Tetra Tech Inc. contract for environmental management programs awarded $11.3M by EPA

Contract Overview

Contract Amount: $11,346,844 ($11.3M)

Contractor: Tetra Tech Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2002-03-15

End Date: 2006-12-31

Contract Duration: 1,752 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $11.3 million to TETRA TECH INC for work described as: Key points: 1. Contract value of $11.3M over nearly 5 years suggests a moderate investment in environmental resource management. 2. The 'Administration of Air and Water Resource and Solid Waste Management Programs' is a critical function for public health and environmental protection. 3. Awarded under full and open competition, indicating a broad market search for qualified contractors. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored, but allows flexibility for evolving project needs. 5. The duration of 1752 days (approx. 4.8 years) provides a stable period for program execution and performance assessment. 6. The contractor, Tetra Tech Inc., is a significant player in the environmental consulting and engineering sector.

Value Assessment

Rating: good

The contract value of $11.3 million over approximately 4.8 years averages to about $2.35 million per year. This figure appears reasonable for comprehensive environmental resource management programs, which often involve complex scientific analysis, regulatory compliance, and program administration. Benchmarking against similar large-scale environmental contracts would provide a more precise value-for-money assessment, but the annual spend is not excessively high given the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Environmental Protection Agency (EPA) sought proposals from all responsible sources. The presence of two bidders indicates a competitive environment, which generally benefits price discovery and encourages contractors to offer competitive terms. The specific number of bidders (2) is on the lower side for full and open competition, which could warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces. A competitive process increases the likelihood that the government secures services at a fair market price.

Public Impact

The primary beneficiaries are the public, through improved air and water quality and effective solid waste management. Services delivered include the administration and management of vital environmental programs. The geographic impact is likely national, given the EPA's mandate, though specific project locations may vary. Workforce implications include employment for environmental scientists, engineers, project managers, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost escalations.
A limited number of bidders (2) in a full and open competition could suggest market limitations or high barriers to entry for other potential contractors.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The contract duration provides stability for program continuity and performance.
Tetra Tech Inc. is a well-established firm with significant experience in environmental services.

Sector Analysis

The environmental consulting and services sector is a substantial market driven by regulatory compliance, infrastructure development, and sustainability initiatives. This contract falls within the government services segment of this sector, specifically focusing on air, water, and waste management programs. Comparable spending benchmarks would involve looking at other large EPA contracts or similar environmental management contracts awarded by other federal agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of environmental resource management programs, it is common for prime contracts to be awarded to larger firms with extensive capabilities. However, the prime contractor may engage small businesses as subcontractors to fulfill specific project requirements or specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Clean Water Act Programs
Clean Air Act Programs
Resource Conservation and Recovery Act Programs
Superfund Program
Environmental Justice Initiatives

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition (2 bidders) in a full and open process may warrant further scrutiny.
Contract performance history of the awardee on similar EPA contracts should be reviewed.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $11.3 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 $11.3 million.

What is the period of performance?

Start: 2002-03-15. End: 2006-12-31.

What is Tetra Tech Inc.'s track record with the EPA on similar environmental management contracts?

Tetra Tech Inc. has a substantial history of contracting with the Environmental Protection Agency (EPA) across various environmental services. Their portfolio includes work on water quality, hazardous waste management, site remediation, and air quality programs. Analyzing their past performance on similar contracts, including contract values, durations, and any reported performance issues or successes, would provide insight into their capabilities and reliability for this specific award. A review of contract databases and performance assessment reports (if available) would be necessary to fully assess their track record.

How does the $11.3 million contract value compare to other EPA environmental management contracts of similar scope and duration?

The $11.3 million contract value, spread over approximately 4.8 years, equates to an average annual value of roughly $2.35 million. To benchmark this effectively, one would need to compare it against other EPA contracts for 'Administration of Air and Water Resource and Solid Waste Management Programs' or similar broad environmental management functions. Factors such as geographic scope, specific regulatory requirements, and the complexity of tasks involved can significantly influence contract values. Without direct comparable data, it's challenging to definitively state if this represents exceptional value, but the annual figure appears within a plausible range for such critical government functions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental management programs?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If project requirements change or unforeseen issues arise (common in environmental work), costs can escalate beyond initial estimates. The government bears the risk of these cost increases, necessitating robust oversight, clear definition of scope, and diligent monitoring of expenditures to ensure the contractor remains efficient and within budget parameters. Effective management of the CPFF structure is crucial to achieving value for money.

How effective are EPA's programs for air and water resource and solid waste management, and how does this contract contribute?

The EPA's programs for air and water resource and solid waste management are critical for public health and environmental protection, aiming to regulate pollution, conserve natural resources, and ensure safe disposal of waste. The effectiveness of these programs is often measured by metrics such as reductions in pollutant levels, improvements in water quality, and compliance rates. This contract, by providing administrative support and management services, directly contributes to the operational execution and oversight of these vital programs. Its success would be linked to the contractor's ability to efficiently manage program activities, facilitate regulatory compliance, and support the EPA's overall mission objectives.

What has been the historical spending trend for environmental management programs administered by the EPA over the last decade?

Historical spending on EPA environmental management programs has generally fluctuated based on congressional appropriations, administration priorities, and emerging environmental challenges. While specific figures for 'Administration of Air and Water Resource and Solid Waste Management Programs' would require detailed analysis of budget documents, overall EPA spending has seen periods of increase driven by infrastructure initiatives and new environmental regulations, as well as periods of constraint. Understanding these broader trends can provide context for the $11.3 million awarded to Tetra Tech Inc., indicating whether this represents a typical investment level or a deviation from historical patterns.

Industry Classification

NAICS: Public Administration › Administration of Environmental Quality Programs › Administration of Air and Water Resource and Solid Waste Management Programs

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

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

Address: 1881 CAMPUS COMMONS DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

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