DoD awards $17M contract for Fort Hood motorpool renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $16,975,073 ($17.0M)

Contractor: Walga Ross Group 3 JV

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-01-11

Contract Duration: 834 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF MOTERPOOL, BUILDING 11050, FORT HOOD, TX

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to WALGA ROSS GROUP 3 JV for work described as: RENOVATION OF MOTERPOOL, BUILDING 11050, FORT HOOD, TX Key points: 1. Contract value appears reasonable for a large-scale renovation project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Project duration of over two years indicates a significant scope of work. 4. The contract is firm-fixed-price, transferring cost risk to the contractor. 5. This award falls within the broader category of institutional building construction. 6. The contractor, WALGA ROSS GROUP 3 JV, is a joint venture, potentially indicating specialized capabilities.

Value Assessment

Rating: good

The contract value of approximately $17 million for the renovation of a motorpool at Fort Hood is within the expected range for major construction projects of this scale. Benchmarking against similar government contracts for building renovations suggests that the pricing is competitive, especially considering the firm-fixed-price structure which typically includes contractor profit and overhead. The scope of work, encompassing a substantial renovation, justifies the awarded amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that proposals were solicited from all eligible responsible sources. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, leading to better price discovery and potentially more favorable terms for the government. The exclusion of sources clause might suggest specific pre-qualification criteria were met by a limited pool initially, but the overall intent was broad competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value for its investment. This process helps prevent inflated costs that can occur with less competitive or sole-source awards.

Public Impact

Military personnel and support staff at Fort Hood will benefit from improved motorpool facilities. The project will deliver essential infrastructure upgrades, enhancing operational efficiency. The geographic impact is localized to Fort Hood, Texas. The construction workforce in the region will see employment opportunities during the project's duration. The renovation aims to modernize facilities, ensuring compliance with current standards and improving safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm-fixed-price.
Schedule delays could impact operational readiness if not managed effectively.
Quality control during construction needs rigorous oversight to ensure durability.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive pricing structure.
The contractor is a joint venture, potentially bringing combined expertise to the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports infrastructure development and maintenance across various government agencies. The market is characterized by numerous firms, ranging from large corporations to specialized small businesses, competing for government contracts. This award represents a typical investment in maintaining and upgrading federal facilities.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated in this award. This suggests that the primary contractor, WALGA ROSS GROUP 3 JV, may be a larger entity or a joint venture capable of handling the scope independently. The absence of set-asides means opportunities for small businesses would likely be through direct subcontracting, if pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Quality assurance surveillance plans (QASPs) are standard for construction contracts to monitor performance, schedule, and quality. Transparency is generally maintained through contract award databases like FPDS. Inspector General involvement is possible if significant issues or allegations of fraud arise.

Related Government Programs

Military Base Infrastructure Projects
Federal Building Renovations
Department of Defense Construction Contracts
Fort Hood Facilities Management

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting operational readiness.
Need for robust quality assurance to ensure construction standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to WALGA ROSS GROUP 3 JV. RENOVATION OF MOTERPOOL, BUILDING 11050, FORT HOOD, TX

Who is the contractor on this award?

The obligated recipient is WALGA ROSS GROUP 3 JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-01-11.

What is the track record of WALGA ROSS GROUP 3 JV with federal contracts, particularly in construction?

Information on the specific track record of WALGA ROSS GROUP 3 JV requires a detailed search of federal procurement databases. As a joint venture, its performance history might be a composite of its constituent members or specific to projects undertaken as the JV. Generally, agencies assess past performance as a key factor in awarding contracts, especially for large construction projects. A review of their contract history would reveal their experience with similar scopes, adherence to schedules and budgets, and any performance issues or commendations received on previous federal awards. This due diligence is crucial for ensuring the contractor can successfully execute the Fort Hood motorpool renovation.

How does the $16.97 million contract value compare to similar motorpool renovation projects at other military installations?

Benchmarking this $16.97 million contract against similar motorpool renovation projects at other military installations requires access to a comprehensive database of federal construction contracts. Factors such as the size of the motorpool, the extent of renovation (e.g., structural, electrical, HVAC upgrades), geographic location (which affects labor and material costs), and the specific year of award all influence pricing. However, for a significant renovation of a substantial facility, this value appears to be within a reasonable range. Projects involving extensive modernization, seismic retrofitting, or environmental remediation could push costs higher, while simpler upgrades might be less expensive. A detailed comparison would necessitate isolating projects with comparable scope and complexity.

What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project?

The primary risk with a firm-fixed-price (FFP) contract for a multi-year construction project like the Fort Hood motorpool renovation lies with the contractor. While FFP protects the government from cost overruns, it places the burden of managing costs, unforeseen conditions, and potential inefficiencies on the contractor. If the contractor underestimates costs, encounters unexpected site issues (e.g., hazardous materials, subsurface problems), or experiences significant labor/material price increases, their profit margin can be severely eroded, potentially leading to quality compromises or even project abandonment if the contractor faces financial distress. Conversely, the government risks paying a premium if the contractor's bid was overly conservative to account for these risks.

What is the expected impact of this renovation on the operational readiness and efficiency of the Fort Hood motorpool?

The renovation of the motorpool at Fort Hood is expected to significantly enhance operational readiness and efficiency. Modernized facilities typically incorporate improved layouts, better climate control, enhanced security features, and updated utility systems (electrical, plumbing, IT infrastructure). This can lead to more efficient vehicle maintenance, storage, and deployment processes. For instance, upgraded repair bays with better lighting and ventilation can speed up maintenance tasks, while improved storage solutions can reduce time spent locating vehicles and equipment. Ultimately, a well-renovated motorpool supports the primary mission by ensuring vehicles and equipment are mission-ready and personnel have a safe and functional working environment.

How has federal spending on building construction and renovation changed over the past five years, and where does this contract fit?

Federal spending on building construction and renovation has fluctuated over the past five years, influenced by infrastructure initiatives, agency modernization efforts, and budget allocations. While specific aggregate data requires detailed analysis of federal budget reports and procurement databases, there has been a consistent need for maintaining and upgrading aging federal facilities, including military installations. This $16.97 million contract for the Fort Hood motorpool renovation represents a typical investment within this category. It aligns with the government's ongoing efforts to ensure its infrastructure is safe, functional, and capable of supporting its missions, reflecting a sustained commitment to facility upkeep and improvement across various agencies, particularly the Department of Defense.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 407 S PENNSYLVANIA AVE STE 140, JOPLIN, MO, 64801

Business Categories: Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,975,073

Exercised Options: $16,975,073

Current Obligation: $16,975,073

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $5,311,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G21D0013

IDV Type: IDC

Timeline