DoD Awards $155M Firm-Fixed-Price Contract for NC3 Alert Facility Construction
Contract Overview
Contract Amount: $154,953,297 ($155.0M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2027-11-02
Contract Duration: 1,677 days
Daily Burn Rate: $92.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT NC3 ALERT FACILITY
Place of Performance
Location: BELLEVUE, SARPY County, NEBRASKA, 68005
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $155.0 million to WALSH FEDERAL LLC for work described as: DESIGN AND CONSTRUCT NC3 ALERT FACILITY Key points: 1. Significant investment in critical infrastructure for the Department of Defense. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Construction sector spending is substantial, with this contract representing a notable project.
Value Assessment
Rating: good
The contract value of $155 million for a facility construction project appears reasonable given the scope. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for a critical defense facility. The competitive nature of the award is a positive sign for efficient use of these funds.
Public Impact
Enhances national security by providing a critical alert facility. Supports the construction industry and associated supply chains. Represents a long-term investment in military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Schedule delays are common in complex construction.
- Ensuring compliance with all environmental and safety regulations.
Positive Signals
- Firm-fixed-price contract limits cost risk for the government.
- Full and open competition suggests potential for good value.
- Project addresses a critical national security need.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this sector is substantial, driven by infrastructure needs across various agencies. Benchmarks for similar projects would typically consider size, complexity, and location.
Small Business Impact
The contract was awarded to Walsh Federal LLC, a large business. There is no indication of specific set-asides for small businesses in this award, which is common for large prime contracts.
Oversight & Accountability
The Department of the Army is responsible for oversight. Robust oversight will be crucial to ensure the project stays on schedule, within budget, and meets all quality and security requirements.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays in large-scale construction.
- Risk of unforeseen site conditions impacting cost or schedule.
- Dependence on specialized materials and labor.
- Ensuring robust cybersecurity measures for the facility's systems.
Tags
commercial-and-institutional-building-co, department-of-defense, ne, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $155.0 million to WALSH FEDERAL LLC. DESIGN AND CONSTRUCT NC3 ALERT FACILITY
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 $155.0 million.
What is the period of performance?
Start: 2023-03-31. End: 2027-11-02.
What is the projected economic impact of this facility construction on the local Nebraska economy?
The construction of the NC3 Alert Facility is expected to generate significant economic activity in Nebraska. This includes job creation for skilled trades, demand for local materials and services, and potential long-term economic benefits from the facility's operational presence. The exact impact will depend on the extent of local sourcing and labor utilization by the prime contractor and its subcontractors.
What are the key performance indicators (KPIs) being used to monitor the contractor's progress and ensure quality?
Key performance indicators for this project likely include adherence to the construction schedule, quality of workmanship against specifications, safety compliance, and budget management. The government will likely conduct regular site inspections, review progress reports, and hold performance review meetings to ensure the contractor meets contractual obligations and delivers a facility that meets stringent security and operational requirements.
How does the cost of this facility compare to similar classified alert facilities built by other government agencies?
Direct cost comparisons are challenging due to the classified nature of NC3 facilities and variations in scope, security requirements, and geographic location. However, the $155 million award for a firm-fixed-price contract suggests a structured approach to cost control. A detailed cost-benefit analysis, considering the strategic importance and long-term operational costs, would be necessary for a comprehensive assessment against peer projects.
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: W9128F21R0062
Offers Received: 8
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: $157,991,243
Exercised Options: $155,013,243
Current Obligation: $154,953,297
Actual Outlays: $-27,677,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-31
Current End Date: 2027-11-02
Potential End Date: 2026-03-22 00:00:00
Last Modified: 2026-01-14
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