Air Force awards $21.7M construction contract to Toltest, Inc. for building project in North Dakota
Contract Overview
Contract Amount: $21,728,334 ($21.7M)
Contractor: Toltest, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-11
End Date: 2011-09-23
Contract Duration: 1,138 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MIGRATED DATA VALUE UNKNOWN
Place of Performance
Location: GRAND FORKS AFB, GRAND FORKS County, NORTH DAKOTA, 58205
Plain-Language Summary
Department of Defense obligated $21.7 million to TOLTEST, INC. for work described as: MIGRATED DATA VALUE UNKNOWN Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $21.7 million falls within a moderate spending range for construction projects of this nature. 3. Fixed-price contract type may limit cost overruns for the government, but requires careful initial pricing. 4. The duration of 1138 days indicates a significant, long-term construction undertaking. 5. Awarded by the Department of the Air Force, highlighting defense infrastructure investment. 6. The project is located in North Dakota, potentially impacting local construction workforce and economy.
Value Assessment
Rating: fair
The contract value of $21.7 million for a construction project of this scale and duration appears within a reasonable range, though specific benchmarks for similar Air Force facilities in North Dakota are not readily available. The firm fixed-price structure suggests the government sought to control costs upfront. Without detailed project specifications and comparable bids, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of interest and competition for this project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.
Taxpayer Impact: A competitive bidding process for this construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are the Department of the Air Force and its personnel who will utilize the completed facility. The contract delivers essential commercial and institutional building construction services. The geographic impact is concentrated in North Dakota, potentially stimulating local economic activity and employment. The project will likely involve a significant construction workforce, including skilled tradespeople and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial fixed-price estimates do not accurately reflect all project complexities.
- Risk of delays due to the long duration and potential for unforeseen site conditions or weather impacts in North Dakota.
- Dependence on the contractor's ability to manage a large-scale construction project effectively over an extended period.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm fixed-price contract type provides cost certainty for the government.
- The project addresses a clear need for infrastructure development within the Department of Defense.
Sector Analysis
The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract for commercial and institutional building construction aligns with the government's ongoing need to develop and maintain its physical assets. Comparable spending benchmarks for similar military construction projects can vary widely based on location, scope, and specific requirements, but a $21.7 million award for a multi-year project is not unusual.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were part of the award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight activities may not be publicly disclosed.
Related Government Programs
- Military Construction Projects
- Department of Defense Facilities
- General Building Construction
- Air Force Infrastructure
Risk Flags
- Long contract duration may increase exposure to market fluctuations.
- Firm Fixed Price contract places cost risk on contractor, requiring careful bid estimation.
- Geographic location in North Dakota may present unique logistical or environmental challenges.
Tags
construction, department-of-defense, department-of-the-air-force, north-dakota, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, moderate-value, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to TOLTEST, INC.. MIGRATED DATA VALUE UNKNOWN
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 $21.7 million.
What is the period of performance?
Start: 2008-08-11. End: 2011-09-23.
What is the specific type of commercial and institutional building being constructed, and what is its intended purpose for the Air Force?
The provided data does not specify the exact type or purpose of the commercial and institutional building. However, given it is a Department of the Air Force contract, it could range from administrative facilities, barracks, maintenance hangars, training centers, or support structures. The classification 'Commercial and Institutional Building Construction' is broad and encompasses a wide array of non-residential structures. Further investigation into the contract's Statement of Work (SOW) or associated documentation would be required to ascertain the precise nature and function of the facility.
How does the $21.7 million contract value compare to similar Air Force construction projects awarded in North Dakota over the past five years?
Without access to a comprehensive database of all Air Force construction contracts specifically in North Dakota, a direct comparison is difficult. However, $21.7 million for a project spanning over 1000 days suggests a substantial undertaking. General benchmarks for military construction can vary significantly based on project complexity, size, and location. To provide a precise comparison, one would need to analyze historical contract awards for similar facility types and durations within the same geographic region, factoring in inflation and market conditions at the time of award.
What are the key performance indicators (KPIs) or milestones outlined in the contract for Toltest, Inc. to achieve?
The provided data does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. Typically, firm fixed-price construction contracts include detailed schedules with phased completion dates for different aspects of the project (e.g., foundation, structural, interior, final inspection). Performance is often measured against adherence to these schedules, quality of work, safety compliance, and adherence to the technical specifications outlined in the Statement of Work. The contracting officer's representative (COR) would monitor progress against these contractual requirements.
What is the track record of Toltest, Inc. in completing large-scale federal construction projects, particularly for the Department of Defense?
The provided data does not include information on Toltest, Inc.'s specific track record. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A review of their past projects, especially those with the Department of Defense, would indicate their experience with similar project scopes, complexities, and regulatory environments.
Given the 1138-day duration, what are the potential risks associated with long-term construction contracts, and how are they mitigated in this award?
Long-term construction contracts, like this 1138-day project, carry inherent risks such as cost escalation (even with fixed-price, unforeseen issues can arise), material availability fluctuations, labor market changes, and potential design modifications. Mitigation strategies often include detailed initial planning and budgeting, contingency funds, clear change order processes, and robust project management oversight. The firm fixed-price nature of this contract places the primary cost risk on Toltest, Inc., incentivizing them to manage these factors effectively. The Air Force would likely have oversight mechanisms to monitor progress and address issues proactively.
How does the 'Commercial and Institutional Building Construction' category align with the Department of the Air Force's broader infrastructure needs?
The 'Commercial and Institutional Building Construction' category is fundamental to the Department of the Air Force's operational readiness and personnel support. This category encompasses a wide range of facilities essential for military functions, including administrative offices, training facilities, housing support buildings, maintenance workshops, and community centers. Investing in such construction ensures that the Air Force has modern, functional, and safe infrastructure to support its diverse missions and personnel, contributing to overall operational effectiveness and quality of life on bases.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $21,728,334
Exercised Options: $21,728,334
Current Obligation: $21,728,334
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8519
IDV Type: IDC
Timeline
Start Date: 2008-08-11
Current End Date: 2011-09-23
Potential End Date: 2011-09-23 00:00:00
Last Modified: 2011-07-14
More Contracts from Toltest, Inc.
- Repair Runway 14/32, Dover AFB, DE — $54.8M (Department of Defense)
- Construction Repair/Replacement of Runway 06/24 AT Mcguire AFB, NJ — $51.6M (Department of Defense)
- Renovate Vandenberg Hall — $37.7M (Department of Defense)
- Federal Contract — $35.5M (Department of Defense)
- 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! ! — $34.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)