DHS awards $34.8M for Kodiak Base Construction, Walsh Federal LLC to perform work

Contract Overview

Contract Amount: $34,810,431 ($34.8M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-25

End Date: 2025-01-12

Contract Duration: 1,236 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT OPC/FRC HOMEPORT BASE KODIAK PHASE 1 AT KODIAK, AK.

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.8 million to WALSH FEDERAL LLC for work described as: CONSTRUCT OPC/FRC HOMEPORT BASE KODIAK PHASE 1 AT KODIAK, AK. Key points: 1. Contract awarded to Walsh Federal LLC for construction services. 2. Project involves construction at Base Kodiak, Alaska. 3. The contract type is Firm Fixed Price, indicating defined costs. 4. This is a Delivery Order under a larger contract. 5. The contract duration is 1236 days, spanning over three years. 6. The award was made under full and open competition. 7. The estimated value is $34.8 million.

Value Assessment

Rating: good

The contract value of $34.8 million for a multi-year construction project appears reasonable given the scope. Benchmarking against similar large-scale military or government construction projects would provide a more precise value-for-money assessment. The firm fixed price structure helps control costs for the government, but the final cost will depend on the execution and any change orders. Without detailed cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. With 5 bids received, this indicates a healthy level of competition for this significant construction project. A competitive bidding process generally leads to better pricing and value for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A competitive environment helps prevent overpayment and encourages contractors to offer their best pricing.

Public Impact

The U.S. Coast Guard will benefit from improved infrastructure at Base Kodiak. The project will deliver construction services for Phase 1 of the Homeport project. The geographic impact is concentrated in Kodiak, Alaska. The construction activities will likely create temporary jobs in the local Alaska workforce. The improved facilities will support the Coast Guard's operational readiness in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Delays in project completion could impact Coast Guard operational readiness.
Contractor performance risk associated with large-scale construction projects.

Positive Signals

Firm Fixed Price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive pricing environment.
Award to an established contractor like Walsh Federal LLC may indicate a track record of performance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The U.S. government is a significant consumer of construction services, particularly for infrastructure projects supporting defense, homeland security, and other federal agencies. Spending in this sector is often driven by modernization needs, new facility requirements, and maintenance of existing assets. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by agencies like the Department of Defense or the General Services Administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements in the provided details. Therefore, the direct impact on the small business ecosystem for this specific award appears limited. However, the prime contractor, Walsh Federal LLC, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and project managers. The firm fixed price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Army Corps of Engineers Construction Projects
General Services Administration (GSA) Public Buildings Service Contracts
Department of Defense Military Construction Projects

Risk Flags

Potential for cost overruns due to remote location and Alaska's climate.
Risk of project delays impacting operational readiness.
Need for robust contract oversight to ensure quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.8 million to WALSH FEDERAL LLC. CONSTRUCT OPC/FRC HOMEPORT BASE KODIAK PHASE 1 AT KODIAK, AK.

Who is the contractor on this award?

The obligated recipient is WALSH FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $34.8 million.

What is the period of performance?

Start: 2021-08-25. End: 2025-01-12.

What is the track record of Walsh Federal LLC in performing similar large-scale construction projects for the government?

Walsh Federal LLC is a subsidiary of The Walsh Group, a large construction firm with a significant history of undertaking major infrastructure and building projects. While specific details on their past performance for the U.S. Coast Guard or similar federal agencies are not provided in this data snippet, their parent company's extensive experience suggests a capacity for handling complex projects. A deeper dive into federal contract databases (like SAM.gov or FPDS) and past performance reviews would be necessary to fully assess their track record, including on-time delivery, budget adherence, and quality of work on comparable government contracts.

How does the awarded amount of $34.8 million compare to similar construction projects for naval or coastal facilities?

The $34.8 million award for the construction of Phase 1 at Base Kodiak is a substantial sum, typical for significant facility upgrades or new construction at military or federal installations. To benchmark this value, one would compare it to other recent construction contracts awarded by the U.S. Coast Guard, Navy, or Army Corps of Engineers for similar types of facilities (e.g., port infrastructure, operational buildings, barracks) in comparable geographic locations. Factors like the specific scope of work, site conditions, and prevailing labor costs in Alaska would influence comparisons. Without access to detailed cost breakdowns or a database of comparable projects with similar scopes, a precise value-for-money assessment relative to market rates is difficult, but the amount is within the expected range for a project of this nature.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks for the government in a firm fixed-price (FFP) contract, even with a reputable contractor, revolve around potential cost increases due to unforeseen circumstances and contractor performance. While the FFP structure caps the contractor's profit margin and shifts some risk to them, significant issues like unexpected subsurface conditions, extreme weather events impacting schedules, or material price escalations beyond what was reasonably foreseeable could lead to requests for equitable adjustments or contract modifications, potentially increasing the overall cost. Contractor performance risk also remains; delays or quality issues could necessitate government intervention or corrective actions, impacting the project timeline and potentially incurring additional costs for oversight or remediation. The government's risk is mitigated by thorough pre-award planning, clear contract specifications, and robust contract administration.

How does the competition level (5 bidders) influence the likely outcome for taxpayers?

A competition level of 5 bidders for this $34.8 million construction contract is generally considered healthy and suggests that the government received a range of proposals and pricing. This level of competition typically drives down costs as contractors vie for the award, forcing them to submit competitive bids. For taxpayers, this means there is a higher likelihood that the government secured a fair market price for the construction services. It reduces the risk of overpayment that might occur in a sole-source or limited-competition scenario. The presence of multiple bidders also encourages better quality and service delivery as contractors aim to build a positive performance record for future opportunities.

What is the historical spending pattern for similar construction projects by the U.S. Coast Guard in Alaska?

Analyzing historical spending patterns for similar U.S. Coast Guard construction projects in Alaska is crucial for context. Alaska's unique logistical challenges, harsh climate, and remote locations often lead to higher construction costs compared to the contiguous United States. Past projects may reveal trends in contract values, duration, and the types of contractors that successfully bid and perform. Understanding these historical patterns helps in evaluating whether the $34.8 million award for Base Kodiak Phase 1 is consistent with previous investments, or if it represents an outlier due to specific project requirements or market conditions. Without specific historical data, it's difficult to provide precise figures, but it's reasonable to assume that construction in Alaska commands a premium.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,954,053

Exercised Options: $34,810,431

Current Obligation: $34,810,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04718DWALSH100

IDV Type: IDC

Timeline