Tetra Tech EC Inc. awarded $16.2M for Air Traffic Control Facility construction, a significant project in building construction

Contract Overview

Contract Amount: $16,198,471 ($16.2M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-16

End Date: 2011-08-31

Contract Duration: 1,507 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AIR TRAFFIC CONTROL FACILITY, BASE AND OPTIONS 9 & 11

Place of Performance

Location: DOVER, KENT County, DELAWARE, 19901

State: Delaware Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to TETRA TECH EC, INC. for work described as: AIR TRAFFIC CONTROL FACILITY, BASE AND OPTIONS 9 & 11 Key points: 1. The contract value of $16.2 million represents a substantial investment in critical infrastructure. 2. Competition dynamics for this project are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on project scope and contractor performance history. 4. Performance context is established by comparing this award to similar construction projects. 5. The contract falls within the Commercial and Institutional Building Construction sector, a key area for federal spending. 6. The firm fixed-price contract type suggests a defined scope and cost structure.

Value Assessment

Rating: good

The total award of $16.2 million for Air Traffic Control Facility construction appears reasonable given the scope. Benchmarking against similar large-scale construction projects for federal facilities suggests that the pricing is competitive. The firm fixed-price nature of the contract helps to control costs and provides predictability for the government, indicating good value for money.

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 two bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, two bids are sufficient to establish a competitive baseline and ensure a reasonable price.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by ensuring that the government receives proposals from multiple qualified contractors, leading to more competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will utilize the improved air traffic control facility. The project delivers essential construction services for a critical national security asset. The geographic impact is localized to the specific military base where the facility is constructed. The contract supports jobs within the construction sector, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price structure.
  • Dependence on the contractor's ability to manage complex construction timelines and logistics.
  • Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

  • Firm fixed-price contract provides cost certainty for the government.
  • Awarded under full and open competition, suggesting a competitive bidding process.
  • Contractor has a track record in construction, implying relevant experience.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant component of federal contracting, encompassing a wide range of facilities from administrative buildings to specialized operational structures. This contract for an air traffic control facility fits within this broad category, highlighting the government's ongoing need for modern and robust infrastructure. Comparable spending in this sector often involves large-scale projects with multi-year durations and substantial material and labor costs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor may engage small businesses as subcontractors for specialized services or materials, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

  • Military Construction
  • Air Force Facilities
  • Federal Building Construction
  • Infrastructure Projects

Risk Flags

  • Potential for schedule delays due to construction complexity.
  • Risk of unforeseen site conditions impacting cost and timeline.
  • Ensuring full compliance with all applicable building codes and military standards.

Tags

construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, air-traffic-control, facility-construction, tetra-tech-ec-inc, delaware, large-project

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to TETRA TECH EC, INC.. AIR TRAFFIC CONTROL FACILITY, BASE AND OPTIONS 9 & 11

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 $16.2 million.

What is the period of performance?

Start: 2007-07-16. End: 2011-08-31.

What is the contractor's past performance record with the Department of Defense or similar agencies?

Tetra Tech EC, Inc. has a history of performing various construction and engineering services for government agencies, including the Department of Defense. While specific details on past performance for similar air traffic control facilities are not provided in this summary, their broader experience in large-scale construction projects suggests a capacity to handle complex requirements. A thorough review of their contract history, including any performance evaluations or past disputes, would be necessary for a complete assessment. Their involvement in projects valued in the millions indicates a level of trust and capability demonstrated to federal clients.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates an award amount of $16,198,471.33. Without access to the government's initial cost estimates or budget allocations for this specific Air Traffic Control Facility project, a direct comparison is not possible. However, the fact that it was awarded under full and open competition with two bidders suggests that the price was deemed acceptable by the government after evaluating the submitted proposals against their internal cost expectations. Further analysis would require access to the solicitation documents and internal government cost estimates.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Specific Key Performance Indicators (KPIs) for this Air Traffic Control Facility construction contract are not detailed in the provided summary. Typically, for construction projects of this nature, KPIs would focus on adherence to schedule (milestones and final completion), quality of workmanship (meeting specifications and standards), safety compliance (incident rates), and budget management. Performance measurement would likely involve regular site inspections, progress reports from the contractor, and reviews by government representatives or designated quality assurance personnel to ensure all contractual requirements are met.

Are there any identified risks associated with this contract, such as technical challenges or schedule delays?

Potential risks for this contract include standard construction-related challenges such as unforeseen site conditions (e.g., soil issues, underground utilities), weather delays impacting the construction schedule, and potential supply chain disruptions for materials. Given the specialized nature of air traffic control facilities, there might also be technical risks related to the integration of specific systems. The firm fixed-price contract type, while beneficial for cost control, can shift some of the risk of cost overruns to the contractor. Proactive risk management by both the government and the contractor, including contingency planning and regular progress reviews, is crucial.

What is the historical spending trend for similar air traffic control facility construction projects by the Department of Defense?

Analyzing historical spending trends for similar air traffic control facility construction projects by the Department of Defense would require access to extensive federal procurement data. However, it is generally understood that investments in military infrastructure, including air traffic control systems, are cyclical and depend on modernization needs, operational requirements, and budget allocations. Projects of this scale ($16.2 million) are significant but not uncommon for major military installations. Trends might show an increase in spending during periods of military expansion or technological upgrades, and a decrease during budget austerity.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 820 TOWN CENTER DR, LANGHORNE, PA, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,620,471

Exercised Options: $16,198,471

Current Obligation: $16,198,471

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BU06D0006

IDV Type: IDC

Timeline

Start Date: 2007-07-16

Current End Date: 2011-08-31

Potential End Date: 2011-08-31 00:00:00

Last Modified: 2012-09-28

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