DoD Awards $56.9M for Cherry Point Marine Facility Construction to Walsh Federal LLC
Contract Overview
Contract Amount: $56,917,000 ($56.9M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2028-04-30
Contract Duration: 1,095 days
Daily Burn Rate: $52.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P226 MAINTENANCE FACILITY & MARINE GROUP HQS, MCAS CHERRY POINT, NC
Place of Performance
Location: HAVELOCK, CRAVEN County, NORTH CAROLINA, 28532
Plain-Language Summary
Department of Defense obligated $56.9 million to WALSH FEDERAL LLC for work described as: P226 MAINTENANCE FACILITY & MARINE GROUP HQS, MCAS CHERRY POINT, NC Key points: 1. Construction contract awarded for Marine Corps Air Station Cherry Point. 2. Walsh Federal LLC secured the $56.9 million deal. 3. The contract spans 1095 days, concluding in April 2028. 4. This project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The award amount of $56.9 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar military construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using 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 fair market value, ensuring taxpayer funds are used efficiently for this critical infrastructure project.
Public Impact
Enhances critical infrastructure at MCAS Cherry Point. Supports military readiness and operational capabilities. Creates construction jobs in North Carolina. Ensures modern facilities for the Marine Corps.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Dependence on a single contractor for project completion.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and completion date.
- Supports essential military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar military construction projects would indicate if the $56.9 million award is within the expected range.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). Opportunities for small business subcontracting may exist within the execution of this larger prime contract.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The definitive contract structure and fixed-price nature provide a degree of accountability, but ongoing monitoring is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for construction delays.
- Risk of cost overruns.
- Dependence on prime contractor performance.
- Quality control during construction.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.9 million to WALSH FEDERAL LLC. P226 MAINTENANCE FACILITY & MARINE GROUP HQS, MCAS CHERRY POINT, NC
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 $56.9 million.
What is the period of performance?
Start: 2025-05-01. End: 2028-04-30.
What specific construction services are included in the $56.9 million award?
The contract specifies "P226 MAINTENANCE FACILITY & MARINE GROUP HQS, MCAS CHERRY POINT, NC." This indicates the construction of a maintenance facility and headquarters for the Marine Group at the specified air station. Detailed specifications within the contract documents would further delineate the scope of work, materials, and specific building requirements.
What are the primary risks associated with this construction contract?
Key risks include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions. Cost overruns are also a concern, particularly with fixed-price contracts if initial estimates were inaccurate or scope creep occurs. Ensuring contractor performance and quality control throughout the project lifecycle is paramount to mitigate these risks.
How does this contract contribute to the overall effectiveness of the Marine Corps at Cherry Point?
The construction of a new maintenance facility and headquarters directly enhances operational effectiveness by providing modern, efficient spaces for critical functions. Improved facilities can lead to better equipment readiness, streamlined operations, and enhanced support for personnel, ultimately bolstering the Marine Corps' mission capabilities at MCAS Cherry Point.
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: N4008524R2531
Offers Received: 2
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: $81,929,000
Exercised Options: $69,323,265
Current Obligation: $56,917,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-01
Current End Date: 2028-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2025-08-13
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