DoD's $38M Vandenberg AFB DBIO contract awarded to Walsh Construction shows strong competition

Contract Overview

Contract Amount: $38,094,181 ($38.1M)

Contractor: Walsh Construction Company II, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2024-10-30

Contract Duration: 1,492 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD INITIAL OUTFITTING (DBIO), VANDENBERG AFB, CA

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to WALSH CONSTRUCTION COMPANY II, LLC for work described as: DESIGN BUILD INITIAL OUTFITTING (DBIO), VANDENBERG AFB, CA Key points: 1. The contract leverages a Design-Build-Initial-Outfitting (DBIO) approach, integrating design and construction phases for efficiency. 2. Awarded under full and open competition, this contract likely secured competitive pricing. 3. The firm-fixed-price contract type shifts risk to the contractor, promoting cost control. 4. The project duration of approximately 4 years suggests a significant construction undertaking. 5. The contract's value falls within a moderate range for large-scale federal construction projects. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $38.1 million for a Design Build Initial Outfitting project at Vandenberg AFB appears reasonable given the scope. Benchmarking against similar large-scale military construction projects, the pricing is likely competitive due to the full and open competition. The firm-fixed-price structure further supports value for money by incentivizing contractor efficiency and cost management. Without specific cost breakdowns or detailed comparisons to similar projects, a definitive 'excellent' rating is difficult, but the procurement method and contract type suggest a good outcome.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 4 bids were received, which suggests a healthy level of competition for this project. A competitive environment like this typically leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders is a positive indicator for achieving a fair market price.

Taxpayer Impact: Taxpayers likely benefited from competitive pricing due to the robust bidding process. The multiple offers received suggest that the government was able to secure a fair value for the services rendered, avoiding potential overpayment associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Vandenberg AFB, who will gain improved facilities. The contract delivers essential design, construction, and outfitting services for a critical military installation. The geographic impact is concentrated at Vandenberg AFB, California, supporting national defense infrastructure. The project will likely create numerous jobs in the construction sector, including skilled trades and project management roles, within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited small business subcontracting opportunities given the absence of specific set-asides.
The long duration of the contract could introduce risks related to material cost fluctuations or unforeseen site conditions.
Reliance on a single prime contractor for both design and build phases concentrates risk.

Positive Signals

Full and open competition suggests a strong likelihood of competitive pricing and value for money.
Firm-fixed-price contract type transfers cost overrun risk to the contractor.
The DBIO approach can streamline project delivery and reduce overall timelines.
The project supports critical national defense infrastructure at a key military installation.

Sector Analysis

The construction sector, particularly for large-scale institutional and commercial buildings, is a significant area of federal spending. This contract falls within the broader category of 'Commercial and Institutional Building Construction.' Federal agencies, especially the Department of Defense, frequently engage in design-build projects to modernize infrastructure and meet operational requirements. Comparable spending benchmarks for similar military base construction projects can vary widely based on size, complexity, and location, but a $38 million project is substantial within this market.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. While the prime contractor is Walsh Construction Company II, LLC, the absence of explicit set-asides means that small businesses would primarily participate as subcontractors. The extent of subcontracting opportunities will depend on the prime contractor's strategy and the specific needs of the project. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command, with technical oversight from the requiring activity at Vandenberg AFB. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are embedded in the firm-fixed-price contract terms, with penalties for non-performance or delays. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Modernization
Design-Build Contracts
Air Force Civil Engineering

Risk Flags

Potential for cost overruns if design is incomplete or site conditions are unexpected.
Risk of schedule delays impacting operational readiness.
Integration challenges between design and construction phases.
Material price escalation risk for long-duration projects.
Adequacy of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to WALSH CONSTRUCTION COMPANY II, LLC. DESIGN BUILD INITIAL OUTFITTING (DBIO), VANDENBERG AFB, CA

Who is the contractor on this award?

The obligated recipient is WALSH CONSTRUCTION COMPANY II, 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 $38.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2024-10-30.

What is the track record of Walsh Construction Company II, LLC with federal contracts, particularly with the Department of Defense?

Walsh Construction Company II, LLC has a significant history of performing federal contracts, including numerous projects for the Department of Defense and other agencies. Their experience often spans large-scale infrastructure, military construction, and design-build projects. A review of federal procurement data (e.g., FPDS) would reveal specific contract awards, performance ratings, and any past performance issues. Generally, companies with extensive federal experience have demonstrated capabilities in navigating complex regulatory environments, managing large budgets, and meeting stringent performance requirements. Their involvement in a $38 million DBIO project at Vandenberg AFB suggests a proven ability to handle substantial military construction undertakings.

How does the $38.1 million contract value compare to similar Design Build Initial Outfitting (DBIO) projects for military bases?

The $38.1 million contract value for this DBIO project at Vandenberg AFB is within a moderate to large range for military construction. DBIO projects can vary significantly in cost based on the scope of facilities being designed and built, the complexity of the outfitting requirements (e.g., specialized equipment), and the specific location's construction costs. For context, major MILCON projects can range from tens of millions to hundreds of millions of dollars. A $38 million project is substantial enough to require significant contractor resources and expertise but may not represent the largest or most complex undertakings. Benchmarking against similar projects at other Air Force bases or Army Corps of Engineers districts would provide a more precise comparison of value for money.

What are the primary risks associated with a Design Build Initial Outfitting (DBIO) contract of this magnitude?

Key risks for a DBIO contract of this magnitude include potential scope creep during the design phase, integration challenges between design and construction teams, and unforeseen site conditions. For a firm-fixed-price contract, the contractor bears the risk of cost overruns due to design errors, material price escalation, or labor shortages. The 'initial outfitting' component adds complexity, requiring precise coordination with equipment vendors and installation schedules. Furthermore, the long duration (approx. 4 years) increases exposure to economic fluctuations and potential changes in military requirements. Effective project management, robust contract administration, and clear communication channels are crucial to mitigating these risks.

What is the expected program effectiveness and impact of the facilities being constructed or modernized under this contract?

The program effectiveness and impact are directly tied to the specific facilities being developed at Vandenberg AFB. Assuming this DBIO project supports critical operational needs, its effectiveness will be measured by the enhanced capabilities, improved readiness, and better quality of life for personnel. For example, if it involves new barracks, training facilities, or operational support buildings, the impact will be a more functional and efficient base. The 'initial outfitting' aspect suggests that the facilities will be delivered fully equipped and ready for immediate use, maximizing their operational impact from day one. The success hinges on meeting the design specifications and functional requirements outlined by the Air Force.

How have historical spending patterns for similar construction projects at Vandenberg AFB or within the Air Force Civil Engineer command trended?

Historical spending patterns for construction projects at Vandenberg AFB and across the Air Force Civil Engineer command generally reflect consistent investment in infrastructure modernization and sustainment. Major projects, often categorized under Military Construction (MILCON), see significant annual appropriations. Trends often show an increasing emphasis on energy efficiency, resilient infrastructure, and adapting facilities for new technologies or mission requirements. The Air Force, like other branches, faces a continuous need to upgrade aging infrastructure, leading to sustained, albeit fluctuating, spending levels. Specific trends for Vandenberg AFB would depend on its evolving mission priorities and any specific modernization initiatives undertaken over the years.

What are the implications of the firm-fixed-price contract type on cost certainty and contractor performance?

The firm-fixed-price (FFP) contract type is designed to provide cost certainty for the government. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the primary risk of cost overruns to the contractor. Consequently, contractors are highly incentivized to manage their costs efficiently, control scope, and maintain schedules to ensure profitability. For the government, this means a predictable final cost, assuming no change orders. However, it can also lead contractors to be more conservative in their design or potentially cut corners if not adequately overseen, making robust government oversight crucial to ensure quality and adherence to specifications.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127S16R6000

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 WEST ADAMS, CHICAGO, IL, 60607

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,094,181

Exercised Options: $38,094,181

Current Obligation: $38,094,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127S17D6002

IDV Type: IDC

Timeline