DoD Awards $128M Firm Fixed Price Contract for Commercial Building Construction in North Carolina
Contract Overview
Contract Amount: $127,982,861 ($128.0M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2027-10-23
Contract Duration: 1,485 days
Daily Burn Rate: $86.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE PRICE
Place of Performance
Location: HAVELOCK, CRAVEN County, NORTH CAROLINA, 28532
Plain-Language Summary
Department of Defense obligated $128.0 million to WALSH FEDERAL LLC for work described as: BASE PRICE Key points: 1. The contract awarded to Walsh Federal LLC is for commercial and institutional building construction. 2. This is a significant award within the construction sector, indicating substantial project scope. 3. The firm fixed price contract type aims to control costs for the Department of the Navy. 4. The duration of 1485 days suggests a long-term, complex project.
Value Assessment
Rating: good
The base price of $127,982,861.32 appears reasonable for a large-scale construction project of this duration. Benchmarking against similar large federal building contracts would provide a more precise 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. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this significant construction expenditure.
Public Impact
Impacts local economy in North Carolina through job creation and material sourcing. Ensures the Department of the Navy has necessary facilities for its operations. Potential for follow-on contracts or related infrastructure development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns despite firm fixed price if scope changes.
- Long project duration increases risk of material price fluctuations.
- Dependence on a single contractor for a large project.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition likely secured a competitive initial price.
- Award to an established contractor may indicate reliability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar large-scale construction projects by the DoD are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While the primary awardee is Walsh Federal LLC, the contract may offer subcontracting opportunities for small businesses in areas such as specialized trades, material supply, or support services. Further analysis of subcontracting plans is needed.
Oversight & Accountability
The firm fixed price contract and full and open competition provide a degree of oversight. However, ongoing monitoring of performance, adherence to schedule, and change order management will be crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Risk of contractor performance issues on a large project.
- Dependence on a single entity for critical infrastructure.
- Vulnerability to economic fluctuations impacting material costs.
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 $128.0 million to WALSH FEDERAL LLC. BASE PRICE
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 $128.0 million.
What is the period of performance?
Start: 2023-09-29. End: 2027-10-23.
What is the projected return on investment or long-term value this facility will provide to the Department of the Navy?
The long-term value is primarily strategic, providing essential operational infrastructure for the Department of the Navy. Quantifying ROI is complex, involving factors like operational efficiency gains, enhanced mission capabilities, and reduced long-term maintenance costs compared to alternative solutions or existing facilities.
What are the specific risks associated with the 1485-day duration and potential for scope creep?
The extended duration increases exposure to economic volatility, including inflation impacting labor and material costs, even with a fixed price. Scope creep is a significant risk, as changes can escalate costs and delay completion. Robust change management protocols and clear initial scope definition are critical to mitigate these risks.
How effectively will the firm fixed price structure prevent cost overruns given the project's scale and duration?
The firm fixed price structure is designed to cap the government's liability. However, its effectiveness depends heavily on the accuracy of the initial cost estimates and the contractor's ability to manage unforeseen challenges within that price. Significant unforeseen issues or extensive change orders could still lead to disputes or necessitate contract modifications.
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: N4008522R2504
Offers Received: 1
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: $128,332,861
Exercised Options: $127,982,861
Current Obligation: $127,982,861
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2027-10-23
Potential End Date: 2027-10-23 00:00:00
Last Modified: 2025-09-29
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