DoD's $68.9M Walsh Construction Contract for Building Upgrades Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $68,898,441 ($68.9M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Defense
Start Date: 2015-12-22
End Date: 2020-04-09
Contract Duration: 1,570 days
Daily Burn Rate: $43.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF, RM 09-1471 B431 UPGRADES
Place of Performance
Location: BREMERTON, KITSAP County, WASHINGTON, 98314
Plain-Language Summary
Department of Defense obligated $68.9 million to WALSH CONSTRUCTION COMPANY for work described as: IGF::OT::IGF, RM 09-1471 B431 UPGRADES Key points: 1. The contract value of $68.9M is significant, indicating a substantial project. 2. Walsh Construction Company is a major player in the construction sector. 3. The use of Firm Fixed Price contract type mitigates cost overrun risk for the government. 4. This project falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $68.9M appears reasonable for a large-scale building upgrade project, especially given the firm fixed price structure which limits government exposure. Benchmarking against similar large federal construction projects 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 more competitive pricing as multiple qualified contractors can bid.
Taxpayer Impact: The competitive award process likely resulted in a fair market price, maximizing taxpayer value for the building upgrades.
Public Impact
Military readiness and operational efficiency may be enhanced by the building upgrades. Local economic impact through job creation and material sourcing in Washington state. Long-term facility maintenance costs could be reduced through modernizations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large construction projects.
- Dependence on a single large contractor for project completion.
Positive Signals
- Firm Fixed Price contract limits cost risk.
- Full and open competition ensures competitive pricing.
- Project duration aligns with typical large construction timelines.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar large-scale DoD construction projects would indicate if this $68.9M award is within the expected range.
Small Business Impact
The data indicates the prime contractor is Walsh Construction Company, a large entity. There is no explicit information on small business subcontracting participation in this award notice, which warrants further investigation for potential small business impact.
Oversight & Accountability
The award was made by the Department of the Navy, part of the Department of Defense. Standard DoD oversight mechanisms for large construction contracts would apply, including contract administration and performance monitoring.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detail on small business subcontracting.
- Potential for scope creep in large construction projects.
- Long project duration increases risk exposure.
- No specific performance metrics provided in the award notice.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.9 million to WALSH CONSTRUCTION COMPANY. IGF::OT::IGF, RM 09-1471 B431 UPGRADES
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 $68.9 million.
What is the period of performance?
Start: 2015-12-22. End: 2020-04-09.
What specific building upgrades were included in this $68.9M contract, and how do they align with the Navy's long-term facility needs?
The contract details for specific upgrades are not provided in this data snippet. However, building upgrades typically encompass modernization of HVAC systems, electrical infrastructure, plumbing, structural repairs, and energy efficiency improvements. These should align with the Navy's strategic goals for maintaining operational readiness, ensuring safety, and reducing long-term facility operating costs across its installations.
What is the potential risk associated with the 1570-day duration of this contract, and how is Walsh Construction managing project timelines?
A 1570-day duration (over 4 years) for a large construction project presents risks such as potential material cost fluctuations, labor availability issues, and unforeseen site conditions. Effective management by Walsh Construction would involve detailed project scheduling, proactive risk mitigation strategies, robust supply chain management, and regular progress reporting to the Navy to ensure timely completion and adherence to the fixed price.
How does the $68.9M contract value compare to industry benchmarks for similar institutional building upgrades, and does it represent good value for taxpayers?
Without specific details on the scope of work, a precise benchmark comparison is difficult. However, $68.9M for a multi-year, large-scale building upgrade by a major contractor suggests a significant undertaking. Given the full and open competition and firm fixed price, it implies a competitive bidding process aimed at achieving value. A detailed cost-benefit analysis and comparison with similar projects would be needed to definitively assess taxpayer value.
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: N4425515R6002
Offers Received: 2
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: $68,898,441
Exercised Options: $68,898,441
Current Obligation: $68,898,441
Actual Outlays: $-9,448,247
Subaward Activity
Number of Subawards: 732
Total Subaward Amount: $1,735,702,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-22
Current End Date: 2020-04-09
Potential End Date: 2020-04-09 00:00:00
Last Modified: 2022-08-25
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