TETRA TECH, INC. awarded $28.1M for facilities support services by EPA, spanning over 6 years

Contract Overview

Contract Amount: $28,123,718 ($28.1M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2000-11-15

End Date: 2006-08-11

Contract Duration: 2,095 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60601

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $28.1 million to TETRA TECH, INC. for work described as: Key points: 1. The contract value of $28.1 million over approximately 6 years suggests a significant investment in facilities support. 2. The 'Facilities Support Services' category indicates a broad range of operational and maintenance activities. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 4. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee, which can incentivize efficiency but also carries risk. 5. The duration of the contract (2095 days) indicates a long-term need for these services. 6. The contract was awarded by the Environmental Protection Agency (EPA), suggesting a focus on environmental compliance and facility management. 7. The presence of 2 bids indicates a moderate level of competition for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. However, a $28.1 million award over six years for facilities support services is substantial. The CPFF structure requires careful monitoring to ensure costs remain reasonable and the fixed fee provides adequate profit without excessive risk to the government. Comparing the per-unit cost of specific services (e.g., maintenance per square foot) to industry standards would be crucial for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 2 bids received, the competition level appears moderate. While full and open competition is generally preferred for maximizing price discovery and innovation, a low number of bidders could suggest market limitations or specific technical requirements that narrowed the field.

Taxpayer Impact: A competitive bidding process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition awards. It encourages contractors to offer their best prices to secure the contract.

Public Impact

The primary beneficiaries are likely the Environmental Protection Agency (EPA) facilities, which will receive essential support services. Services delivered could include maintenance, repair, operations, custodial services, and potentially specialized environmental facility management. The geographic impact is centered around the EPA facilities managed under this contract, likely within Illinois given the 'IL' and 'ILLINOIS' codes. Workforce implications include the creation or maintenance of jobs for personnel performing these facilities support services, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred.
A moderate level of competition (2 bidders) might not have driven the absolute lowest price possible.
The long duration of the contract could lead to potential inefficiencies or a lack of agility if needs change significantly over time.

Positive Signals

Awarded under full and open competition, maximizing the opportunity for competitive pricing.
The contract specifies a fixed fee, providing a degree of cost certainty for the contractor's profit.
The long-term nature of the contract suggests a stable and ongoing need for these critical support services.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized services supporting government and commercial operations. The market size for facilities management is substantial, with government contracts forming a significant portion. This contract fits within the government's need to maintain and operate its physical infrastructure efficiently, ensuring operational continuity and compliance.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the contract value and the nature of facilities support services, it is possible that larger, established firms like TETRA TECH, INC. are better positioned to compete. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Environmental Protection Agency. Performance monitoring, review of invoices, and adherence to contract terms are key oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Other Agency Facilities Operations and Maintenance

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
Moderate competition level (2 bidders) may limit price optimization.
Long contract duration could pose risks if requirements evolve significantly.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $28.1 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 $28.1 million.

What is the period of performance?

Start: 2000-11-15. End: 2006-08-11.

What specific types of facilities support services were included in this $28.1 million contract?

While the contract is categorized under 'Facilities Support Services' (NAICS code 561210), the specific deliverables are not detailed in the provided data. Typically, this category encompasses a wide range of services including building operations and maintenance, custodial services, groundskeeping, pest control, refuse collection, security systems maintenance, and potentially specialized services related to the EPA's mission, such as environmental compliance monitoring within facilities. The Cost Plus Fixed Fee (CPFF) structure suggests that the scope might have involved some level of uncertainty or evolving requirements, where detailed service specifications were difficult to define upfront.

How does the $28.1 million contract value compare to similar facilities support contracts awarded by the EPA or other agencies?

Without access to a comprehensive database of comparable contracts with detailed service scopes and durations, a precise comparison is difficult. However, $28.1 million spread over approximately six years (2095 days) averages to roughly $4.7 million per year. This figure is substantial and suggests a significant scope of work, likely encompassing multiple facilities or a large, complex single facility. Larger federal agencies often award multi-million dollar contracts for facilities support, and this award appears to be within the expected range for comprehensive services, though specific benchmarks would require detailed market research.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support?

The primary risk with a CPFF contract is that the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs are higher than anticipated, the total contract cost will increase, potentially exceeding initial budget estimates. While the fixed fee provides the contractor with a defined profit margin, it doesn't inherently incentivize cost reduction as strongly as fixed-price contracts. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the contractor is performing efficiently to manage expenses within the overall project budget.

What does the 'DCA' award action code signify in the context of this contract?

The 'DCA' award action code typically stands for 'Definitive Contract Award'. This indicates that the contract finalized the terms and conditions between the government and the contractor, TETRA TECH, INC., for the specified facilities support services. It signifies the official establishment of the contractual agreement following the procurement process. Other codes might indicate modifications, task orders, or different types of contract vehicles, but 'DCA' points to the primary award of this specific contract.

Given the contract's duration and value, what is the potential for contractor performance issues or contractor lock-in?

A contract duration of nearly six years, coupled with a significant value, does present a potential for contractor lock-in, where switching providers could be costly and disruptive. However, the risk of performance issues is mitigated by the government's oversight mechanisms and the potential for contract termination for default if performance is unsatisfactory. The CPFF structure, while offering flexibility, requires diligent performance management. Regular performance reviews, clear metrics, and communication channels are essential to address any emerging issues proactively and ensure the contractor meets the required service levels throughout the contract term.

How might the 'Facilities Support Services' contract impact the specific environmental mission of the EPA?

This contract directly supports the EPA's mission by ensuring that its own facilities are well-maintained, operational, and compliant with environmental and safety regulations. Reliable facilities support is crucial for the agency's personnel to conduct their work, whether it involves laboratory research, administrative functions, or regulatory enforcement. By outsourcing these essential services, the EPA can focus its internal resources and expertise on its core environmental protection mandate, rather than diverting attention to the complexities of facility management. Proper maintenance also ensures the safe handling and storage of any materials used within EPA facilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 200 E RANDOLPH ST # 4700, CHICAGO, IL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $3,300

Exercised Options: $10,230,182

Current Obligation: $28,123,718

Timeline