Interior Department awards $1.6M contract for OK Salt Plains NWR infrastructure, with limited competition

Contract Overview

Contract Amount: $1,625,606 ($1.6M)

Contractor: Toro Defense Contracting, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-08-26

End Date: 2026-10-13

Contract Duration: 778 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OK SALT PLAINS NWR -SANDY CREEK WCS

Place of Performance

Location: JET, ALFALFA County, OKLAHOMA, 73749

State: Oklahoma Government Spending

Plain-Language Summary

Department of the Interior obligated $1.6 million to TORO DEFENSE CONTRACTING, LLC for work described as: OK SALT PLAINS NWR -SANDY CREEK WCS Key points: 1. Contract focuses on essential infrastructure upgrades at a key wildlife refuge. 2. Limited competition raises questions about potential price optimization. 3. Contract duration of over two years suggests a significant scope of work. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. Geographic focus on Oklahoma highlights regional infrastructure needs. 6. The award is for highway, street, and bridge construction, indicating physical improvements.

Value Assessment

Rating: fair

The contract value of $1.63 million for highway, street, and bridge construction appears moderate for infrastructure projects of this nature. Without specific benchmarks for similar projects within the U.S. Fish and Wildlife Service or comparable agencies, a precise value-for-money assessment is challenging. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price is competitive. However, the limited competition environment may have influenced the final negotiated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicating a limited competition approach. The specific reasons for this limitation are not detailed in the provided data. A limited competition environment typically involves fewer bidders than a full and open competition, which can impact the range of pricing and the level of innovation offered. It is important to understand why full and open competition was not pursued to ensure fair market access and optimal pricing.

Taxpayer Impact: Limited competition can potentially lead to higher costs for taxpayers if a broader range of contractors were not given the opportunity to bid, thereby reducing the pressure to offer the most competitive price.

Public Impact

The primary beneficiaries are the U.S. Fish and Wildlife Service and visitors to the OK Salt Plains National Wildlife Refuge, who will experience improved infrastructure. Services delivered include highway, street, and bridge construction, essential for access and operational efficiency within the refuge. The geographic impact is concentrated in Oklahoma, specifically at the OK Salt Plains National Wildlife Refuge. Workforce implications may include employment opportunities for construction workers and related trades in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the pool of potential bidders, potentially impacting price competitiveness.
Lack of detailed justification for limited competition raises concerns about adherence to best practices for procurement.
The specific nature of the construction work requires careful oversight to ensure quality and adherence to environmental regulations.

Positive Signals

Firm Fixed Price contract type effectively transfers cost overrun risk to the contractor.
The contract is awarded to TORO DEFENSE CONTRACTING, LLC, suggesting a known entity in the contracting space.
The project addresses critical infrastructure needs within a protected natural resource area.

Sector Analysis

This contract falls within the construction sector, specifically focusing on infrastructure development for a federal wildlife refuge. The market for such specialized construction services within government-managed lands can be niche. Comparable spending benchmarks would typically involve other federal agencies undertaking similar infrastructure projects in protected areas or state/local governments managing public lands. The value of $1.63 million is moderate for a multi-year infrastructure project, but its specific context within a National Wildlife Refuge may influence cost drivers.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the contract was not specifically targeted towards small businesses. Consequently, there may be limited direct subcontracting opportunities for small businesses unless TORO DEFENSE CONTRACTING, LLC voluntarily engages them. The impact on the broader small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Fish and Wildlife Service, the contracting agency. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the Department of the Interior's Office of Inspector General being the relevant body.

Related Government Programs

National Wildlife Refuge System Infrastructure Projects
Federal Highway and Bridge Construction Contracts
Department of the Interior Public Works
Conservation and Land Management Infrastructure

Risk Flags

Limited Competition Justification
Potential for Cost Overruns (despite FFP)
Long Project Duration Risks
Environmental Compliance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $1.6 million to TORO DEFENSE CONTRACTING, LLC. OK SALT PLAINS NWR -SANDY CREEK WCS

Who is the contractor on this award?

The obligated recipient is TORO DEFENSE CONTRACTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $1.6 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-10-13.

What is the specific scope of work for the highway, street, and bridge construction at OK Salt Plains NWR?

The provided data categorizes this contract under 'Highway, Street, and Bridge Construction' (nd: 237310) for the OK Salt Plains National Wildlife Refuge. While the exact details of the construction are not specified, this typically involves the repair, maintenance, or new construction of roads, pathways, and bridges within the refuge. This could include improvements to access roads for visitors and staff, maintenance of existing bridges over waterways or ravines, and potentially the construction of new pathways to enhance accessibility or operational efficiency. The duration of the contract (778 days) suggests a substantial project rather than minor repairs.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' status for this contract?

The 'NOT AVAILABLE FOR COMPETITION' status, often synonymous with 'sole-source' or 'limited competition,' indicates that the U.S. Fish and Wildlife Service did not conduct a full and open competition for this contract. This could be due to several reasons, such as the existence of only one responsible source capable of providing the required services, an urgent need that precluded competition, or specific statutory exceptions. However, without further justification, this status raises concerns about whether taxpayers received the best possible value, as a broader competitive process typically drives down prices and encourages innovation.

How does the firm fixed-price contract type affect risk and cost for this project?

A Firm Fixed Price (FFP) contract type means that the contractor, TORO DEFENSE CONTRACTING, LLC, is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the primary cost risk from the government to the contractor. If the contractor's costs exceed the fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For the government, this provides cost certainty, assuming the initial price was fair and reasonable. It incentivizes the contractor to manage costs efficiently.

What is the track record of TORO DEFENSE CONTRACTING, LLC with federal contracts, particularly with the Department of the Interior?

The provided data identifies TORO DEFENSE CONTRACTING, LLC as the awardee. To assess their track record, one would need to examine their past performance on federal contracts, specifically looking at contract values, types, agencies served, and any history of performance issues or disputes. Information on their experience with the Department of the Interior or similar agencies, particularly on infrastructure projects of this scale, would be crucial. A review of contract databases like SAM.gov or FPDS would be necessary to compile this information and evaluate their reliability and past success rates.

Are there any comparable infrastructure projects within the National Wildlife Refuge system that can serve as benchmarks for this $1.63 million award?

Identifying direct, publicly available benchmarks for infrastructure projects within National Wildlife Refuges can be challenging due to the specialized nature and varying scopes of such work. However, one could look for similar highway, street, or bridge construction contracts awarded by the Department of the Interior or other agencies managing public lands (e.g., Forest Service, Bureau of Land Management) over the past few years. Analyzing the contract value relative to project duration, geographic location, and complexity (e.g., environmental considerations, terrain) would provide a basis for comparison. The $1.63 million award for a 778-day project suggests a moderate annual expenditure for infrastructure development within the refuge.

What are the potential risks associated with the 778-day duration of this contract?

A contract duration of 778 days (approximately 2.1 years) for highway, street, and bridge construction presents several potential risks. Firstly, there's the risk of scope creep, where the project's requirements may expand beyond the original agreement, potentially leading to cost increases if not managed strictly under the FFP terms. Secondly, extended project timelines increase the exposure to changing environmental conditions, material price fluctuations (though mitigated by FFP), and potential delays due to unforeseen site issues. Lastly, maintaining consistent oversight and quality control over such a long period requires sustained effort from the contracting agency.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140FC124R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 214 E GOODE ST, QUITMAN, TX, 75783

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,625,606

Exercised Options: $1,625,606

Current Obligation: $1,625,606

Actual Outlays: $635,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline