GSA's $24.9M Portal, ND Land Port of Entry construction contract awarded to Tetra Tech EC, Inc

Contract Overview

Contract Amount: $24,920,752 ($24.9M)

Contractor: Tetra Tech EC, Inc

Awarding Agency: General Services Administration

Start Date: 2010-10-22

End Date: 2014-06-01

Contract Duration: 1,318 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMPLETE THE CONSTRUCTION OF THE NEW LAND PORT OF ENTRY IN PORTAL, ND.

Place of Performance

Location: PORTAL, BURKE County, NORTH DAKOTA, 58772

State: North Dakota Government Spending

Plain-Language Summary

General Services Administration obligated $24.9 million to TETRA TECH EC, INC for work described as: COMPLETE THE CONSTRUCTION OF THE NEW LAND PORT OF ENTRY IN PORTAL, ND. Key points: 1. The contract aimed to complete the construction of a new land port of entry, a critical infrastructure project. 2. Awarded under full and open competition, suggesting a broad market solicitation. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The project duration was over three years, indicating a substantial construction undertaking. 5. The contract was awarded by the General Services Administration's Public Buildings Service. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

The total award amount of $24.9 million for the construction of a land port of entry is a significant investment. Benchmarking this cost requires detailed project specifications and comparable land port construction projects, which are not readily available. However, the firm-fixed-price nature of the contract suggests that the initial pricing was intended to be definitive, with the contractor bearing cost overruns. Without specific cost breakdowns or comparisons to similar projects, a precise value-for-money assessment is challenging, but the scale of the project implies a substantial public expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the General Services Administration sought bids from all responsible prospective contractors. The presence of three bidders suggests a moderate level of competition for this project. While three bidders are better than one or two, a higher number could potentially drive prices down further and increase the likelihood of innovative solutions. The competition level here likely provided a reasonable basis for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers and potentially leading to more competitive pricing. This approach helps ensure that public funds are used efficiently by selecting the best value offer from the market.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs operations at the Portal, North Dakota port of entry. The project delivered essential infrastructure for facilitating international trade and travel. The geographic impact is localized to Portal, North Dakota, and the surrounding border region. The construction phase likely involved local and regional labor, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates were inaccurate, despite firm-fixed-price.
Delays in construction could impact operational readiness of the port of entry.
Contractor performance issues could lead to substandard construction quality.

Positive Signals

Firm-fixed-price contract mitigates risk of contractor price increases.
Awarded under full and open competition, suggesting a competitive bidding process.
Completion of a critical infrastructure project enhances national security and trade facilitation.

Sector Analysis

The construction sector is a significant part of the US economy, encompassing a wide range of projects from residential to large-scale public infrastructure. This contract falls under commercial and institutional building construction, specifically for a government facility. The market for such projects is often characterized by a mix of large, established construction firms and smaller specialized contractors. Government contracts, especially for critical infrastructure like ports of entry, represent a substantial segment of this market, often requiring specialized expertise and adherence to stringent regulations.

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 General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include contract performance monitoring, site inspections, and financial reviews. Accountability is ensured through the firm-fixed-price contract terms, which hold the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally maintained through federal procurement databases, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Federal Land Port of Entry Construction Projects
GSA Public Buildings Service Infrastructure Investments
Department of Homeland Security Border Infrastructure

Risk Flags

Potential for schedule delays in large infrastructure projects.
Cost certainty is high with FFP, but scope creep can be an issue.
Contractor performance monitoring is crucial for quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.9 million to TETRA TECH EC, INC. COMPLETE THE CONSTRUCTION OF THE NEW LAND PORT OF ENTRY IN PORTAL, ND.

Who is the contractor on this award?

The obligated recipient is TETRA TECH EC, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2010-10-22. End: 2014-06-01.

What was the initial estimated cost versus the final award amount for this project?

The provided data indicates a final award amount of $24,920,751.57. However, information regarding the initial estimated cost or any changes leading to the final award amount is not available in the provided data. Typically, for large construction projects, there is an initial estimate that can evolve due to design changes, market conditions, or unforeseen site conditions. Without this baseline estimate, it is difficult to assess if the final award represented a significant deviation or if it was well within initial projections.

How did Tetra Tech EC, Inc.'s bid compare to other bidders in terms of price and technical proposal?

The data indicates that three bids were received for this contract. However, specific details about the pricing and technical proposals of each bidder, including Tetra Tech EC, Inc.'s specific bid and how it compared to the others, are not provided. In a full and open competition, the award is typically made to the offeror whose proposal is determined to be the best value to the government, considering both price and other factors. Without access to the bid tabulation or evaluation criteria, a direct comparison is not possible.

Were there any significant delays or cost overruns during the project's execution?

The contract had a duration of 1318 days, spanning from October 22, 2010, to June 1, 2014. While this duration indicates a substantial project timeline, the provided data does not specify whether there were any delays beyond the planned schedule or if the final cost deviated from the $24.9 million award. Firm-fixed-price contracts aim to contain costs, but unforeseen circumstances can sometimes lead to contract modifications or claims. Further investigation into contract modification history would be needed to determine if significant issues arose.

What is the typical cost range for constructing a land port of entry of similar size and scope?

Determining a typical cost range for constructing a land port of entry is complex due to significant variations in size, scope, location, security requirements, and the types of facilities included (e.g., administrative buildings, inspection bays, parking, utilities). Land ports can range from relatively small facilities costing a few million dollars to massive complexes costing hundreds of millions. The $24.9 million award for the Portal, ND project suggests a medium-to-large scale facility. However, without specific benchmarks for comparable projects in similar geographic and economic conditions, a precise comparison is difficult.

What is Tetra Tech EC, Inc.'s track record with GSA and similar federal construction projects?

Tetra Tech EC, Inc. is a known entity in the federal contracting space, often involved in environmental, engineering, and construction services. Their track record with the GSA and on similar federal construction projects would need to be assessed through databases like the Federal Procurement Data System (FPDS) or contractor performance rating systems (e.g., CPARS). While this specific contract award is documented, a comprehensive review of their past performance, including project success rates, past disputes, and client satisfaction, would provide a clearer picture of their reliability for future projects.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 3200 GEORGE WASHINGTON WAY, STE G, RICHLAND, WA, 99354

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,920,752

Exercised Options: $24,920,752

Current Obligation: $24,920,752

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07P09HHD0008A

IDV Type: IDC

Timeline