DoD Awards $66M for SOF Operations Integrations Facility at MacDill AFB to Walsh Federal LLC
Contract Overview
Contract Amount: $65,997,831 ($66.0M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2027-06-22
Contract Duration: 1,363 days
Daily Burn Rate: $48.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOF OPERATIONS INTEGRATIONS FACILITY MACDILL AIR FORCE BASE (AFB), FL
Place of Performance
Location: DESTIN, OKALOOSA County, FLORIDA, 32541
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $66.0 million to WALSH FEDERAL LLC for work described as: SOF OPERATIONS INTEGRATIONS FACILITY MACDILL AIR FORCE BASE (AFB), FL Key points: 1. Significant investment in special operations forces infrastructure. 2. Competition method was full and open, suggesting market availability. 3. Risk appears moderate given fixed-price contract and established contractor. 4. Construction sector spending benchmark needs further analysis for value.
Value Assessment
Rating: fair
The award amount of $65,997,831 for a definitive contract appears substantial. Benchmarking against similar facility construction projects for military branches is necessary to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing, but the final price relative to estimated costs is key.
Taxpayer Impact: Taxpayer funds are allocated for critical infrastructure supporting national security operations. Ensuring cost-effectiveness through competitive bidding is paramount.
Public Impact
Enhances capabilities for Special Operations Forces (SOF) at a key installation. Supports military readiness and operational effectiveness. Potential for job creation in the construction sector in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Contractor performance history needs review.
- Scope creep could impact final cost.
- Long duration of contract (over 3 years).
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Supports critical SOF mission requirements.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. The award amount is significant and requires comparison to similar DoD construction projects to gauge value for money.
Small Business Impact
The data indicates the prime contractor is Walsh Federal LLC, and the 'sb' field is false, suggesting no small business set-aside was applied for this prime contract. Subcontracting opportunities for small businesses should be investigated.
Oversight & Accountability
Oversight will be crucial throughout the construction phase to ensure adherence to specifications, budget, and timeline. The Department of the Army's contracting office is responsible for monitoring performance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to project scale and duration.
- Risk of contractor performance issues impacting schedule or quality.
- Dependency on specific construction materials and labor availability.
- Long contract duration increases exposure to market fluctuations.
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 $66.0 million to WALSH FEDERAL LLC. SOF OPERATIONS INTEGRATIONS FACILITY MACDILL AIR FORCE BASE (AFB), FL
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 Army).
What is the total obligated amount?
The obligated amount is $66.0 million.
What is the period of performance?
Start: 2023-09-28. End: 2027-06-22.
How does the awarded price compare to industry benchmarks for similar SOF facility construction projects?
A comprehensive comparison requires detailed project specifications and market data. However, the $66 million award suggests a significant investment. Benchmarking against recently awarded, comparable military construction projects, considering size, complexity, and location, would reveal if the price is competitive and reflects fair market value.
What are the primary risks associated with the long duration and fixed-price nature of this contract?
The primary risks with a long-duration, fixed-price contract include potential cost escalation for the government if material or labor costs rise significantly beyond initial projections, and contractor performance issues that could lead to delays or quality defects. The government bears less risk for scope changes, but managing contractor performance and unforeseen site conditions becomes critical.
What is the expected impact of this facility on SOF operational effectiveness and readiness?
The new facility is expected to significantly enhance SOF operational effectiveness by providing modern, integrated spaces for training, mission planning, and support functions. This consolidation and upgrade should improve collaboration, efficiency, and overall readiness, enabling SOF units to better execute their complex missions.
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: W9127823R0074
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: $65,997,831
Exercised Options: $65,997,831
Current Obligation: $65,997,831
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-28
Current End Date: 2027-06-22
Potential End Date: 2027-06-22 00:00:00
Last Modified: 2025-09-12
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