Department of Defense's $158M NOAA PRC construction contract awarded to Walsh Construction Company

Contract Overview

Contract Amount: $158,167,013 ($158.2M)

Contractor: Walsh Construction Company

Awarding Agency: Department of Defense

Start Date: 2010-08-31

End Date: 2013-11-08

Contract Duration: 1,165 days

Daily Burn Rate: $135.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERYPROJECT#::5014::RP# CONSTRUCTION OF THE NOAA PRC AT FORD ISLAND, PEARL HARBOR, HI. THE WORK TO BE PERFORMED PROVIDES FOR AND INVOLVES ADAPTIVE REUSE OF HISTORIC HANGARS AND NEW CONSTRUCTION ON AN HISTORIC LANDMARK SITE. THE DIVERSE PROGRAM INCLUDES MARINE BIOLOGY LABORATORIES, NATIONAL DATA CNETER, DIVE CENTER, INTERNATIONAL TSUNAMI INFORMATION CENTER, PACIFIC TSUNAMI WARNING CENTER, NATIONAL WEATHER SERVICE AND ADMINISTRATIVE FUNCTIONS. PROJECT INCLUDES SITE WORK, HAZARDOUS MATERIAL ABATEMENT WORK AND INCIDENTAL RELATED WORK.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $158.2 million to WALSH CONSTRUCTION COMPANY for work described as: RECOVERYPROJECT#::5014::RP# CONSTRUCTION OF THE NOAA PRC AT FORD ISLAND, PEARL HARBOR, HI. THE WORK TO BE PERFORMED PROVIDES FOR AND INVOLVES ADAPTIVE REUSE OF HISTORIC HANGARS AND NEW CONSTRUCTION ON AN HISTORIC LANDMARK SITE. THE DIVERSE PROGRAM INCLUDES MARINE BIOLOGY LABOR… Key points: 1. The contract involved adaptive reuse of historic hangars and new construction for a multi-purpose facility. 2. The project aimed to consolidate critical marine biology, data center, and warning center functions. 3. Construction occurred over a 1165-day period, indicating a substantial and complex undertaking. 4. The project's scope included site work and hazardous material abatement, adding layers of complexity. 5. Awarded under full and open competition, suggesting a robust bidding process. 6. The contract was a firm fixed-price definitive contract, providing cost certainty.

Value Assessment

Rating: fair

The total award amount of $158,167,013 for the NOAA PRC construction is substantial. Benchmarking this against similar large-scale institutional and commercial building projects in Hawaii is challenging without more granular cost data. However, the complexity involving historic building adaptation and hazardous material abatement suggests that the cost may be justified by the unique requirements. Further analysis would require detailed cost breakdowns and comparisons to similar adaptive reuse projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 8 bids received, this suggests a healthy level of interest and competition for the project. This competitive environment is generally favorable for price discovery and potentially achieving a more optimal price for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The facility benefits the National Oceanic and Atmospheric Administration (NOAA) by consolidating key operational and research functions. Services delivered include marine biology laboratories, a national data center, a dive center, and warning centers for tsunamis and weather. The geographic impact is centered in Hawaii, specifically Pearl Harbor, supporting regional and international scientific endeavors. The project likely involved a significant construction workforce, contributing to local employment in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexity of adaptive reuse of historic structures.
Risks associated with hazardous material abatement, which can lead to delays and increased costs.
The long duration of the contract (1165 days) increases exposure to market fluctuations in material and labor costs.
Ensuring compliance with historic preservation regulations adds a layer of complexity and potential for unforeseen issues.

Positive Signals

Awarded under full and open competition, indicating a competitive market for the services.
Firm fixed-price contract type provides cost certainty for the government.
The project consolidates critical NOAA functions, enhancing operational efficiency and research capabilities.
The project addresses important scientific and public safety needs related to marine biology and tsunami/weather warnings.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The project's scope, involving adaptive reuse of historic structures and new construction for specialized scientific facilities, is significant. Comparable spending benchmarks would typically involve large government building projects, particularly those with unique historical or environmental considerations. The market for such specialized construction in Hawaii is likely limited, making the competitive landscape for this specific project noteworthy.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor is Walsh Construction Company, a large entity. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Walsh Construction engaged small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, under the Department of Defense. Accountability measures would be embedded in the contract's terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

NOAA Facilities Construction
Department of Defense Construction Projects
Historic Building Adaptive Reuse
Pearl Harbor Infrastructure Development
Tsunami Warning System Infrastructure
Marine Biology Research Facilities

Risk Flags

Complexity of historic building adaptive reuse
Hazardous material abatement requirements
Potential for unforeseen site conditions
Compliance with historic preservation regulations
Long project duration increasing market risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $158.2 million to WALSH CONSTRUCTION COMPANY. RECOVERYPROJECT#::5014::RP# CONSTRUCTION OF THE NOAA PRC AT FORD ISLAND, PEARL HARBOR, HI. THE WORK TO BE PERFORMED PROVIDES FOR AND INVOLVES ADAPTIVE REUSE OF HISTORIC HANGARS AND NEW CONSTRUCTION ON AN HISTORIC LANDMARK SITE. THE DIVERSE PROGRAM INCLUDES MARINE BIOLOGY LABORATORIES, NATIONAL DATA CNETER, DIVE CENTER, INTERNATIONAL TSUNAMI INFORMATION CENTER, PACIFIC TSUNAMI WARNING CENTER, NATIONAL WEATHER SERVICE AND ADMINISTRATIVE FUNCTIONS. PROJECT INCLUDES SITE WORK, HAZARDOUS MATERIAL

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 $158.2 million.

What is the period of performance?

Start: 2010-08-31. End: 2013-11-08.

What was the track record of Walsh Construction Company on similar large-scale government construction projects prior to this award?

Walsh Construction Company has a significant history of undertaking large-scale construction projects for both government and private clients. Prior to the NOAA PRC contract, they had experience with complex projects including infrastructure, healthcare facilities, and educational institutions. Their portfolio often includes projects with challenging site conditions or historical considerations. A detailed review of their past performance, including any past performance evaluations or disputes on federal contracts, would provide further insight into their capabilities and reliability for a project of this magnitude and complexity. This specific contract's successful completion within its duration and final cost would be a key indicator of their performance.

How does the final cost of $158 million compare to the initial estimated cost for the NOAA PRC construction project?

The provided data does not include the initial estimated cost for the NOAA PRC construction project, making a direct comparison to the final award amount of $158,167,013 impossible. To assess value for money, it would be necessary to obtain the original cost estimates, including any pre-solicitation estimates or proposals received during the bidding process. Analyzing the variance between estimated and awarded costs, and understanding the reasons for any significant differences (e.g., scope changes, market conditions, competitive bidding outcomes), is crucial for evaluating the financial efficiency of the contract.

What were the primary risk indicators identified during the solicitation and award process for this contract?

Given the project's scope, primary risk indicators likely included the complexity of adaptive reuse of historic structures, the presence of hazardous materials requiring abatement, and the potential for unforeseen conditions during construction. The long duration (1165 days) also presents risks related to schedule delays and cost escalation due to market fluctuations. Ensuring compliance with stringent historic preservation regulations and environmental standards would have been critical. The government likely mitigated these risks through detailed site investigations, robust contract specifications, a firm fixed-price contract type to transfer cost risk, and potentially performance bonds from the contractor.

How effective was the consolidation of NOAA functions at the new PRC facility in terms of operational efficiency and research output?

The effectiveness of the consolidation is not directly measurable from the contract data alone. However, the stated purpose of the project was to provide a modern, integrated facility for diverse NOAA operations, including marine biology labs, data centers, and warning centers. Such consolidation typically aims to improve collaboration, streamline communication, reduce operational redundancies, and enhance the efficiency of scientific research and public service delivery. Post-occupancy evaluations or NOAA's internal performance metrics would be needed to quantify the actual improvements in operational efficiency and research output resulting from this facility.

What has been the historical spending pattern for NOAA facilities construction and maintenance over the past decade?

The provided data focuses on a single contract and does not offer insights into NOAA's broader historical spending patterns for facilities construction and maintenance. To analyze this, one would need to examine NOAA's budget appropriations, contract awards databases (like FPDS), and Inspector General reports over the last 10-15 years. This would reveal trends in investment in new facilities versus upgrades, the average cost of similar projects, and the prevalence of different contract types and competition levels. Understanding these patterns would provide context for the significance and cost-effectiveness of the NOAA PRC project.

Were there any significant scope changes or change orders issued during the execution of this contract, and how did they impact the final cost?

The provided data does not detail any scope changes or change orders that may have occurred during the contract's execution from August 2010 to November 2013. Assessing the impact of such changes would require access to contract modification records. Significant change orders could lead to adjustments in the contract price and duration. Analyzing these modifications is crucial for understanding the project's final cost evolution and whether the initial firm fixed-price structure was maintained or altered due to unforeseen circumstances or evolving requirements.

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: N6274210R1301

Offers Received: 8

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $158,167,013

Exercised Options: $158,167,013

Current Obligation: $158,167,013

Subaward Activity

Number of Subawards: 1246

Total Subaward Amount: $3,041,688,633

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline