DoD's $15.7M Environmental Services Contract Awarded to Tetra Tech EC, Inc. for Remediation Services

Contract Overview

Contract Amount: $15,678,487 ($15.7M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-02-29

End Date: 2009-08-31

Contract Duration: 3,471 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL SERVICES

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19148

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to TETRA TECH EC, INC. for work described as: ENVIRONMENTAL SERVICES Key points: 1. Contract awarded under firm-fixed-price terms, indicating clear cost expectations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. Contract duration of over 9 years suggests a long-term need for these services. 4. The contract was awarded by the Defense Logistics Agency, a key procurement arm for the DoD. 5. The North American Industry Classification System (NAICS) code 562910 points to specialized remediation services. 6. The contract's value of approximately $15.7 million over its lifespan warrants scrutiny for value for money.

Value Assessment

Rating: fair

The contract value of $15.7 million over nearly a decade averages to roughly $1.7 million per year. Benchmarking this against similar environmental remediation contracts is challenging without more specific service details and geographic scope. However, the firm-fixed-price structure suggests that the government aimed to lock in costs. The long duration could indicate either significant cost savings through sustained effort or potential for cost overruns if initial estimates were inaccurate. Further analysis would require comparison with industry benchmarks for similar remediation projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, implying that all responsible sources were permitted to submit bids. With three bidders identified, this suggests a moderate level of competition. While three bidders are better than one or two, a higher number would typically indicate stronger price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria are not provided, which limits a deeper assessment of the competitive dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices. The presence of multiple bidders suggests that the government likely received competitive offers, potentially leading to a more cost-effective outcome compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiary is the Department of Defense, which receives essential environmental remediation services to manage its facilities. Services delivered include remediation of contaminated sites, crucial for environmental compliance and safety. The contract was awarded to a firm operating in Pennsylvania, suggesting potential local or regional impact on employment and business activity. The workforce implications are tied to the specialized skills required for environmental remediation, potentially supporting a segment of the environmental services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could lead to complacency or reduced urgency if not actively managed.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the remediation efforts.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners if not closely monitored, especially on long-term projects.
The limited number of bidders (3) might suggest that the market for this specific type of remediation service is not highly competitive.

Positive Signals

Awarded through full and open competition, indicating a commitment to leveraging market forces.
Firm-fixed-price contract provides cost certainty for the government.
The Defense Logistics Agency's involvement suggests adherence to established procurement processes.
The contract addresses critical environmental remediation needs for the DoD.

Sector Analysis

Environmental remediation services represent a significant sector within the broader environmental services industry. This contract falls under the NAICS code 562910, which covers Remediation Services. The market for environmental remediation is driven by regulatory requirements, industrial cleanup needs, and government mandates. Spending in this sector can fluctuate based on new discoveries of contamination, changes in environmental laws, and the pace of cleanup efforts. Comparable spending benchmarks would depend on the scale and complexity of the specific remediation tasks undertaken.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. The prime contractor, Tetra Tech EC, Inc., is likely a large business. The absence of a small business set-aside means that opportunities for small businesses would primarily arise if Tetra Tech EC, Inc. voluntarily subcontracted portions of the work to them, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer at the Defense Logistics Agency. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's performance or closeout.

Related Government Programs

Environmental Compliance Services
Hazardous Waste Management
Site Remediation
Defense Environmental Programs
Logistics and Supply Chain Environmental Support

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed tightly.
Limited competition (3 bidders) could indicate potential for higher pricing than a more robustly competed contract.
Firm-fixed-price structure on a long-term, complex service contract carries inherent risk for both parties.
Lack of detailed performance metrics in the provided data hinders assessment of contractor performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to TETRA TECH EC, INC.. ENVIRONMENTAL SERVICES

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2000-02-29. End: 2009-08-31.

What is the track record of Tetra Tech EC, Inc. with the Department of Defense and similar environmental contracts?

Tetra Tech EC, Inc. has a substantial history of contracting with the U.S. federal government, particularly the Department of Defense, across various environmental services. Their portfolio includes extensive work in remediation, engineering, and consulting. Analyzing their past performance on similar large-scale remediation projects for the DoD would involve reviewing contract histories for on-time delivery, budget adherence, and quality of work. Data from contract databases often reveals patterns of successful contract completions, modifications, and any disputes or terminations. A deeper dive would examine specific project outcomes, client satisfaction feedback where available, and any penalties or awards received on prior DoD contracts to gauge their reliability and expertise in environmental remediation.

How does the average annual cost of this contract compare to industry benchmarks for similar environmental remediation projects?

The contract's total value of $15.7 million spread over approximately 3471 days (about 9.5 years) equates to an average annual expenditure of roughly $1.65 million. To benchmark this against industry standards, one would need to compare it with the average cost of similar environmental remediation projects of comparable scope, complexity, and geographic location. Factors such as the type of contaminants, the extent of the affected area, the remediation technologies employed, and regulatory requirements significantly influence project costs. Without these specifics, a precise comparison is difficult. However, if this contract covers large-scale, long-term remediation efforts, the annual cost might be within a reasonable range, assuming effective management and competitive bidding. A more robust analysis would involve consulting industry cost indices and reports for environmental consulting and remediation services.

What are the primary risks associated with a firm-fixed-price contract of this duration for environmental remediation?

A significant risk with a firm-fixed-price (FFP) contract, especially one spanning nearly a decade for environmental remediation, is the potential for unforeseen complexities and cost escalations that are not adequately accounted for in the initial fixed price. Environmental remediation projects are inherently uncertain; discovering additional contamination, encountering unexpected geological conditions, or changes in regulatory requirements can dramatically increase costs. If the contractor underestimated these risks, they might face financial losses, potentially leading to quality compromises or disputes. Conversely, if the government underestimated the scope, the FFP structure prevents them from benefiting if actual costs are lower. Effective risk mitigation requires thorough initial site assessments, robust contingency planning, and diligent contractor oversight to ensure the fixed price remains fair and achievable throughout the contract's life.

What is the potential impact of this contract on the environmental services market, particularly for small businesses?

This contract, valued at $15.7 million and awarded through full and open competition, primarily benefits the prime contractor, Tetra Tech EC, Inc. As it was not a small business set-aside, direct opportunities for small businesses are not mandated. However, large contracts like this often involve subcontracting. Tetra Tech EC, Inc. may engage small businesses for specialized services, equipment, or labor, thereby injecting funds into the small business ecosystem. The overall impact on the environmental services market depends on the scale and nature of the remediation work. If it involves innovative techniques or addresses a significant environmental challenge, it could influence market practices. The competition level (3 bidders) suggests a moderately concentrated market for this specific type of service, potentially limiting opportunities for new entrants but providing work for established players.

How does the Defense Logistics Agency's procurement of environmental services align with broader DoD environmental stewardship goals?

The Defense Logistics Agency's (DLA) procurement of environmental remediation services, such as this contract with Tetra Tech EC, Inc., directly supports the Department of Defense's broader environmental stewardship goals. The DoD manages vast amounts of land and facilities, many of which have historical contamination issues. By contracting for remediation, the DLA helps the DoD meet its legal obligations under environmental laws (like CERCLA and RCRA), clean up legacy pollution, and prevent future environmental damage. This aligns with strategic objectives to protect natural resources, ensure compliance, reduce environmental risks, and maintain operational readiness by ensuring safe and compliant facilities. The DLA's role as a central procurement entity ensures that these critical environmental services are acquired efficiently and effectively across the DoD enterprise.

What are the historical spending patterns for environmental remediation services by the Defense Logistics Agency or the DoD?

Historical spending data for environmental remediation services by the Defense Logistics Agency (DLA) and the broader Department of Defense (DoD) reveals a consistent and significant investment in addressing environmental liabilities across military installations. The DoD is one of the largest federal agencies managing land and infrastructure, leading to substantial ongoing needs for environmental compliance, cleanup, and restoration. Annual spending on environmental services by the DoD typically runs into the billions of dollars, encompassing a wide range of activities from hazardous waste management and munitions response to site remediation and natural resource management. The DLA, as a major procurement hub, plays a crucial role in facilitating these acquisitions. Analyzing historical spending patterns would show trends in contract types (e.g., FFP vs. cost-plus), competition levels, and the types of services most frequently procured, reflecting evolving environmental regulations and cleanup priorities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060000R0027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 820 TOWN CENTER DR STE 100, LANGHORNE, PA, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,678,487

Exercised Options: $15,678,487

Current Obligation: $15,678,487

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060000D5003

IDV Type: IDC

Timeline