Walton Construction awarded $22.9M contract for Pascagoula fisheries lab, highlighting commercial building construction needs

Contract Overview

Contract Amount: $22,949,118 ($22.9M)

Contractor: Walton Construction Company Limited Liability Company

Awarding Agency: Department of Commerce

Start Date: 2007-09-05

End Date: 2009-06-30

Contract Duration: 664 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CONSTRUCTION OF CONSOLIDATED FISHERIES REPLACEMENT LABORATORY AT PASCAGOULA, MS

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $22.9 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY for work described as: DESIGN BUILD CONSTRUCTION OF CONSOLIDATED FISHERIES REPLACEMENT LABORATORY AT PASCAGOULA, MS Key points: 1. The contract value of $22.9 million for a fisheries laboratory suggests a significant investment in specialized research infrastructure. 2. The firm fixed-price contract type indicates that the contractor assumed the risk for cost overruns, potentially benefiting the government. 3. The duration of 664 days for the project implies a complex construction undertaking requiring substantial planning and execution. 4. The award to Walton Construction Company, a single entity, points to a focused selection process for this specific project. 5. The project's location in Pascagoula, Mississippi, suggests a regional focus for the fisheries research facility. 6. The National Oceanic and Atmospheric Administration's (NOAA) involvement underscores the importance of marine and fisheries research.

Value Assessment

Rating: fair

The contract value of $22.9 million for a design-build construction project of a fisheries laboratory needs further benchmarking against similar NOAA or other federal construction projects. Without comparable data on the scope, size, and complexity of the laboratory facilities, assessing the value for money is challenging. The firm fixed-price nature of the contract is a positive indicator for cost control, but the overall price relative to market rates for such specialized construction is not immediately apparent from the provided data.

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 bids. With three bidders participating, the competition level appears moderate. This suggests that while multiple companies were aware of and interested in the opportunity, the market for this specific type of specialized construction may not be exceptionally broad, or other factors limited broader participation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services. The presence of three bidders suggests a reasonable level of price discovery, though a higher number of bidders could potentially drive prices down further.

Public Impact

The primary beneficiaries are likely NOAA and its scientists, who will gain access to a modern, consolidated facility for fisheries research. The project delivers essential infrastructure for advancing understanding of marine ecosystems and fisheries management. The geographic impact is concentrated in Pascagoula, Mississippi, potentially boosting the local economy through construction jobs and supporting regional marine science initiatives. The construction phase will likely involve a workforce of skilled tradespeople and construction professionals in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract did not adequately account for unforeseen construction challenges.
Risk of delays in project completion impacting the operational readiness of the fisheries laboratory.
Dependence on a single contractor, Walton Construction Company, for the successful delivery of a complex project.

Positive Signals

The firm fixed-price contract structure shifts cost risk to the contractor, potentially protecting the government from budget overruns.
Awarded through full and open competition, suggesting a robust process to select the most capable bidder.
The project addresses a clear need for updated research infrastructure for NOAA's fisheries science mission.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant part of the federal procurement landscape. This contract falls within the 'Commercial and Institutional Building Construction' NAICS code (236220). Federal spending in this area often involves specialized facilities like laboratories, research centers, and administrative buildings. Benchmarking this contract's value would require comparing it to similar-sized laboratory construction projects or specialized government facilities, considering factors like square footage, specialized equipment integration, and regional construction cost indices.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, Walton Construction Company, is likely a larger entity. There is no information on subcontracting plans or actual performance, so the impact on the small business ecosystem is unknown from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and project managers. The firm fixed-price nature of the contract implies a focus on ensuring the contractor meets the specified deliverables within the agreed-upon budget and timeline. Transparency would be facilitated through contract award databases like FPDS. Accountability measures would involve performance reviews, site inspections, and adherence to contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NOAA Research Facilities Construction
Federal Laboratory Design and Build Contracts
Commercial Building Construction Services
Department of Commerce Capital Investments

Risk Flags

Potential for cost escalation under firm fixed-price contract if not adequately scoped.
Risk of construction delays impacting operational readiness.
Need for robust government oversight to ensure quality and adherence to design specifications.
Dependence on contractor's financial stability and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $22.9 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY. DESIGN BUILD CONSTRUCTION OF CONSOLIDATED FISHERIES REPLACEMENT LABORATORY AT PASCAGOULA, MS

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 Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2007-09-05. End: 2009-06-30.

What is Walton Construction Company's track record with federal contracts, particularly in construction of specialized facilities?

Analyzing Walton Construction Company's track record with federal contracts requires accessing detailed procurement databases. While this specific award indicates they were selected for a significant project, a comprehensive review would involve examining their past performance on similar projects, including any history of cost overruns, schedule delays, or contract disputes. Information on their experience with laboratory construction, design-build projects, and adherence to federal regulations and quality standards would be crucial for assessing their capability and reliability for this fisheries laboratory project. Without access to their full federal contract history, it's difficult to provide a definitive assessment of their track record.

How does the $22.9 million cost compare to similar federal fisheries laboratory construction projects?

Benchmarking the $22.9 million cost against similar federal fisheries laboratory construction projects is essential for evaluating value for money. This comparison would ideally involve projects of comparable size (square footage), complexity (specialized equipment, environmental controls), and geographic location, as construction costs can vary significantly by region. Without access to a database of comparable federal laboratory construction projects and their associated costs, a precise comparison is not possible. However, the value suggests a substantial investment, likely for a facility with advanced research capabilities, and further analysis would be needed to determine if it aligns with market rates for such specialized infrastructure.

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

The primary risks associated with a firm fixed-price (FFP) contract for a large-scale construction project like the fisheries laboratory primarily fall on the contractor. Walton Construction Company assumes the risk of cost overruns due to unforeseen issues, material price increases, or labor shortages. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if costs escalate unexpectedly, potentially leading to a less-than-ideal final product. There's also a risk that the contractor may not have adequately priced the project, leading to financial distress or a desire to seek change orders, which can increase the overall cost and complexity of management. However, FFP contracts are generally favored for their cost certainty for the government.

What is the expected effectiveness of the new fisheries laboratory in advancing NOAA's research goals?

The effectiveness of the new fisheries laboratory in advancing NOAA's research goals is anticipated to be high, given that it is a 'replacement' facility, implying the current infrastructure is outdated or insufficient. A modern, consolidated laboratory is expected to provide state-of-the-art equipment, improved workflow efficiencies, and enhanced collaboration opportunities for scientists. This upgraded environment should facilitate more advanced research in areas such as marine ecosystem health, sustainable fisheries management, climate change impacts on marine life, and aquaculture. The specific effectiveness will depend on the final design, the integration of necessary technologies, and the quality of the scientific personnel utilizing the facility.

How has federal spending on commercial and institutional building construction, specifically for research facilities, trended in recent years?

Federal spending on commercial and institutional building construction, particularly for research facilities, has generally seen fluctuations influenced by budget appropriations, national priorities, and infrastructure investment initiatives. While specific data for 'fisheries laboratories' alone is granular, broader trends in federal construction spending for scientific and research infrastructure can be observed. Agencies like NOAA, NSF, NIH, and DOE often have significant capital investment programs for laboratories and research centers. Post-recession periods and periods of increased focus on scientific advancement or national security often see upticks in such spending. Analyzing historical data from sources like the Congressional Budget Office (CBO) or federal procurement databases would reveal trends in overall federal construction outlays and specific investments in research infrastructure.

What are the implications of awarding a design-build contract versus a design-bid-build approach for this project?

Awarding a design-build contract, as indicated by the project description ('DESIGN BUILD CONSTRUCTION'), offers several implications compared to a traditional design-bid-build approach. In design-build, a single entity (Walton Construction Company in this case) is responsible for both the design and construction phases. This can lead to a more streamlined process, potentially faster project delivery, and clearer lines of responsibility, as there is only one point of contact for the government. It can also foster innovation by allowing the designer and builder to collaborate from the outset. However, it may offer less opportunity for the government to review and approve the design independently before construction begins, and the competition might be focused more on the overall package price rather than just the construction cost after a finalized design.

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: NEGOTIATED PROPOSAL/QUOTE

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,102,611

Exercised Options: $24,102,611

Current Obligation: $22,949,118

Contract Characteristics

Cost or Pricing Data: NO

Timeline