DoD awards $48.1M for C-17 hangar construction, Walsh Federal LLC secures contract

Contract Overview

Contract Amount: $48,146,729 ($48.1M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-07

End Date: 2020-05-27

Contract Duration: 993 days

Daily Burn Rate: $48.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION OF A C-17 TWO BAY CORROSION CONTROL / FUEL CELL HANGAR AT THE PITTSBURGH AIR RESERVE STATION, PA

Place of Performance

Location: CORAOPOLIS, ALLEGHENY County, PENNSYLVANIA, 15108

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $48.1 million to WALSH FEDERAL LLC for work described as: IGF::OT::IGF CONSTRUCTION OF A C-17 TWO BAY CORROSION CONTROL / FUEL CELL HANGAR AT THE PITTSBURGH AIR RESERVE STATION, PA Key points: 1. The contract value of $48.1 million for a C-17 hangar represents a significant investment in military aviation infrastructure. 2. The project's duration of 993 days indicates a complex construction undertaking requiring substantial planning and execution. 3. The firm fixed-price contract type suggests a defined scope and budget, transferring some risk to the contractor. 4. The project is located at the Pittsburgh Air Reserve Station, PA, highlighting its strategic importance for regional Air Force operations. 5. The absence of small business set-aside flags suggests the primary contractor, Walsh Federal LLC, is a larger entity. 6. The contract was awarded under full and open competition, implying a broad search for qualified bidders.

Value Assessment

Rating: good

The contract value of approximately $48.1 million for constructing a two-bay corrosion control/fuel cell hangar for C-17 aircraft appears reasonable given the specialized nature of the facility. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the final expenditure should be monitored against the initial award amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified contractors had the opportunity to bid. With 7 bidders, the competition level suggests a healthy market response for this type of specialized construction. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this hangar construction helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at the Pittsburgh Air Reserve Station, PA, who will gain enhanced maintenance capabilities for C-17 aircraft. The project delivers critical infrastructure for corrosion control and fuel cell maintenance, essential for extending the lifespan and operational readiness of the C-17 fleet. The geographic impact is localized to Pennsylvania, supporting regional military readiness and potentially local economic activity through construction jobs. The construction phase will likely involve a significant workforce, including skilled trades and project management personnel, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price contract.
Delays in project completion could impact operational readiness and require contingency planning.
Ensuring the long-term durability and effectiveness of the specialized corrosion control and fuel cell systems.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The project addresses a critical maintenance need for a key military transport aircraft.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on specialized industrial and institutional buildings for defense applications. The market for such facilities is characterized by high barriers to entry due to security requirements, specialized technical expertise, and the need for significant bonding capacity. Comparable spending benchmarks would involve other large-scale military construction projects, such as aircraft hangars, maintenance depots, or training facilities, often awarded by agencies like the Army Corps of Engineers or the Naval Facilities Engineering Command.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated in this award. Walsh Federal LLC, the prime contractor, is likely a large business. This means the direct economic impact on the small business ecosystem for this specific contract may be limited, though larger contractors often engage small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Quality assurance representatives would likely monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract lifecycle.

Related Government Programs

Military Construction, Army
Aircraft Maintenance Facilities
Corrosion Control Programs
Fuel Cell Maintenance
Air Reserve Component Infrastructure

Risk Flags

Potential for schedule delays due to complexity.
Risk of cost escalation if unforeseen issues arise.
Ensuring compliance with specialized environmental and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.1 million to WALSH FEDERAL LLC. IGF::OT::IGF CONSTRUCTION OF A C-17 TWO BAY CORROSION CONTROL / FUEL CELL HANGAR AT THE PITTSBURGH AIR RESERVE STATION, PA

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 $48.1 million.

What is the period of performance?

Start: 2017-09-07. End: 2020-05-27.

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

Walsh Federal LLC has a history of engaging in large federal construction projects. To assess their track record specifically for projects of this magnitude and complexity, a detailed review of their past performance on similar military hangar or specialized facility constructions would be necessary. This would involve examining contract completion dates against scheduled dates, final costs against awarded amounts, and any documented performance issues or awards. Without specific data on past performance for similar projects, it's difficult to definitively assess their reliability for this particular contract. However, their selection as a prime contractor in a full and open competition suggests they met the pre-qualification criteria set by the Department of the Army.

How does the awarded amount of $48.1 million compare to the estimated cost or industry benchmarks for similar C-17 hangars?

The awarded amount of $48.1 million for a two-bay C-17 corrosion control/fuel cell hangar is substantial, reflecting the specialized nature and scale of the facility. Benchmarking this figure against similar projects is crucial for a value-for-money assessment. Factors influencing cost include location, specific technological requirements for corrosion control and fuel cell work, and prevailing construction market conditions. A preliminary estimate or a range of costs for comparable facilities, if available from industry reports or government cost databases, would allow for a more precise comparison. Given the firm fixed-price nature, the government aimed to secure a defined cost, but the actual value is best judged against established benchmarks for similar specialized military infrastructure.

What are the primary risks associated with the construction of specialized aircraft maintenance facilities like this hangar?

The primary risks associated with constructing specialized aircraft maintenance facilities include unforeseen site conditions (e.g., soil issues, underground utilities), potential design flaws requiring costly modifications, delays in material procurement or specialized equipment delivery, and labor shortages for skilled trades. For a corrosion control and fuel cell hangar, specific risks involve the integration and calibration of highly technical systems, ensuring compliance with stringent environmental and safety regulations related to fuel and chemical handling, and the potential for specialized equipment malfunctions. Furthermore, the long duration of the project (993 days) increases exposure to market fluctuations in material costs and labor rates, even under a firm fixed-price contract, if scope changes or unforeseen issues necessitate modifications.

How effective is the firm fixed-price contract type in managing costs for a project of this duration and complexity?

The firm fixed-price (FFP) contract type is generally effective in managing costs for projects with a well-defined scope and relatively predictable execution, as it shifts the risk of cost overruns to the contractor. For a project spanning nearly three years, the FFP structure provides significant budget certainty for the government. However, its effectiveness can be challenged by unforeseen circumstances. If significant design changes, differing site conditions, or scope creep occur, the FFP contract can lead to contentious change order negotiations, potentially increasing the final cost. The success of the FFP here hinges on the thoroughness of the initial design and specifications, and the contractor's ability to manage risks and control costs throughout the extended construction period.

What is the historical spending pattern for similar C-17 maintenance infrastructure by the Department of Defense?

Historical spending patterns for similar C-17 maintenance infrastructure by the Department of Defense reveal a consistent need for specialized facilities to support the aging C-17 fleet. Investments typically focus on enhancing capabilities for heavy maintenance, including corrosion control, structural repair, and avionics upgrades. Spending varies based on the specific needs of different Air Force bases and Reserve components, driven by aircraft utilization rates, maintenance schedules, and the condition of existing facilities. While specific dollar amounts fluctuate annually based on budget allocations and project prioritization, the recurring nature of these investments underscores the ongoing commitment to maintaining the operational readiness and longevity of the C-17 aircraft through adequate infrastructure support.

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

Solicitation ID: W912QR17R0038

Offers Received: 7

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: $48,146,729

Exercised Options: $48,146,729

Current Obligation: $48,146,729

Actual Outlays: $11,788

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline