DoD's $25.5M Remediation Services Contract Awarded to TOLTEST, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $25,477,325 ($25.5M)
Contractor: Toltest, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-23
End Date: 2009-06-29
Contract Duration: 1,102 days
Daily Burn Rate: $23.1K/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 $25.5 million to TOLTEST, INC. for work described as: Key points: 1. The contract value is $25.5 million, awarded for remediation services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is likely environmental services within the Defense industry.
Value Assessment
Rating: fair
The contract value of $25.5 million for remediation services appears to be within a reasonable range for large-scale environmental projects. However, without specific benchmarks for the scope and complexity of the remediation, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process.
Public Impact
Environmental cleanup services are crucial for public health and safety. The Department of Defense's commitment to remediation addresses legacy environmental issues. Contract performance impacts the local environment and community where remediation occurs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs.
- The duration of the contract (over 3 years) increases the risk of cost escalation.
Positive Signals
- Awarded under full and open competition.
- Contract addresses critical environmental remediation needs.
Sector Analysis
The Department of Defense frequently contracts for environmental remediation services to address contamination at military installations. Spending in this sector can vary significantly based on the scale and complexity of the environmental challenges.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. This suggests larger, established firms likely possess the specialized capabilities required for this type of remediation work.
Oversight & Accountability
Oversight of Cost Plus Fixed Fee contracts is critical to ensure costs are reasonable and fixed fees are earned. The Department of the Air Force would be responsible for monitoring performance and expenditures.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Contract duration of over 3 years.
- Lack of specific details on remediation scope.
- No indication of small business participation.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 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 $25.5 million.
What is the period of performance?
Start: 2006-06-23. End: 2009-06-29.
What specific remediation activities are covered under this contract, and how do they align with the awarded amount?
The contract is for 'Remediation Services' with a value of $25.5 million. Without detailed statements of work, it's difficult to ascertain the exact activities. These could range from soil and groundwater cleanup to hazardous waste disposal. The awarded amount suggests a significant scope, potentially involving long-term or complex environmental restoration projects at a Department of Defense facility.
What are the potential risks associated with the Cost Plus Fixed Fee contract type for this remediation project?
Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs, as their fee is fixed regardless of the actual costs incurred. This necessitates robust oversight from the contracting agency to scrutinize all expenses and ensure they are reasonable and allocable to the contract. The risk for taxpayers is that the final cost could be higher than anticipated if costs are not managed effectively.
How does the full and open competition method ensure effective price discovery for these specialized remediation services?
Full and open competition allows multiple qualified contractors to submit bids, fostering a competitive environment that typically drives down prices and encourages innovative solutions. For specialized services like environmental remediation, this process helps the government identify the most cost-effective approach and the best value provider by comparing proposals based on technical merit and price, ensuring taxpayer funds are used efficiently.
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 NONBUILDINGS
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 Engineering Services, Inc. (UEI: 838767960)
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: 2006-06-23
Current End Date: 2009-06-29
Potential End Date: 2009-06-29 00:00:00
Last Modified: 2009-06-02
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