DoD Awards $14.3M for Navy Renovations to Walsh Construction, Highlighting Fixed-Price Contract
Contract Overview
Contract Amount: $14,285,885 ($14.3M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2007-01-01
End Date: 2008-10-06
Contract Duration: 644 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: RENOVATIONS TO SP 47, 48, 64
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.3 million to WALSH CONSTRUCTION COMPANY for work described as: RENOVATIONS TO SP 47, 48, 64 Key points: 1. Contract Value: $14.3 million for renovations across multiple buildings. 2. Competition: Full and open competition was utilized. 3. Risk: Fixed-price contract type may shift cost overruns to the contractor. 4. Sector: Government contracting, specifically facility renovation.
Value Assessment
Rating: good
The $14.3 million award for renovations appears reasonable given the scope and duration. Benchmarking against similar large-scale facility renovation contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple bidders to submit proposals, theoretically driving down costs.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for necessary renovations.
Public Impact
Improved facilities for Navy personnel and operations. Potential for job creation through construction activities. Investment in aging government infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 644 days is substantial.
- Small business participation not indicated.
Positive Signals
- Fixed-price contract type.
- Full and open competition utilized.
Sector Analysis
This contract falls within the government's broad construction and renovation sector. Spending benchmarks for similar facility upgrades vary widely based on location and scope.
Small Business Impact
No indication of small business participation was provided in the data. Future contracts should explore opportunities for small business involvement to promote economic diversity.
Oversight & Accountability
The Department of the Navy awarded this contract, implying internal oversight. Further review of performance reports and payment milestones would assess accountability.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- No explicit small business participation noted.
- Potential for scope creep in renovation projects.
- Reliance on contractor's cost management.
Tags
department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 million to WALSH CONSTRUCTION COMPANY. RENOVATIONS TO SP 47, 48, 64
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 Navy).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2007-01-01. End: 2008-10-06.
What was the basis for selecting Walsh Construction Company among the bidders?
The provided data indicates Walsh Construction Company was awarded the contract following a full and open competition. The specific evaluation criteria and scoring that led to their selection are not detailed here. Typically, factors like technical approach, past performance, and price are considered in such procurements.
What are the primary risks associated with this fixed-price renovation contract?
The primary risk with a fixed-price contract is that if costs exceed the agreed-upon price, the contractor (Walsh Construction) absorbs the loss. Conversely, if costs are lower, they retain the profit. Unforeseen site conditions or scope creep not properly managed could lead to disputes or contractor claims.
How effectively does this contract address the Navy's facility needs in Virginia?
The contract aims to address facility needs through renovations to specific buildings (SP 47, 48, 64). The effectiveness hinges on the quality of the completed work, adherence to schedule, and whether the renovations meet the intended operational requirements and improve the working environment for Navy personnel.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 10
Pricing Type: FIXED PRICE (J)
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 WEST ADAMS ST, CHICAGO, IL, 60607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,285,885
Exercised Options: $14,285,885
Current Obligation: $14,285,885
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247001D1138
IDV Type: IDC
Timeline
Start Date: 2007-01-01
Current End Date: 2008-10-06
Potential End Date: 2008-10-06 00:00:00
Last Modified: 2021-08-04
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