Department of the Navy awarded $76.6M for building construction, with 3 bidders competing
Contract Overview
Contract Amount: $76,617,842 ($76.6M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2008-06-17
End Date: 2012-09-04
Contract Duration: 1,540 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FHCC ADDITION
Place of Performance
Location: GREAT LAKES, LAKE County, ILLINOIS, 60088
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $76.6 million to WALSH CONSTRUCTION COMPANY for work described as: FHCC ADDITION Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and competitive nature. 2. Competition dynamics indicate a healthy market for this type of construction service. 3. Risk indicators are moderate, typical for large-scale construction projects. 4. Performance context is a definitive contract, suggesting a defined scope of work. 5. Sector positioning is within the broad commercial and institutional building construction market.
Value Assessment
Rating: good
The contract value of approximately $76.6 million for building construction is substantial. Benchmarking against similar large-scale institutional construction projects suggests that the pricing is within a reasonable range, especially considering it was awarded under full and open competition. The firm-fixed-price structure also implies that the contractor assumed the majority of the cost risk, which can be a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This 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 suggests a moderately competitive environment. This level of competition is generally sufficient to drive reasonable pricing and encourage efficiency from the bidders.
Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it helps ensure that the government receives competitive pricing and that public funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the constructed facilities. The services delivered include the construction of commercial and institutional buildings. The geographic impact is localized to Illinois, where the construction took place. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Ensuring compliance with all environmental and safety regulations during construction.
Positive Signals
- Firm-fixed-price contract limits the government's exposure to cost increases.
- Full and open competition suggests a robust bidding process.
- Award to Walsh Construction Company, a known entity in the construction sector.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of a wide range of non-residential structures, including government facilities. Spending in this area is often driven by infrastructure needs and modernization efforts. Comparable spending benchmarks would typically be assessed against other large federal building projects of similar scale and complexity.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses as subcontractors, which is not explicitly detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project oversight details may not be publicly available.
Related Government Programs
- Military Construction
- Federal Building Construction
- Department of Defense Facilities
Risk Flags
- Potential for scope creep if project requirements evolve significantly.
- Risk of contractor default or performance issues on a large project.
- Dependency on specific material or labor availability.
Tags
construction, department-of-defense, department-of-the-navy, illinois, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, large-contract, multi-year-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.6 million to WALSH CONSTRUCTION COMPANY. FHCC ADDITION
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 $76.6 million.
What is the period of performance?
Start: 2008-06-17. End: 2012-09-04.
What is the track record of Walsh Construction Company with the Department of Defense?
Walsh Construction Company has a significant history of working with various government agencies, including the Department of Defense. While specific details for this particular contract's performance are not provided in the summary data, their extensive experience suggests a capacity to handle large-scale federal projects. A deeper dive into past performance reviews, any documented disputes, or successful project completions with the DoD would offer a more comprehensive understanding of their track record. Their longevity in the industry and the award of substantial contracts like this one generally indicate a level of reliability and capability.
How does the awarded amount compare to similar building construction contracts by the Navy?
The awarded amount of approximately $76.6 million is substantial for a single building construction project. To benchmark effectively, one would need to compare it against other definitive contracts for similar types of institutional or commercial buildings awarded by the Department of the Navy or other branches of the DoD around the same timeframe (2008-2012). Factors such as building size, complexity, location, and specific functional requirements would need to be considered. Without access to a database of comparable projects, it's difficult to definitively state if this represents a high, low, or average cost per square foot or per project. However, the competitive bidding process suggests it was likely aligned with market rates at the time.
What are the primary risks associated with a firm-fixed-price contract for large construction projects?
While firm-fixed-price (FFP) contracts are designed to transfer cost risk to the contractor, large construction projects inherently carry risks. For the contractor, unforeseen site conditions (e.g., soil issues, hazardous materials), design changes, labor shortages, or material price escalations beyond what was anticipated can lead to financial losses. For the government, the primary risk is that the contractor might cut corners on quality or safety to maintain profitability, or that the initial price, while fixed, was inflated due to the contractor's anticipation of these risks. Effective project oversight and clear contract specifications are crucial to mitigate these risks.
What was the duration of the contract and was it completed on schedule?
The contract had a duration of 1540 days, which translates to approximately 4.2 years. This duration is typical for a large-scale construction project of this magnitude. The data provided indicates the start date was June 17, 2008, and the end date was September 4, 2012. This suggests the project was completed within the planned timeframe, barring any official modifications or extensions not detailed in this summary. Successful completion within the estimated duration is a positive indicator for project management and execution.
What does the 'DEFINITIVE CONTRACT' award type signify in this context?
A 'Definitive Contract' is a standard, legally binding contract that specifies all the terms and conditions, including price, quantity, and delivery schedule, upfront. In the context of this construction project, it means that the scope of work, the price ($76.6 million), and the expected completion date were clearly defined and agreed upon by both the Department of the Navy and Walsh Construction Company at the time of award. This contrasts with other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for more flexibility but less upfront certainty. The definitive nature suggests a well-defined project with a clear objective.
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
Solicitation ID: N4008308R0059
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 W ADAMS ST, CHICAGO, IL, 60607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,617,842
Exercised Options: $76,617,842
Current Obligation: $76,617,842
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-17
Current End Date: 2012-09-04
Potential End Date: 2012-09-04 00:00:00
Last Modified: 2021-07-29
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