EPA awards $24.3M contract to Tetra Tech EC, Inc. for environmental services over 9 years

Contract Overview

Contract Amount: $24,306,961 ($24.3M)

Contractor: Tetra Tech EC, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2000-08-15

End Date: 2009-01-05

Contract Duration: 3,065 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: SOUTH CAIRO, GREENE County, NEW YORK, 12482

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $24.3 million to TETRA TECH EC, INC. for work described as: Key points: 1. Contract value represents significant investment in environmental remediation services. 2. Long duration suggests a need for sustained support and potential for evolving requirements. 3. Cost Plus Award Fee structure incentivizes performance but requires careful monitoring. 4. Competition level indicates a robust market for these specialized environmental services. 5. Contract awarded to a single entity for a lengthy period warrants scrutiny of ongoing value. 6. Geographic focus on New York suggests targeted environmental needs within the region.

Value Assessment

Rating: fair

The contract's total value of $24.3 million over nearly 9 years averages to approximately $2.7 million annually. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes contractor performance, but it also carries a risk of cost overruns if not managed diligently. Benchmarking against similar environmental remediation contracts of comparable scope and duration would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders likely had the opportunity to compete. The presence of two bids indicates a degree of competition, though the exact number of proposals received is not specified. A competitive process is generally favorable for price discovery and ensuring the government receives the best value. However, the long duration of the contract could potentially limit the number of highly qualified bidders willing to commit.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of contractors to bid, potentially driving down costs and improving service quality.

Public Impact

The Environmental Protection Agency (EPA) benefits from sustained environmental services. Services delivered likely include environmental assessment, remediation, and consulting. Geographic impact is concentrated in New York, addressing specific regional environmental concerns. Workforce implications may include employment opportunities for environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 9 years) may lead to scope creep or evolving needs not fully anticipated at award.
Cost Plus Award Fee structure requires robust oversight to ensure costs are reasonable and award fees are justified.
Limited competition (2 bids) could indicate barriers to entry or a specialized market, potentially impacting long-term cost efficiency.
Lack of specific performance metrics in the provided data makes it hard to assess contractor performance objectively.
Contract awarded to a single entity for an extended period could reduce future competitive opportunities.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
Cost Plus Award Fee structure incentivizes high performance and quality outcomes.
Contract duration suggests a stable, long-term partnership for critical environmental services.
Focus on environmental services aligns with EPA's core mission and public health goals.

Sector Analysis

The environmental consulting and remediation services sector is a significant market driven by regulatory compliance, infrastructure development, and historical contamination cleanup. Federal agencies like the EPA are major clients, awarding substantial contracts for a wide range of services including site assessment, hazardous waste management, and ecological restoration. The market is characterized by specialized firms, with competition often based on technical expertise, past performance, and pricing. This contract fits within the broader category of professional services supporting environmental protection and management.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Tetra Tech EC, Inc. is a large business, the contract does not explicitly mention subcontracting requirements for small businesses. Further investigation into the subcontracting plan, if any, would be needed to assess the impact on the small business ecosystem. Without this information, it's difficult to determine the extent to which small businesses will benefit from this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA). As a definitive contract with a Cost Plus Award Fee structure, robust oversight mechanisms are crucial. This would likely involve regular performance reviews, audits of costs and expenditures, and monitoring of award fee criteria achievement. Transparency would be enhanced through contract reporting requirements and potentially through public access to contract performance data. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

EPA Superfund Program
Environmental Consulting Services
Hazardous Waste Management Contracts
Site Remediation Contracts
Environmental Services for Federal Agencies

Risk Flags

Long contract duration
Cost Plus Award Fee structure
Limited number of bids received

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $24.3 million to TETRA TECH EC, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TETRA TECH EC, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2000-08-15. End: 2009-01-05.

What specific environmental services were delivered under this contract?

The provided data does not detail the specific environmental services delivered under this contract. However, given the contractor (Tetra Tech EC, Inc.) and the awarding agency (Environmental Protection Agency), the services likely encompassed a broad range of environmental consulting and remediation activities. These could include site investigations, risk assessments, feasibility studies, design and implementation of cleanup technologies, hazardous waste management, compliance monitoring, and potentially emergency response actions. The Cost Plus Award Fee structure suggests that performance metrics related to the quality, timeliness, and cost-effectiveness of these services were established and evaluated.

How does the average annual value of this contract compare to similar EPA environmental services contracts?

This contract's average annual value is approximately $2.7 million ($24.3 million over nearly 9 years). To benchmark this effectively, one would need to compare it against a portfolio of similar EPA contracts awarded during the same period, focusing on those with comparable scope (e.g., remediation, consulting), duration, and complexity. Without access to such a database of comparable contracts, it's challenging to definitively state whether $2.7 million annually is high, low, or average. Factors like geographic scope, specific environmental challenges addressed (e.g., superfund sites vs. routine compliance), and the level of technical expertise required would heavily influence the value of comparable contracts.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this duration?

The primary risks associated with a CPAF contract of this duration (nearly 9 years) include potential cost overruns and the difficulty in objectively measuring performance to justify award fees. For the government, there's a risk that costs could escalate beyond initial projections if not rigorously controlled, as the contractor is reimbursed for allowable costs plus a fee. The 'award' portion of the fee is contingent on meeting or exceeding performance targets, which can be subjective and require robust oversight to prevent manipulation or overly generous fee awards. For the contractor, the risk lies in not meeting the performance standards required to earn the maximum award fee. The long duration amplifies these risks, as requirements may change, and contractor performance can fluctuate over time.

What does the limited number of bids (2) suggest about the market for these environmental services?

The fact that only two bids were received for this contract, despite being awarded under full and open competition, could suggest several market dynamics. It might indicate a highly specialized niche market where only a few firms possess the requisite technical expertise, experience, and capacity to undertake such a long-term, complex environmental services project. Alternatively, it could point to significant barriers to entry, such as stringent pre-qualification requirements, high bonding needs, or the complexity of the proposal process itself, which may deter smaller or less experienced companies. It could also imply that the contract's terms or anticipated profitability were not attractive enough to elicit broader interest. This limited competition warrants careful consideration regarding potential impacts on price and innovation.

How has EPA's spending on environmental services evolved over the contract's period?

The contract was awarded in August 2000 and ended in January 2009. To understand EPA's spending evolution on environmental services during this period, one would need to analyze historical EPA budget data and contract spending reports. This specific contract represents a portion of that spending. General trends during this era included continued focus on regulatory compliance (e.g., Clean Air Act, Clean Water Act), remediation of contaminated sites (Superfund), and increasing attention to emerging environmental issues. Analyzing broader EPA spending patterns would reveal shifts in priorities, funding levels, and the types of environmental services being procured, providing context for this contract's significance and scale within the agency's overall environmental protection efforts.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

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

Address: 1000 THE AMERICAN RD, MORRIS PLAINS, NJ, 07950

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $5,406,519

Exercised Options: $12,733,719

Current Obligation: $24,306,961

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline