The city of Detroit next month has to rebid two multiyear water and wastewater inspection and repair contracts, worth a total of $60 million, after Lakeshore TolTest Corp. filed for Chapter 7 bankruptcy liquidation days after receiving the work on April 23.

The contracting mishap is just one result of the puzzling collapse of the firm, which had been grown through acquisition into a half-billion-dollar-plus global contracting enterprise, including federal contracts in Afghanistan.