DoD Awards $228M for Aircraft Hangar and Flightline Utilities Construction in North Carolina
Contract Overview
Contract Amount: $228,447,436 ($228.4M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-23
End Date: 2025-03-19
Contract Duration: 1,913 days
Daily Burn Rate: $119.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE PRICE P199, AIRCRAFT HANGAR AND P235 FLIGHTLINE UTILITIES
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $228.4 million to WALSH FEDERAL LLC for work described as: BASE PRICE P199, AIRCRAFT HANGAR AND P235 FLIGHTLINE UTILITIES Key points: 1. Significant contract awarded for essential infrastructure supporting naval aviation. 2. Full and open competition suggests a competitive bidding process. 3. Long contract duration (1913 days) may indicate complex project scope. 4. No small business participation noted, potentially a missed opportunity for economic inclusion.
Value Assessment
Rating: good
The base price of $228.45 million for construction services appears reasonable given the scope of building an aircraft hangar and flightline utilities. Benchmarking against similar large-scale construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were allowed to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for taxpayers, though the long-term value will depend on project execution and final costs.
Public Impact
Supports critical naval operations by providing necessary infrastructure. Potential for job creation in the construction sector in North Carolina. Long-term asset for the Department of the Navy, enhancing operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading federal facilities, with benchmarks varying widely based on project type and location.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb: false'. This suggests that large prime contractors dominated the bidding process, and there may be opportunities to encourage greater small business subcontracting.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price structure provides some cost control, but diligent monitoring of performance and adherence to schedule will be crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation.
- Long contract duration.
- Potential for cost escalation over the contract period.
- Dependency on specific construction firm's performance.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $228.4 million to WALSH FEDERAL LLC. BASE PRICE P199, AIRCRAFT HANGAR AND P235 FLIGHTLINE UTILITIES
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 $228.4 million.
What is the period of performance?
Start: 2019-12-23. End: 2025-03-19.
What is the estimated total cost of the project, including any potential options or modifications, and how does it compare to similar construction projects?
The provided data shows a base price of $228.45 million. Without information on contract options, modifications, or detailed project specifications, a precise comparison to similar projects is difficult. However, the scale suggests a significant investment in critical infrastructure.
What are the specific risks associated with the long contract duration (1913 days) for this construction project, and what mitigation strategies are in place?
A long duration increases risks such as material price escalation, labor availability fluctuations, and potential design changes. Mitigation strategies likely include robust contract clauses for price adjustments, proactive scheduling, and strong project management oversight by the Navy.
How effectively will this new hangar and utilities infrastructure enhance the operational readiness and capabilities of the naval forces it serves?
The new infrastructure is designed to support specific naval aviation requirements, implying a direct enhancement to operational readiness. The effectiveness will be measured by the facility's ability to meet performance standards, reduce maintenance downtime, and accommodate current and future aircraft needs.
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: TWO STEP
Solicitation ID: N4008518R0644
Offers Received: 4
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: $234,072,436
Exercised Options: $228,447,436
Current Obligation: $228,447,436
Actual Outlays: $120,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-12-23
Current End Date: 2025-03-19
Potential End Date: 2025-03-19 00:00:00
Last Modified: 2025-05-02
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