DoD's $21.8M Environmental Remediation Contract with Tetra Tech at Ft. Lewis Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $21,835,852 ($21.8M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2013-03-31

Contract Duration: 2,012 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL SUPPORT FOR ENVIRONMENTAL DIVISION AT FT. LEWIS, WASHINGTON.

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to TETRA TECH, INC. for work described as: ENVIRONMENTAL SUPPORT FOR ENVIRONMENTAL DIVISION AT FT. LEWIS, WASHINGTON. Key points: 1. The contract awarded to Tetra Tech for environmental remediation services at Ft. Lewis, Washington, represents a significant investment. 2. While awarded under full and open competition, the long duration and fixed-price nature warrant a closer look at cost-effectiveness. 3. Potential risks include cost overruns if unforeseen environmental conditions arise, impacting taxpayer value. 4. The IT and Engineering Services sector often sees complex contracts, making benchmarks crucial for assessing fairness.

Value Assessment

Rating: fair

The contract's total value of $21.8 million over approximately 5.5 years suggests a moderate annual spend. Without specific per-unit cost data for remediation activities, it's difficult to benchmark against similar projects, but the duration implies a need for careful cost management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a broad search for qualified contractors. This method generally promotes competitive pricing, but the fixed-price contract type means the government bears the risk of cost increases if the scope of work expands or unforeseen issues arise.

Taxpayer Impact: Taxpayer funds are utilized for environmental cleanup, a necessary but potentially costly endeavor. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.

Public Impact

Environmental cleanup at a major military installation ensures compliance and reduces long-term environmental liabilities. The contract supports local employment and economic activity in Washington state. Long-term environmental health and safety for the surrounding community are prioritized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to fixed-price nature and unknown environmental conditions.
Long contract duration may not reflect current market efficiencies.
Lack of detailed per-unit cost data hinders precise value assessment.

Positive Signals

Awarded through full and open competition.
Addresses critical environmental remediation needs.
Supports military readiness by maintaining facility environmental standards.

Sector Analysis

This contract falls within the Environmental Consulting and Remediation Services sector, which is crucial for government agencies managing legacy environmental issues at military bases and other federal facilities. Spending benchmarks in this sector can vary widely based on the complexity and scale of contamination.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Tetra Tech, Inc. is a large corporation. Opportunities for small business subcontracting were not explicitly detailed in the provided information.

Oversight & Accountability

The contract's duration and fixed-price nature necessitate robust oversight from the Department of the Army to ensure work is performed efficiently and effectively, and to manage any potential scope changes or unforeseen issues that could impact cost.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration may not reflect current market efficiencies.
Fixed-price contract shifts risk of unforeseen conditions to the government if not managed properly.
Lack of detailed cost breakdown makes value assessment challenging.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to TETRA TECH, INC.. ENVIRONMENTAL SUPPORT FOR ENVIRONMENTAL DIVISION AT FT. LEWIS, WASHINGTON.

Who is the contractor on this award?

The obligated recipient is TETRA TECH, 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 $21.8 million.

What is the period of performance?

Start: 2007-09-27. End: 2013-03-31.

What specific remediation activities were included, and how were their costs estimated to ensure a fair price under the fixed-price contract?

The provided data does not detail the specific remediation activities or the cost estimation methodology used. A fair price under a fixed-price contract relies heavily on accurate initial assessments of the scope and complexity of the environmental challenges. Without this information, it's difficult to definitively assess the fairness of the price agreed upon with Tetra Tech.

Given the contract's length (2007-2013), what mechanisms were in place to mitigate risks associated with evolving environmental regulations or unforeseen site conditions?

The fixed-price nature of the contract places the risk of unforeseen conditions and evolving regulations primarily on the contractor, Tetra Tech. However, robust contract management by the Department of the Army would be crucial to ensure that change orders, if necessary, are justified and priced appropriately, preventing undue burden on the government or contractor.

How effectively did the full and open competition process ensure the best value was achieved for the taxpayer, considering the long-term nature of the contract?

Full and open competition is designed to maximize value by encouraging multiple bidders. However, for long-term environmental remediation, the 'best value' can be complex. While competition likely drove initial pricing, the long duration means ongoing performance and potential adjustments are key. Assessing the ultimate value requires evaluating project outcomes against initial competitive bids and market rates over the contract's lifespan.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 661 ANDERSEN DR STE 7, PITTSBURGH, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,835,852

Exercised Options: $21,835,852

Current Obligation: $21,835,852

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR04D0029

IDV Type: IDC

Timeline