DoD awards $36.2M for primary facilities construction to Walsh Federal LLC

Contract Overview

Contract Amount: $36,200,316 ($36.2M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2024-12-06

Contract Duration: 1,284 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIMARY FACILITIES

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to WALSH FEDERAL LLC for work described as: PRIMARY FACILITIES Key points: 1. Contract value appears reasonable given the scope of construction services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over three years indicates a significant project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project located in North Carolina, potentially impacting local workforce. 6. No small business set-aside, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of $36.2 million for primary facilities construction is substantial. Benchmarking against similar large-scale construction projects by the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor, Walsh Federal LLC, has assumed the risk of cost overruns, which can be a positive indicator for the government if managed effectively. The duration of the contract (over 3 years) also implies a comprehensive scope of work.

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 a bid. The presence of 5 bidders suggests a healthy level of competition for this significant construction project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by driving down costs through multiple bids.

Public Impact

The Department of the Army will benefit from the construction of essential primary facilities. The project will likely involve significant construction labor in North Carolina. The completed facilities will support military operations and personnel. The contract contributes to the infrastructure development within a military installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price.
Ensuring timely completion within the 1284-day duration is critical.
Quality of construction must meet stringent military standards.

Positive Signals

Firm fixed-price contract transfers cost risk to the contractor.
Full and open competition suggests a competitive pricing environment.
Contractor has a defined period to deliver the facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The Department of Defense is a significant client for construction services, frequently awarding large contracts for infrastructure development, barracks, and operational facilities. Benchmarking this $36.2 million award against other similar DoD construction projects would provide further context on its scale and potential value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no explicit mention of small business subcontracting goals, large federal construction contracts often include provisions for small business participation. Walsh Federal LLC may be required to subcontract a portion of the work to small businesses, which could provide opportunities for the small business ecosystem.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers, project managers, and potentially quality assurance representatives from the Army. The firm fixed-price nature implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality requirements. Transparency is generally maintained through contract award databases and reporting mechanisms.

Related Government Programs

Military Construction Projects
Department of Defense Facilities Management
General Building Construction Services

Risk Flags

Potential for cost escalation impacting contractor profitability under fixed-price.
Risk of schedule delays due to project complexity or unforeseen site conditions.
Ensuring adherence to stringent military construction quality standards.
Managing contractor performance over a multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to WALSH FEDERAL LLC. PRIMARY FACILITIES

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 $36.2 million.

What is the period of performance?

Start: 2021-06-01. End: 2024-12-06.

What is the track record of Walsh Federal LLC in completing large-scale federal construction projects on time and within budget?

Assessing Walsh Federal LLC's track record requires a review of their past performance on similar federal contracts. This would involve examining contract databases for awards, completion dates, any modifications, and reported performance evaluations. Specific attention should be paid to projects of comparable value and complexity, particularly those with the Department of Defense or other federal agencies. Information on cost growth, schedule adherence, and any disputes or claims filed would be crucial. A history of successful project delivery on time and within budget would indicate a lower risk profile for this current $36.2 million contract. Conversely, a pattern of delays or cost overruns on previous projects would raise concerns about the contractor's ability to meet the current contract's requirements.

How does the $36.2 million contract value compare to similar primary facilities construction projects awarded by the Department of Defense in the last five years?

To benchmark the $36.2 million contract value, we would need to analyze recent awards for similar 'primary facilities' construction by the Department of Defense. This analysis would involve filtering contract databases for projects with comparable scopes (e.g., new building construction, renovation of core facilities) and contract types (e.g., firm fixed-price). We would then compare the average contract value, the range of values, and potentially the cost per square foot or per unit of facility type. If $36.2 million falls within the typical range for similar projects, it suggests fair pricing. If it is significantly higher or lower than the average, it warrants further investigation into the specific project requirements, location, and market conditions that might justify the variance.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project of this magnitude?

The primary risk with a firm fixed-price contract, especially for a multi-year construction project valued at $36.2 million, lies in potential cost overruns for the contractor. While this shifts financial risk away from the government, unforeseen issues like material price escalations, labor shortages, unexpected site conditions, or design changes can significantly impact the contractor's profitability and potentially lead to disputes or quality compromises if the contractor attempts to cut corners. For the government, the risk is ensuring that the fixed price adequately covers all necessary work and that the contractor has the capacity and incentive to deliver high-quality results throughout the project's extended duration. Robust oversight and clear communication channels are essential to mitigate these risks.

What is the expected impact of this contract on the local economy and workforce in North Carolina?

A $36.2 million construction project awarded to Walsh Federal LLC, with work to be performed in North Carolina, is expected to have a notable positive impact on the local economy and workforce. The construction phase will likely generate numerous job opportunities for skilled tradespeople (carpenters, electricians, plumbers, etc.), general laborers, project managers, and support staff. This influx of employment can boost local household incomes and stimulate spending in related sectors such as materials supply, equipment rental, and hospitality. Furthermore, the completion of primary facilities can enhance the operational capabilities of the military installation, potentially leading to long-term economic benefits for the surrounding community through sustained military presence and associated activities.

How does the number of bidders (5) in this full and open competition influence the final contract price and overall value for taxpayers?

Having five bidders in a full and open competition for this $36.2 million construction contract is generally a positive indicator for taxpayers. A higher number of qualified bidders typically intensifies competition, pressuring each firm to offer its most competitive pricing and best value proposition to secure the award. This competitive pressure helps ensure that the government is not overpaying for the services and that the selected contractor is likely to be efficient and cost-conscious. While five bidders represent a reasonable level of competition, the specific nature of the construction services and the geographic market could influence whether this number is considered optimal. Nevertheless, it suggests a robust process that should yield favorable outcomes for taxpayer investment.

What are the potential implications of the contract's duration (1284 days) on project management and oversight?

The contract's duration of 1284 days (approximately 3.5 years) presents specific implications for project management and oversight. For the contractor, it necessitates long-term resource planning, including workforce allocation, material procurement, and financial management. For the government, it requires sustained oversight commitment from contracting officers and project managers to monitor progress, ensure adherence to specifications, manage any potential changes, and verify quality throughout the extended period. The lengthy duration also increases the risk of market fluctuations (e.g., material costs) and the need for effective change management processes. Regular progress reviews and proactive communication will be crucial to keep the project on track and within the agreed-upon fixed price.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PM20R0009

Offers Received: 5

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: $37,321,616

Exercised Options: $36,200,316

Current Obligation: $36,200,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline