VA awards $40.9M for construction to Walsh Construction Company, completed in 2012
Contract Overview
Contract Amount: $40,945,118 ($40.9M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2008-12-31
End Date: 2012-12-31
Contract Duration: 1,461 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AMB
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15201
Plain-Language Summary
Department of Veterans Affairs obligated $40.9 million to WALSH CONSTRUCTION COMPANY for work described as: AMB Key points: 1. Contract value of $40.9M for building construction. 2. Awarded to Walsh Construction Company. 3. Completed in December 2012. 4. Contract type was Firm Fixed Price. 5. Procurement was Full and Open Competition.
Value Assessment
Rating: fair
The contract value of $40.9M for commercial and institutional building construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar VA construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering competitive bidding, which can drive down costs and ensure fair market value for services rendered.
Public Impact
Construction projects directly impact local economies through job creation and material sourcing. The Department of Veterans Affairs' infrastructure development is crucial for providing services to veterans. Completed projects can lead to improved facilities and services for beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1461 days (approx. 4 years) for a single award could indicate potential for delays or scope creep.
- No specific mention of small business participation, which could be a missed opportunity for economic inclusion.
Positive Signals
- Awarded via full and open competition, maximizing potential for competitive pricing.
- Firm Fixed Price contract type provides cost certainty for the government.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is cyclical and influenced by government infrastructure needs and economic conditions. Benchmarks vary widely based on project type and location.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). While not always required, exploring opportunities for small business involvement in construction contracts can foster economic growth and competition.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this construction project. Accountability would involve ensuring the project met specifications, stayed within budget (if applicable beyond the fixed price), and was completed on time, with oversight mechanisms in place to track progress and address issues.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long contract duration (4 years) may indicate potential for cost overruns or delays.
- Lack of small business participation noted.
- Specific project details are missing, hindering a complete value assessment.
- No information on contractor performance or project outcomes provided.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $40.9 million to WALSH CONSTRUCTION COMPANY. AMB
Who is the contractor on this award?
The obligated recipient is WALSH CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $40.9 million.
What is the period of performance?
Start: 2008-12-31. End: 2012-12-31.
What was the specific nature of the construction project, and how did its complexity influence the final award value?
The data identifies the project as 'Commercial and Institutional Building Construction' but lacks specifics on the exact nature (e.g., new build, renovation, specific facility type). The complexity of the construction, including architectural requirements, site conditions, and specialized systems, would significantly influence the final award value. A more detailed project description is needed to fully assess value.
Given the 4-year duration, what were the primary risks associated with this contract, and how were they mitigated?
A 4-year contract duration presents risks such as material cost fluctuations, labor availability changes, unforeseen site conditions, and potential design modifications. Mitigation strategies could have included robust contract clauses addressing escalation, detailed site investigations prior to award, contingency planning for labor, and a clear change order process. The firm fixed price nature also shifts some risk to the contractor.
How effectively did the full and open competition process ensure the best value for the government in this specific instance?
Full and open competition generally promotes best value by encouraging multiple bids. However, effectiveness depends on the number and quality of bidders, the clarity of the solicitation, and the evaluation criteria. Without knowing the number of bids received or the contractor's past performance, it's difficult to definitively assess the effectiveness. The completed project's outcome would be a key indicator.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: VA-101-07-RP-0043
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 W ADAMS ST, CHICAGO, IL, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,947,118
Exercised Options: $40,947,118
Current Obligation: $40,945,118
Timeline
Start Date: 2008-12-31
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2012-12-10
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