Department of Defense awarded $30M for construction services, with TOLTEST, INC. securing the contract

Contract Overview

Contract Amount: $29,983,564 ($30.0M)

Contractor: Toltest, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-22

End Date: 2009-12-23

Contract Duration: 1,219 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200611!001723!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0005 ! !20060822!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! !IRAQ !+000016677365!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !5!B!M! !A!A!20110501!B! ! !A! !A!U!U!2!005!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $30.0 million to TOLTEST, INC. for work described as: 200611!001723!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0005 ! !20060822!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! … Key points: 1. Contract value of $29.98M for construction services indicates a significant investment in infrastructure. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. A duration of 1219 days points to a long-term project with substantial logistical requirements. 4. The North American Industry Classification System (NAICS) code 236220 categorizes this as Commercial and Institutional Building Construction. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The award was made by the Department of the Air Force, indicating a specific military infrastructure need.

Value Assessment

Rating: fair

The total award amount of $29.98 million for construction services is substantial. Benchmarking this against similar large-scale construction projects for the Department of Defense is difficult without more specific project details. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. This necessitates strong oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a competitive environment, which typically drives better pricing and terms for the government. The level of competition is a positive sign for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: A competitive bidding process for this substantial contract is beneficial for taxpayers, as it increases the likelihood of securing services at a reasonable cost and encourages efficient project execution.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its personnel, who will gain from improved facilities. The contract delivers construction services for commercial and institutional buildings, potentially including barracks, administrative facilities, or training centers. The geographic impact is specified as Iraq, indicating a deployment of construction resources to support overseas military operations. Workforce implications include job creation for construction workers, engineers, project managers, and support staff, both domestically and potentially in the host nation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
The project's overseas location (Iraq) introduces logistical and security risks that could impact cost and schedule.
The long contract duration (1219 days) increases the potential for scope creep or changes in requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Multiple bidders (5) indicate market interest and potential for good value.
The contract is for essential infrastructure development, supporting military operations.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). This sector is characterized by large-scale projects requiring significant labor, materials, and project management. Federal spending in this area often supports military base development, government facilities, and infrastructure projects, both domestically and abroad. Comparable spending benchmarks would depend heavily on the specific type and scale of the buildings constructed.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside, large prime contractors may or may not prioritize subcontracting to small businesses, potentially limiting opportunities for them in this large contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and project management offices. Given the overseas location, additional oversight from military command and potentially the Department of Defense's Inspector General would be expected to ensure compliance, prevent fraud, and manage risks. Transparency is facilitated by contract award data, but detailed project progress and spending reports would be crucial for full accountability.

Related Government Programs

Military Construction
Base Operations Support
Overseas Contingency Operations

Risk Flags

Cost Plus Fixed Fee contract type
Overseas performance location (Iraq)
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to TOLTEST, INC.. 200611!001723!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0005 ! !20060822!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! !IRAQ !+000016677365!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !5!B!M! !A!A!201

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 $30.0 million.

What is the period of performance?

Start: 2006-08-22. End: 2009-12-23.

What is the track record of TOLTEST, INC. with federal contracts, particularly in overseas construction?

Information on TOLTEST, INC.'s specific track record with federal contracts, especially those involving overseas construction in challenging environments like Iraq, is not detailed in the provided data snippet. A comprehensive review would require accessing the Federal Procurement Data System (FPDS) or similar databases to analyze past performance, contract types, award values, and any reported issues or successes. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage complex logistical and security challenges would be critical for assessing future performance risk.

How does the $29.98 million award compare to similar construction projects in Iraq or for military bases?

Directly comparing the $29.98 million award to similar construction projects in Iraq or for military bases is challenging without more specific project details (e.g., type of buildings, square footage, specific location nuances, security requirements). However, the amount suggests a significant undertaking, likely involving multiple structures or substantial renovation. The context of operating in Iraq typically involves higher costs due to logistical complexities, security measures, and potentially higher labor rates compared to domestic projects. A detailed benchmark analysis would require identifying comparable projects based on scope, location, and contract type.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a project of this scale and location?

The primary risks with a CPFF contract for a large-scale overseas construction project like this include potential cost overruns and reduced incentive for the contractor to control expenses. While the fixed fee provides some certainty, the contractor is reimbursed for all allowable costs. In an environment like Iraq, unforeseen issues (security incidents, supply chain disruptions, regulatory changes) can significantly increase costs. Effective risk mitigation requires robust government oversight, clear definition of 'allowable costs,' stringent change order management, and regular audits to ensure the contractor is managing resources efficiently and ethically.

What does the 'OTHER MISCELLANEOUS BUILDINGS' classification imply about the project's scope?

The classification 'OTHER MISCELLANEOUS BUILDINGS' (under NAICS 236220, which is Commercial and Institutional Building Construction) suggests the project is not for a single, standardized type of structure like a typical office building or warehouse. It could encompass a variety of facilities needed for military operations, such as administrative offices, barracks, recreational facilities, maintenance shops, or specialized support structures. This broad classification implies a potentially diverse scope of work, requiring flexibility in planning and execution, and potentially increasing the complexity of project management and oversight.

How might the 5-bidder competition influence the final cost and quality of the construction services?

A competition with 5 bidders for a contract of this magnitude ($29.98 million) is generally a positive indicator for taxpayers. It suggests that multiple firms were interested and capable of undertaking the work, leading to a more competitive bidding environment. This increased competition typically drives down prices as contractors strive to offer the most attractive proposals. Furthermore, it allows the government to select from a wider pool of qualified contractors, potentially leading to better quality services and a higher likelihood of selecting a firm with relevant experience and a strong performance record. The government can leverage the competitive tension to negotiate favorable terms.

What are the implications of the contract duration (1219 days) for project management and oversight?

A contract duration of 1219 days (approximately 3.3 years) for a construction project signifies a long-term commitment and a complex undertaking. For project management and oversight, this extended timeline necessitates sustained attention and resources. Key implications include: 1) **Schedule Management:** Maintaining focus and momentum over several years is crucial. 2) **Budgetary Planning:** Long-term funding needs to be secured and managed. 3) **Change Management:** The likelihood of requirement changes or unforeseen challenges increases over time, requiring robust change control processes. 4) **Contractor Performance Monitoring:** Continuous assessment of the contractor's performance is vital to ensure quality and adherence to the contract throughout its lifespan. 5) **Risk Mitigation:** Emerging risks need to be identified and addressed proactively over the extended period.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lakeshore Engineering Services, Inc. (UEI: 838767960)

Address: 1480 FORD ST, MAUMEE, OH, 09

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8519

IDV Type: IDC

Timeline