DoD awards $14.2M for UAE base development, with TETRA TECH, INC. securing the design-bid-build contract

Contract Overview

Contract Amount: $14,225,981 ($14.2M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-11

End Date: 2026-06-09

Contract Duration: 545 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: US DEVELOPMENT AREA, PACKAGE 5A-1 LSA COMMAND SERVICES AND PACKAGE 5B- HQ SECURE AREAS PROVIDE SIX (6) DESIGN BID BUILD (DBB) REQUEST FOR PROPOSALS (RFP) IN UAE.

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to TETRA TECH, INC. for work described as: US DEVELOPMENT AREA, PACKAGE 5A-1 LSA COMMAND SERVICES AND PACKAGE 5B- HQ SECURE AREAS PROVIDE SIX (6) DESIGN BID BUILD (DBB) REQUEST FOR PROPOSALS (RFP) IN UAE. Key points: 1. Contract awarded for critical infrastructure development in the UAE, supporting US military operations. 2. The contract utilizes a Firm Fixed Price (FFP) structure, providing cost certainty for the government. 3. A full and open competition was conducted, suggesting a robust market for these specialized engineering services. 4. The duration of the contract is 545 days, indicating a focused scope of work. 5. The contract falls under Engineering Services (NAICS 541330), a key sector for supporting defense infrastructure. 6. The award is a Delivery Order under a larger contract vehicle, likely a Multiple Award Schedule (MAS).

Value Assessment

Rating: good

The contract value of $14.2 million for design-bid-build services in the UAE appears reasonable given the specialized nature and geographic location. Benchmarking against similar international base development projects would provide further context, but the FFP structure suggests a degree of cost control. The absence of detailed cost breakdowns limits a granular value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified firms had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the selection of a capable contractor. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

US military personnel and operations in the UAE will benefit from improved secure facilities and command services. The contract delivers essential design and construction management services for critical infrastructure. The geographic impact is concentrated in the UAE, supporting US strategic interests in the region. The contract will likely involve skilled engineers, architects, and project managers, potentially creating short-term employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or geopolitical factors arise in the UAE.
Dependence on a single contractor for critical infrastructure development could pose a risk if performance issues emerge.
Logistical challenges associated with operating in a foreign country may impact project timelines and costs.

Positive Signals

The use of a Firm Fixed Price contract provides budget certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contractor, TETRA TECH, INC., likely has prior experience with similar international projects.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The global market for defense engineering and construction services is substantial, driven by ongoing military operations and modernization efforts worldwide. This contract represents a portion of the broader US government spending on overseas base operations and maintenance, which often involves complex logistical and security considerations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale infrastructure project, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though the prime contractor may engage them for specific services. The primary focus appears to be on large, established engineering firms capable of handling complex international projects.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and relevant Department of the Army personnel stationed in or responsible for the region. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with reporting mechanisms available to government officials and potentially the public.

Related Government Programs

US Army Corps of Engineers Overseas Construction
Department of Defense Facilities Engineering
Foreign Military Construction Contracts
Base Realignment and Closure (BRAC) Support Services

Risk Flags

Geographic Risk (UAE)
Logistical Complexity
Security Concerns
Foreign Regulatory Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to TETRA TECH, INC.. US DEVELOPMENT AREA, PACKAGE 5A-1 LSA COMMAND SERVICES AND PACKAGE 5B- HQ SECURE AREAS PROVIDE SIX (6) DESIGN BID BUILD (DBB) REQUEST FOR PROPOSALS (RFP) IN UAE.

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 $14.2 million.

What is the period of performance?

Start: 2024-12-11. End: 2026-06-09.

What is TETRA TECH, INC.'s track record with similar international defense infrastructure projects?

TETRA TECH, INC. has a significant history of performing large-scale engineering and construction projects for the Department of Defense and other government agencies, both domestically and internationally. They have experience in designing and managing complex infrastructure, including facilities in austere or overseas environments. While specific details on past UAE projects are not provided here, their general profile suggests they possess the requisite expertise and experience for this type of contract. A deeper dive into their past performance ratings and any past performance issues on similar contracts would be beneficial for a comprehensive assessment.

How does the $14.2 million value compare to similar design-bid-build projects in the Middle East?

Benchmarking the $14.2 million value requires comparing it to similar design-bid-build (DBB) projects for military facilities in the Middle East. Factors such as project scope (e.g., size of facilities, specific security requirements), duration, and the complexity of the site conditions significantly influence costs. Without specific comparable projects, it's challenging to definitively state if this value is high or low. However, given the specialized nature of secure command areas and the logistical demands of working in the UAE, the price appears within a plausible range for such undertakings. Further analysis would involve identifying projects with similar scope and location.

What are the primary risks associated with executing this contract in the UAE?

Key risks include geopolitical instability in the region, which could impact security and project continuity. Logistical challenges related to importing materials, equipment, and personnel into the UAE are also significant. Furthermore, navigating local regulations, labor laws, and cultural nuances requires careful management. Potential for unforeseen subsurface conditions or environmental factors at the construction sites could lead to delays and cost increases. Finally, ensuring the security of personnel and assets throughout the project lifecycle is paramount.

How effective is the Full and Open Competition process in ensuring value for this type of specialized engineering service?

Full and Open Competition is generally considered the most effective method for ensuring value for specialized engineering services, as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This process encourages innovation and efficiency as contractors vie for the award. For complex projects like base development, it allows the government to select the offeror that best balances technical capability, past performance, and price. However, the effectiveness is contingent on the clarity of the solicitation requirements and the evaluation criteria used to select the winning bid.

What is the historical spending trend for Engineering Services (NAICS 541330) by the Department of the Army in overseas locations?

Historical spending data for Engineering Services (NAICS 541330) by the Department of the Army in overseas locations shows a consistent and substantial investment. These expenditures are driven by the need to maintain, upgrade, and construct facilities to support global military operations and strategic positioning. Spending often fluctuates based on geopolitical events, troop deployments, and infrastructure modernization initiatives. While this specific $14.2 million award is a single data point, it aligns with broader trends of significant Army investment in engineering and construction services abroad to ensure operational readiness and security.

What are the implications of the 'Delivery Order' (aw: DELIVERY ORDER) award type for this contract?

The award being a 'Delivery Order' signifies that this contract is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a Multiple Award Schedule (MAS). This means the basic contract vehicle was previously competed and awarded, and this specific order represents a defined scope of work with a set price and delivery timeline. For taxpayers, this can imply that the initial competition for the IDIQ/MAS vehicle established a baseline for pricing and contractor qualifications, potentially streamlining the process for subsequent orders. However, it also means the full value of the underlying IDIQ/MAS contract is not represented by this single award.

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: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 NICKERSON RD 2ND FL, MARLBOROUGH, MA, 01752

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

Financial Breakdown

Contract Ceiling: $14,225,981

Exercised Options: $14,225,981

Current Obligation: $14,225,981

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912QR19D0029

IDV Type: IDC

Timeline