Army's $39M HSDRRS project awarded to Tetra Tech EC, Inc. for Louisiana storm damage risk reduction
Contract Overview
Contract Amount: $39,048,065 ($39.0M)
Contractor: Tetra Tech EC, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-04-30
End Date: 2012-06-19
Contract Duration: 781 days
Daily Burn Rate: $50.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WESTBANK AND VICINITY, NEW ORLEANS, LA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM (HSDRRS) WBV-74 WESTERN TIE-IN CLOSURE STRUCTURE, ST. CHARLES PARISH, LA
Place of Performance
Location: RACELAND, LAFOURCHE County, LOUISIANA, 70394
Plain-Language Summary
Department of Defense obligated $39.0 million to TETRA TECH EC, INC. for work described as: WESTBANK AND VICINITY, NEW ORLEANS, LA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM (HSDRRS) WBV-74 WESTERN TIE-IN CLOSURE STRUCTURE, ST. CHARLES PARISH, LA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a single, definitive agreement for the work. 3. The project duration of 781 days points to a significant construction timeline. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project is part of the larger Hurricane Storm Damage Risk Reduction System (HSDRRS) initiative. 6. The contract was awarded by the Department of the Army, a major federal entity.
Value Assessment
Rating: fair
The contract value of approximately $39 million for the Western Tie-In Closure Structure is substantial. Benchmarking this against similar civil engineering construction projects for storm surge protection is difficult without more specific project details. However, the fixed-price nature of the contract provides some cost certainty. The award amount is below the micro-purchase threshold of $49,998, which is unusual for a project of this scope and duration, suggesting potential for further analysis on the initial bid versus final cost.
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 bids. The presence of 3 bids suggests a moderate level of competition for this specific project. While multiple bidders are positive, the exact number (3) doesn't necessarily guarantee the most competitive pricing without knowing the bid amounts and the specific requirements of the project.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value. The fact that multiple companies bid on this project suggests that taxpayer funds were likely used efficiently.
Public Impact
Residents and businesses in St. Charles Parish, Louisiana, and the surrounding Westbank and Vicinity area benefit from enhanced storm damage risk reduction. The project delivers critical infrastructure improvements to the Hurricane Storm Damage Risk Reduction System (HSDRRS). The geographic impact is localized to St. Charles Parish, Louisiana, contributing to regional resilience. The construction activities likely involved a workforce of engineers, construction workers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The fixed-price contract type, while offering cost certainty, can sometimes lead to contractors cutting corners on quality if not adequately overseen.
- The duration of the contract (781 days) presents a long-term commitment, requiring sustained oversight to ensure timely completion and adherence to specifications.
- The specific nature of 'Western Tie-In Closure Structure' implies a critical component of the larger HSDRRS, making any delays or issues potentially impactful.
Positive Signals
- Awarded under full and open competition, indicating a potentially robust and fair bidding process.
- The fixed-price contract type helps to control costs and provides predictability for the government.
- The project is part of a larger, critical infrastructure initiative (HSDRRS) aimed at protecting communities from storm damage.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure development for disaster risk reduction. The market for such projects is often driven by government funding for public safety and resilience. Comparable spending benchmarks would typically involve other large-scale civil works projects, such as levee construction, flood control systems, or major transportation infrastructure, often funded by federal agencies like the Army Corps of Engineers.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Tetra Tech EC, Inc., a larger entity, suggests that the primary focus was on technical capability and capacity for this specific project rather than small business participation. This means the direct impact on the small business ecosystem for this particular contract is likely minimal.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures would include adherence to contract terms, performance milestones, and quality control. Transparency is generally facilitated through contract award databases and public reporting, though specific project-level oversight details are often internal.
Related Government Programs
- Hurricane Storm Damage Risk Reduction System (HSDRRS)
- Army Corps of Engineers Projects
- Civil Works Construction Contracts
- Disaster Preparedness and Response Infrastructure
Risk Flags
- Potential for cost overruns if scope changes or unforeseen issues arise, despite fixed-price contract.
- Risk of delays impacting the overall HSDRRS timeline and effectiveness.
- Ensuring quality of construction meets stringent federal standards for critical infrastructure.
Tags
construction, department-of-defense, department-of-the-army, louisiana, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, infrastructure, storm-damage-reduction, hurricane-preparedness
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to TETRA TECH EC, INC.. WESTBANK AND VICINITY, NEW ORLEANS, LA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM (HSDRRS) WBV-74 WESTERN TIE-IN CLOSURE STRUCTURE, ST. CHARLES PARISH, LA
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 $39.0 million.
What is the period of performance?
Start: 2010-04-30. End: 2012-06-19.
What is the track record of Tetra Tech EC, Inc. with similar federal contracts, particularly in civil engineering and disaster risk reduction?
Tetra Tech EC, Inc. has a significant history of performing federal contracts, including many with the Department of Defense and other agencies involved in infrastructure and environmental services. Their portfolio often includes large-scale engineering, construction, and environmental management projects. For disaster risk reduction and civil engineering, they have been involved in numerous projects related to coastal protection, levee systems, and infrastructure resilience. Analyzing their past performance on similar projects, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and capability for this specific HSDRRS contract. Specific data on past project costs, timelines, and client satisfaction would be crucial for a comprehensive assessment.
How does the awarded amount of $39,048,064.74 compare to the estimated cost or budget for this specific HSDRRS component?
Without access to the government's independent cost estimate or the detailed bid breakdown from the three competing firms, it is challenging to definitively assess value for money solely based on the awarded amount. However, the fact that the contract was awarded under full and open competition with three bidders suggests that the government likely received competitive pricing. If the awarded amount is significantly below the government's estimate, it could indicate strong competition or potentially an underestimated scope. Conversely, if it's at or above the estimate, it warrants closer examination of the bids and the government's cost projections. Further analysis would require comparing this figure to similar HSDRRS components or other large-scale civil engineering projects of comparable complexity and scale.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?
Key performance indicators for a construction contract like the HSDRRS Western Tie-In Closure Structure typically include adherence to schedule, quality of workmanship, safety compliance, and budget management. Risk mitigation strategies would involve the fixed-price contract type itself, which shifts some cost risk to the contractor. Additionally, the government would likely employ rigorous inspection protocols, regular progress meetings, performance bonds from the contractor, and clear clauses for liquidated damages in case of delays or non-performance. The contract's duration of 781 days necessitates robust project management and oversight to identify and address potential risks, such as unforeseen site conditions, material availability, or labor issues, proactively.
What is the historical spending pattern for the HSDRRS program, and how does this specific contract fit within that trend?
The Hurricane Storm Damage Risk Reduction System (HSDRRS) program, particularly in the aftermath of Hurricane Katrina, has involved substantial federal investment, primarily managed by the U.S. Army Corps of Engineers. Historical spending for HSDRRS has been in the billions of dollars, encompassing numerous projects across the Gulf Coast. This specific contract for the Western Tie-In Closure Structure, valued at approximately $39 million, represents a component of this larger, multi-year effort. Its spending aligns with the trend of significant capital investment in critical infrastructure for coastal protection. Analyzing the total obligated amounts for HSDRRS over time would reveal the program's scale and the proportion this contract represents within the overall budget.
What are the potential long-term implications of this contract for Louisiana's coastal resilience and the local economy?
This contract contributes directly to Louisiana's coastal resilience by strengthening the Hurricane Storm Damage Risk Reduction System. The completed structure is intended to enhance protection against storm surges and flooding, thereby safeguarding lives, property, and economic activity in St. Charles Parish and surrounding areas. In the short to medium term, the project likely provided employment opportunities for construction workers, engineers, and related support staff in the region. The long-term economic implication is a more stable environment for businesses and residents, potentially attracting further investment and reducing the economic disruption caused by future storm events. It represents a crucial piece of infrastructure supporting the state's ongoing efforts to mitigate coastal risks.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P810R0007
Offers Received: 3
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: $44,340,847
Exercised Options: $44,340,847
Current Obligation: $39,048,065
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-30
Current End Date: 2012-06-19
Potential End Date: 2012-06-19 00:00:00
Last Modified: 2020-09-28
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