DoD's $11.1M Commercial Building Construction Contract Awarded to TOLTEST, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $11,094,640 ($11.1M)
Contractor: Toltest, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-08-24
End Date: 2008-09-30
Contract Duration: 768 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Plain-Language Summary
Department of Defense obligated $11.1 million to TOLTEST, INC. for work described as: Key points: 1. The contract value is $11.1 million, awarded for commercial and institutional building construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Commercial and Institutional Building Construction, a significant area of government spending.
Value Assessment
Rating: fair
The contract value of $11.1 million for building construction needs to be benchmarked against similar projects. Without specific details on the scope of work, it's difficult to definitively assess pricing. However, the Cost Plus Fixed Fee structure warrants scrutiny for potential cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing, though the Cost Plus Fixed Fee structure can introduce complexities.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value. However, the CPFF contract type requires diligent oversight to ensure costs remain reasonable.
Public Impact
Taxpayers benefit from competitive bidding, but the CPFF structure necessitates vigilance. The construction sector is vital for infrastructure development and economic activity. The Department of Defense's spending on construction impacts various regions and industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific project details makes comprehensive value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential infrastructure development.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this area is substantial, supporting the development and maintenance of facilities across various agencies. Benchmarks for similar construction projects would provide better context for value assessment.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires robust oversight to ensure that costs are reasonable and that the fixed fee is appropriate for the work performed. Monitoring expenditures and performance is crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed scope of work for value assessment.
- Potential for cost overruns without strong oversight.
- No indication of small business subcontracting.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to TOLTEST, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is TOLTEST, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2006-08-24. End: 2008-09-30.
What was the specific scope of work for this construction project, and how does the $11.1 million value compare to similar projects of comparable size and complexity?
The provided data indicates the contract is for 'Commercial and Institutional Building Construction' but lacks specific details on the project's scope. To assess value effectively, a comparison with similar DoD or civilian construction contracts of equivalent scale, location, and complexity is necessary. This would help determine if the $11.1 million represents a competitive and fair price.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and what mitigation strategies were employed?
The main risk of CPFF is that the contractor may have less incentive to control costs since costs are reimbursed. The fixed fee, while providing some incentive, might not be sufficient to offset potential cost overruns. Mitigation strategies typically involve stringent cost monitoring, detailed audits, and clear performance metrics defined in the contract to ensure efficient execution.
How effectively did the full and open competition process ensure optimal price discovery and contractor performance for this construction project?
Full and open competition generally promotes price discovery by allowing multiple qualified contractors to bid, fostering a competitive environment. However, the CPFF structure can complicate price discovery as the final cost is not fixed upfront. The effectiveness in ensuring optimal performance hinges on the clarity of contract requirements, the evaluation criteria used, and the government's post-award oversight capabilities.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 20
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lakeshore Toltest Corporation (UEI: 962400151)
Address: 1480 FORD ST, MAUMEE, OH, 43537
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA890306D8519
IDV Type: IDC
Timeline
Start Date: 2006-08-24
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2018-08-27
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