DoD awards $49.4M for child development centers, with 3 bids received

Contract Overview

Contract Amount: $49,445,183 ($49.4M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-24

End Date: 2028-05-09

Contract Duration: 1,476 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P790 CONSTRUCT CHILD DEVELOPMENT CENTERS (BANGOR AND JACKSON PARK), NBK BANGOR, WA

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $49.4 million to WALSH FEDERAL LLC for work described as: P790 CONSTRUCT CHILD DEVELOPMENT CENTERS (BANGOR AND JACKSON PARK), NBK BANGOR, WA Key points: 1. Contract awarded at a competitive price point, suggesting good value. 2. Full and open competition indicates a robust bidding process. 3. No small business set-aside, but subcontracting opportunities may exist. 4. Project duration of nearly 4 years suggests a significant construction undertaking. 5. Firm-fixed-price contract type mitigates cost overrun risks for the government. 6. Geographic concentration in Washington state for these facilities.

Value Assessment

Rating: good

The contract value of $49.4 million for constructing child development centers appears reasonable given the scope of work. While specific benchmarks for similar projects are not provided, the presence of three bidders in a full and open competition suggests that the pricing is likely competitive. The firm-fixed-price structure further supports value by locking in costs. The duration of the contract (1476 days) also indicates a substantial project, making the overall award amount appear proportionate to the expected deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, which, while not a large number, indicates some level of competition for this significant construction project. The presence of multiple bidders suggests that the market was aware of the opportunity and that the government received at least some price discovery. However, a higher number of bidders could potentially have led to even more aggressive pricing.

Taxpayer Impact: The full and open competition, even with three bidders, is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and terms, aiming to secure the contract.

Public Impact

Military families and children at Bangor and Jackson Park will benefit from new, modern child development facilities. The project will deliver construction services for two significant facilities. The geographic impact is concentrated in Washington state, specifically at NBK Bangor. The construction project will likely create jobs for skilled trades and construction workers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility opening dates.
Ensuring quality of construction meets long-term durability standards.
Managing the logistics of construction in a military installation environment.

Positive Signals

Firm-fixed-price contract limits government exposure to cost increases.
Full and open competition suggests a competitive bidding environment.
Experienced contractor likely selected through a rigorous process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The federal government is a significant consumer of construction services, particularly for infrastructure and facilities supporting its operations, such as military bases. The market for large-scale construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. The value of this award is substantial, placing it among significant federal construction endeavors.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific small business participation goals were met at the prime contract level (ss: false, sb: false). However, the prime contractor, Walsh Federal LLC, may engage small businesses as subcontractors to fulfill portions of the construction work. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

The contract is a firm-fixed-price delivery order, which typically has defined oversight mechanisms to ensure compliance with specifications and timelines. The Department of the Navy, as the awarding agency, is responsible for monitoring performance and ensuring the contractor meets contractual obligations. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Child Care Facilities
Naval Base Construction
Department of Defense Facilities

Risk Flags

Potential for cost overruns if unforeseen site conditions arise, despite FFP.
Risk of construction delays impacting operational readiness.
Ensuring adequate quality control throughout the multi-year construction period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.4 million to WALSH FEDERAL LLC. P790 CONSTRUCT CHILD DEVELOPMENT CENTERS (BANGOR AND JACKSON PARK), NBK BANGOR, WA

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 $49.4 million.

What is the period of performance?

Start: 2024-04-24. End: 2028-05-09.

What is the track record of Walsh Federal LLC in completing similar government construction projects on time and within budget?

Walsh Federal LLC, as a subsidiary of The Walsh Group, has a substantial history of performing large-scale federal construction projects, including military installations and infrastructure. While specific on-time and within-budget performance metrics for this exact entity on comparable projects are not detailed in the provided data, The Walsh Group's broader portfolio suggests significant experience. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on similar projects, would be necessary for a comprehensive assessment. However, their selection for a project of this magnitude by the Department of the Navy implies a positive assessment of their capabilities and past performance by the agency.

How does the awarded price of $49.4 million compare to the estimated cost or budget for constructing child development centers of this size and scope?

Without access to the government's independent cost estimate or detailed project specifications, a direct comparison of the awarded price to the budget is challenging. However, the fact that the contract was awarded under full and open competition with three bids suggests that the pricing achieved is likely within a reasonable range of market expectations. The firm-fixed-price nature of the contract indicates that the government has secured a ceiling price. To provide a more precise benchmark, one would need to compare this award to similar child development center construction projects on military bases, considering factors like square footage, amenities, and regional construction costs.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they being managed?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may face unforeseen cost increases during construction, potentially leading to quality compromises or contractor default if the fixed price becomes unsustainable. For this project, risks could include material price volatility, labor shortages, or unexpected site conditions. The Department of the Navy manages these risks by conducting thorough pre-award reviews, ensuring detailed specifications, and potentially including clauses for equitable adjustments under specific, limited circumstances (e.g., force majeure). The contractor assumes the primary financial risk, incentivizing efficient project management and cost control.

What is the expected impact of these new child development centers on the readiness and morale of military families stationed at Bangor and Jackson Park?

The construction of new child development centers is expected to have a significant positive impact on the readiness and morale of military families. Modern, well-equipped facilities can improve the quality of care and educational programs available to children, which is a critical factor for parental readiness. Knowing that their children are in safe, high-quality environments allows service members to focus more effectively on their duties. Furthermore, improved facilities can enhance the overall quality of life for families stationed at these bases, contributing to higher morale and retention rates.

How does the spending on this contract compare to historical federal spending on military construction or child care facilities?

The $49.4 million award for these two child development centers represents a significant investment within the broader category of military construction. Federal spending on military construction fluctuates annually based on appropriations and strategic priorities. Historically, the Department of Defense allocates billions of dollars each year to sustain, restore, and modernize its infrastructure, which includes family support facilities like child development centers. While this specific award is substantial for two centers, it aligns with the ongoing need for facility upgrades and new construction across military installations nationwide to meet current standards and family support requirements.

What are the key performance indicators (KPIs) that will be used to measure the success of this construction project?

Key performance indicators for this construction project will likely include adherence to the project schedule (dur: 1476 days), completion within the firm-fixed price, quality of construction meeting specified standards (e.g., building codes, material specifications), safety performance (e.g., incident rates), and successful final inspection and acceptance of the facilities. The Department of the Navy's contracting officer's representative (COR) will be responsible for monitoring these KPIs throughout the contract duration. Post-occupancy evaluations may also assess the functionality and durability of the completed centers.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4425524RF002

Offers Received: 3

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: $49,785,139

Exercised Options: $49,445,183

Current Obligation: $49,445,183

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1213

IDV Type: IDC

Timeline