DoD's $14.15M contract for 112,500 tons of construction materials awarded to Walsh Construction Company
Contract Overview
Contract Amount: $14,151,916 ($14.2M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2005-06-27
End Date: 2007-08-14
Contract Duration: 778 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FIRST 112,500 TONS
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to WALSH CONSTRUCTION COMPANY for work described as: FIRST 112,500 TONS Key points: 1. Contract awarded for heavy civil engineering construction, indicating significant infrastructure development. 2. The firm fixed-price contract type suggests a defined scope and budget, potentially limiting cost overruns. 3. A definitive contract award implies a commitment to a specific project with a set duration. 4. The contract duration of 778 days points to a substantial, multi-year construction effort. 5. Awarded by the Department of the Army, this contract supports military infrastructure needs. 6. The contract was awarded under full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract value of $14.15 million for 112,500 tons of construction materials appears reasonable given the scale of the project. Without specific details on the type of materials or the exact construction scope, a direct comparison is difficult. However, the firm fixed-price nature suggests that the initial pricing was deemed acceptable by the government. Benchmarking against similar large-scale civil engineering projects would provide a clearer picture of value for money.
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 bids. The presence of 5 bidders suggests a healthy level of competition for this significant construction project. This competitive environment is generally expected to drive down prices and encourage innovative solutions, leading to better value for the government.
Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The multiple bids received indicate that the government had several options to choose from, increasing the likelihood of securing the best possible terms.
Public Impact
The primary beneficiaries are the Department of the Army and potentially military personnel who will utilize the infrastructure built or improved with these materials. The services delivered involve the supply of construction materials essential for heavy and civil engineering projects. The geographic impact is localized to Illinois (IL), where the contractor is based and likely where the construction will take place. The contract implies a need for construction labor and potentially specialized equipment, impacting the local workforce and related industries in Illinois.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for material price fluctuations impacting the fixed-price contract if not adequately accounted for.
- Logistical challenges in delivering 112,500 tons of materials to a specific construction site.
- Ensuring the quality and specifications of the construction materials meet stringent military standards.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Award to an established construction company suggests experience and capability.
- Full and open competition indicates a robust procurement process.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the broader construction industry. This sector encompasses large-scale projects such as highways, bridges, dams, and other public works. The market size for such materials is substantial, driven by government infrastructure spending and private development. This specific contract represents a significant procurement within this niche, likely supporting a larger military base or infrastructure project.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Walsh Construction Company, would determine any subcontracting opportunities based on their own business practices and project needs, independent of a small business set-aside requirement.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures would include adherence to contract terms, delivery schedules, and material specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Construction
- Base Realignment and Closure (BRAC) Projects
- Department of Defense Infrastructure Modernization
Risk Flags
- Potential for price escalation on bulk materials.
- Logistical complexity of large-volume material delivery.
- Ensuring consistent material quality meets defense specifications.
Tags
construction, department-of-defense, department-of-the-army, illinois, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-civil-engineering, infrastructure, materials-supply, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to WALSH CONSTRUCTION COMPANY. FIRST 112,500 TONS
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 $14.2 million.
What is the period of performance?
Start: 2005-06-27. End: 2007-08-14.
What is the specific type of construction materials being procured under this contract?
The provided data identifies the quantity as 'FIRST 112,500 TONS' but does not specify the exact type of construction materials. Given the contract's classification under 'Other Heavy and Civil Engineering Construction' and its award by the Department of the Army, it is likely related to bulk materials such as concrete aggregate, asphalt, fill dirt, or structural steel components. Further details would be required from the contract's statement of work or associated documentation to ascertain the precise materials.
How does the price per ton compare to market rates for similar construction materials during the contract period?
The contract value is $14,151,915.96 for 112,500 tons, resulting in an approximate price of $125.79 per ton. Benchmarking this against market rates for bulk construction materials like aggregate, asphalt, or basic steel during the 2005-2007 period would be necessary for a precise comparison. Factors such as material type, quality specifications, delivery location, and volume discounts significantly influence per-ton pricing. Without these specifics, it's challenging to definitively state if this price was above or below market.
What were the key performance indicators (KPIs) for Walsh Construction Company under this contract?
While the provided data does not explicitly list Key Performance Indicators (KPIs), typical KPIs for a construction materials supply contract of this nature would likely include on-time delivery rates, adherence to material quality specifications (e.g., grading, strength, composition), accuracy of quantities delivered, and compliance with safety regulations on-site. The firm fixed-price nature also implies that meeting the total contract price and delivery schedule would be paramount performance metrics.
What is the historical spending pattern for similar construction materials by the Department of the Army in Illinois?
Analyzing historical spending patterns for similar construction materials by the Department of the Army in Illinois would require accessing and aggregating procurement data over multiple fiscal years. This contract, awarded in 2005 for $14.15 million, represents a significant single procurement. To establish a pattern, one would need to identify other contracts for bulk construction materials awarded to various vendors in Illinois by the Army, noting their values, quantities, and durations. This would reveal whether this contract is an outlier or part of a consistent spending trend for infrastructure needs in the region.
What risks were identified during the solicitation phase, and how were they mitigated?
The provided data does not detail specific risks identified during the solicitation phase. However, for a large-volume materials contract, common risks include supply chain disruptions, price volatility of raw materials, transportation delays, quality control issues, and contractor performance failures. Mitigation strategies typically involve robust contract clauses addressing these risks, requiring performance bonds, conducting thorough pre-award evaluations of contractor capability and financial stability, and establishing clear communication channels and inspection protocols.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912P605B0009
Offers Received: 5
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, 60607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,954,598
Exercised Options: $16,838,398
Current Obligation: $14,151,916
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-27
Current End Date: 2007-08-14
Potential End Date: 2007-08-14 00:00:00
Last Modified: 2021-02-25
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