D/B/B Construction Awarded $60.3M for Detroit Arsenal Transportation Building
Contract Overview
Contract Amount: $60,347,923 ($60.3M)
Contractor: Walsh Construction Company II, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-24
End Date: 2026-11-29
Contract Duration: 919 days
Daily Burn Rate: $65.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: D/B/B CONSTRUCTION AWARD (BASE PLUS OPTION) FOR A NEW GROUND TRANSPORTATION EQUIPMENT BUILDING AT DETROIT ARSENAL IN WARREN, MI
Place of Performance
Location: WARREN, MACOMB County, MICHIGAN, 48091
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $60.3 million to WALSH CONSTRUCTION COMPANY II, LLC for work described as: D/B/B CONSTRUCTION AWARD (BASE PLUS OPTION) FOR A NEW GROUND TRANSPORTATION EQUIPMENT BUILDING AT DETROIT ARSENAL IN WARREN, MI Key points: 1. Awarded to Walsh Construction Company II, LLC for a new ground transportation equipment building. 2. The contract is a Firm Fixed Price Definitive Contract with a duration of 919 days. 3. Full and open competition was utilized for this procurement. 4. The project is located at the Detroit Arsenal in Warren, MI. 5. The base plus option award value is $60,347,923.
Value Assessment
Rating: good
The contract value of $60.3 million for a commercial and institutional building construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the government's investment.
Public Impact
Enhances logistical capabilities at the Detroit Arsenal. Supports military readiness and operational efficiency. Creates construction jobs in the Michigan area. Modernizes critical infrastructure for ground transportation equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Schedule delays impacting operational readiness.
- Ensuring compliance with environmental and safety regulations.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition drives competitive pricing.
- Experienced contractor likely selected.
Sector Analysis
This award falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure is crucial for maintaining operational readiness and modernizing facilities. Benchmarks vary widely based on project complexity and location.
Small Business Impact
The data indicates that neither small business nor socio-economic set-asides were utilized for this contract. This suggests the primary contractor is likely a large business, and opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The Department of the Army's contracting process, including the use of full and open competition for this project, is subject to standard federal oversight. Post-award monitoring will be crucial to ensure project completion on time and within budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction cost overruns.
- Risk of project delays impacting operational timelines.
- Ensuring long-term durability and maintenance of the new facility.
- Compliance with complex federal procurement regulations.
Tags
commercial-and-institutional-building-co, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.3 million to WALSH CONSTRUCTION COMPANY II, LLC. D/B/B CONSTRUCTION AWARD (BASE PLUS OPTION) FOR A NEW GROUND TRANSPORTATION EQUIPMENT BUILDING AT DETROIT ARSENAL IN WARREN, MI
Who is the contractor on this award?
The obligated recipient is WALSH CONSTRUCTION COMPANY II, 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 $60.3 million.
What is the period of performance?
Start: 2024-05-24. End: 2026-11-29.
What is the estimated cost per square foot for this building, and how does it compare to similar government or commercial construction projects?
Without the square footage or detailed cost breakdown, a precise per-square-foot cost cannot be calculated. However, for large institutional buildings, costs can range significantly. A thorough analysis would require access to the building's specifications and a comparison with recent construction projects of similar scale and function in the region to determine if the $60.3 million award represents a competitive price.
What are the key performance indicators (KPIs) for this contract, and what mechanisms are in place to mitigate risks associated with schedule delays or quality issues?
Key performance indicators likely include adherence to the project schedule, quality of construction meeting specified standards, and compliance with safety regulations. The Department of the Army will likely employ regular site inspections, progress reports, and potentially liquidated damages clauses in the contract to mitigate risks of delays and quality deficiencies. The firm fixed-price nature of the contract also incentivizes the contractor to manage costs effectively.
How will the completion of this new building impact the operational efficiency and readiness of the ground transportation units at the Detroit Arsenal?
The new building is expected to significantly improve operational efficiency by providing modern, purpose-built facilities for the maintenance, storage, and deployment of ground transportation equipment. This can lead to reduced downtime for vehicles, better organization of resources, and enhanced readiness by ensuring equipment is properly maintained and readily available for deployment. The consolidation of functions within a new facility can streamline workflows and improve overall unit effectiveness.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR24R0008
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 929 W ADAMS ST, CHICAGO, IL, 60607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,347,923
Exercised Options: $60,347,923
Current Obligation: $60,347,923
Actual Outlays: $1,557,705
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-24
Current End Date: 2026-11-29
Potential End Date: 2026-11-29 00:00:00
Last Modified: 2025-08-21
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