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
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration (819 days) increases risk of cost escalation and scope creep.
Positive Signals
- Full and open competition utilized.
- Awarded by Department of the Air Force, indicating specific military need.
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
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific project details for granular cost analysis.
- Potential for cost overruns without stringent oversight.
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: 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: 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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