DoD awards $45.4M for preconstruction services to Walsh Federal LLC, with 2 bids received

Contract Overview

Contract Amount: $45,431,071 ($45.4M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-13

End Date: 2028-04-19

Contract Duration: 2,168 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRECONSTRUCTION SERVICES

Place of Performance

Location: MILTON, SANTA ROSA County, FLORIDA, 32570

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to WALSH FEDERAL LLC for work described as: PRECONSTRUCTION SERVICES Key points: 1. Contract value of $45.4 million for preconstruction services indicates significant investment in planning and design phases. 2. The award to Walsh Federal LLC suggests a focus on established contractors with demonstrated capabilities in large-scale construction projects. 3. A definitive contract type implies a commitment to a specific scope of work and pricing structure. 4. The contract duration of approximately 5.7 years highlights the long-term nature of the project and the need for sustained oversight. 5. The fixed-price contract type aims to control costs and provide predictability for the Department of Defense. 6. The geographic focus on Florida suggests a specific regional need for these preconstruction services.

Value Assessment

Rating: good

The contract value of $45.4 million for preconstruction services appears reasonable given the scope and duration. Benchmarking against similar large-scale construction planning contracts within the Department of Defense would provide further context. The fixed-price nature of the contract suggests an effort to establish clear cost expectations upfront, which is generally a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level was moderate. While two bidders suggest some level of market interest, a higher number of bids could potentially lead to more aggressive pricing and a broader range of innovative solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive essential preconstruction planning for future construction projects. Services delivered include detailed planning, design development, and cost estimation to ensure project readiness. The geographic impact is concentrated in Florida, where the construction projects are likely to be located. Workforce implications may include the need for specialized architectural, engineering, and construction management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates are not thoroughly vetted during the preconstruction phase.
Risk of schedule delays if planning and design are not efficiently managed.
Dependence on a single contractor for critical early-stage project development.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Long contract duration allows for comprehensive planning and development.

Sector Analysis

The construction industry, particularly the commercial and institutional building sector, relies heavily on preconstruction services to define project scope, budget, and schedule. This contract fits within the broader defense construction market, which is a significant segment of federal spending. Comparable spending benchmarks would involve analyzing other large-scale infrastructure or facility development projects managed by the DoD or other federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Walsh Federal LLC actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the fixed-price contract terms and performance expectations. Transparency is facilitated by the federal contracting data, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Department of Defense Construction Projects
Naval Facilities Engineering Command Contracts
Federal Construction Planning Services
Infrastructure Development Contracts

Risk Flags

Moderate competition level (2 bids) may limit price discovery.
Long contract duration requires sustained oversight.
Potential for cost escalation if initial estimates are not robust.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to WALSH FEDERAL LLC. PRECONSTRUCTION SERVICES

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 $45.4 million.

What is the period of performance?

Start: 2022-05-13. End: 2028-04-19.

What is the track record of Walsh Federal LLC in delivering similar preconstruction services for the Department of Defense?

Walsh Federal LLC has a history of performing construction and related services for the federal government. While specific details on their preconstruction service delivery for the DoD are not provided in this data snippet, their selection for a contract of this magnitude suggests they possess the necessary qualifications and experience. A deeper dive into their past performance on similar projects, including client feedback and project outcomes, would be necessary for a comprehensive assessment of their track record. This would typically involve reviewing past performance evaluations and project close-out reports available through government databases.

How does the awarded amount of $45.4 million compare to the typical cost of preconstruction services for projects of this scale?

The $45.4 million awarded for preconstruction services represents a significant investment in the initial planning phases of a construction project. To benchmark this value, one would need to compare it against the total anticipated construction cost or against preconstruction service contracts for similar-sized military facilities or infrastructure projects. Typically, preconstruction services can range from 1% to 10% of the total project cost, depending on complexity. Without knowing the total estimated construction value, it's difficult to definitively assess if $45.4 million is high or low. However, for large-scale DoD projects, such an expenditure on planning is not unusual.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if initial estimates are inaccurate, schedule delays due to unforeseen planning challenges, and scope creep if requirements are not clearly defined. Mitigation strategies are likely embedded within the contract's fixed-price structure, which incentivizes the contractor to manage costs effectively. The moderate competition (2 bids) might also present a risk if the chosen contractor faces significant challenges, as there are limited alternative options readily available. Robust project management, clear communication protocols, and defined change order processes are crucial for mitigating these risks throughout the contract duration.

What is the expected effectiveness of these preconstruction services in ensuring the success of the subsequent construction phase?

Effective preconstruction services are critical for the success of any major construction project. They lay the groundwork for efficient execution by ensuring that designs are feasible, budgets are realistic, and schedules are achievable. For this DoD contract, the effectiveness will be measured by how well Walsh Federal LLC identifies potential issues early on, optimizes designs for cost and constructability, and provides accurate cost and schedule projections. Successful preconstruction should lead to fewer change orders, reduced delays, and better overall project outcomes during the actual construction phase.

How has federal spending on preconstruction services for the Department of Defense evolved over the past five years?

Analyzing historical spending trends for preconstruction services within the DoD requires access to comprehensive federal procurement data. Generally, federal spending on construction and related services, including preconstruction, can fluctuate based on military readiness needs, infrastructure modernization initiatives, and overall budget allocations. Periods of increased investment in military facilities or new base development would likely correlate with higher spending on preconstruction. Conversely, budget constraints or a focus on existing infrastructure maintenance might lead to lower spending. Specific data would be needed to confirm these trends for the DoD.

What is the significance of the definitive contract type in the context of this preconstruction services award?

A definitive contract, as opposed to an indefinite-delivery/indefinite-quantity (IDIQ) contract or a basic ordering agreement, typically signifies a firm commitment to a specific scope of work, quantity, and price. In this case, awarding a definitive contract for preconstruction services suggests that the Department of the Navy has a well-defined understanding of the project's initial requirements and is ready to commit the full contract value. This provides certainty for both the government and the contractor, streamlining the planning process and ensuring resources are allocated effectively for the defined preconstruction activities.

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: N6945021R0064

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: $142,210,068

Exercised Options: $137,653,068

Current Obligation: $45,431,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline