Army awards $35M for Lagrange Dam design, with completion expected in late 2029

Contract Overview

Contract Amount: $35,067,443 ($35.1M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2029-11-06

Contract Duration: 2,233 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAGRANGE DAM - 1200' LOCK 35-100% DESIGN.

Place of Performance

Location: VERSAILLES, BROWN County, ILLINOIS, 62378

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to TETRA TECH, INC. for work described as: LAGRANGE DAM - 1200' LOCK 35-100% DESIGN. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 3. The firm-fixed-price contract type shifts cost risk to the contractor, TETRA TECH, INC. 4. The project focuses on the 35-100% design phase for the Lagrange Dam's Lock. 5. The contract duration is substantial, spanning over 2200 days, aligning with complex engineering projects. 6. The award was made by the Department of the Army, a significant federal entity.

Value Assessment

Rating: fair

Benchmarking the value of this specific design contract is challenging without more detailed cost breakdowns or comparable project data. However, the firm-fixed-price structure suggests an attempt to control costs. The total award amount of $35 million for a 35-100% design phase for a major lock structure indicates a significant investment, but its value-for-money can only be truly assessed against the final construction costs and the long-term operational benefits of the improved dam.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this method generally fosters price discovery and encourages competitive pricing. The use of an IDIQ vehicle suggests that multiple delivery orders may be issued under this contract, potentially allowing for continued competition on subsequent phases or related work.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to yield the most competitive pricing and best value by allowing a wide range of qualified contractors to bid on the work.

Public Impact

The primary beneficiaries are the Department of the Army and potentially commercial/recreational users of the waterway, through improved dam functionality. The services delivered are critical engineering design services for a major infrastructure component. The geographic impact is localized to the Lagrange Dam site in Illinois. Workforce implications include employment for engineers, designers, and support staff at TETRA TECH, INC. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if design requirements evolve significantly during the extended performance period.
Reliance on a single contractor for a critical design phase could pose risks if performance issues arise.
The long duration of the contract increases the possibility of unforeseen economic or technical challenges impacting cost and schedule.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, TETRA TECH, INC., is likely experienced in large-scale engineering projects.
The contract addresses a critical infrastructure need for the Army Corps of Engineers.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to civil works and infrastructure. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of design and consulting activities. Federal spending in this sector is substantial, driven by the need to maintain and upgrade aging infrastructure, including dams, bridges, and transportation networks. Comparable spending benchmarks would typically involve analyzing other large-scale dam design or renovation projects managed by agencies like the Army Corps of Engineers or the Bureau of Reclamation.

Small Business Impact

The data indicates that small business participation (sb) is false and that there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large businesses were likely the primary bidders. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant infrastructure project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified design within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed design documents and internal project management processes may not be fully public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Infrastructure Investment and Jobs Act Projects
Water Resource Development Act Projects
Federal Dam Safety Programs

Risk Flags

Long contract duration may increase risk of scope creep and cost escalation.
Lack of specified small business subcontracting goals could limit small business participation.
Dependence on a single contractor for a multi-year design phase carries inherent performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to TETRA TECH, INC.. LAGRANGE DAM - 1200' LOCK 35-100% DESIGN.

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 $35.1 million.

What is the period of performance?

Start: 2023-09-26. End: 2029-11-06.

What is the track record of TETRA TECH, INC. with the Department of the Army on similar large-scale infrastructure design projects?

TETRA TECH, INC. has a significant history of contracting with the Department of the Army and other federal agencies for engineering and design services. While specific details on past Lagrange Dam-related projects are not provided in this data, the company's extensive portfolio typically includes complex civil works, environmental engineering, and infrastructure design. A deeper dive into their contract history with the Army would reveal their performance on projects of similar scale and complexity, including on-time delivery, budget adherence, and quality of work. This would provide crucial context for assessing their capability and reliability for the current Lagrange Dam design contract.

How does the $35 million design cost compare to the estimated total construction cost of the Lagrange Dam lock improvements?

The provided data does not include the estimated total construction cost for the Lagrange Dam lock improvements, making a direct comparison to the $35 million design award impossible. Typically, design costs represent a fraction of the overall construction budget, often ranging from 5% to 15%, depending on project complexity and the phase of design. To assess value, one would need to obtain the total project estimate and calculate the ratio of design cost to total cost. A significantly high ratio might indicate potential cost inefficiencies in the design phase or an underestimation of construction expenses.

What are the key performance indicators (KPIs) and milestones for the 35-100% design phase, and how will performance be measured?

The contract data specifies a performance period extending to November 2029, implying a phased approach to design completion. Key performance indicators (KPIs) and milestones for a 35-100% design phase typically include the delivery of specific design packages (e.g., schematic design, design development, construction documents), adherence to technical specifications, compliance with relevant engineering standards and regulations, and timely progress reviews. Performance measurement would likely involve regular progress reports, design reviews by Army Corps of Engineers personnel, and potentially independent third-party assessments. Failure to meet these KPIs or milestones could trigger contractual remedies.

What are the potential risks associated with the long contract duration (over 2200 days) for this design project?

The extended duration of over 2200 days for the Lagrange Dam design contract introduces several potential risks. Firstly, there is an increased likelihood of design scope changes due to evolving project requirements, technological advancements, or updated regulatory standards over the multi-year period. Secondly, economic factors such as inflation or material cost fluctuations could impact the feasibility of the fixed-price contract if not adequately managed. Thirdly, maintaining consistent project focus and team continuity over such a long period can be challenging, potentially affecting the quality and efficiency of the design work. Finally, unforeseen environmental or geological conditions discovered during the design process could necessitate significant revisions, leading to delays and cost overruns.

What is the historical spending trend for engineering services related to dam maintenance and upgrades by the Department of the Army?

Historical spending by the Department of the Army on engineering services for dam maintenance and upgrades is substantial, reflecting the vast inventory of aging water infrastructure under its stewardship. The Army Corps of Engineers, responsible for civil works, consistently allocates significant portions of its budget to design, repair, and modernization of dams, locks, and navigation channels. Trends often show increasing investment over time due to the aging infrastructure and the growing impacts of climate change on water management. Analyzing past budgets and contract awards for similar projects would reveal patterns in spending levels, types of services procured, and the average contract values, providing context for the $35 million Lagrange Dam award.

Are there any specific environmental or regulatory considerations that significantly influence the design requirements for the Lagrange Dam lock?

While the provided data does not detail specific environmental or regulatory considerations, large-scale dam and lock projects invariably involve numerous such factors. These typically include compliance with the National Environmental Policy Act (NEPA), which requires environmental impact assessments; adherence to regulations set by the Environmental Protection Agency (EPA) regarding water quality and discharge; and potentially state-level environmental protection laws. Specific considerations for a lock might involve fish passage requirements, impacts on local ecosystems and hydrology, sediment management, and historical or cultural resource protection. These factors significantly influence design choices, material selection, and construction methods, often requiring extensive studies and stakeholder consultations.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 112TH AVE NE STE 300, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $35,067,443

Exercised Options: $35,067,443

Current Obligation: $35,067,443

Actual Outlays: $4,370,352

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $18,301,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR23D0047

IDV Type: IDC

Timeline