DoD's $33.2M COP NORTH Contract Awarded to TOLTEST, INC. for Construction Services

Contract Overview

Contract Amount: $33,246,994 ($33.2M)

Contractor: Toltest, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-05

End Date: 2009-04-03

Contract Duration: 819 days

Daily Burn Rate: $40.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: COP NORTH

Plain-Language Summary

Department of Defense obligated $33.2 million to TOLTEST, INC. for work described as: COP NORTH Key points: 1. The contract value of $33.2 million falls within a typical range for large-scale construction projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) 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 $33.2 million for construction services appears reasonable given the duration and scope. However, without specific project details or benchmarks for similar DoD construction projects, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified contractors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, as multiple bids were considered.

Public Impact

Construction projects can have significant local economic impacts, creating jobs and utilizing local resources. The Department of Defense's infrastructure development is crucial for national security operations. Long-term maintenance and operational costs associated with new construction are a consideration for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Commercial and Institutional Building Construction sector is a substantial part of federal spending, particularly for agencies like the Department of Defense that require extensive infrastructure. Benchmarks for similar projects would be needed for a more precise comparison.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense typically has robust oversight mechanisms for large construction contracts. However, the effectiveness of this oversight in managing costs and ensuring timely completion would require a review of performance reports and audits.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-defense, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to TOLTEST, INC.. COP NORTH

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 $33.2 million.

What is the period of performance?

Start: 2007-01-05. End: 2009-04-03.

What specific construction services were rendered under COP NORTH, and how do they align with the $33.2 million cost?

The provided data does not detail the specific construction services. COP NORTH, awarded to TOLTEST, INC. by the Department of the Air Force, was for commercial and institutional building construction. The $33.2 million cost covers the execution of these services over 819 days. A breakdown of costs by service type would be necessary to fully assess value.

What are the primary risks associated with a Cost Plus Fixed Fee contract for a large construction project like COP NORTH?

The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize the contractor to incur higher costs, as their profit margin remains constant regardless of the total project expenditure. Effective oversight is crucial to mitigate this risk.

How effectively did the full and open competition process ensure optimal value for taxpayer money in the COP NORTH award?

Full and open competition is designed to maximize value by encouraging multiple bids, which typically leads to more competitive pricing. While this process was used for COP NORTH, the CPFF contract type introduces potential cost escalation risks. The ultimate value realization depends on rigorous contract management and oversight to ensure costs remain reasonable.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, 09

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,246,994

Exercised Options: $33,246,994

Current Obligation: $33,246,994

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8519

IDV Type: IDC

Timeline

Start Date: 2007-01-05

Current End Date: 2009-04-03

Potential End Date: 2009-04-03 00:00:00

Last Modified: 2013-09-27

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