Tetra Tech awarded $20.5M for Malmstrom AFB environmental services, highlighting engineering support needs

Contract Overview

Contract Amount: $20,479,655 ($20.5M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-08-22

End Date: 2026-08-21

Contract Duration: 364 days

Daily Burn Rate: $56.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A-E SERVICES FOR 2025 SENTINEL ENVIRONMENTAL PERMITTING AND COMPLIANCE SUPPORT AT MALMSTROM AFB

Place of Performance

Location: MALMSTROM AFB, CASCADE County, MONTANA, 59402

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to TETRA TECH, INC. for work described as: A-E SERVICES FOR 2025 SENTINEL ENVIRONMENTAL PERMITTING AND COMPLIANCE SUPPORT AT MALMSTROM AFB Key points: 1. Contract value represents a significant investment in maintaining environmental compliance at a key Air Force base. 2. The firm-fixed-price structure aims to control costs for environmental permitting and compliance. 3. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 4. The single award indicates a specific need for Tetra Tech's specialized capabilities in environmental engineering. 5. Performance duration of one year allows for focused support on immediate environmental requirements. 6. Geographic focus on Montana underscores the localized nature of environmental regulatory demands.

Value Assessment

Rating: good

The contract value of approximately $20.5 million for one year of environmental permitting and compliance support appears reasonable given the scope of services required at a large military installation like Malmstrom AFB. Benchmarking against similar environmental support contracts for Department of Defense facilities suggests that this pricing falls within expected ranges for specialized engineering and compliance services. The firm-fixed-price contract type provides cost certainty for the government, assuming the contractor can accurately estimate and manage their expenses.

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 specific number of bidders is not provided, but the designation suggests a competitive environment was established. This approach is generally favored to ensure the government receives the best value by leveraging market forces and encouraging multiple companies to offer their services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, driving down prices through competitive bidding and ensuring that the most cost-effective solution is selected.

Public Impact

The primary beneficiaries are the Department of the Air Force and Malmstrom AFB, ensuring continued environmental compliance and operational readiness. Services delivered include environmental permitting and compliance support, crucial for regulatory adherence and base operations. The geographic impact is concentrated at Malmstrom AFB in Montana, addressing specific local environmental regulations and conditions. Workforce implications include potential employment opportunities for environmental engineers, scientists, and technicians employed by Tetra Tech and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if environmental regulations change significantly during the contract period.
Reliance on a single contractor for critical environmental compliance could pose a risk if performance issues arise.
Ensuring adequate oversight to confirm adherence to all environmental regulations and permit conditions.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing structure.
Firm-fixed-price contract type provides cost predictability for the government.
Tetra Tech's established presence and experience in environmental services likely contribute to efficient service delivery.

Sector Analysis

Environmental consulting and engineering services represent a significant sector supporting government operations, particularly within defense and infrastructure. This contract fits within the broader market for environmental compliance, permitting, and remediation services, which is driven by stringent regulatory requirements. Comparable spending benchmarks for similar support at military installations often range from millions to tens of millions annually, depending on the base's size and environmental complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Tetra Tech voluntarily engages small businesses for specialized support. Further analysis would be needed to determine if subcontracting plans include small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contract administration team within the Department of the Army, overseeing Tetra Tech's performance. Accountability measures are embedded in the firm-fixed-price contract terms, with performance tied to payment. Transparency is generally maintained through contract award announcements and reporting, though specific performance metrics may not always be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Compliance Services
Military Base Environmental Support
Engineering Consulting Services
Federal Environmental Permitting

Risk Flags

Potential for regulatory changes impacting scope
Contractor performance risk
Adequacy of government oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to TETRA TECH, INC.. A-E SERVICES FOR 2025 SENTINEL ENVIRONMENTAL PERMITTING AND COMPLIANCE SUPPORT AT MALMSTROM AFB

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 Army).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2025-08-22. End: 2026-08-21.

What is Tetra Tech's track record with similar environmental support contracts for the Department of Defense?

Tetra Tech has a substantial history of performing environmental services for the Department of Defense (DoD) and other federal agencies. They frequently secure contracts for environmental assessments, compliance support, remediation, and engineering design at military installations. Their experience often includes navigating complex regulatory frameworks such as the National Environmental Policy Act (NEPA) and the Resource Conservation and Recovery Act (RCRA). Publicly available contract data often shows multiple awards to Tetra Tech for similar services, indicating a consistent demand for their expertise. While specific performance ratings for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record and client satisfaction with their capabilities in delivering environmental solutions for defense clients.

How does the $20.5 million value compare to other environmental support contracts at similar-sized Air Force bases?

The $20.5 million contract value for one year of environmental permitting and compliance support at Malmstrom AFB is within the expected range for large, active military installations. Contracts for similar services at comparable Air Force bases can vary significantly based on the scope of environmental programs, the number of facilities managed, and the specific regulatory challenges present. However, annual contracts in the range of $10 million to $30 million for comprehensive environmental support are not uncommon for bases of Malmstrom's size and operational tempo. Factors such as the presence of unique environmental concerns (e.g., hazardous waste sites, endangered species habitats) or extensive infrastructure requiring regular permitting can drive costs higher. This award appears to be a standard investment for maintaining environmental stewardship and operational compliance.

What are the primary risks associated with this specific contract for environmental services?

Key risks for this contract include potential scope creep, where unforeseen environmental issues or changes in regulations necessitate additional work beyond the initial contract scope. Another risk is contractor performance; if Tetra Tech fails to meet deadlines or quality standards for permitting and compliance, it could lead to operational disruptions or regulatory penalties for Malmstrom AFB. Dependence on a single contractor for critical environmental functions also presents a risk if the contractor faces financial instability or significant personnel turnover. Furthermore, ensuring robust government oversight is crucial to verify that all environmental regulations are strictly adhered to and that taxpayer funds are used efficiently. The firm-fixed-price nature, while beneficial for cost control, could also incentivize the contractor to cut corners if not properly monitored.

How effective is the firm-fixed-price contract type in ensuring value for money in environmental services?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for well-defined services like environmental permitting and compliance support, as is the case here. Under an FFP contract, the contractor assumes the primary risk for cost overruns, providing the government with cost certainty. This structure incentivizes the contractor to manage their resources efficiently and complete the work within the agreed-upon budget. For services where the scope is clearly understood and unlikely to change dramatically, FFP helps prevent unexpected cost increases. However, its effectiveness can be diminished if the scope is not adequately defined upfront or if significant unforeseen circumstances arise, potentially leading to change orders or disputes. Robust initial scope definition and diligent contract management are key to maximizing the value derived from an FFP agreement.

What are the historical spending patterns for environmental services at Malmstrom AFB or similar installations?

Historical spending on environmental services at Malmstrom AFB and similar Air Force installations typically reflects a consistent need for compliance, permitting, and remediation support. Annual expenditures can fluctuate based on specific projects, regulatory changes, or the discovery of environmental issues. For a base like Malmstrom, which has a long operational history, ongoing environmental management is a necessity. Spending often includes routine compliance monitoring, hazardous waste management, wastewater treatment support, and air quality permitting. While precise historical figures for Malmstrom are not provided, federal spending databases often show multi-million dollar annual investments in environmental programs at major Air Force bases. This $20.5 million award for 2025 suggests a sustained level of investment in environmental stewardship, consistent with long-term trends for such facilities.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 661 ANDERSEN DR STE 200, 400, 500, PITTSBURGH, PA, 15220

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

Financial Breakdown

Contract Ceiling: $21,661,133

Exercised Options: $20,479,655

Current Obligation: $20,479,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F24D0018

IDV Type: IDC

Timeline