Navy awards $25.2M contract for air traffic control tower construction and demolition

Contract Overview

Contract Amount: $25,199,519 ($25.2M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-31

End Date: 2024-12-29

Contract Duration: 578 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BAS BID NEW ATCT & DEMOLISH EXISTING ATC

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to WALSH FEDERAL LLC for work described as: BAS BID NEW ATCT & DEMOLISH EXISTING ATC Key points: 1. Contract awarded to Walsh Federal LLC, a known entity in federal construction. 2. The contract is for a definitive contract with a firm fixed price, indicating clear cost expectations. 3. Competition was full and open, suggesting a robust bidding process. 4. The project duration is 578 days, aligning with typical construction timelines for such facilities. 5. The North American Industry Classification System (NAICS) code 488111 points to airport operations, a specialized sector. 6. The contract value is substantial, reflecting the complexity and scale of air traffic control infrastructure.

Value Assessment

Rating: good

The contract value of $25.2 million for the demolition of an existing and construction of a new air traffic control tower appears reasonable given the scope. Benchmarking against similar projects is challenging without more specific details on the tower's size, technological integration, and location-specific construction costs. However, the firm fixed-price nature of the contract suggests that the contractor has assumed the risk for cost overruns, which can be a positive indicator of value if the contractor is experienced and efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This indicates a healthy level of market interest and suggests that the government received competitive pricing. The presence of multiple bidders generally leads to better price discovery and ensures that the awardee is selected based on a combination of price and technical merit.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the government is not overpaying for services or goods.

Public Impact

The primary beneficiaries are the Department of the Navy and military personnel relying on safe and efficient air traffic control operations at the specified facility. The services delivered include the demolition of an outdated air traffic control tower and the construction of a new, presumably modern, facility. The geographic impact is localized to the naval installation where the contract is being executed, likely in Maryland based on the 'ST' and 'SN' fields. The project will likely involve a significant number of construction workers, engineers, and project managers, providing employment opportunities in the skilled trades and construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness if not managed effectively.
Ensuring compliance with environmental regulations during demolition and construction phases.
Managing the integration of new air traffic control technology within the new tower structure.

Positive Signals

Award to Walsh Federal LLC, a contractor with experience in federal construction projects.
Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive bidding process leading to potentially favorable pricing.
Project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

The construction and operation of air traffic control towers fall under the broader aerospace and defense infrastructure sector. This sector is characterized by high technical requirements, stringent safety regulations, and significant capital investment. The market for such specialized construction is often dominated by a few experienced firms capable of meeting the unique demands of military installations. Spending in this area is critical for maintaining operational capabilities and national security.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). While Walsh Federal LLC may utilize small businesses as subcontractors, there is no explicit requirement or indication of a small business subcontracting plan within the provided data. This means the direct impact on the small business ecosystem for this specific prime contract is likely limited, though the prime contractor's own subcontracting practices would determine broader implications.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Airfield Operations Support
Naval Facilities Engineering Command Contracts
Air Traffic Control Systems Modernization

Risk Flags

Potential for construction delays
Integration of new technology
Environmental compliance during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to WALSH FEDERAL LLC. BAS BID NEW ATCT & DEMOLISH EXISTING ATC

Who is the contractor on this award?

The obligated recipient is WALSH FEDERAL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2023-05-31. End: 2024-12-29.

What is Walsh Federal LLC's track record with similar air traffic control tower construction projects for the Department of Defense?

Walsh Federal LLC has a documented history of performing federal construction contracts, including projects for the Department of Defense. While specific details on prior air traffic control tower construction are not immediately available in this dataset, their experience with large-scale federal building projects suggests a capability to handle complex infrastructure. A deeper dive into their contract history, performance reviews, and past project scopes would be necessary to fully assess their specific expertise in ATC tower construction. Reviewing past performance evaluations (e.g., CPARS) would provide insights into their reliability, quality of work, and adherence to schedule and budget on similar federal endeavors.

How does the awarded amount of $25.2 million compare to the average cost of constructing a new air traffic control tower?

The average cost of constructing an air traffic control tower can vary significantly based on factors such as size, technological complexity, location, and specific security requirements. Costs can range from tens of millions to over $100 million for highly advanced facilities. The $25.2 million awarded to Walsh Federal LLC for demolishing an existing tower and constructing a new one appears to be within the lower to mid-range for such projects, especially considering it's a definitive contract with a fixed price. This suggests that either the scope of work is less complex than some high-end towers, or the competitive bidding process was particularly effective in driving down the price. Further analysis would require comparing the square footage, height, and technological specifications of this tower against industry benchmarks.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the operational readiness of the facility. There's also a risk related to the integration of new air traffic control technology, ensuring compatibility and functionality. Mitigation strategies likely include the firm fixed-price contract structure, which incentivizes the contractor to manage costs and timelines efficiently. The Department of the Navy will likely employ robust project management, regular site inspections, and clear communication channels with Walsh Federal LLC to monitor progress and address issues proactively. Pre-qualification of the contractor and detailed project planning also serve to mitigate risks.

What is the expected impact of this new air traffic control tower on the Navy's operational effectiveness?

The construction of a new air traffic control tower is expected to significantly enhance the Navy's operational effectiveness by providing a modern, reliable, and potentially more technologically advanced facility for managing air traffic. This can lead to improved safety, increased capacity for aircraft movements, and better communication systems for controllers. Replacing an older structure mitigates risks associated with equipment failure or obsolescence in the current tower. Ultimately, a state-of-the-art ATC facility supports the seamless and secure execution of flight operations critical to the base's mission readiness and training activities.

How has federal spending on air traffic control infrastructure evolved over the past five years?

Federal spending on air traffic control (ATC) infrastructure, particularly within the Department of Defense and the Federal Aviation Administration (FAA), has generally seen consistent investment aimed at modernization and safety enhancements. While specific figures for DoD ATC tower construction fluctuate annually based on project needs and budget allocations, the overall trend reflects a commitment to maintaining and upgrading critical aviation infrastructure. Factors influencing spending include aging facilities requiring replacement, the integration of new technologies (like NextGen in the civilian sector), and the expansion or modification of air bases. Analyzing historical spending patterns for NAICS code 488111 and related construction categories would reveal trends in contract values, award volumes, and the types of ATC-related projects undertaken by federal agencies.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008021R7290

Offers Received: 3

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: $25,344,519

Exercised Options: $25,199,519

Current Obligation: $25,199,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline