DoD's $13M Building Renovation Contract Awarded to Walga Ross Group 3 JV for Arkansas Project

Contract Overview

Contract Amount: $13,076,974 ($13.1M)

Contractor: Walga Ross Group 3 JV

Awarding Agency: Department of Defense

Start Date: 2024-10-10

End Date: 2026-04-07

Contract Duration: 544 days

Daily Burn Rate: $24.0K/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: BUILDING 32-630 RENOVATION

Place of Performance

Location: WHITE HALL, JEFFERSON County, ARKANSAS, 71602

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to WALGA ROSS GROUP 3 JV for work described as: BUILDING 32-630 RENOVATION Key points: 1. The contract value of approximately $13.1 million represents a significant investment in facility upgrades. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources,' suggesting a potentially competitive but specific bidding process. 3. The fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 4. The project duration of 544 days indicates a substantial renovation effort. 5. The award to a joint venture highlights potential for specialized expertise and capacity. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code, a common category for federal facility projects.

Value Assessment

Rating: fair

Benchmarking the value of this specific renovation contract is challenging without detailed project scope and comparable project data. However, the $13.1 million price tag for a 544-day project suggests a substantial undertaking. The firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively. Further analysis would require comparing the cost per square foot or per major renovation element against similar projects within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific requirements or pre-qualification. The number of bidders is not specified, but the 'exclusion of sources' phrasing suggests it may not have been a completely unrestricted open competition. This could potentially limit the range of pricing and innovation compared to a truly open solicitation.

Taxpayer Impact: While the competition was not fully unrestricted, the 'full and open' aspect suggests an effort to solicit bids from qualified contractors. The exclusion of sources warrants scrutiny to ensure it did not unduly limit competition and potentially inflate costs for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the renovated facilities. The project will deliver upgraded building infrastructure, potentially improving functionality, safety, and energy efficiency. The geographic impact is localized to the specific military installation in Arkansas where the renovation is taking place. The renovation will likely involve a significant construction workforce, providing employment opportunities in the local Arkansas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'renovation' is not tightly defined and managed.
Risk of delays due to the complexity of building renovations and potential unforeseen site conditions.
Ensuring the 'exclusion of sources' did not unnecessarily restrict competition and lead to a higher price.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty.
Award to a joint venture may indicate specialized capabilities for complex projects.
The project addresses a clear need for facility modernization within the Department of Defense.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. The total federal spending on construction services is substantial, with significant portions allocated to infrastructure and building projects across various agencies. This specific contract represents a component of the Department of Defense's ongoing efforts to maintain its vast real estate portfolio.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. There is no explicit mention of small business subcontracting goals. This suggests that the primary focus was on securing the necessary capabilities for the renovation, and the impact on the small business ecosystem may be indirect, through potential subcontracting opportunities if the joint venture partners engage them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified renovation within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. The Inspector General's office for the Department of Defense would have jurisdiction over any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Facilities Modernization Programs
Military Construction Projects
General Services Administration (GSA) Building Operations and Maintenance
Federal Building and Fire Safety Programs

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'
Risk of unforeseen conditions in building renovation
Need for detailed scope definition to manage fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to WALGA ROSS GROUP 3 JV. BUILDING 32-630 RENOVATION

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 $13.1 million.

What is the period of performance?

Start: 2024-10-10. End: 2026-04-07.

What is the specific nature of the 'renovation' being undertaken in Building 32-630?

The provided data does not detail the specific scope of the 'BUILDING 32-630 RENOVATION.' This could range from cosmetic upgrades to complete structural overhauls, HVAC system replacements, or technological infrastructure improvements. Understanding the precise nature of the renovation is crucial for assessing the value for money and comparing it to industry benchmarks. Without this detail, it's difficult to ascertain if the $13.1 million is appropriate for the work performed. Further investigation into the contract's statement of work (SOW) or performance work statement (PWS) would be necessary to clarify the extent of the renovation.

How does the awarded price compare to similar building renovation projects within the Department of Defense?

Direct comparison of the $13.1 million award to similar DoD renovation projects is difficult without more granular data on project scope, size (e.g., square footage), and the specific types of renovations performed. However, the duration of 544 days suggests a significant project. Federal procurement data often shows a wide range in renovation costs depending on complexity, location, and age of the facility. To benchmark effectively, one would need to identify projects with comparable square footage, age of building, and the extent of work (e.g., interior fit-out vs. structural upgrades). The firm-fixed-price nature suggests cost control is a priority, but the initial price needs validation against relevant benchmarks.

What are the specific reasons for the 'Exclusion of Sources' in this 'Full and Open Competition' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The specific reasons for this exclusion are not detailed in the provided data. Common justifications for excluding sources include specific security requirements, unique technical capabilities, past performance issues with certain contractors, or the need for specialized certifications or clearances that only a subset of the market possesses. Understanding these exclusions is vital to assess whether they were justified and if they potentially limited competition, thereby impacting price discovery and potentially increasing costs for the government.

What is the track record of the joint venture 'WALGA ROSS GROUP 3 JV' in executing federal construction contracts?

The provided data identifies 'WALGA ROSS GROUP 3 JV' as the contractor but does not offer details on their specific track record, past performance, or experience with similar federal construction projects. A joint venture's capabilities are often a composite of its member firms. To assess their reliability and suitability for this $13.1 million renovation, one would need to examine the past performance of both Walga and Ross Group 3 individually, as well as any prior joint ventures they may have formed. Reviewing their contract history, project completion success rates, and any documented performance issues would be essential for a comprehensive risk assessment.

What are the potential risks associated with a 544-day renovation project of this magnitude?

A 544-day (approximately 1.5 years) renovation project of this magnitude carries several inherent risks. These include potential for unforeseen site conditions (e.g., asbestos, structural issues, hazardous materials) that could lead to delays and cost increases, especially under a fixed-price contract if not adequately scoped. There's also the risk of scope creep, where additional requirements are added during the project, impacting the timeline and budget. Furthermore, managing a project of this duration requires sustained oversight to ensure quality control, adherence to schedules, and effective communication between the government and the contractor. Supply chain disruptions or labor shortages could also pose risks over such an extended period.

How does this contract fit into the broader context of Department of the Army's facility maintenance and upgrade spending?

This $13.1 million contract for Building 32-630 renovation represents a specific investment within the Department of the Army's overall facilities maintenance and upgrade budget. The Army manages a vast portfolio of real property, and ongoing investments are necessary to ensure operational readiness, safety, and modernization. Spending in this category typically fluctuates based on infrastructure needs, congressional appropriations, and strategic priorities. This contract, awarded under the Commercial and Institutional Building Construction NAICS code, is one of many such projects undertaken annually to sustain and improve the built environment essential for military operations.

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 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: $14,247,761

Exercised Options: $13,076,974

Current Obligation: $13,076,974

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