DoD's $23.3M perimeter security contract awarded to Tetra Tech Tesoro, Inc. for Virginia facility

Contract Overview

Contract Amount: $23,338,189 ($23.3M)

Contractor: Tetra Tech Tesoro, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-27

End Date: 2015-09-16

Contract Duration: 1,084 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P527 DESIGN BUILD PERIMETER SECURITY AND MAIN ENTRANCE IMPROVEMENTS

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23461

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to TETRA TECH TESORO, INC. for work described as: P527 DESIGN BUILD PERIMETER SECURITY AND MAIN ENTRANCE IMPROVEMENTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Project duration of 1084 days indicates a significant, multi-year construction effort. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects. The firm fixed-price structure aims to control costs, but the total value of $23.3 million for perimeter security and entrance improvements over nearly three years suggests a substantial investment. Further analysis would require comparing unit costs for similar construction elements and assessing if the final price reflects market rates for construction services in the specified region.

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 specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The open nature of the competition suggests the government sought the best value from a broad range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and higher quality services due to a competitive bidding environment. Full and open competition increases the likelihood that the government secures a fair market price.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at the Virginia facility, who will receive enhanced security. The services delivered include design and build capabilities for perimeter security and main entrance improvements. The geographic impact is localized to the specific Department of the Navy facility in Virginia. The contract supports the construction workforce involved in the design and building phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Absence of detailed cost breakdowns hinders granular value-for-money analysis.
Limited information on performance metrics makes it difficult to gauge project success beyond completion.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a robust procurement process.
Delivery order structure implies potential for streamlined future procurements under the parent contract.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing security infrastructure. The construction market is highly variable, influenced by economic conditions, material costs, and labor availability. Projects of this scale, involving design-build capabilities for security enhancements, are common within government and private sector facilities seeking to upgrade their physical security posture. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects for federal agencies with similar security requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from this specific award. The prime contractor, Tetra Tech Tesoro, Inc., is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting command. Performance monitoring would likely involve site inspections, progress reports, and adherence to design specifications. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight mechanisms are often internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Management
Military Base Security Enhancements
Federal Construction Projects
Design-Build Contracts
Perimeter Security Systems

Risk Flags

Potential for cost overruns if design is not fully vetted.
Risk of schedule delays due to unforeseen site conditions.
Ensuring final security system meets evolving threat requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to TETRA TECH TESORO, INC.. P527 DESIGN BUILD PERIMETER SECURITY AND MAIN ENTRANCE IMPROVEMENTS

Who is the contractor on this award?

The obligated recipient is TETRA TECH TESORO, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2012-09-27. End: 2015-09-16.

What is the track record of Tetra Tech Tesoro, Inc. with the Department of Defense?

Tetra Tech Tesoro, Inc. has a history of performing contracts with the Department of Defense. While specific details of past performance on similar projects are not provided in this data snippet, their award on this $23.3 million contract suggests they met the qualifications and requirements set forth by the Department of the Navy. A comprehensive assessment would involve reviewing their past performance evaluations, contract completion history, and any documented issues or successes on previous DoD engagements. This would provide insight into their reliability, quality of work, and ability to manage complex construction projects within budget and schedule.

How does the $23.3 million cost compare to similar perimeter security and entrance improvement projects?

Directly comparing the $23.3 million cost to similar projects is difficult without more specific data on the scope, scale, and location of comparable contracts. However, the firm fixed-price nature of this contract indicates an effort to establish a definitive cost upfront. The duration of nearly three years suggests a significant undertaking. To benchmark effectively, one would need to analyze other design-build contracts for perimeter security and entrance upgrades at federal facilities, considering factors like square footage, materials used, technology integrated, and prevailing construction labor rates in the region. Without such comparative data, it's challenging to definitively state if this represents excellent, fair, or concerning value.

What are the primary risks associated with this design-build perimeter security contract?

Key risks for this design-build perimeter security contract include potential design flaws that could lead to cost overruns or performance issues, especially given the fixed-price nature. Schedule delays are another significant risk, stemming from unforeseen site conditions, material shortages, labor disputes, or weather impacts, which could affect the contractor's profitability. Security vulnerabilities during the construction phase itself could also pose a risk. Furthermore, ensuring the final security system meets evolving threat landscapes and integrates seamlessly with existing base infrastructure requires careful management and oversight. The contractor's financial stability and capacity to manage a project of this magnitude are also critical risk factors.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally effective in managing costs by shifting the primary risk of cost overruns to the contractor. This means Tetra Tech Tesoro, Inc. is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. However, FFP contracts can sometimes lead to contractors cutting corners on quality to maintain profitability if not adequately overseen. For a project involving security infrastructure, rigorous quality assurance and inspection are crucial to ensure the FFP structure doesn't compromise the integrity or effectiveness of the final security system.

What is the historical spending trend for perimeter security and entrance improvements at this specific facility or similar DoD installations?

Historical spending data for perimeter security and entrance improvements at this specific facility or similar Department of Defense installations is not provided in the given data. To analyze this, one would need to access historical contract databases and filter for relevant keywords (e.g., 'perimeter security,' 'entrance upgrades,' 'access control systems') and the specific installation or comparable bases. Examining past spending patterns would reveal whether this $23.3 million contract represents an increase, decrease, or consistent level of investment in such infrastructure. It could also highlight trends in contract types, durations, and awarded contractors over time, providing context for the current procurement.

What are the implications of this contract being awarded as a delivery order?

This contract being awarded as a delivery order (aw: DELIVERY ORDER) implies that it is a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. This structure allows the government to procure specific services or supplies as needed, up to a certain ceiling amount, without needing to re-compete the entire requirement each time. For taxpayers, this can mean faster procurement cycles and potentially better pricing if the parent IDIQ contract was competitively awarded. However, it also means that the initial competition for the IDIQ sets the stage for all subsequent delivery orders, making the terms of that foundational contract critical.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008508R9602

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 5250 CHALLEDON DR, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $23,338,189

Exercised Options: $23,338,189

Current Obligation: $23,338,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008509D5027

IDV Type: IDC

Timeline