DoD awards $2M engineering services task order to Tetra Tech, Inc. for long-term support

Contract Overview

Contract Amount: $1,999,013 ($2.0M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-12

End Date: 2028-04-25

Contract Duration: 1,840 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AMERICAN THERMOSTAT FI FFS AE TASK ORDER

Place of Performance

Location: CATSKILL, GREENE County, NEW YORK, 12414

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to TETRA TECH, INC. for work described as: AMERICAN THERMOSTAT FI FFS AE TASK ORDER Key points: 1. Task order awarded under a broader contract, suggesting potential for follow-on work and economies of scale. 2. Engineering services are critical for infrastructure and operational readiness, indicating a strategic investment. 3. The contract duration of over 5 years suggests a need for sustained expertise and project continuity. 4. Competition level is 'Full and Open,' which typically fosters competitive pricing and wider contractor participation. 5. The specific North American Industry Classification System (NAICS) code 541330 points to specialized engineering expertise. 6. The contract type 'Cost Plus Fixed Fee' can incentivize cost control while ensuring contractor compensation. 7. Awarded by the Department of the Army, indicating a focus on military infrastructure or operational support needs.

Value Assessment

Rating: good

The total award amount of approximately $2 million for engineering services over a 5-year period appears reasonable, especially considering the specialized nature of the work and the potential for complex projects within the Department of Defense. Benchmarking against similar long-term engineering support contracts for federal agencies would provide a more precise value assessment. The 'Cost Plus Fixed Fee' contract type allows for flexibility in scope while aiming for cost efficiency through a fixed fee component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all eligible and responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this specific engineering services requirement. A competitive environment generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging the competitive marketplace to secure the best value for engineering services.

Public Impact

The Department of the Army benefits from specialized engineering expertise to support its missions and infrastructure. Services delivered likely include design, analysis, and technical support for military facilities or operational systems. The contract is based in New York, suggesting a potential geographic focus for the services rendered. Workforce implications include the potential for employment of engineers and technical specialists by Tetra Tech, Inc. and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
Long contract durations may require robust performance monitoring to ensure continued quality and relevance.
The specific engineering tasks are not detailed, making it difficult to assess the full scope of work and associated risks.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The contractor, Tetra Tech, Inc., is likely an established entity with a track record in engineering services.
The task order is part of a larger contract vehicle, potentially streamlining future procurements and management.
The extended duration suggests a stable, long-term need that the contractor is positioned to meet.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant sector within federal procurement, encompassing a wide range of technical expertise from civil and mechanical to electrical and environmental engineering. The federal government is a major consumer of these services, particularly for infrastructure development, maintenance, and complex project management across agencies like the Department of Defense. Spending in this sector is often driven by national security needs, infrastructure upgrades, and research and development initiatives. Comparable spending benchmarks would typically involve analyzing the average cost of similar engineering task orders or contracts awarded by the DoD or other large federal agencies over similar timeframes.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Tetra Tech, Inc., is likely a large business. While there is no direct small business set-aside, the contract's structure may still offer subcontracting opportunities for small businesses, depending on Tetra Tech's subcontracting plan and the nature of the engineering services required. Further analysis of the subcontracting goals and performance would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and program managers within the Department of the Army. Performance monitoring, milestone reviews, and financial audits are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply if specific allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Engineering Services Contracts
Army Corps of Engineers Support Contracts
Professional, Scientific, and Technical Services
Infrastructure Development and Maintenance Contracts

Risk Flags

Contract duration exceeds 5 years.
Contract type is Cost Plus Fixed Fee.
Specific scope of work not detailed in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to TETRA TECH, INC.. AMERICAN THERMOSTAT FI FFS AE TASK ORDER

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 $2.0 million.

What is the period of performance?

Start: 2023-04-12. End: 2028-04-25.

What is Tetra Tech, Inc.'s track record with the Department of Defense for engineering services?

Tetra Tech, Inc. has a substantial history of contracting with the Department of Defense (DoD) and its various branches, including the Department of the Army. Their portfolio often includes a wide array of engineering and technical services, such as environmental consulting, infrastructure design, construction management, and program support. Analyzing past performance reviews, contract values, and the types of services rendered in previous DoD engagements would provide a clearer picture of their capabilities and reliability. A review of their award history within the DoD would likely reveal numerous contracts, indicating a strong existing relationship and proven ability to meet the government's complex engineering needs. This specific task order, valued at approximately $2 million over five years, aligns with the typical scale of services they provide to defense agencies.

How does the $2 million award compare to similar engineering services contracts awarded by the Department of the Army?

The $2 million award for engineering services over a period of approximately five years is within a common range for task orders supporting specific projects or ongoing operational needs within the Department of the Army. Larger, more comprehensive engineering contracts can range from tens to hundreds of millions of dollars, often encompassing major infrastructure development or extensive program management. Smaller task orders might focus on niche technical analyses or short-term design support. Given the 'Cost Plus Fixed Fee' structure and the 'Full and Open Competition' with 9 bidders, this award suggests a competitive procurement for a defined scope of specialized engineering work. Benchmarking against similar NAICS code 541330 contracts awarded by the Army in the last few years would reveal if the per-year cost or overall value is particularly high or low, but as a standalone figure, it appears to be a moderate investment for sustained engineering support.

What are the primary risks associated with a 'Cost Plus Fixed Fee' contract for engineering services?

The primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract, like the one awarded to Tetra Tech, Inc., revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial projections due to unforeseen complexities, inefficient practices, or inadequate oversight, the total expenditure for the government can increase significantly. The risk for the government is that the final cost may exceed the anticipated budget. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable, and in managing the project efficiently to avoid incurring excessive costs that could erode their profit margin. Robust government oversight and clear definition of allowable costs are crucial to mitigate these risks.

How effective is 'Full and Open Competition' in ensuring value for taxpayer money in engineering services procurements?

Full and Open Competition is generally considered the most effective method for ensuring value for taxpayer money in federal procurements, including engineering services. By allowing all eligible responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of 9 bidders for this specific task order indicates a robust competitive environment. This competition drives down prices as contractors vie for the award, and it encourages them to offer their best technical approaches and value propositions. While effective, the success of full and open competition also relies on well-defined requirements, clear evaluation criteria, and diligent source selection processes to ensure the 'best value' is truly achieved, not just the lowest price.

What are the historical spending patterns for engineering services within the Department of the Army?

Historical spending patterns for engineering services within the Department of the Army reveal a consistent and substantial investment driven by the need to maintain, upgrade, and develop vast military infrastructure, facilities, and operational systems worldwide. The Army consistently procures a wide range of engineering support, from architectural and design services for new construction and renovations to environmental remediation, logistics planning, and technical consulting for complex weapon systems. Spending often fluctuates based on geopolitical events, modernization initiatives, and infrastructure resilience programs. The Army Corps of Engineers is a primary entity responsible for managing many of these engineering contracts. Analyzing historical data shows a significant portion of the Army's budget allocated to engineering and construction-related services, underscoring its critical role in supporting military readiness and operations.

What are the implications of the 5-year duration for this engineering services contract?

The 5-year duration (1840 days) for this engineering services task order has several implications. Firstly, it suggests that the requirement is for long-term, sustained support rather than a short-term, project-specific need. This allows for greater continuity and stability for both the government and the contractor, potentially leading to deeper expertise and more efficient project execution over time. Secondly, it implies a significant commitment of resources, requiring careful planning and budgeting by the Department of the Army. For the contractor, it offers a predictable revenue stream and the opportunity to build a dedicated team and specialized knowledge base for the specific requirements. However, such long durations also necessitate robust performance management and contract oversight to ensure the services remain relevant, high-quality, and cost-effective throughout the contract period, and to mitigate risks associated with potential changes in technology or mission needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ20R3014

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 415 OAK ST, KANSAS CITY, MO, 64106

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

Financial Breakdown

Contract Ceiling: $2,501,073

Exercised Options: $2,501,073

Current Obligation: $1,999,013

Actual Outlays: $89,938

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $136,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912DQ21D3007

IDV Type: IDC

Timeline