DoD Awards $240M Hangar Construction Contract to Walsh Federal LLC
Contract Overview
Contract Amount: $239,936,114 ($239.9M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2022-04-26
End Date: 2026-10-15
Contract Duration: 1,633 days
Daily Burn Rate: $146.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P197 DB AIRCRAFT MAINTENANCE HANGAR - BASE PRICE AND OPTIONS
Place of Performance
Location: HAVELOCK, CRAVEN County, NORTH CAROLINA, 28532
Plain-Language Summary
Department of Defense obligated $239.9 million to WALSH FEDERAL LLC for work described as: P197 DB AIRCRAFT MAINTENANCE HANGAR - BASE PRICE AND OPTIONS Key points: 1. Contract awarded for aircraft maintenance hangar construction. 2. Full and open competition was utilized. 3. Potential for cost overruns exists given the project duration. 4. Construction sector spending benchmark is relevant here.
Value Assessment
Rating: good
The base price of $239.9M for a large aircraft maintenance hangar appears reasonable given the scope and duration. Benchmarking against similar large-scale industrial construction projects is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The firm-fixed-price structure helps mitigate cost risks for the government.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value for the construction of this critical military asset.
Public Impact
Ensures operational readiness for naval aviation by providing necessary maintenance facilities. Supports local economy through construction jobs and related services in North Carolina. Long-term asset for the Department of the Navy, contributing to national defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 4 years) increases risk of cost escalation.
- No small business participation noted.
- Potential for scope creep on a large construction project.
Positive Signals
- Firm-fixed-price contract limits government cost exposure.
- Full and open competition likely yielded competitive pricing.
- Essential infrastructure for military operations.
Sector Analysis
This contract falls within the Industrial Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. The $240M award is substantial for a single project.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is not identified as a small business. This represents a missed opportunity for small business participation in a large federal contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The long duration and significant value necessitate diligent monitoring to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk.
- No small business participation.
- Potential for material cost volatility.
- Large contract value requires significant oversight.
Tags
industrial-building-construction, department-of-defense, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $239.9 million to WALSH FEDERAL LLC. P197 DB AIRCRAFT MAINTENANCE HANGAR - BASE PRICE AND OPTIONS
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 $239.9 million.
What is the period of performance?
Start: 2022-04-26. End: 2026-10-15.
What is the projected impact of the 1633-day duration on the final cost, considering potential inflation and material cost fluctuations?
The extended 1633-day duration presents a significant risk for cost escalation due to inflation and fluctuating material prices. While a firm-fixed-price contract offers some protection, unforeseen economic shifts could still strain the budget or lead to change orders if not managed proactively. Detailed cost escalation clauses or contingency planning would be crucial for mitigating these risks and ensuring the project stays within the allocated $240M.
How will the Department of the Navy ensure quality control and prevent scope creep over the four-year construction period?
The Department of the Navy will likely implement a multi-faceted approach to quality control and scope creep prevention. This typically involves rigorous inspection schedules, independent quality assurance teams, and strict adherence to approved design specifications. Change management processes will be critical, requiring formal review and approval for any proposed modifications to the original scope, ensuring they are justified and funded appropriately.
What are the key performance indicators (KPIs) being used to measure the success of this contract beyond just cost and schedule?
Beyond cost and schedule, key performance indicators for this contract likely include adherence to safety regulations, quality of construction meeting specified standards (e.g., structural integrity, material durability), environmental compliance, and functional performance of the completed hangar. Operational readiness and minimal disruption to existing base operations during construction would also be critical success factors.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: N4008521R2516
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: $239,936,144
Exercised Options: $239,936,144
Current Obligation: $239,936,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-04-26
Current End Date: 2026-10-15
Potential End Date: 2026-10-15 00:00:00
Last Modified: 2025-11-20
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