Travis AFB Hangar Project Exceeds $128M with Firm Fixed Price Contract
Contract Overview
Contract Amount: $128,884,560 ($128.9M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-30
End Date: 2023-03-10
Contract Duration: 1,166 days
Daily Burn Rate: $110.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 3-BAY HANGAR AT TRAVIS AIR FORCE BASE
Place of Performance
Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535
Plain-Language Summary
Department of Defense obligated $128.9 million to WALSH FEDERAL LLC for work described as: 3-BAY HANGAR AT TRAVIS AIR FORCE BASE Key points: 1. The project cost is substantial at over $128 million. 2. Walsh Federal LLC secured the contract. 3. The contract was awarded under full and open competition. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $128.8M for a 3-bay hangar appears high, especially considering the duration and the fact that it's a firm fixed price contract. Benchmarking against similar large-scale construction projects would be necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing. However, the final price of $128.8M suggests that either the scope was extensive or the competitive bids were still at a high level.
Taxpayer Impact: Taxpayers are impacted by the significant expenditure of $128.8M for this hangar construction, with the value for money being a key consideration.
Public Impact
Military readiness may be enhanced with the new hangar facility. Local construction jobs were likely supported by this large project. The significant investment raises questions about long-term operational costs and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Long project duration
Positive Signals
- Full and open competition
- Firm fixed price contract
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project complexity, location, and economic conditions. Large military infrastructure projects like this represent a significant portion of government construction spending.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Walsh Federal LLC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The award under full and open competition suggests a degree of oversight in the procurement process. However, the high cost and long duration warrant scrutiny to ensure efficient use of taxpayer funds.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value
- Long contract duration
- Potential for cost overruns impacting value
- Limited small business participation noted
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $128.9 million to WALSH FEDERAL LLC. 3-BAY HANGAR AT TRAVIS AIR FORCE BASE
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 $128.9 million.
What is the period of performance?
Start: 2019-12-30. End: 2023-03-10.
What specific factors contributed to the final contract price of over $128 million for the 3-bay hangar?
The final price likely reflects a combination of factors including the extensive scope of work for a large hangar, specialized construction requirements for military aviation, material costs, labor, and potentially unforeseen site conditions or design changes during the contract period. The firm fixed price nature also means the contractor absorbed risks, which can be factored into initial pricing.
What are the potential risks associated with a firm fixed price contract of this magnitude and duration?
Risks include the contractor potentially cutting corners on quality to maintain profitability if costs escalate unexpectedly, or conversely, the government overpaying if the initial bid was excessively high due to perceived contractor risk. The long duration (1166 days) increases the exposure to market fluctuations in material and labor costs, which the contractor must manage.
How does the effectiveness of this hangar construction align with its cost and the competitive process?
Effectiveness is measured by the facility's ability to meet its intended operational purpose for the Air Force. While full and open competition aimed for price discovery, the $128.8M cost suggests a high investment. The true effectiveness will be determined by the hangar's functionality, durability, and contribution to mission readiness over its lifecycle, relative to its substantial cost.
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: N6247318R2242
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: $128,884,560
Exercised Options: $128,884,560
Current Obligation: $128,884,560
Actual Outlays: $113,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-12-30
Current End Date: 2023-03-10
Potential End Date: 2023-03-10 00:00:00
Last Modified: 2023-02-15
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