Department of the Army awards $5.97M contract for fire station foundation repair in Michigan

Contract Overview

Contract Amount: $5,967,325 ($6.0M)

Contractor: A & H-Ambica JV LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-15

End Date: 2027-04-14

Contract Duration: 485 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VGLZ199555 REPAIR FIRE STATION FOUNDATION B859

Place of Performance

Location: HARRISON TOWNSHIP, MACOMB County, MICHIGAN, 48045

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to A & H-AMBICA JV LLC for work described as: VGLZ199555 REPAIR FIRE STATION FOUNDATION B859 Key points: 1. Contract awarded to A & H-AMBICA JV LLC for building construction services. 2. The contract has a firm fixed price structure, indicating defined costs. 3. Duration of 485 days suggests a moderately complex or lengthy repair project. 4. Awarded under full and open competition, implying a broad search for qualified bidders. 5. The contract is a definitive contract, typically used for ongoing needs. 6. Small business set-aside was not utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $5.97 million for fire station foundation repair appears to be within a reasonable range for a project of this nature, though specific benchmarks for foundation repair at military installations are not readily available. The firm fixed price contract provides cost certainty. However, without detailed project scope and comparison to similar projects, a precise value-for-money assessment is challenging. The award to A & H-AMBICA JV LLC, a joint venture, suggests a competitive bid process that likely drove pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders participated, it is unclear if this represents the full potential interest in the market for this type of specialized construction service. A higher number of bidders would typically lead to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required services. However, with only two bids, there is a possibility that the price could have been lower had more firms participated.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel stationed at the facility requiring the fire station repair. The contract delivers essential construction services to ensure the structural integrity and operational readiness of a critical facility. The geographic impact is localized to the specific military installation in Michigan where the fire station is located. Workforce implications include employment opportunities for construction laborers, tradespeople, and project management staff employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could indicate potential market concentration or insufficient outreach.
The specific nature of foundation repair can be prone to unforeseen complications, potentially leading to cost overruns if not managed tightly.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Firm fixed price contract provides cost certainty and limits the government's exposure to cost increases.
The contractor, A & H-AMBICA JV LLC, is a joint venture, potentially bringing specialized expertise to the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a broad category encompassing the construction of non-residential buildings. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading infrastructure at military bases and other federal facilities. Spending in this sector is influenced by infrastructure needs, modernization efforts, and the lifecycle of existing buildings. Comparable spending benchmarks would typically be found within construction industry cost databases and government construction project databases, though specific data for military fire station foundation repairs is niche.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means the opportunity was open to all responsible contractors, regardless of size. The absence of a small business set-aside suggests that either the contracting agency did not prioritize it for this specific procurement, or the nature of the work was deemed unsuitable for set-aside. This could limit subcontracting opportunities for small businesses within the ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the firm fixed price contract terms, requiring the contractor to complete the work to specifications within the agreed price. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Base Infrastructure Maintenance
Federal Building Construction
Department of Defense Facilities Management
Construction Services for Government Agencies

Risk Flags

Limited Competition
Potential for Unforeseen Conditions in Foundation Repair

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to A & H-AMBICA JV LLC. VGLZ199555 REPAIR FIRE STATION FOUNDATION B859

Who is the contractor on this award?

The obligated recipient is A & H-AMBICA JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2025-12-15. End: 2027-04-14.

What is the track record of A & H-AMBICA JV LLC in performing similar construction projects for the federal government?

Assessing the track record of A & H-AMBICA JV LLC requires a review of their past performance on federal contracts. This would involve examining contract databases (like FPDS) for previous awards, contract values, and performance ratings. Specific details on their experience with foundation repair, particularly for institutional or government facilities, would be crucial. A joint venture's track record can also be influenced by the experience of its constituent members. Without direct access to detailed performance reviews or a comprehensive history of their federal awards, it is difficult to definitively assess their suitability and past success rate for this specific type of project. Further investigation into their past performance history and any available CPARS (Contractor Performance Assessment Reporting System) reports would be necessary for a thorough evaluation.

How does the awarded amount compare to the estimated cost or budget for this fire station foundation repair project?

The provided data indicates an awarded amount of $5,967,325. To compare this to the estimated cost or budget, one would typically need access to the government's pre-solicitation estimate or the agency's allocated budget for this project. This information is often internal and not publicly disclosed prior to or immediately after award. However, the fact that the contract was awarded under full and open competition with two bids suggests that the awarded price was considered acceptable by the contracting officer, likely falling within the agency's budget. If the awarded amount significantly exceeded the initial estimate, it might raise questions about the accuracy of the estimate or the competitive landscape. Without the government's internal budget figures, a direct comparison is not possible from the available data.

What are the specific risks associated with foundation repair projects on military installations, and how are they mitigated in this contract?

Foundation repair projects, especially on aging military installations, carry inherent risks such as unforeseen subsurface conditions (e.g., soil instability, groundwater issues), material defects, and potential disruption to ongoing base operations. For this contract, the firm fixed price (FFP) structure helps mitigate financial risks for the government by capping the total cost. However, it places more risk on the contractor to accurately estimate and manage costs. The contract's duration of 485 days allows for a structured approach, potentially incorporating phased repairs and inspections. Mitigation strategies likely include detailed site investigations prior to the award, clear specifications in the contract documents, and robust quality assurance/quality control (QA/QC) processes managed by the Army Corps of Engineers or a similar entity. The contractor's experience and bonding capacity also serve as risk mitigators.

What is the historical spending pattern for fire station maintenance and repair at this specific military installation or within the Department of the Army?

Analyzing historical spending patterns for fire station maintenance and repair at this specific installation or within the Department of the Army would require accessing historical contract data over several fiscal years. This would involve searching databases like FPDS for contracts awarded to various entities for similar services (e.g., construction, repair, maintenance) related to fire stations or similar critical infrastructure at relevant Army installations. Understanding past spending levels, frequency of repairs, and average contract values would provide context for the current $5.97 million award. A significant increase or decrease in spending compared to historical averages might indicate changes in infrastructure condition, deferred maintenance, or new construction initiatives. Without access to this historical data, it's impossible to establish a spending trend.

How does the competition level (2 bidders) for this contract potentially impact the price paid by the government compared to contracts with more bidders?

A competition level with only two bidders, as seen in this case, generally suggests a less robust market response compared to procurements attracting numerous offers. With fewer bidders, the potential for price discovery through competitive pressure is reduced. Each bidder may have a clearer understanding of their main competitor(s), potentially leading to less aggressive pricing strategies than if they were competing against a larger field. While the government still benefits from competition, the price achieved might be higher than if, for example, five or more qualified firms had submitted bids. The government's contracting officers aim to ensure fair and reasonable pricing, but a limited number of bids can sometimes result in a price that is closer to the second-lowest bidder's offer rather than the lowest possible price achievable in a highly competitive market.

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: SEALED BID

Solicitation ID: W50S8525BA006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27489 6 MILE RD, LIVONIA, MI, 48152

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,967,325

Exercised Options: $5,967,325

Current Obligation: $5,967,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline