EPA's $34.6M contract with TETRA TECH INC for environmental services awarded under full and open competition

Contract Overview

Contract Amount: $34,650,904 ($34.7M)

Contractor: Tetra Tech Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2000-01-15

End Date: 2006-08-28

Contract Duration: 2,417 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02203

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $34.7 million to TETRA TECH INC for work described as: Key points: 1. Contract awarded for environmental services, indicating a need for specialized expertise. 2. The contract duration of 2417 days suggests a long-term, significant project. 3. Awarded under 'Cost Plus Award Fee' type, performance incentives are key. 4. The contract was competed fully and openly, suggesting a competitive market. 5. The contractor, TETRA TECH INC, is a significant player in the environmental services sector. 6. The contract was awarded by the Environmental Protection Agency, highlighting its focus on environmental protection.

Value Assessment

Rating: good

The contract's value of $34.6 million over approximately 6.6 years suggests a substantial investment in environmental services. Without specific performance metrics or comparable contract data, a precise value-for-money assessment is challenging. However, the Cost Plus Award Fee (CPAF) structure implies that the agency aims to incentivize good performance, potentially leading to better outcomes than a fixed-price contract if managed effectively. Benchmarking against similar large-scale environmental remediation or consulting contracts would provide further insight into whether this pricing is competitive.

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 two bids suggests a moderate level of competition for this significant environmental services contract. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The agency's ability to attract multiple qualified bidders is a positive sign.

Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging contractors to offer more favorable terms and pricing to secure the award.

Public Impact

The primary beneficiaries are likely the communities and ecosystems impacted by environmental issues requiring remediation or management. Services delivered likely include environmental consulting, assessment, remediation, and compliance monitoring. The geographic impact is tied to the specific environmental projects undertaken by the EPA, potentially across various regions. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure requires diligent oversight to ensure award fees are earned based on genuine performance improvements and not just cost escalation.
With only two bids received, there's a risk that competition was not as robust as it could have been, potentially impacting the final price.
The long contract duration necessitates ongoing monitoring to ensure continued relevance and adaptation to evolving environmental regulations and technologies.

Positive Signals

Awarded under full and open competition, signaling a commitment to leveraging the broadest possible market.
The CPAF structure, if managed well, can incentivize high performance and quality service delivery.
TETRA TECH INC is a well-established firm in the environmental sector, suggesting a level of expertise and capacity.

Sector Analysis

The environmental services sector is a critical component of government contracting, supporting regulatory compliance, remediation, and sustainability initiatives. This contract falls within a market segment focused on large-scale environmental projects, often involving complex scientific and engineering challenges. The EPA is a major procurer in this space, and spending benchmarks can vary widely based on the scope and nature of the environmental work. Contracts of this magnitude often involve specialized firms with proven track records in areas like hazardous waste management, water quality, and air pollution control.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contractor, TETRA TECH INC, is a large business. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The agency's subcontracting plan, if any, would determine the extent to which small businesses participate in fulfilling this contract's requirements.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. As a Cost Plus Award Fee (CPAF) contract, oversight would focus on monitoring contractor performance against defined criteria to determine award fee payments. Transparency would be facilitated through contract reporting requirements. The EPA's internal Inspector General would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Superfund Remedial Action
Environmental Consulting Services
Hazardous Waste Management
Water Quality Monitoring
Air Quality Management

Risk Flags

Potential for cost overruns inherent in CPAF contracts.
Limited competition (two bidders) may impact optimal price discovery.
Need for rigorous performance monitoring to justify award fees.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $34.7 million to TETRA TECH INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TETRA TECH INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2000-01-15. End: 2006-08-28.

What is TETRA TECH INC's track record with the EPA on similar environmental contracts?

TETRA TECH INC has a substantial history of contracting with the Environmental Protection Agency (EPA) across various environmental programs. Their portfolio includes work on Superfund sites, water quality initiatives, and regulatory compliance. Analyzing past performance on similar contracts would involve reviewing EPA's contract databases and performance evaluations to assess their timeliness, cost control, and quality of deliverables. A review of publicly available data suggests TETRA TECH has consistently secured significant contracts with the EPA, indicating a strong working relationship and perceived capability. However, specific details on past performance metrics, such as adherence to schedule and budget on comparable projects, would require deeper data analysis beyond the scope of this summary.

How does the $34.6 million value compare to other large EPA environmental service contracts?

The $34.6 million contract value for TETRA TECH INC is substantial but falls within the typical range for large-scale, multi-year environmental service contracts awarded by the EPA. The EPA frequently procures services for major programs like Superfund, which can involve contracts in the tens or even hundreds of millions of dollars over their lifecycle. Factors influencing this value include the complexity of the environmental issues, the geographic scope of work, the duration of the contract, and the specific services required (e.g., site investigation, remediation design, construction oversight). Benchmarking this contract against similar 'Cost Plus Award Fee' contracts for environmental remediation or consulting services would provide a clearer picture of its relative value and pricing competitiveness within the agency's procurement landscape.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for environmental services?

The primary risks associated with a CPAF contract for environmental services revolve around cost control and performance verification. For the government, there's a risk that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs. The 'award fee' component introduces a risk if the performance criteria are not clearly defined, measurable, or objectively assessed, potentially leading to disputes or unwarranted fee payments. For the contractor, the risk lies in not meeting the performance targets required to earn the award fee, thus limiting their overall profit. Effective management by the EPA, including robust performance monitoring and clear communication of expectations, is crucial to mitigate these risks and ensure value for taxpayer money.

What is the typical duration for EPA environmental service contracts of this magnitude?

Environmental service contracts awarded by the EPA, especially those involving complex remediation, long-term monitoring, or program management, often have durations ranging from several years to over a decade. A contract duration of approximately 6.6 years (2417 days) for a $34.6 million award is consistent with the long-term nature of many environmental projects. These projects frequently require phased approaches, ongoing compliance, and adaptive management strategies that necessitate extended periods of contractor support. Shorter durations might be suitable for specific studies or short-term tasks, but comprehensive environmental solutions typically demand a longer commitment to ensure effectiveness and sustainability.

How does the 'Full and Open Competition' with two bidders impact price discovery for the EPA?

While 'Full and Open Competition' is the preferred method for maximizing market participation, receiving only two bids for this $34.6 million contract suggests that the competition may not have been as robust as ideal. In a highly competitive scenario with numerous bidders, the pressure to offer competitive pricing is generally higher, leading to better price discovery for the government. With only two offers, the EPA has a choice between two proposals, but the lack of broader competition might mean that the pricing submitted by these two firms is not as aggressively optimized as it could have been if more firms were vying for the contract. This situation underscores the importance of market research to ensure sufficient interest and participation in future competitive procurements.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

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

Address: 55 JONSPIN RD, WILMINGTON

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

Financial Breakdown

Contract Ceiling: $14,889,953

Exercised Options: $17,763,247

Current Obligation: $34,650,904

Timeline