DoD's $87.4M Construction Contract Awarded to Walsh Group Ltd. Under Full and Open Competition
Contract Overview
Contract Amount: $87,364,219 ($87.4M)
Contractor: Walsh Group Ltd., the
Awarding Agency: Department of Defense
Start Date: 2004-04-27
End Date: 2012-12-31
Contract Duration: 3,170 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: DOVER, KENT County, DELAWARE, 19901
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $87.4 million to WALSH GROUP LTD., THE for work described as: Key points: 1. Significant contract value of $87.4 million for construction services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of 3170 days indicates a long-term project. 4. No indication of small business participation in this award.
Value Assessment
Rating: fair
The contract value of $87.4 million is substantial for commercial and institutional building construction. Benchmarking against similar large-scale construction projects would be necessary to fully assess value, but the duration and scope suggest a significant investment.
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 more competitive pricing. The presence of multiple bidders would have driven the final award price.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contractors.
Public Impact
Impacts the construction sector with a large contract award. Potential for job creation and economic activity in Delaware. Ensures infrastructure development through a competitive procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Long contract duration could present scope creep risks.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type mitigates cost overrun risk.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for developing and maintaining government facilities and infrastructure. Benchmarks for similar large-scale construction projects would provide further context.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on project execution, adherence to the firm fixed price, and compliance with contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (3170 days).
- No small business participation indicated.
- Potential for cost escalation in a long-term fixed-price contract.
- Specific project scope and performance metrics not detailed.
Tags
commercial-and-institutional-building-co, department-of-defense, de, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.4 million to WALSH GROUP LTD., THE. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WALSH GROUP LTD., THE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $87.4 million.
What is the period of performance?
Start: 2004-04-27. End: 2012-12-31.
What was the competitive landscape like for this $87.4M construction contract?
The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive bidding process where multiple contractors likely vied for the award, aiming to secure the best value for the Department of Defense through a price discovery mechanism.
What are the primary risks associated with this long-duration construction contract?
The primary risks include potential scope creep over the 3170-day duration, unforeseen material cost fluctuations despite the firm fixed price, and potential delays impacting project completion. Ensuring robust project management and change control processes will be critical to mitigate these risks.
How effectively does this contract leverage competition to ensure value for taxpayers?
The use of 'FULL AND OPEN COMPETITION' is a strong indicator of effective leverage of competition. This procurement method is designed to maximize the number of bidders, thereby driving down prices and ensuring the government receives competitive offers, ultimately benefiting taxpayers.
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
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 929 WEST ADAMS STREET, CHICAGO, IL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $269,281
Exercised Options: $269,281
Current Obligation: $87,364,219
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-27
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2013-01-10
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)