Navy awards $59.2M contract for Littoral Combat Ship to Walsh Federal LLC under full and open competition
Contract Overview
Contract Amount: $59,210,316 ($59.2M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-12
End Date: 2022-11-23
Contract Duration: 1,168 days
Daily Burn Rate: $50.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P426 LITTORAL COMBAT SHIP
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $59.2 million to WALSH FEDERAL LLC for work described as: P426 LITTORAL COMBAT SHIP Key points: 1. The contract value of $59.2 million is for the Littoral Combat Ship program. 2. Walsh Federal LLC, a large business, was awarded the contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Commercial and Institutional Building Construction, with a Product Service Code (PSC) of 236220.
Value Assessment
Rating: fair
The contract value of $59.2 million appears to be a significant investment. Benchmarking against similar shipbuilding or large construction projects would be necessary to fully assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a definitive contract with a firm fixed price suggests a clear scope and cost structure.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
The Littoral Combat Ship program is a key component of naval modernization, impacting national security. The award to Walsh Federal LLC supports a large business in the defense industrial base. Construction and shipbuilding contracts often have ripple effects on related industries and employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific Product Service Code (PSC) may indicate a need for more granular tracking.
- The contract duration is substantial (1168 days), requiring ongoing monitoring for performance and cost overruns.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically related to shipbuilding or major vessel construction. Benchmarks for similar large-scale construction projects would be relevant for cost comparison.
Small Business Impact
The data indicates that the award went to a large business (ss: false, sb: false), with no specific mention of small business subcontracting in the provided details.
Oversight & Accountability
The use of a definitive contract and firm fixed price suggests a structured approach. However, ongoing oversight is crucial for a contract of this duration and value to ensure performance and adherence to terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is long (1168 days).
- Awardee is a large business, no explicit small business set-aside.
- Specific PSC code is missing, hindering detailed analysis.
- No information on performance metrics or past performance of the contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.2 million to WALSH FEDERAL LLC. P426 LITTORAL COMBAT SHIP
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 $59.2 million.
What is the period of performance?
Start: 2019-09-12. End: 2022-11-23.
What is the specific breakdown of costs within the $59.2 million contract for the Littoral Combat Ship, and how do these costs compare to industry standards for similar naval construction projects?
The provided data does not detail the cost breakdown. A comprehensive analysis would require access to the contract's line-item details and comparison with industry cost benchmarks for naval vessels of similar size and complexity. This would help determine if the $59.2 million represents fair and reasonable pricing for the scope of work.
What are the primary risks associated with the long duration (1168 days) of this contract, and what mitigation strategies are in place?
Risks include potential cost escalation due to inflation, changes in material costs, technological obsolescence, and contractor performance issues over the extended period. Mitigation strategies likely involve robust contract management, performance monitoring, clear change order processes, and contingency planning by the Department of the Navy.
How effectively does the 'full and open competition' method ensure value for money in the context of specialized naval shipbuilding contracts like the Littoral Combat Ship?
Full and open competition is generally effective in driving value by encouraging multiple bidders to offer competitive pricing and innovative solutions. However, for highly specialized procurements like naval shipbuilding, the pool of qualified bidders may be limited, potentially impacting the level of competition and the ultimate value realized.
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: N6945019R0913
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: $59,210,316
Exercised Options: $59,210,316
Current Obligation: $59,210,316
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-12
Current End Date: 2022-11-23
Potential End Date: 2022-11-23 00:00:00
Last Modified: 2022-09-29
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