Dover AFB runway repair contract awarded to Toltest, Inc. for over $54.7 million
Contract Overview
Contract Amount: $54,774,309 ($54.8M)
Contractor: Toltest, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-07
End Date: 2009-10-15
Contract Duration: 769 days
Daily Burn Rate: $71.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 40
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR RUNWAY 14/32, DOVER AFB, DE
Place of Performance
Location: DOVER, KENT County, DELAWARE, 19901
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $54.8 million to TOLTEST, INC. for work described as: REPAIR RUNWAY 14/32, DOVER AFB, DE Key points: 1. The contract value of over $54.7 million for runway repair suggests a significant infrastructure investment. 2. The use of 'Full and Open Competition' indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract duration of 769 days (over two years) points to a complex and extensive repair project. 4. The award to Toltest, Inc. represents a substantial single contract for the company within this period. 5. The fixed-price contract type shifts risk to the contractor, incentivizing cost control. 6. The project's focus on runway repair at a major Air Force base highlights its critical operational importance.
Value Assessment
Rating: fair
The contract value of $54.7 million for runway repair is substantial. Benchmarking this against similar large-scale airfield infrastructure projects would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears the primary financial risk for cost overruns, which can be a positive indicator for the government if managed effectively. The duration of the contract (769 days) also implies a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bids received (40) is a strong indicator of robust competition, which generally benefits the government by driving down costs and improving service quality.
Taxpayer Impact: A high level of competition, evidenced by 40 bids, suggests that taxpayer funds were likely used efficiently, as contractors vied to win the award through competitive pricing.
Public Impact
The primary beneficiaries are the U.S. Air Force and its operations at Dover AFB, ensuring continued readiness and logistical capabilities. The service delivered is critical infrastructure repair, specifically the rehabilitation of Runway 14/32. The geographic impact is localized to Dover Air Force Base in Delaware, but the operational impact is national due to Dover's role as a major logistics hub. The contract likely supported a workforce of construction professionals, engineers, and skilled tradespeople during the project's execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen site conditions or material price fluctuations.
- Risk of schedule delays impacting Air Force operations if the contractor encounters significant project management challenges.
- Dependence on a single contractor (Toltest, Inc.) for a critical infrastructure project introduces concentration risk.
Positive Signals
- The 'Full and Open Competition' process with 40 bids suggests a competitive award, likely resulting in a fair price.
- The 'Firm Fixed Price' contract type incentivizes contractor efficiency and cost control.
- The project addresses a critical infrastructure need for a major military installation, ensuring operational continuity.
Sector Analysis
This contract falls within the construction and remediation services sector, specifically focused on heavy civil infrastructure. The market for airfield construction and repair is specialized, often dominated by firms with specific expertise and bonding capacity. The $54.7 million award is a significant sum, placing it in the upper tier for individual infrastructure projects of this nature. Comparable spending benchmarks would typically be found in large-scale civil engineering projects or other major military base infrastructure upgrades.
Small Business Impact
The contract details indicate that small business participation was not a primary set-aside consideration ('sb': false). While the prime contract was awarded to Toltest, Inc., there may have been opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem within the construction sector.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force engineering and construction management teams. The 'Firm Fixed Price' nature provides some inherent accountability by placing financial risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Airfield Pavement Repair
- Military Construction Projects
- Infrastructure Modernization Programs
- Department of Defense Facilities Maintenance
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Risk of contractor performance issues on a large-scale infrastructure project.
- Unforeseen site conditions could impact cost and timeline.
- Dependence on a single contractor for critical infrastructure.
Tags
defense, department-of-defense, department-of-the-air-force, dover-afb, delaware, construction, infrastructure, runway-repair, full-and-open-competition, firm-fixed-price, large-contract, remediation-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to TOLTEST, INC.. REPAIR RUNWAY 14/32, DOVER AFB, DE
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 $54.8 million.
What is the period of performance?
Start: 2007-09-07. End: 2009-10-15.
What was Toltest, Inc.'s track record with similar large-scale airfield repair contracts prior to this award?
Assessing Toltest, Inc.'s prior performance is crucial for understanding their capability to execute a project of this magnitude. Information on their history with similar 'Firm Fixed Price' contracts, particularly those exceeding $50 million and involving airfield infrastructure, would indicate their experience level and reliability. A review of past performance evaluations and any documented issues on previous government contracts would provide insight into their project management, quality control, and adherence to schedules and budgets. Without specific data on Toltest's prior airfield projects, it's difficult to definitively assess their suitability beyond the fact they were the successful bidder in a competitive process.
How does the $54.7 million cost compare to industry benchmarks for repairing a runway of this size and condition?
The $54.7 million cost for repairing Runway 14/32 at Dover AFB requires comparison against industry benchmarks for similar airfield infrastructure projects. Factors influencing cost include the runway's size (length, width), the extent of damage (surface wear, subsurface issues), the type of repair (overlay, full reconstruction), and the specific materials used. Benchmarking would involve analyzing data from other large-scale runway repair contracts awarded by the FAA or DoD, considering regional cost variations for labor and materials. Given the 'Full and Open Competition' and 40 bids, it suggests the price was competitive within the market at the time of award. However, a precise value-for-money assessment necessitates detailed cost breakdowns and comparisons with contemporary projects of similar scope and complexity.
What were the primary risk indicators identified during the solicitation and award process for this contract?
Primary risk indicators for this contract likely revolved around the complexity of airfield construction, potential for unforeseen subsurface conditions, and the contractor's capacity to manage a project of this scale within the specified timeline and budget. Given the 'Firm Fixed Price' structure, risks related to cost escalation for materials or labor would be borne by the contractor, but significant unforeseen issues could still lead to claims or delays. The extensive competition (40 bids) might suggest a perceived lower risk by multiple bidders, or conversely, a highly sought-after contract type. The contractor's past performance, financial stability, and technical approach would have been key factors in assessing their risk profile during the evaluation.
How effective was the 'Full and Open Competition' in ensuring the best value for taxpayers on this $54.7 million contract?
The 'Full and Open Competition' with 40 bids is a strong indicator that the process was effective in maximizing competition and likely securing the best value for taxpayers. A large number of bidders typically drives down prices as companies compete to win the contract. This process allows the government to evaluate a wide range of technical solutions and pricing structures. The 'Firm Fixed Price' award further enhances value by capping the government's financial exposure. While the ultimate measure of value includes the quality and longevity of the repair, the competitive nature of the award itself suggests a favorable outcome for taxpayer investment in this critical infrastructure.
What is the historical spending pattern for runway repair and maintenance at Dover AFB or similar Air Force installations?
Analyzing historical spending patterns for runway repair and maintenance at Dover AFB and comparable Air Force installations provides context for the $54.7 million award. This includes examining the frequency of major repair contracts, their average values, and the types of repairs undertaken (e.g., resurfacing, full reconstruction). Understanding these patterns helps determine if this contract represents a typical investment, an unusually large expenditure, or a response to a specific, long-delayed need. It also informs whether spending has been consistent or cyclical, and if previous repairs have proven durable, impacting the need for subsequent work. Such analysis aids in assessing the long-term financial planning and infrastructure management at these critical facilities.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 40
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $54,774,309
Exercised Options: $54,774,309
Current Obligation: $54,774,309
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8678
IDV Type: IDC
Timeline
Start Date: 2007-09-07
Current End Date: 2009-10-15
Potential End Date: 2009-10-15 00:00:00
Last Modified: 2011-03-31
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