Walton Construction awarded $16.5M for P5901 Security Forces Complex by the Department of the Navy

Contract Overview

Contract Amount: $16,458,679 ($16.5M)

Contractor: Walton Construction Company Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2011-07-28

Contract Duration: 668 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P5901 SECURITY FORCES COMPLEX

Place of Performance

Location: BARKSDALE AFB, BOSSIER County, LOUISIANA, 71110

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY for work described as: P5901 SECURITY FORCES COMPLEX Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The project duration of 668 days suggests a significant construction undertaking. 4. The contract was awarded to Walton Construction Company, a limited liability company. 5. The project is located in Louisiana, a key state for defense infrastructure. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The total contract value of $16.5 million for the P5901 Security Forces Complex appears to be a substantial investment. Benchmarking this against similar large-scale construction projects for military facilities would be necessary for a precise value-for-money assessment. Without comparable data on per-square-foot costs or specific construction elements, it's difficult to definitively assess if the pricing was competitive. However, the firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders (indicated by 'no': 3) suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally indicate that the market has sufficient interest and capability to respond to such solicitations. The government likely received a range of proposals to evaluate.

Taxpayer Impact: Full and open competition, with multiple bidders, generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality proposals. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining good value.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Navy, who will gain enhanced security facilities. The project delivers essential infrastructure for security forces, improving operational capabilities. The geographic impact is concentrated in Louisiana, potentially creating local jobs and economic activity during construction. The construction workforce in Louisiana will likely see employment opportunities arise from this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project contingencies.
Dependence on a single contractor for the duration of the project introduces performance risk.
The specific details of the construction scope and quality standards are not fully detailed here, posing a potential risk if not rigorously managed.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Awarded under full and open competition, indicating a broad market search.
The project addresses a critical need for security infrastructure within the Department of Defense.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, frequently awarding large contracts for military bases, housing, and specialized facilities. Spending in this sector is often influenced by geopolitical factors, national security priorities, and infrastructure upgrade cycles. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar military construction projects across different regions and over time.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor is Walton Construction Company, LLC. There is no explicit information on subcontracting plans for small businesses within this data snippet. Therefore, the direct impact on the small business ecosystem through set-asides is none, but subcontracting opportunities may still exist depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Department of Defense Facilities
Naval Facilities Engineering Command Contracts
General Building Construction

Risk Flags

Potential for cost overruns under firm-fixed-price contract if unforeseen issues arise.
Performance risk associated with a single contractor managing a large-scale project.
Need for detailed benchmarking to confirm value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY. P5901 SECURITY FORCES COMPLEX

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 $16.5 million.

What is the period of performance?

Start: 2009-09-28. End: 2011-07-28.

What is the historical spending pattern of the Department of the Navy on similar security facility construction projects?

Analyzing historical spending patterns for the Department of the Navy on similar security facility construction projects requires access to comprehensive contract databases. Typically, such analysis would involve filtering awards by the relevant NAICS codes (e.g., Commercial and Institutional Building Construction), agency sub-components (e.g., Department of the Navy), and project types (e.g., security facilities, barracks, training centers). Examining trends over the past 5-10 years would reveal average contract values, typical durations, and the prevalence of different contract types (e.g., firm-fixed-price vs. cost-plus). This historical data helps establish benchmarks for current contract values and assess whether the $16.5 million awarded to Walton Construction for the P5901 Security Forces Complex aligns with past investments or represents a significant deviation. It can also highlight any shifts in procurement strategies or the types of contractors historically successful in securing such awards.

How does the awarded amount compare to the estimated cost or budget for the P5901 Security Forces Complex?

The provided data indicates an awarded amount of $16,586,788.88 for the P5901 Security Forces Complex. However, it does not include information on the government's initial cost estimate or the allocated budget for this project. To assess value for money, a comparison between the awarded price and the government's estimate is crucial. If the awarded amount is significantly lower than the estimate, it could indicate successful competition or potentially an underestimated scope by the government. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive bidding environment. Without the estimated cost, it's challenging to definitively determine if the contract represents a good deal for taxpayers or if the government secured competitive pricing.

What is Walton Construction Company's track record with the Department of Defense and similar construction projects?

Walton Construction Company's track record with the Department of Defense and on similar projects is a key indicator of their capability and reliability. A review of their contract history would reveal the number and value of previous awards from the DoD, particularly for construction of institutional or security-related facilities. It would also highlight their performance history, including any instances of contract modifications, delays, disputes, or terminations. Examining past projects of similar scale and complexity would provide insight into their project management expertise, quality of work, and adherence to schedules and budgets. Positive performance on prior DoD contracts, especially those involving firm-fixed-price terms, would suggest a lower risk profile for this current award. Conversely, a history of issues could raise concerns about potential performance risks.

What are the specific risks associated with a firm-fixed-price contract for a large-scale construction project like this?

A firm-fixed-price (FFP) contract, like the one awarded to Walton Construction, places the primary responsibility for cost control on the contractor. For a large-scale construction project, the main risk associated with FFP is that unforeseen issues—such as unexpected site conditions, material price escalations, labor shortages, or design changes—could lead to cost overruns for the contractor. If the contractor underestimated these risks or if the contract price was set too low due to intense competition, they might face financial losses. This could potentially impact project quality or lead to disputes. While FFP is generally advantageous for the government as it provides cost certainty, it requires thorough initial cost estimation and risk assessment by the government to ensure the price is fair and reasonable, and that the contractor has adequate incentive and capability to complete the project within the agreed-upon price.

How does the geographic location in Louisiana potentially influence the cost and execution of this construction project?

The geographic location in Louisiana can influence the cost and execution of this construction project in several ways. Louisiana's climate, particularly its susceptibility to hurricanes and high humidity, may necessitate specific construction materials, techniques, and weather-related contingency planning, potentially increasing costs. Local labor market conditions, including wage rates and availability of skilled construction workers, will directly impact labor costs. Furthermore, transportation costs for materials and equipment to the specific site within Louisiana need to be considered. Regulatory requirements, building codes, and permitting processes specific to Louisiana and local jurisdictions can also affect project timelines and expenses. Proximity to necessary infrastructure, such as roads and utilities, will also play a role in logistical planning and overall project efficiency.

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

Solicitation ID: N6246705R0095

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Core Construction Services, L.L.C. (UEI: 964342948)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,458,679

Exercised Options: $16,458,679

Current Obligation: $16,458,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6246705D0184

IDV Type: IDC

Timeline