Army awards $27.4M construction contract to Tetra Tech Facilities Construction, LLC for 2,807 days

Contract Overview

Contract Amount: $27,447,570 ($27.4M)

Contractor: Tetra Tech Facilities Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-23

End Date: 2017-05-31

Contract Duration: 2,807 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to TETRA TECH FACILITIES CONSTRUCTION, LLC for work described as: BASE BID Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating price certainty. 3. Performance duration of 2,807 days (approx. 7.7 years) suggests a long-term project. 4. The base bid amount of $27.4M provides a clear initial financial commitment. 5. The contract falls under Commercial and Institutional Building Construction, a broad category. 6. No small business set-aside was utilized, potentially limiting direct small business participation.

Value Assessment

Rating: fair

The base bid of $27.4 million for a definitive contract spanning nearly 8 years requires careful benchmarking against similar large-scale construction projects. Without specific deliverables or scope details, assessing value for money is challenging. The firm fixed-price structure offers cost predictability but may not reflect optimal market pricing if competition was not robust or if scope creep occurred. Further analysis would involve comparing the per-square-foot cost or cost per year against industry standards for similar facility types and locations.

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 a bid. The presence of 5 bidders suggests a moderate level of competition for this project. While multiple bidders are positive, the ultimate price achieved relative to the scope and market rates would determine the extent of price discovery and taxpayer benefit.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The fact that five bids were received suggests that the government received multiple options, potentially leading to a more favorable price than a sole-source award.

Public Impact

The primary beneficiaries are the Department of the Army, receiving construction services for its facilities. The contract delivers commercial and institutional building construction, likely involving new builds or renovations. The geographic impact is centered in Maryland, where the contract is managed. Workforce implications include employment opportunities for construction workers, project managers, and support staff employed by Tetra Tech and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2,807 days) increases the risk of cost overruns due to inflation or unforeseen project changes.
Lack of specific project scope in the provided data makes it difficult to assess if the $27.4M is competitive.
No indication of small business subcontracting goals could mean limited opportunities for smaller firms in this project.

Positive Signals

Awarded through full and open competition, suggesting a fair process and potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Tetra Tech Facilities Construction, LLC, has experience in construction, implying capability.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the overall construction industry, encompassing a wide range of projects from office buildings to specialized government facilities. Federal spending in this area often supports infrastructure development and maintenance. Benchmarking this contract would involve comparing its cost per square foot or cost per year against similar government or private sector projects of comparable scale and complexity within the Mid-Atlantic region.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific small business subcontracting goals in the provided data. This means that prime opportunities were not reserved for small businesses. While Tetra Tech may engage small businesses as subcontractors, the absence of explicit set-aside or subcontracting requirements suggests that direct participation by small businesses may be limited compared to contracts with such provisions.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to complete the work within the agreed-upon cost. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) projects
Federal Building Construction
Department of Defense Facilities Maintenance

Risk Flags

Long contract duration may increase exposure to cost volatility.
Lack of detailed scope information hinders value assessment.
Potential for cost increases over the 7.7-year performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to TETRA TECH FACILITIES CONSTRUCTION, LLC. BASE BID

Who is the contractor on this award?

The obligated recipient is TETRA TECH FACILITIES CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2009-09-23. End: 2017-05-31.

What specific types of facilities were constructed or renovated under this contract?

The provided data indicates the contract falls under 'Commercial and Institutional Building Construction' (NAICS 236220) and was awarded to Tetra Tech Facilities Construction, LLC by the Department of the Army. However, the specific nature of the facilities—whether they are administrative buildings, barracks, training centers, or other types of infrastructure—is not detailed in the summary data. Understanding the facility type is crucial for assessing the appropriateness of the $27.4 million cost and the 2,807-day performance period. For instance, constructing a new, complex facility would justify a higher cost and longer duration than a renovation of an existing structure.

How does the $27.4 million base bid compare to the final contract value?

The provided data lists a 'BASE BID' of $27,447,570.34. For a definitive contract, this often represents the initial awarded amount. However, definitive contracts, especially those with long durations like this one (2,807 days), can be subject to modifications, change orders, or adjustments over time. Without access to the contract's modification history, it's impossible to know if the final expenditure significantly deviated from this base bid. If the contract was indeed a firm fixed price, significant increases would typically require formal modifications and justification, but scope changes could lead to adjustments.

What is the contractor's performance history with the Department of the Army for similar construction projects?

Tetra Tech Facilities Construction, LLC was awarded this $27.4 million definitive contract for commercial and institutional building construction. To assess their track record, one would need to examine their past performance ratings on federal contracts, particularly those with the Department of the Army and within the construction sector. Key indicators include past performance evaluations (e.g., CPARS reports), any history of contract disputes, timely completion rates, and adherence to budget on previous projects. A strong history suggests a lower risk for this current contract, while a poor history would raise concerns about potential delays or cost overruns.

What were the specific criteria used to evaluate the bids during the full and open competition?

During a full and open competition, the Department of the Army would have established specific evaluation criteria outlined in the solicitation document. These typically include factors such as technical approach, past performance, management capability, and price. For construction contracts, technical factors might involve the proposed construction methods, safety plans, and project management strategies. Price is almost always a significant factor. The relative weighting of these factors determines how bids are compared. Understanding these criteria helps ascertain if the contract was awarded to the best value offer, not just the lowest price.

Are there any known risks associated with the Maryland region for large-scale construction projects of this nature?

Large-scale construction projects in Maryland, like this $27.4 million contract, can face various risks. These may include navigating complex state and local permitting processes, potential labor shortages or union-related issues, material cost volatility, and environmental regulations. The long duration (2,807 days) exacerbates risks related to economic fluctuations, weather impacts (e.g., hurricanes, heavy snow), and potential unforeseen site conditions (e.g., historical artifacts, contaminated soil). Proactive risk management plans by the contractor and diligent oversight by the Army are essential to mitigate these potential issues.

How does the duration of 2,807 days compare to typical construction contracts of this value?

A contract duration of 2,807 days, approximately 7.7 years, is quite long for a single construction award, especially if it represents the initial period of performance. Typical construction contracts of this approximate value ($27.4 million) might range from 1 to 3 years, depending on the project's complexity and scope. Such a long duration could indicate a phased project, a very large-scale undertaking, or potentially a requirements-type contract where work is ordered over time. It increases the exposure to market volatility (materials, labor) and necessitates robust long-term project management and oversight to ensure efficiency and control costs.

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: TWO STEP

Solicitation ID: W912K609R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 330 JOHN CARLYLE 3RD FL, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $27,447,570

Exercised Options: $27,447,570

Current Obligation: $27,447,570

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline