Department of Defense awarded $34.2M for construction services, with a significant portion allocated to Iraq

Contract Overview

Contract Amount: $34,224,382 ($34.2M)

Contractor: Toltest, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-25

End Date: 2009-07-30

Contract Duration: 1,070 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200611!001894!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0006 ! !20060825!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! !IRAQ !+000017401054!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!006!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $34.2 million to TOLTEST, INC. for work described as: 200611!001894!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0006 ! !20060825!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! … Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development or maintenance. 2. The contract duration of 1070 days suggests a substantial project scope. 3. Awarded by the Department of the Air Force, highlighting a specific military requirement. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The presence of 6 bidders suggests a competitive market for these services. 6. The project's geographic focus on Iraq points to support for overseas operations.

Value Assessment

Rating: fair

The total award amount of $34.2 million for construction services is substantial. Benchmarking this against similar overseas construction contracts is difficult without more specific details on the scope of work. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This can be less cost-effective than fixed-price contracts if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This level of competition is generally positive for price discovery and ensuring a reasonable market price. The presence of multiple bidders suggests that the market for these construction services is accessible and that the government had a good selection of potential contractors.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award.

Public Impact

Military personnel and operations in Iraq benefit from improved infrastructure or facilities. Construction services are delivered, potentially including building, renovation, or maintenance of facilities. The geographic impact is concentrated in Iraq, supporting specific military installations or missions. Workforce implications include employment opportunities for construction labor, both locally and potentially from the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher final costs if not managed diligently.
The significant allocation to Iraq raises questions about security and logistical challenges impacting cost and timeline.
Limited information on the specific scope of 'OTHER MISCELLANEOUS BUILDINGS' makes it hard to assess value.

Positive Signals

Full and open competition with 6 bidders suggests a healthy market and potential for competitive pricing.
Awarded by the Department of the Air Force, indicating a clear governmental need.
The contract has a defined period of performance, allowing for structured project execution.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). This sector is characterized by a wide range of firms, from large general contractors to specialized subcontractors. The market size for federal construction projects is substantial, with significant spending allocated to military infrastructure and support services, particularly in overseas locations. This contract represents a portion of that broader federal investment in construction.

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. Without a small business set-aside, it is less likely that small businesses will be directly involved as prime contractors, though they may participate as subcontractors to the prime awardee, TOLTEST, INC.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally provided through contract award databases, but detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction
Overseas Contingency Operations
Base Operations Support
Facility Maintenance and Repair

Risk Flags

Cost Plus Fixed Fee contract type
Performance in a high-risk environment (Iraq)
Broadly defined scope ('OTHER MISCELLANEOUS BUILDINGS')

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to TOLTEST, INC.. 200611!001894!5700!FA8903!HSW/PKV !FA890306D8519 !A!N! !N!0006 ! !20060825!20070405!047306055!047306055!047306055!N!TOLTEST, INC !1480 FORD ST !MAUMEE !OH!43537!00000! !IZ! ! !IRAQ !+000017401054!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 $34.2 million.

What is the period of performance?

Start: 2006-08-25. End: 2009-07-30.

What is the specific scope of work for 'OTHER MISCELLANEOUS BUILDINGS' under this contract?

The specific scope of work for 'OTHER MISCELLANEOUS BUILDINGS' is not detailed in the provided data. This classification (PSC: Y199) is broad and could encompass a wide range of construction activities, from minor repairs and renovations to the construction of specialized facilities. Without further documentation, it is difficult to ascertain the exact nature of the buildings or the services required. This lack of specificity can make it challenging to benchmark costs accurately or assess the project's true value and impact.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for construction projects?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or when there is significant uncertainty in the cost of performance. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While CPFF provides flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor has less incentive to control costs once the fee is fixed. For construction projects where scope can be clearly defined, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) generally offer better cost control and predictability for the government.

What are the potential risks associated with performing construction services in Iraq for the Department of Defense?

Performing construction services in Iraq presents several significant risks. These include heightened security threats to personnel and equipment, logistical challenges in transporting materials and personnel, potential political instability, and complex regulatory environments. These factors can lead to increased costs due to security measures, delays, and the need for specialized support. Furthermore, the risk of unforeseen site conditions or changes in operational requirements can impact project timelines and budgets, especially under a CPFF contract where such uncertainties are reimbursed.

What is the historical spending pattern for similar construction contracts awarded by the Department of the Air Force for overseas operations?

Historical spending patterns for similar construction contracts by the Department of the Air Force for overseas operations would likely show significant investment, particularly in regions with active military presence. Spending often fluctuates based on geopolitical conditions, troop levels, and infrastructure needs. Contracts for base development, facility upgrades, and support structures are common. Analyzing past awards would reveal trends in contract values, durations, and the types of services procured, providing context for the $34.2 million award. However, specific historical data requires access to broader federal procurement databases.

How does the number of bidders (6) influence the final contract price and value for this construction project?

A competition involving six bidders generally suggests a healthy market for the services sought, which typically leads to more competitive pricing. With more bidders, the government has a greater chance of receiving proposals that reflect market rates and include efficiencies. This increased competition puts downward pressure on prices as contractors vie for the award. Therefore, having six bidders is a positive indicator that the $34.2 million award price is likely a reasonable reflection of market value, assuming the proposals were evaluated rigorously and the scope was well-defined.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

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