Army awards $13.5M for flood protection in Indiana, Walsh Construction Company wins contract
Contract Overview
Contract Amount: $13,493,448 ($13.5M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2009-06-26
End Date: 2012-01-10
Contract Duration: 928 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LOCAL FLOOD PROTECTION, STAGE VIII, MUNSTER AND HAMMOND, IN
Place of Performance
Location: MUNSTER, LAKE County, INDIANA, 46321
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to WALSH CONSTRUCTION COMPANY for work described as: LOCAL FLOOD PROTECTION, STAGE VIII, MUNSTER AND HAMMOND, IN Key points: 1. Contract value of $13.5M for flood protection infrastructure. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Definitive contract type indicates a single, established agreement for services. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. Project duration of 928 days spans over two years. 6. Work performed in Indiana, impacting local flood protection efforts.
Value Assessment
Rating: good
The contract value of $13.5 million for flood protection infrastructure appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar Army Corps of Engineers projects for flood control in the Midwest would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 11 bidders, the level of competition was robust, which typically leads to more competitive pricing and better value for the government. This broad competition suggests that the market has sufficient capacity and interest in performing this type of heavy civil engineering work.
Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by driving down prices through competitive pressure, ensuring the government receives the best possible value for its investment.
Public Impact
Residents and businesses in Munster and Hammond, Indiana, benefit from enhanced flood protection. The project delivers critical heavy and civil engineering construction services for public safety. Geographic impact is localized to the specified areas in Indiana. The construction workforce in the region will be engaged during the project duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in large-scale civil engineering projects.
- Ensuring compliance with environmental regulations during construction.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty for the government.
- Full and open competition with multiple bidders suggests competitive pricing.
- Awarded by the Department of the Army, indicating a significant federal need.
- Project addresses essential public safety infrastructure (flood protection).
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects such as flood control, dams, levees, and transportation facilities. The market for such services is characterized by large, established construction firms capable of undertaking complex, multi-year projects. Spending in this sector is often driven by government infrastructure initiatives and the need for resilience against natural disasters.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While the prime contractor is Walsh Construction Company, a large entity, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting on this specific project.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for executing civil works projects. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports would require deeper investigation.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Federal Flood Control Projects
- Infrastructure Investment and Jobs Act Projects
Risk Flags
- Potential for schedule overruns
- Unforeseen site conditions
- Environmental compliance challenges
Tags
construction, department-of-defense, department-of-the-army, indiana, munster, hammond, definitive-contract, full-and-open-competition, firm-fixed-price, heavy-and-civil-engineering, flood-protection, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to WALSH CONSTRUCTION COMPANY. LOCAL FLOOD PROTECTION, STAGE VIII, MUNSTER AND HAMMOND, IN
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 $13.5 million.
What is the period of performance?
Start: 2009-06-26. End: 2012-01-10.
What is the track record of Walsh Construction Company with the Department of Defense?
Walsh Construction Company has a significant history of contracting with the Department of Defense and other federal agencies. While this specific contract is for $13.5 million, their portfolio often includes larger and more complex civil engineering and construction projects. A review of federal procurement data would reveal the total value and types of contracts awarded to Walsh Construction Company by the DoD over time. Their experience in heavy civil engineering, particularly in projects involving water management and infrastructure, suggests they are well-equipped for this type of work. Past performance evaluations, if publicly available, would offer further insight into their reliability and quality of work on similar federal projects.
How does the $13.5 million value compare to similar flood protection projects managed by the Army Corps of Engineers?
The $13.5 million contract value for flood protection in Munster and Hammond, Indiana, needs to be benchmarked against similar projects to assess its relative cost-effectiveness. The Army Corps of Engineers manages numerous flood control and coastal protection projects nationwide, varying significantly in scale, complexity, and location. Projects involving levee construction, storm surge barriers, or channel improvements can range from a few million to hundreds of millions of dollars. Factors such as local labor costs, material prices, environmental mitigation requirements, and the specific engineering challenges of the site influence project costs. A detailed comparison would involve identifying projects with comparable scope (e.g., levee upgrades, floodwall construction) in similar geographic regions and timeframes to determine if this contract represents a fair market price.
What are the primary risks associated with a large-scale civil engineering construction contract like this?
Large-scale civil engineering construction contracts, such as this $13.5 million flood protection project, carry several inherent risks. Schedule delays are common due to unforeseen site conditions (e.g., unexpected soil issues, archaeological discoveries), weather disruptions, or supply chain problems for specialized materials. Cost overruns can occur if the fixed-price contract doesn't adequately account for all potential contingencies, or if scope creep arises from design changes or evolving requirements. Performance risks include the contractor's ability to meet quality standards and technical specifications, potentially leading to rework or reduced effectiveness of the flood protection. Environmental risks, such as encountering hazardous materials or impacting sensitive ecosystems, also require careful management and mitigation. Finally, coordination with multiple stakeholders, including local governments and regulatory agencies, can introduce administrative and logistical challenges.
How effective are firm fixed-price contracts in managing costs for federal construction projects?
Firm Fixed-Price (FFP) contracts are generally considered effective tools for managing costs in federal construction projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes the primary responsibility for cost overruns, providing the government with a high degree of cost certainty. This structure incentivizes the contractor to control costs and work efficiently to maximize profit. However, FFP contracts can sometimes lead to higher initial bid prices as contractors factor in potential risks. They are less suitable for projects with highly uncertain scopes or where significant design changes are anticipated, as modifications can become complex and costly. For a project like flood protection where the engineering requirements are typically well-established, FFP is a suitable choice for cost control.
What is the historical spending pattern for flood protection projects by the Department of the Army?
The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a long and substantial history of investing in flood protection projects. Annual federal outlays for flood control and related water resource infrastructure can fluctuate significantly based on congressional appropriations, national priorities, and the occurrence of major flood events. Historically, spending has been driven by the need to mitigate risks in vulnerable areas, improve navigation, and manage water resources. USACE projects often involve large, multi-year commitments, meaning current spending reflects ongoing work from previously authorized projects as well as new initiatives. Analyzing historical spending patterns reveals a consistent, albeit variable, commitment to flood risk management as a core federal responsibility.
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: W912P609B0004
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 W ADAMS ST, CHICAGO, IL, 60607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,493,448
Exercised Options: $13,493,448
Current Obligation: $13,493,448
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-26
Current End Date: 2012-01-10
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2021-03-28
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