DoD's $15.4M Remediation Services Contract Awarded to TOLTEST, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $15,402,380 ($15.4M)
Contractor: Toltest, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-12-29
End Date: 2006-05-31
Contract Duration: 153 days
Daily Burn Rate: $100.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 40
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $15.4 million to TOLTEST, INC. for work described as: Key points: 1. Contract awarded for $15.4 million for remediation services. 2. Competition type was 'Full and Open', indicating broad market access. 3. Contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns. 4. The contract duration is 153 days, suggesting a short-term project.
Value Assessment
Rating: fair
The contract value of $15.4 million for remediation services over 153 days appears reasonable given the scope. However, without specific details on the remediation required, a precise benchmark is difficult. The 'Cost Plus Fixed Fee' structure warrants scrutiny for potential cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value. The fixed fee component aims to control costs, but the cost-plus nature requires careful monitoring.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages competitive pricing. However, the cost-plus fixed fee contract type necessitates robust oversight to ensure costs remain within reasonable bounds and do not unduly burden taxpayers.
Public Impact
Environmental cleanup services are crucial for public health and safety. The contract's short duration suggests a focused remediation effort. Transparency in the bidding process for environmental contracts is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited contract duration may indicate potential for follow-on work or phased approach.
- No small business participation noted, which could be a missed opportunity for economic development.
Positive Signals
- Awarded under Full and Open Competition, maximizing potential bidders.
- Clear contract end date provides defined project scope.
- Specific NAICS code (562910) indicates a defined service area.
Sector Analysis
The environmental remediation sector involves specialized services for cleaning up contaminated sites. Spending in this sector can fluctuate based on regulatory requirements and infrastructure needs. This contract falls within the broader professional, scientific, and technical services category.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss=false, sb=false). While full and open competition was utilized, there may have been an opportunity to set aside a portion of the work for small businesses to foster economic growth and competition within that segment.
Oversight & Accountability
The 'Cost Plus Fixed Fee' contract type requires diligent oversight from the Department of the Air Force to ensure that costs are reasonable and that the fixed fee is justified. Monitoring expenditures and performance against the contract's objectives is crucial for accountability and effective use of taxpayer funds.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Short contract duration may indicate potential for scope creep or follow-on needs.
- Limited detail on specific services provided.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to TOLTEST, INC.. See the official description on USAspending.
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 $15.4 million.
What is the period of performance?
Start: 2005-12-29. End: 2006-05-31.
What specific environmental remediation activities were performed under this contract, and how does the $15.4 million cost compare to similar projects of comparable scope and complexity?
The provided data does not detail the specific remediation activities. To assess value, a comparison with similar contracts for hazardous waste treatment, site cleanup, or environmental restoration is needed. Factors like the type and extent of contamination, geographical location, and regulatory compliance requirements significantly influence cost, making direct comparisons challenging without more granular information.
What are the primary risks associated with a Cost Plus Fixed Fee contract for environmental remediation, and what mitigation strategies were employed by the Department of the Air Force?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The fixed fee, however, provides some incentive for efficiency. Mitigation strategies typically include robust government oversight, detailed cost accounting standards, regular audits, and clear performance metrics to ensure the contractor operates efficiently and effectively.
How effectively did the 'Full and Open Competition' process ensure the best value was achieved for this $15.4 million remediation services contract?
Full and Open Competition is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive offers and achieving best value. The effectiveness in this case depends on the number and quality of bids received, the evaluation criteria used, and the final negotiated price. Without knowing the number of bids or the specific evaluation process, it's difficult to definitively assess the effectiveness beyond the procedural compliance.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
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: 40
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lakeshore Toltest Corporation (UEI: 962400151)
Address: 1915 N 12TH STREET, TOLEDO, OH, 09
Business Categories: Category Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8678
IDV Type: IDC
Timeline
Start Date: 2005-12-29
Current End Date: 2006-05-31
Potential End Date: 2006-05-31 00:00:00
Last Modified: 2013-09-27
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