DoD's $137M Multifamily Housing Construction Contract Awarded to Walsh Construction Company
Contract Overview
Contract Amount: $137,364,915 ($137.4M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2008-01-11
End Date: 2012-09-23
Contract Duration: 1,717 days
Daily Burn Rate: $80.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPLACE FAMILY HOUSING WAFB
Place of Performance
Location: WHITEMAN AFB, JOHNSON County, MISSOURI, 65305
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $137.4 million to WALSH CONSTRUCTION COMPANY for work described as: REPLACE FAMILY HOUSING WAFB Key points: 1. Contract value of $137.4 million for new multifamily housing construction. 2. Awarded under full and open competition, indicating a broad bidder pool. 3. Contract duration of 1717 days (approximately 4.7 years). 4. Fixed-price contract type suggests cost certainty for the government. 5. Project located in Missouri, potentially impacting local construction workforce. 6. No small business set-aside noted, raising questions about small business participation. 7. Contract awarded by the Department of the Army, part of DoD spending.
Value Assessment
Rating: fair
The contract value of $137.4 million for new multifamily housing construction is substantial. Benchmarking this against similar projects requires detailed cost breakdowns and regional construction indices. Without specific per-unit costs or square footage, a precise value-for-money assessment is difficult. However, the fixed-price nature of the contract provides some cost control for the government, assuming the scope was well-defined. The number of bids received (2) is low for a full and open competition, which could suggest either a niche market or potential issues with the solicitation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Despite this broad solicitation, only two bids were received. This low number of bidders for a large-value contract could indicate a specialized construction market, high barriers to entry, or potentially a lack of widespread interest from qualified contractors. The limited competition may have impacted the government's ability to secure the most competitive pricing.
Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full potential of competitive pricing that a larger pool of bidders could have generated. This could translate to a higher overall cost for the project than might have been achieved otherwise.
Public Impact
Benefits military families by providing new housing units. Delivers new multifamily housing construction services. Geographic impact is concentrated in Missouri. Potential positive implications for the local construction workforce in Missouri. Supports the Department of Defense's infrastructure and family support initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Low number of bidders (2) for a full and open competition may indicate limited market interest or high barriers to entry, potentially impacting price.
- Lack of small business set-aside or reported subcontracting goals raises concerns about small business participation and economic impact.
- Fixed-price contract type can lead to cost overruns if scope is not precisely managed or if unforeseen issues arise.
Positive Signals
- Awarded under full and open competition, theoretically allowing for maximum participation.
- Fixed-price contract type offers predictable costs for the government, assuming scope is well-defined.
- Project addresses a clear need for military family housing, supporting personnel welfare.
Sector Analysis
This contract falls within the construction sector, specifically new multifamily housing. The construction industry is a significant part of the US economy, with substantial federal spending allocated to infrastructure and facilities. Federal contracts for housing construction, particularly for military installations, are common and aim to provide adequate living conditions for service members and their families. Benchmarking this $137 million project would involve comparing its cost per unit or per square foot to similar government or private sector housing developments in the region.
Small Business Impact
The contract does not indicate any specific small business set-aside. This means the competition was open to all responsible contractors, regardless of size. While large prime contractors may engage small businesses as subcontractors, the absence of explicit set-aside goals or reporting requirements makes it difficult to assess the direct impact on the small business ecosystem for this specific contract. Further investigation into subcontracting plans would be needed to understand the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the specified quality standards, timelines, and deliverables. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Housing Privatization Initiative
- Department of Defense Family Housing
- Construction Contracts
- Federal Real Property Management
Risk Flags
- Low bidder count for full and open competition
- Potential for cost overruns in fixed-price contracts
- Lack of explicit small business participation goals
Tags
construction, multifamily-housing, department-of-defense, department-of-the-army, missouri, firm-fixed-price, full-and-open-competition, large-contract, housing, military-families
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.4 million to WALSH CONSTRUCTION COMPANY. REPLACE FAMILY HOUSING WAFB
Who is the contractor on this award?
The obligated recipient is WALSH CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $137.4 million.
What is the period of performance?
Start: 2008-01-11. End: 2012-09-23.
What is the track record of Walsh Construction Company with federal contracts, particularly within the Department of Defense?
Walsh Construction Company has a significant history of federal contracting, including numerous awards from the Department of Defense and other federal agencies. Their portfolio often includes large-scale infrastructure, healthcare facilities, and educational institutions. For the Department of the Army, they have likely undertaken projects related to base infrastructure and facilities. A detailed review of their past performance ratings, any past performance issues, and the types of projects they have successfully completed for the DoD would provide a clearer picture of their capabilities and reliability for this specific multifamily housing construction contract. Examining their award history can reveal patterns in contract size, complexity, and successful delivery.
How does the awarded price of $137.4 million compare to similar multifamily housing construction projects undertaken by the federal government?
Comparing the $137.4 million award requires detailed project specifications, such as the number of units, square footage per unit, amenities, and location-specific construction costs. Without these specifics, a direct comparison is challenging. However, for context, large-scale federal housing projects can range from tens of millions to hundreds of millions of dollars. The average cost per unit in federal housing construction can vary significantly based on region and complexity. If this contract is for a substantial number of units (e.g., several hundred), the price might be within a reasonable range. Conversely, if it's for a smaller number of units, it could indicate higher per-unit costs, warranting further scrutiny into the project's scope and market conditions.
What are the primary risks associated with a fixed-price contract for a project of this magnitude and duration?
The primary risk with a fixed-price contract for a large, multi-year construction project like this is the potential for cost overruns if the scope of work is not perfectly defined or if unforeseen issues arise during construction. While the contractor assumes most of the cost risk, significant changes in material costs, labor availability, or site conditions not accounted for in the initial bid could lead to change orders, increasing the total contract value. Another risk is the contractor potentially cutting corners on quality to maintain profitability if costs escalate beyond their initial estimates. The government's risk lies in ensuring robust contract management and change order control to prevent scope creep and maintain project integrity.
What is the expected effectiveness of the new multifamily housing in meeting the needs of military families in the specified location?
The effectiveness of the new multifamily housing hinges on several factors beyond the construction itself. Key considerations include whether the number of units being built adequately addresses the existing housing shortage or demand for military families in the WAFB area. The quality of construction, the types of units (e.g., number of bedrooms), and the availability of amenities will directly impact resident satisfaction and quality of life. Furthermore, the project's success will be measured by its timely completion, adherence to budget, and the long-term durability and maintainability of the structures. Effective housing is crucial for military readiness and retention, so meeting these criteria is paramount.
How has federal spending on multifamily housing construction, particularly by the Department of the Army, trended over the past decade?
Federal spending on multifamily housing construction, especially by the Department of the Army, has historically fluctuated based on defense budgets, military personnel needs, and infrastructure modernization priorities. In recent years, there has been a continued emphasis on improving military family housing, often through public-private partnerships and direct construction contracts. Spending trends can be influenced by factors such as the age of existing housing stock, force structure changes, and congressional appropriations. Analyzing historical spending data for the Army's housing construction programs would reveal whether this $137 million contract represents a significant investment, a continuation of a trend, or a deviation from past spending patterns.
What are the implications of awarding this contract to a single entity (Walsh Construction Company) in terms of market concentration?
Awarding a contract of this magnitude to a single entity like Walsh Construction Company is common in large-scale construction projects, as few companies possess the capacity and expertise to manage such endeavors. However, it does mean that a significant portion of federal housing construction funds in this instance is directed to one firm. This can be viewed positively if the firm has a proven track record of successful delivery. Conversely, it raises questions about market concentration if there are other capable firms that did not win or were deterred from bidding. The low number of bidders (two) in this full and open competition further emphasizes the concentrated nature of this specific award.
Industry Classification
NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)
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: W912DQ07R0025
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929W W ADAMS ST, CHICAGO, IL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,629,929
Exercised Options: $137,364,915
Current Obligation: $137,364,915
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-01-11
Current End Date: 2012-09-23
Potential End Date: 2012-09-23 00:00:00
Last Modified: 2012-05-09
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