DLA-E awards $11.2M contract for petroleum system maintenance to Tetra Tech Inc

Contract Overview

Contract Amount: $11,252,305 ($11.3M)

Contractor: Tetra Tech Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-31

End Date: 2026-06-30

Contract Duration: 546 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DLA-E FUELS RECURRING MAINTENANCE AND MINOR REPAIR NORTH ATLANTIC DIVISION - ARMY. THE SCOPE WILL REQUIRE THE CONTRACTOR TO PROPERLY MAINTAIN AND REPAIR FEDERALLY FUNDED PETROLEUM SYSTEMS AND FACILITIES.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to TETRA TECH INC for work described as: DLA-E FUELS RECURRING MAINTENANCE AND MINOR REPAIR NORTH ATLANTIC DIVISION - ARMY. THE SCOPE WILL REQUIRE THE CONTRACTOR TO PROPERLY MAINTAIN AND REPAIR FEDERALLY FUNDED PETROLEUM SYSTEMS AND FACILITIES. Key points: 1. Contract focuses on essential maintenance and repair of federally funded petroleum systems and facilities. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of 546 days indicates a medium-term commitment for these services. 4. The firm-fixed-price contract type aims to control costs by establishing a set price. 5. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $11.2 million for a period of approximately 18 months appears reasonable for specialized engineering services related to petroleum systems. Benchmarking against similar contracts for facility maintenance and repair of critical infrastructure would provide a more precise value assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, but the final cost will depend on the scope of work executed.

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 a bid. The presence of 5 bidders suggests a healthy level of competition for this specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, ensuring the operational readiness of critical petroleum infrastructure. Services delivered include maintenance and repair of federally funded petroleum systems and facilities, crucial for fuel storage and distribution. The contract's geographic impact is focused on the North Atlantic Division, supporting military operations in that region. The contract supports specialized engineering and maintenance jobs within the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise in aging petroleum systems.
Dependence on contractor expertise for critical infrastructure maintenance requires robust oversight.

Positive Signals

Firm-fixed-price contract helps mitigate cost overruns.
Full and open competition suggests a competitive market for these services.
Delivery order structure allows for flexibility within a broader framework.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on the maintenance and repair of industrial facilities. The market for specialized engineering services supporting critical infrastructure, such as petroleum systems, is robust, driven by government and private sector needs for safety, compliance, and operational efficiency. Comparable spending benchmarks would involve analyzing other contracts for similar facility maintenance and engineering support across various government agencies.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions. Therefore, there is no direct indication of small business subcontracting requirements or specific benefits to the small business ecosystem from this particular award. Further analysis of the prime contract under which this delivery order was issued would be needed to determine any subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the Department of the Army, with specific contract administration functions handled by designated contracting officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to complete work within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

DLA-E Fuels
Army Facilities Engineering
Petroleum Infrastructure Maintenance
Engineering Services Contracts
Defense Logistics Support

Risk Flags

Potential for environmental hazards associated with petroleum systems.
Risk of unforeseen structural issues requiring extensive repairs.
Contractor performance and adherence to safety protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to TETRA TECH INC. DLA-E FUELS RECURRING MAINTENANCE AND MINOR REPAIR NORTH ATLANTIC DIVISION - ARMY. THE SCOPE WILL REQUIRE THE CONTRACTOR TO PROPERLY MAINTAIN AND REPAIR FEDERALLY FUNDED PETROLEUM SYSTEMS AND FACILITIES.

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 $11.3 million.

What is the period of performance?

Start: 2024-12-31. End: 2026-06-30.

What is the track record of Tetra Tech Inc. in performing similar federal contracts, particularly those involving petroleum systems maintenance?

Tetra Tech Inc. has a significant history of performing federal contracts, including extensive work in engineering, construction, and environmental services. While specific details on their past performance with petroleum systems maintenance for the DLA or Army are not provided in this data snippet, their broad capabilities suggest they are well-positioned for such tasks. A deeper dive into their contract history on platforms like SAM.gov or FPDS would reveal specific past performance ratings, contract values, and project scopes related to fuel infrastructure, allowing for a more precise assessment of their suitability and experience for this particular requirement.

How does the awarded amount of $11.2 million compare to the estimated value or budget for this type of petroleum system maintenance service?

The awarded amount of $11.2 million for approximately 18 months of service provides a baseline for the cost of maintaining and repairing federally funded petroleum systems and facilities in the North Atlantic Division. Without access to the government's independent government cost estimate (IGCE) or data on similar, recently awarded contracts for comparable services, it is challenging to definitively benchmark this value. However, given the specialized nature of petroleum systems and the firm-fixed-price contract type, this figure suggests a significant scope of work. Further analysis would require comparing this contract's unit rates and overall value against other DLA or Army contracts for similar maintenance and repair services, considering factors like geographic location, system complexity, and contract duration.

What are the primary risk indicators associated with this contract, considering the nature of petroleum systems and facility maintenance?

Key risk indicators for this contract include the potential for unforeseen structural issues or environmental hazards within aging petroleum systems, which could lead to cost overruns despite the firm-fixed-price structure. The specialized nature of the work also presents a risk if the contractor lacks adequate expertise or fails to adhere to stringent safety and environmental regulations, potentially leading to operational disruptions or compliance failures. Furthermore, reliance on a single delivery order under a potentially larger IDIQ contract could pose a risk if the overall contract vehicle is not well-managed or if future funding is uncertain. Robust oversight, clear performance standards, and contingency planning are crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of performance are relatively low. For routine maintenance and minor repairs of petroleum systems, an FFP contract incentivizes the contractor to perform efficiently and control costs, as any savings achieved benefit their profit margin. However, if the scope of work involves significant unknowns or potential for extensive repairs, an FFP contract could lead to the contractor either overpricing the initial bid to cover perceived risks or potentially cutting corners if not adequately monitored. The effectiveness here hinges on the clarity of the SOW and the government's ability to manage and oversee the contractor's performance against that defined scope.

What are the historical spending patterns for petroleum system maintenance within the Department of the Army or DLA, and how does this award fit in?

Historical spending on petroleum system maintenance within the Department of the Army and DLA is likely substantial, given the critical role these systems play in military logistics and operations. These systems require continuous upkeep to ensure fuel availability, safety, and environmental compliance. This $11.2 million award represents a specific allocation for maintenance and minor repairs within the North Atlantic Division over an 18-month period. To understand its place in historical patterns, one would need to analyze multi-year spending data for similar services, looking at trends in contract values, number of awards, and key contractors. This analysis would reveal whether this award is consistent with, higher than, or lower than previous spending levels for comparable services and geographic areas.

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

Offers Received: 5

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: $64,932,088

Exercised Options: $11,252,305

Current Obligation: $11,252,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA20D000R

IDV Type: FSS

Timeline