DoD's $18.7M hangar hardening contract awarded to Walton Construction for NAS JRB New Orleans

Contract Overview

Contract Amount: $18,698,307 ($18.7M)

Contractor: Walton Construction Company Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2008-03-30

Contract Duration: 549 days

Daily Burn Rate: $34.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: HARDENING OF HANGARS 3 AND 4 NAS-JRB NOLA

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY for work described as: HARDENING OF HANGARS 3 AND 4 NAS-JRB NOLA Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The contract duration of 549 days (approximately 18 months) suggests a moderately complex project. 4. The project is located in Louisiana, potentially impacting the local construction workforce and economy. 5. The absence of small business set-aside flags requires further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data on hangar hardening projects. The fixed-price nature is generally favorable for the government, shifting cost risk to the contractor. However, the final cost relative to the initial award amount and the overall value delivered would require a deeper dive into project execution and any change orders.

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 a bid. The data does not specify the number of bidders, which is crucial for a complete assessment of the competition's intensity. A robust competition typically leads to better pricing for the government.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and encouraging efficiency from contractors.

Public Impact

The primary beneficiaries are the Department of Defense and the Navy, receiving hardened hangars to protect assets at NAS JRB New Orleans. The services delivered include construction and renovation to enhance the structural integrity and security of existing hangar facilities. The geographic impact is concentrated in Belle Chasse, Louisiana, at the Naval Air Station Joint Reserve Base. The project likely involved a local construction workforce, contributing to employment in the Louisiana region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive pressure.
No explicit mention of small business subcontracting goals requires verification.
Fixed-price contracts can sometimes lead to scope limitations if not carefully managed.

Positive Signals

Full and open competition is a positive indicator for market-driven pricing.
Fixed-price contract shifts cost risk to the contractor.
Project addresses critical infrastructure hardening needs for military operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure, including military facilities. Comparable spending benchmarks would typically involve other large-scale construction or renovation projects for government installations, where competition and project scope heavily influence pricing.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by the prime contractor, Walton Construction Company, to engage small businesses in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the fixed-price contract structure, which penalizes cost overruns for the contractor. Transparency would be enhanced by public contract databases and potential Inspector General reviews, although specific oversight details are not provided in the summary data.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Projects
Department of Defense Infrastructure Modernization
Military Base Facility Upgrades
Airfield Hangar Construction and Maintenance

Risk Flags

Potential for cost overruns despite fixed-price contract if scope is not well-defined.
Lack of specific bidder count makes assessing true competition level difficult.
No explicit small business subcontracting goals noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY. HARDENING OF HANGARS 3 AND 4 NAS-JRB NOLA

Who is the contractor on this award?

The obligated recipient is WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2006-09-28. End: 2008-03-30.

What is the track record of Walton Construction Company Limited Liability Company with federal contracts, particularly within the Department of Defense?

A comprehensive review of Walton Construction Company Limited Liability Company's federal contract history would involve querying databases like SAM.gov or FPDS. This would reveal their past performance, contract values, agencies served, and any reported issues or awards. For this specific contract, understanding their experience with similar military construction projects, especially those involving infrastructure hardening or airfield facilities, would provide context for their capability and pricing strategy. Without direct access to their full federal performance record, it's difficult to definitively assess their track record beyond this single award.

How does the awarded amount of $18.7 million compare to similar hangar hardening projects undertaken by the Department of Defense or other federal agencies?

Direct comparison of this $18.7 million contract for hangar hardening is difficult without access to a database of similar projects with detailed scope and location. Factors such as square footage, specific hardening requirements (e.g., blast resistance, seismic retrofitting), materials used, and prevailing labor costs in the specific geographic region (Belle Chasse, LA) significantly influence project costs. Generally, large-scale construction projects for military installations represent substantial investments. To benchmark effectively, one would need to identify contracts with comparable specifications, duration, and agency, adjusting for inflation and regional economic differences.

What are the primary risks associated with this fixed-price contract for hardening hangars, and how might they have been mitigated?

The primary risk for the government in a fixed-price contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. For Walton Construction, the risk lies in underestimating project costs, encountering unforeseen site conditions, or facing material price increases, leading to reduced profit margins or losses. Mitigation strategies employed by the Navy could include detailed technical specifications, rigorous site investigations prior to bidding, clear performance standards, and robust quality assurance/quality control processes during construction. The contractor's own risk mitigation would involve thorough cost estimation, contingency planning, and efficient project management.

What is the expected effectiveness of the hardened hangars in enhancing the operational readiness and security at NAS JRB New Orleans?

The effectiveness of the hardened hangars hinges on the specific threats they are designed to mitigate, such as extreme weather events (hurricanes, common in Louisiana), potential physical attacks, or other environmental hazards. Hardening typically involves reinforcing structural integrity, improving roofing, and potentially enhancing blast or impact resistance. By protecting aircraft and critical support equipment within these hangars, the Navy enhances operational readiness by minimizing downtime and repair needs following adverse events. This ensures that aircraft and personnel are available for mission deployment, thereby bolstering the overall security posture of the base.

How has federal spending on military construction and facility upgrades, particularly for aviation infrastructure, trended in recent years, and where does this contract fit?

Federal spending on military construction and facility upgrades, including aviation infrastructure, has historically fluctuated based on geopolitical conditions, modernization needs, and budget allocations. Post-9/11 security enhancements and ongoing efforts to modernize aging infrastructure have driven significant investment. This $18.7 million contract for hangar hardening at NAS JRB New Orleans represents a specific investment in maintaining and improving critical operational facilities. It aligns with broader trends of ensuring base resilience and protecting high-value assets against evolving threats, whether environmental or security-related. Such projects are essential components of the overall defense infrastructure budget.

Were there any notable challenges or disputes during the execution of this contract between 2006 and 2008?

Information regarding specific challenges or disputes during the execution of this contract (2006-2008) is not readily available in the provided summary data. Contract performance issues, change orders, or disputes are typically documented in contract administration files, performance reports, or potentially through legal or arbitration records if they escalated. Without access to these detailed records, it is impossible to ascertain if Walton Construction Company encountered significant hurdles or disagreements with the Department of the Navy during the 549-day performance period of this hangar hardening project.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walton Construction Company, L.L.C. (UEI: 147990758)

Address: 10 COMMERCE CT, NEW ORLEANS, LA, 70123

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,698,307

Exercised Options: $18,698,307

Current Obligation: $18,698,307

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6246705D0184

IDV Type: IDC

Timeline