. embassy and consulate locations worldwide. Workforce implications may include direct hires by Tetra Tech and potential subcontracting opportunities for specialized engineering firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not rigorously managed.
Ensuring consistent quality and adherence to standards across diverse and potentially challenging overseas locations.
Managing contractor performance and deliverables effectively over a multi-year period.
Geopolitical risks and security concerns in overseas operating environments could impact project timelines and costs.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Long contract duration suggests a stable and ongoing need, allowing for efficient resource planning.
Tetra Tech, Inc. is an established engineering firm with experience in government contracting.
The contract supports critical functions for the Department of State's overseas operations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government operations abroad. The market for engineering services supporting federal agencies, particularly for overseas infrastructure and technical support, is substantial. Comparable spending benchmarks would typically be found within large federal construction and facilities management contracts. This award represents a significant portion of spending dedicated to specialized engineering expertise required for complex international environments.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside requirement for this contract. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Tetra Tech voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Department of Defense Engineering Services
General Services Administration (GSA) Professional Services

Risk Flags

Potential cost escalation due to T&M pricing
Geopolitical instability impacting overseas operations
Limited competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $59.7 million to TETRA TECH, INC.. OVERSEAS CONTRACT

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 $59.7 million.

What is the period of performance?

Start: 2017-08-28. End: 2023-01-27.

What specific types of engineering services are included under this contract?

While the data identifies the contract as 'Engineering Services' (NAICS 541330), the specific types of services are not detailed. Typically, such contracts for the Department of State's overseas operations could encompass a wide range, including architectural design, civil engineering, structural engineering, mechanical and electrical systems design, construction management, site assessments, environmental engineering, and technical support for existing facilities. The 'Delivery Order' nature suggests task orders would define the precise scope for specific projects or locations.

How does the $59.7M value compare to typical State Department overseas engineering contracts?

Without access to a comprehensive database of all State Department overseas engineering contracts, a direct comparison is difficult. However, $59.7 million over approximately 5.4 years represents a significant investment, averaging over $11 million annually. This suggests a substantial scope of work, potentially covering multiple projects or a large geographic region. Larger contracts often involve complex infrastructure projects or long-term support agreements, indicating this award is likely for a critical and extensive set of engineering needs.

What are the primary risks associated with a Time and Materials contract of this magnitude and duration?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $59.7 million over nearly six years, is cost control. T&M contracts pay the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. This structure can lead to cost overruns if work is inefficient, scope creep occurs without proper modification, or if labor rates are not competitive. Rigorous oversight, detailed task order definitions, and strong performance management are crucial to mitigate these risks and ensure value for money.

What is Tetra Tech, Inc.'s track record with the Department of State and similar federal contracts?

Tetra Tech, Inc. is a large, established engineering and consulting firm with extensive experience in federal contracting across various agencies, including the Department of State, Department of Defense, and USAID. They frequently win contracts related to infrastructure, environmental services, and international development. Their track record generally includes managing large-scale projects and delivering technical solutions. Specific performance details for this particular contract would be found in performance reviews and award histories within federal procurement databases.

How does the 'full and open competition' with only two bids impact price discovery and taxpayer value?

Full and open competition is designed to maximize the pool of potential bidders, thereby fostering competition and potentially leading to lower prices. However, receiving only two bids suggests that the market may be limited for this specific type of service or that the solicitation requirements were highly specialized. While two bidders still provide a basis for comparison and negotiation, it offers less competitive pressure than if numerous firms had bid. Taxpayers benefit from the competition that did occur, but the potential for even greater savings might have been missed if more qualified firms did not participate.

What are the implications of this contract for U.S. foreign policy and diplomatic operations?

This contract directly supports the physical infrastructure and operational capabilities of U.S. diplomatic missions abroad. Reliable engineering services ensure that embassies and consulates are safe, functional, and equipped to support diplomatic activities. This includes maintaining facilities, potentially constructing new ones, and ensuring essential services like power, water, and communications are operational. By providing this critical support, the contract enables the Department of State to effectively conduct foreign policy and maintain a strong presence globally.

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

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $110,791,000

Exercised Options: $79,688,937

Current Obligation: $59,707,663

Actual Outlays: $12,229,182

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