DoD Awards $124M for East Campus Building 1 Construction to Walsh Federal LLC
Contract Overview
Contract Amount: $124,201,031 ($124.2M)
Contractor: Walsh Federal LLC
Awarding Agency: Department of Defense
Start Date: 2013-09-23
End Date: 2019-09-30
Contract Duration: 2,198 days
Daily Burn Rate: $56.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCTION OF EAST CAMPUS BUILDING 1
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $124.2 million to WALSH FEDERAL LLC for work described as: IGF::OT::IGF CONSTRUCTION OF EAST CAMPUS BUILDING 1 Key points: 1. Significant contract value of over $124 million for a major construction project. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly 6 years indicates a large-scale, long-term undertaking. 4. The project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $124 million is substantial for a single building construction project. Benchmarking against similar large-scale institutional building contracts would be necessary to fully assess pricing, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to more competitive pricing as multiple bidders vie for the contract. This method allows for broad market participation and price discovery.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value through a competitive process, potentially lowering overall costs compared to less competitive methods.
Public Impact
Construction of a new East Campus Building 1 will likely enhance facilities and operational capacity for the Department of the Army. The significant investment in infrastructure suggests a commitment to long-term growth and modernization within the DoD. The project's duration and scale may create numerous job opportunities in the construction sector within Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- Long contract duration (nearly 6 years) can introduce risks related to cost escalation and scope creep.
- Firm Fixed Price contracts can be risky for the contractor if costs exceed estimates, potentially leading to disputes or contractor financial distress.
Positive Signals
- Awarded via full and open competition, maximizing potential for competitive pricing.
- Clear contract type (Firm Fixed Price) provides cost certainty for the government.
- Significant investment in infrastructure development.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar large-scale government building projects would provide context for the $124 million award.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or met.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for large construction contracts would apply, including monitoring progress, quality, and adherence to terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Firm Fixed Price contract places cost risk on the contractor.
- No indication of small business participation.
- Large contract value requires diligent oversight.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.2 million to WALSH FEDERAL LLC. IGF::OT::IGF CONSTRUCTION OF EAST CAMPUS BUILDING 1
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 $124.2 million.
What is the period of performance?
Start: 2013-09-23. End: 2019-09-30.
What specific factors contributed to the $124 million cost for the East Campus Building 1 construction, and how does this compare to industry benchmarks for similar facilities?
The $124 million cost likely encompasses design, materials, labor, project management, and potential contingencies for a large institutional building. A detailed cost breakdown and comparison with industry benchmarks for similar-sized government or commercial facilities would be necessary to assess value. Factors like location, specific functional requirements, and prevailing market rates for construction services in Maryland would influence the final price.
What are the primary risks associated with a nearly six-year firm fixed-price construction contract of this magnitude, and what mitigation strategies are in place?
Key risks include potential cost overruns for the contractor due to unforeseen material price increases, labor shortages, or design changes, which could lead to disputes or contractor default. For the government, risks involve potential delays and the possibility of the contractor cutting corners on quality to maintain profitability. Mitigation strategies typically involve robust contract management, clear change order processes, performance bonds, and regular progress reviews.
How effectively does the full and open competition process ensure optimal value and quality for this large-scale construction project?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer competitive pricing and innovative solutions. This process allows the government to select the offer that best balances cost, technical merit, and past performance. Effectiveness relies on a well-defined solicitation, fair evaluation criteria, and diligent oversight to ensure the chosen contractor delivers the required quality and stays within budget and schedule.
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: W912DR13R0003
Offers Received: 4
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: $124,730,915
Exercised Options: $124,730,915
Current Obligation: $124,201,031
Subaward Activity
Number of Subawards: 931
Total Subaward Amount: $3,328,130,212
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-23
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2021-04-28
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