Sustainable Group / Terraphase Engineering JV LLC

Sustainable Group / Terraphase Engineering JV LLC, a service-disabled veteran-owned small business (SDVOSB) and self-certified small disadvantaged business based in Moraga, California, operates exclusively as a prime contractor delivering facility maintenance, repair, construction, and environmental remediation services to the U.S. Coast Guard under a focused, single-vehicle portfolio. The joint venture competes predominantly under SDVOSB set-asides and full-and-open designations on regional facility work.

The vendor's customer concentration is extreme: 31 of 33 awards (96% of portfolio) and $322.9 million of $323.2 million combined potential value derive from a single customer, the Department of Homeland Security US Coast Guard. The remaining two awards, totaling $271 thousand, were placed by the Department of the Navy. All meaningful revenue flows through the Coast Guard RMACC 2019 (Regional Maintenance, Alteration, and Construction) regional multiple-award contract vehicle, which has generated 30 task orders carrying $47.9 million combined potential value. Sustainable Group / Terraphase Engineering's federal footprint is therefore coextensive with its seat on RMACC 2019.

The vendor's capability portfolio centers on lead-based paint (LBP) abatement, roofing and siding replacement, facility repairs and renovations, slope stability restoration, aids to navigation construction, utility system upgrades, environmental remediation, and infrastructure modernization at West Coast Coast Guard installations. Representative recent work includes a $5.9 million SDVOSB delivery order awarded December 26, 2025, for lead abatement and exterior siding replacement on five housing units at TRACEN Petaluma (completion June 24, 2026); a $1.03 million SDVOSB delivery order awarded May 20, 2026, for fuel tank demolition, removal, and replacement at Cape Disappointment Station in Ilwaco, Washington (completion January 25, 2027); a $3.64 million full-and-open delivery order for LBP abatement and siding replacement on two housing units at TRACEN Petaluma (awarded September 18, 2024, completed October 15, 2025); and a $6.08 million Safe House Initiative renovation project at TRACEN Petaluma encompassing roofing, pavement, aids to navigation construction, environmental remediation, and utilities upgrades (awarded October 1, 2023, completed October 12, 2024). Work is performed across Coast Guard facilities in California, Washington, and Oregon.

Activity has declined sharply: the vendor recorded three awards in 2022, five in 2023, two in 2024, two in 2025, and two in 2026 year-to-date. Only one award (combined potential value $1 million) reaches ultimate completion inside the next twenty-four months, presenting minimal recompete cliff exposure but also signaling either a slowdown in task-order velocity or a backlog of large multi-year contracts. SCI-reported invoiced revenue reached $16.1 million in FY2024 across 22.3 FTEs, then dropped to $10 million in FY2025 across 8.5 FTEs. Across SCI-reportable prime contracts, median government-paid hourly rates run around $333.25/hr, with senior labor pricing extending to $1,016.39/hr. The vendor engages subcontractors on an average of 37% of total contractor hours across its prime contracts, naming 15 distinct subs, indicating a hybrid delivery model that builds internal teams and supplements with specialized subs for environmental and technical work.