DoD's $46.5M Fire Station Upgrade Contract Awarded to Walsh Construction Faces Scrutiny

Contract Overview

Contract Amount: $46,478,156 ($46.5M)

Contractor: Walsh Construction Company

Awarding Agency: Department of Defense

Start Date: 2015-06-29

End Date: 2020-01-03

Contract Duration: 1,649 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF, RM 013-00 B435 FIRE STATION UPGRADES, NBK BREMERTON

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98310

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $46.5 million to WALSH CONSTRUCTION COMPANY for work described as: IGF::OT::IGF, RM 013-00 B435 FIRE STATION UPGRADES, NBK BREMERTON Key points: 1. The contract value of $46.5 million for fire station upgrades is substantial, requiring careful oversight. 2. Walsh Construction Company, a large firm, won the contract, indicating a competitive but potentially less accessible market for smaller businesses. 3. The definitive contract type and firm-fixed-price structure suggest a clear scope and cost control, but potential risks remain. 4. The project falls under the Commercial and Institutional Building Construction sector, a common area for significant federal investment.

Value Assessment

Rating: fair

The contract value of $46.5 million for fire station upgrades appears to be within a reasonable range for a project of this scale and complexity, especially considering the duration and location. 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, suggesting a robust price discovery process. However, the fact that a single large firm, Walsh Construction Company, was awarded the contract warrants further investigation into the bidding landscape and potential barriers to entry for other qualified contractors.

Taxpayer Impact: Taxpayers benefit from competitive bidding, but the final price and quality of the fire station upgrades will determine the ultimate value for money.

Public Impact

Ensures critical infrastructure upgrades for a naval base, enhancing safety and operational readiness. Supports the construction industry and creates jobs through a significant federal investment. The project's success directly impacts the quality of life and safety for military personnel and their families stationed at NBK Bremerton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns despite firm-fixed-price contract.
Limited visibility into the specific breakdown of costs for individual components of the upgrade.
Ensuring long-term durability and maintenance efficiency of the new fire station.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Project addresses essential infrastructure needs for national security.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar large-scale construction projects, particularly those involving specialized facilities like fire stations on military installations, are crucial for evaluating cost-effectiveness.

Small Business Impact

While the contract was awarded under full and open competition, the award to a single large firm, Walsh Construction Company, raises questions about small business participation. Further analysis is needed to determine if small businesses were involved as subcontractors and if opportunities were adequately presented.

Oversight & Accountability

Oversight of this contract should focus on adherence to the original scope, budget, and timeline. Regular progress reports and site inspections by the Department of the Navy are essential to ensure accountability and mitigate risks associated with large construction projects.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract awarded to a single large firm, raising questions about broader competition.
Large contract value requires robust oversight to prevent cost overruns.
Potential for delays in construction projects of this magnitude.
Need to ensure small business participation as subcontractors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 million to WALSH CONSTRUCTION COMPANY. IGF::OT::IGF, RM 013-00 B435 FIRE STATION UPGRADES, NBK BREMERTON

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 $46.5 million.

What is the period of performance?

Start: 2015-06-29. End: 2020-01-03.

What was the competitive landscape like for this fire station upgrade project, and did it result in optimal pricing?

The contract was awarded under full and open competition, which theoretically should lead to optimal pricing. However, the award to a single large firm, Walsh Construction Company, suggests that either the bidding pool was limited, or this firm presented the most compelling offer. Further analysis of the bids received and the specific requirements of the project would be needed to confirm if the pricing achieved was indeed optimal.

What are the primary risks associated with this $46.5 million fire station upgrade contract, and how are they being managed?

Key risks include potential cost overruns due to unforeseen construction challenges, delays impacting operational readiness, and ensuring the long-term quality and durability of the facility. The firm-fixed-price contract helps mitigate cost overrun risks, but diligent project management, regular inspections, and clear communication channels between the Department of the Navy and Walsh Construction are crucial for managing schedule and quality risks.

How effectively does this contract address the critical infrastructure needs of NBK Bremerton's fire station, and what is the long-term value proposition?

The contract aims to upgrade essential fire station facilities, directly addressing critical infrastructure needs for safety and operational readiness at NBK Bremerton. The long-term value proposition hinges on the successful completion of the upgrades, ensuring the facility meets modern standards, enhances response times, and provides a safe working environment for firefighters, thereby contributing to the overall security and well-being of the base.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4425515R6004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the

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: $48,008,172

Exercised Options: $46,478,156

Current Obligation: $46,478,156

Actual Outlays: $-1,810,284

Subaward Activity

Number of Subawards: 1067

Total Subaward Amount: $662,589,798

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline