USACE Awards $44.3M Engineering Services Contract to Tetra Tech Inc. for Recurring Maintenance and Repair

Contract Overview

Contract Amount: $44,270,911 ($44.3M)

Contractor: Tetra Tech Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-12

End Date: 2026-08-12

Contract Duration: 1,461 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: FUELS RECURRING MAINTENANCE AND MINOR REPAIR (RMMR) FOR THE UNITED STATES ARMY CORPS OF ENGINEERS (USACE) NORTHWESTERN DIVISION-AIR FORCE 2(NWD-AF2).

Place of Performance

Location: COLLINSVILLE, MADISON County, ILLINOIS, 62234

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to TETRA TECH INC for work described as: FUELS RECURRING MAINTENANCE AND MINOR REPAIR (RMMR) FOR THE UNITED STATES ARMY CORPS OF ENGINEERS (USACE) NORTHWESTERN DIVISION-AIR FORCE 2(NWD-AF2). Key points: 1. Contract awarded to Tetra Tech Inc. for essential RMMR services. 2. Significant contract value of $44.3 million over four years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services fall under Engineering Services (NAICS 541330), a critical sector for infrastructure. 5. The contract is a Firm Fixed Price delivery order, providing cost certainty.

Value Assessment

Rating: good

The contract value of $44.3 million for four years of recurring maintenance and minor repair services appears reasonable given the scope. Benchmarking against similar large-scale engineering service contracts for federal infrastructure maintenance would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for the services, benefiting taxpayers by avoiding inflated costs.

Public Impact

Ensures continued operational readiness of critical USACE facilities. Supports infrastructure maintenance and repair across the Northwestern Division. Provides essential engineering services for the Air Force. Contributes to the stability of engineering service providers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in recurring maintenance tasks.
Dependence on a single contractor for critical RMMR services.
Geographic concentration of services in the Northwestern Division.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests competitive pricing.
Long-term contract allows for consistent service delivery.
Awarded to a single, established contractor.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for maintaining and upgrading federal infrastructure. Spending in this sector is often substantial, driven by the need for specialized expertise in design, construction oversight, and maintenance.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). While the prime contractor is Tetra Tech Inc., a large firm, there may be opportunities for small businesses to participate as subcontractors.

Oversight & Accountability

The contract is managed by the Department of the Army, USACE Northwestern Division-Air Force 2. Oversight will likely involve regular performance reviews, progress reporting, and adherence to contract terms to ensure accountability and effective service delivery.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration of four years.
Firm Fixed Price contract type.
Awarded under Full and Open Competition.
Services are critical for facility maintenance.
Prime contractor is a large business.
No small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to TETRA TECH INC. FUELS RECURRING MAINTENANCE AND MINOR REPAIR (RMMR) FOR THE UNITED STATES ARMY CORPS OF ENGINEERS (USACE) NORTHWESTERN DIVISION-AIR FORCE 2(NWD-AF2).

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 $44.3 million.

What is the period of performance?

Start: 2022-08-12. End: 2026-08-12.

What is the historical performance of Tetra Tech Inc. on similar federal contracts, particularly regarding cost overruns and schedule adherence?

Analyzing Tetra Tech Inc.'s past performance on comparable federal contracts is crucial for assessing future risk. Reviewing contract close-out data, past performance evaluations (e.g., CPARS), and any documented issues related to cost, schedule, or quality would provide valuable insights into their reliability and ability to meet the demanding requirements of the USACE.

How will the government ensure that the recurring maintenance and minor repair tasks remain within the defined scope and budget over the four-year period?

Effective oversight will be key. This includes establishing clear performance metrics, regular progress meetings with the contractor, and a robust change management process to scrutinize any proposed deviations from the original scope. Proactive identification and mitigation of potential scope creep through detailed task order reviews will be essential to maintaining cost control.

What are the potential long-term implications of relying on a single contractor for critical RMMR services for the Northwestern Division-Air Force 2?

Long-term reliance on a single contractor can lead to reduced competition in future procurements and potential complacency. It also poses a risk if the contractor experiences financial difficulties or significant performance issues. The government should consider strategies to foster competition in future contract renewals or explore options for breaking down services into smaller, more competitive packages.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY22R0006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 COLUMBIA ST STE 1000, SAN DIEGO, CA, 92101

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

Financial Breakdown

Contract Ceiling: $58,328,032

Exercised Options: $44,270,911

Current Obligation: $44,270,911

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $717,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA20D000R

IDV Type: FSS

Timeline