Army awards $50.3M Hurricane Protection contract to Tetra Tech EC, Inc. for Louisiana-based project

Contract Overview

Contract Amount: $50,330,565 ($50.3M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-01-22

End Date: 2011-04-13

Contract Duration: 446 days

Daily Burn Rate: $112.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HURRICANE PROTECTION OFFICE---LPV 144

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $50.3 million to TETRA TECH EC, INC. for work described as: HURRICANE PROTECTION OFFICE---LPV 144 Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 446 days indicates a substantial project timeline. 4. Fixed-price contract type shifts risk to the contractor. 5. Project located in Louisiana, a region prone to hurricane damage. 6. Contract awarded to a single entity, Tetra Tech EC, Inc.

Value Assessment

Rating: good

The contract value of $50.3 million for hurricane protection construction is within a typical range for large-scale civil engineering projects. Without specific benchmarks for similar hurricane protection efforts in Louisiana, a precise value-for-money assessment is challenging. However, the fixed-price contract type suggests that the government has negotiated a set cost, which can be advantageous if the contractor manages costs effectively. The number of bids received (5) indicates some level of market interest, but further analysis would be needed to determine if this resulted in optimal pricing.

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. Five bids were received, suggesting a healthy level of interest from the market for this type of work. The presence of multiple bidders generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best value for its investment.

Public Impact

Residents and businesses in Louisiana will benefit from enhanced hurricane protection infrastructure. The project delivers critical heavy and civil engineering construction services. Geographic impact is concentrated in Louisiana, a state highly vulnerable to hurricanes. The contract likely supports a workforce involved in construction and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Dependence on a single contractor for a critical infrastructure project.
Risk of schedule delays impacting the timely completion of protective measures.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to an established firm, Tetra Tech EC, Inc., may indicate a track record of performance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically addressing infrastructure resilience against natural disasters. The market for such projects is driven by government investment in public safety and disaster preparedness. Comparable spending benchmarks would typically involve other large-scale flood control, levee construction, or coastal defense projects undertaken by federal, state, or local agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor, Tetra Tech EC, Inc., actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly available.

Related Government Programs

Army Corps of Engineers Civil Works Programs
FEMA Hazard Mitigation Grants
National Flood Insurance Program Infrastructure Investments

Risk Flags

Potential for cost overruns
Schedule delay risk
Performance quality concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.3 million to TETRA TECH EC, INC.. HURRICANE PROTECTION OFFICE---LPV 144

Who is the contractor on this award?

The obligated recipient is TETRA TECH EC, 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 $50.3 million.

What is the period of performance?

Start: 2010-01-22. End: 2011-04-13.

What is Tetra Tech EC, Inc.'s track record with similar hurricane protection or civil engineering projects for the federal government?

Tetra Tech EC, Inc. has a significant history of performing large-scale engineering and construction projects, including those related to infrastructure and environmental services. While specific details on their past hurricane protection projects for the federal government require deeper database searches, their general profile suggests experience in complex civil engineering endeavors. Their portfolio often includes work for various government agencies, indicating a familiarity with federal contracting processes and requirements. A comprehensive review would involve examining past performance evaluations and contract histories to assess their success rate, adherence to schedules, and budget management on comparable projects.

How does the $50.3 million contract value compare to similar hurricane protection projects awarded by the Department of Defense or other federal agencies?

Benchmarking the $50.3 million contract value requires comparing it to similar hurricane protection or major civil engineering projects. Factors such as project scope, geographic location, specific engineering challenges, and the prevailing economic conditions at the time of award significantly influence cost. Projects involving levee construction, storm surge barriers, or extensive coastal reinforcement can range from tens of millions to billions of dollars. Without access to a detailed breakdown of the specific services and materials required for this particular project, a precise comparison is difficult. However, for a significant infrastructure project in a hurricane-prone region, $50.3 million appears to be within a plausible range, assuming it covers substantial construction and engineering work.

What are the primary risks associated with this specific hurricane protection contract, and how are they being mitigated?

The primary risks associated with this hurricane protection contract include potential cost overruns due to unforeseen site conditions (e.g., soil instability, unexpected environmental factors), schedule delays caused by weather events or supply chain disruptions, and performance risks related to the quality of construction. Given that this is a firm fixed-price contract, the financial risk of cost overruns is largely borne by the contractor, Tetra Tech EC, Inc. Mitigation strategies would typically involve thorough site investigations prior to award, detailed project planning with built-in contingencies for weather, robust quality assurance/quality control (QA/QC) processes during construction, and clear performance metrics defined in the contract. The Department of the Army's oversight would also play a crucial role in monitoring progress and addressing issues proactively.

What is the expected effectiveness of the hurricane protection measures to be implemented under this contract?

The expected effectiveness of the hurricane protection measures under this contract is directly tied to the specific engineering designs and construction standards employed. As a hurricane protection project, the goal is to reduce the impact of storm surges, high winds, and flooding on the designated area in Louisiana. This could involve the construction or reinforcement of levees, seawalls, flood barriers, or other engineered systems designed to withstand specific storm intensities. The effectiveness would be measured by the degree to which these structures perform as designed during actual storm events, thereby protecting lives, property, and critical infrastructure. The contract's success hinges on the adequacy of the design, the quality of the construction, and the long-term maintenance of the implemented measures.

How has federal spending on hurricane protection and related civil engineering projects evolved over the years, and where does this contract fit in?

Federal spending on hurricane protection and civil engineering projects has generally seen fluctuations driven by major storm events, increased awareness of climate change impacts, and evolving infrastructure needs. Following significant hurricanes, there is often a surge in federal investment for both immediate recovery and long-term mitigation efforts. The Army Corps of Engineers, in particular, manages substantial budgets for flood control and coastal protection. This $50.3 million contract represents a specific investment in enhancing Louisiana's resilience, fitting into a broader federal strategy to protect vulnerable coastal communities. Historical spending patterns would show periods of increased allocation following major disasters and sustained investment in ongoing infrastructure maintenance and upgrades.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P810B0044

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 2800 VETERANS MEMORIAL BLVD STE 160A, METAIRIE, LA, 70002

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

Financial Breakdown

Contract Ceiling: $50,330,565

Exercised Options: $50,330,565

Current Obligation: $50,330,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline