DoD's $55.3M New Orleans Naval Base Construction Contract Awarded to Walton Construction

Contract Overview

Contract Amount: $55,334,340 ($55.3M)

Contractor: Walton Construction Company Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2007-09-26

End Date: 2011-07-11

Contract Duration: 1,384 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TWO PHASE DESIGN BUILD CONTRACT FOR P513V CHILD DEVELOPMENT CENTER ADDITION; P520V GENERAL PURPOSE INSTRUCTIONAL BUILDING; P521V ADMINISTRATIVE SUPPORT BUILDING; P528V FAMILY SERVICE CENTER; P531V ROAD AND INFRASTRUCTURE SUPPORT; P522V APPLIED INSTRUCTION BUILDING; P526V MILITARY ENTRANCE PROCESSING STATION; P529V GENERAL ADMINISTRATIVE BUILDING; P517V LIBRARY; P518V INDOOR PHYSICAL FITNESS FACILITY ADDITION; P514V MEDICAL AND DENTAL CLINIC ADDITION; AND RM102-07 MEDICAL AND DENTAL CLINIC RENOVATION, NAS NEW ORLEANS, LA.

Place of Performance

Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $55.3 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY for work described as: TWO PHASE DESIGN BUILD CONTRACT FOR P513V CHILD DEVELOPMENT CENTER ADDITION; P520V GENERAL PURPOSE INSTRUCTIONAL BUILDING; P521V ADMINISTRATIVE SUPPORT BUILDING; P528V FAMILY SERVICE CENTER; P531V ROAD AND INFRASTRUCTURE SUPPORT; P522V APPLIED INSTRUCTION BUILDING; P526V MILITARY… Key points: 1. Contract focused on constructing and renovating multiple facilities at NAS New Orleans, including educational, administrative, and medical buildings. 2. The project was awarded under full and open competition, suggesting a broad market search for qualified contractors. 3. Walton Construction Company, the awardee, has a history of government contracts, though specific performance metrics for this project require deeper analysis. 4. The contract duration of 1384 days indicates a significant, multi-year construction effort. 5. The firm-fixed-price nature of the contract shifts most cost risk to the contractor. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The total contract value of $55.3 million for a multi-building construction project at a naval base appears within a reasonable range for large-scale federal construction. Benchmarking against similar design-build projects for military installations would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the initial bid was expected to cover all costs, with limited room for upward adjustments unless scope changes occur. Without detailed cost breakdowns or comparisons to similar projects' per-square-foot costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Navy solicited bids from all responsible sources. The presence of 3 bidders suggests a moderate level of competition for this substantial construction project. A higher number of bidders typically leads to more competitive pricing, but the complexity and scale of the project may have limited the pool of qualified firms. The competition level here likely provided a reasonable baseline for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple firms to bid, which can drive down prices and ensure the government receives competitive offers for its construction needs.

Public Impact

Service members and their families at NAS New Orleans benefit from improved facilities, including a child development center, instructional buildings, and medical clinics. The construction project directly supports the operational readiness and quality of life for personnel stationed at the base. The project's geographic impact is concentrated at NAS New Orleans, Louisiana, contributing to local economic activity through construction jobs and material sourcing. The construction activities likely involved a significant workforce, including skilled trades, project managers, and support staff, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design issues arise, despite the firm-fixed-price structure.
Contractor's past performance on similar large-scale military construction projects needs thorough review to mitigate execution risks.
Coordination challenges among multiple construction phases and building types could impact project timelines.
Ensuring compliance with all environmental and safety regulations during a large construction project is critical.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract shifts significant cost risk to the contractor.
Project aims to enhance critical infrastructure and quality of life at a key naval installation.
Multi-building scope suggests a comprehensive approach to facility improvement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. construction industry. Federal construction spending, particularly for defense installations, represents a substantial portion of this market. Projects of this scale often involve complex design-build processes and require contractors with specialized experience in government contracting and large-scale infrastructure development. Comparable spending benchmarks would involve analyzing other multi-facility construction contracts awarded by the Department of Defense or other federal agencies for base infrastructure.

Small Business Impact

The contract details indicate that this was not awarded as a small business set-aside. While the primary contract may not have directly benefited small businesses through a set-aside, the prime contractor, Walton Construction Company, may engage small businesses as subcontractors for specialized services or materials. The extent of small business subcontracting would depend on the contractor's strategy and any specific subcontracting goals outlined in the contract, which are not detailed here.

Oversight & Accountability

Oversight for this Department of the Navy contract would typically involve contracting officers, project managers, and potentially quality assurance representatives from the Navy or its designated oversight bodies. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified facilities within the agreed price. Transparency is generally maintained through contract award databases like FPDS, though detailed project progress reports and cost breakdowns may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
Design-Build Contracts for Federal Facilities
Base Realignment and Closure (BRAC) related construction

Risk Flags

Potential for cost overruns
Schedule delay risk
Contractor performance uncertainty
Scope definition completeness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.3 million to WALTON CONSTRUCTION COMPANY LIMITED LIABILITY COMPANY. TWO PHASE DESIGN BUILD CONTRACT FOR P513V CHILD DEVELOPMENT CENTER ADDITION; P520V GENERAL PURPOSE INSTRUCTIONAL BUILDING; P521V ADMINISTRATIVE SUPPORT BUILDING; P528V FAMILY SERVICE CENTER; P531V ROAD AND INFRASTRUCTURE SUPPORT; P522V APPLIED INSTRUCTION BUILDING; P526V MILITARY ENTRANCE PROCESSING STATION; P529V GENERAL ADMINISTRATIVE BUILDING; P517V LIBRARY; P518V INDOOR PHYSICAL FITNESS FACILITY ADDITION; P514V MEDICAL AND DENTAL CLINIC ADDITION; AND RM102-07 MEDICAL AND DENTAL CLINIC RENOVA

Who is the contractor on this award?

The obligated recipient is WALTON CONSTRUCTION COMPANY LIMITED LIABILITY 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 $55.3 million.

What is the period of performance?

Start: 2007-09-26. End: 2011-07-11.

What is Walton Construction Company's track record with the Department of Defense and specifically with large-scale base construction projects?

Walton Construction Company has a history of performing work for the federal government, including projects for the Department of Defense. Analyzing their past performance on similar large-scale military construction, particularly design-build projects at naval installations, is crucial. This would involve reviewing contract completion records, any documented performance issues or awards, and the overall value and complexity of their previous government contracts. A deeper dive into their project portfolio would reveal their experience with the specific types of facilities included in this contract (e.g., child development centers, instructional buildings, medical clinics) and their ability to manage large budgets and complex schedules within a military environment. Information from sources like SAM.gov or past performance databases would be essential for a comprehensive assessment.

How does the $55.3 million cost compare to similar multi-facility construction projects at naval bases?

Benchmarking the $55.3 million cost requires comparing it to similar multi-facility construction projects at naval bases, considering factors like project scope, square footage, complexity, and location. Without specific details on the size and scope of each building constructed or renovated, a precise per-square-foot cost comparison is difficult. However, large-scale military construction projects often involve higher costs due to stringent security requirements, specialized building codes, and the need for durable, long-lasting infrastructure. The firm-fixed-price nature of this contract suggests the initial bid was competitive, but a thorough value assessment would necessitate comparing the total cost against industry standards for similar government projects, potentially adjusted for inflation and regional construction cost variations. Data from similar NAVFAC contracts or other DoD construction awards would be the most relevant comparison points.

What are the primary risks associated with a multi-year, multi-building construction project of this magnitude for the Department of the Navy?

The primary risks associated with a multi-year, multi-building construction project of this magnitude include potential cost overruns, schedule delays, and quality control issues. Despite the firm-fixed-price contract, unforeseen site conditions, design changes, material price fluctuations, or labor shortages can lead to increased costs or extended timelines. For the Department of the Navy, risks also include ensuring the facilities meet operational requirements, security standards, and long-term durability. Contractor performance is a key risk factor; a less experienced or poorly managed contractor could jeopardize project success. Furthermore, coordination among various building projects and adherence to strict environmental and safety regulations present ongoing management challenges that could impact the overall outcome and value delivered.

How effective is the firm-fixed-price contract type in managing costs and risks for large federal construction projects like this one?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs and risks in large federal construction projects when the scope of work is well-defined. Under an FFP contract, the contractor assumes the majority of the cost risk, agreeing to complete the work for a predetermined price. This incentivizes the contractor to control costs and manage resources efficiently. For the government, it provides cost certainty, making budgeting more predictable. However, if the scope is not clearly defined upfront or if significant changes occur during construction, the FFP structure can lead to disputes or change orders, potentially increasing the overall cost. The success of an FFP contract heavily relies on the thoroughness of the initial design and specifications and the contractor's ability to execute the work within the agreed-upon budget.

What is the historical spending pattern for construction at NAS New Orleans, and how does this contract fit within that context?

Analyzing historical spending patterns for construction at NAS New Orleans would provide context for this $55.3 million contract. This would involve examining previous contracts awarded for infrastructure development, renovations, and new construction at the base over several years. Understanding past spending levels, types of projects undertaken, and the agencies or departments responsible for those awards can reveal trends in facility modernization, expansion, or repair needs. This specific contract, awarded in 2007 for a significant sum, suggests a period of substantial investment in upgrading or expanding base facilities. Its scope, encompassing multiple diverse buildings, indicates a comprehensive approach to improving the base's operational and living conditions, likely aligning with broader military infrastructure investment strategies or specific base development plans.

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: TWO STEP

Solicitation ID: N6945007R0061

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walton Construction Company, L.L.C. (UEI: 147990758)

Address: 10 COMMERCE CT, NEW ORLEANS, LA, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,225,340

Exercised Options: $55,334,340

Current Obligation: $55,334,340

Contract Characteristics

Cost or Pricing Data: NO

Timeline