Transportation awards $60.5M for CHS TRACON construction, with Walsh Federal LLC as prime

Contract Overview

Contract Amount: $60,517,682 ($60.5M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Transportation

Start Date: 2025-04-07

End Date: 2029-10-31

Contract Duration: 1,668 days

Daily Burn Rate: $36.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CHS TRACON - CONSTRUCTION

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $60.5 million to WALSH FEDERAL LLC for work described as: CHS TRACON - CONSTRUCTION Key points: 1. Contract value of $60.5 million for construction services. 2. Awarded to Walsh Federal LLC, a significant player in federal construction. 3. Long performance period of over 4 years suggests a complex project. 4. Firm Fixed Price contract type aims to control costs. 5. Competition dynamics for this contract need further examination. 6. Project located in South Carolina, impacting regional development.

Value Assessment

Rating: good

The contract value of $60.5 million for commercial and institutional building construction appears reasonable given the extensive 1668-day performance period. Benchmarking against similar large-scale federal construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without specific details on the scope of work and comparable project costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for awards below certain thresholds. While the exact number of bidders is not specified, 'full-and-open' competition suggests multiple offers were likely solicited and evaluated. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive bidding process, even under SAP, helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who will benefit from improved air traffic control infrastructure. The project will deliver essential construction services for the CHS TRACON facility. The geographic impact is concentrated in South Carolina, potentially creating local jobs and economic activity. The construction services will likely involve a skilled workforce, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extended performance period.
Dependence on a single prime contractor, Walsh Federal LLC, for overall project success.
Risk of schedule delays due to the complexity of large-scale construction projects.

Positive Signals

Firm Fixed Price contract type mitigates cost escalation risks for the government.
Long performance period allows for thorough planning and execution of complex construction tasks.
Award to an established federal contractor like Walsh Federal LLC suggests a degree of reliability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports critical infrastructure development and modernization. Comparable spending benchmarks for large-scale federal construction projects, particularly those related to aviation infrastructure, would provide further context for the $60.5 million award. The FAA's ongoing investments in air traffic control facilities represent a consistent demand within this sector.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is Walsh Federal LLC, a large business, there may be subcontracting opportunities for small businesses within the construction trades. The extent of small business participation will depend on Walsh Federal LLC's subcontracting plan and adherence to federal small business utilization goals.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Aviation Administration (FAA), likely through contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified construction services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Air Traffic Control Modernization Programs
Department of Transportation Infrastructure Projects
Commercial and Institutional Building Construction Contracts
Large-Scale Federal Construction Awards

Risk Flags

Extended performance period may increase risk of cost escalation or delays.
Competition level under SAP requires careful monitoring to ensure best value.
Scope of work details are crucial for a complete value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $60.5 million to WALSH FEDERAL LLC. CHS TRACON - CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is WALSH FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $60.5 million.

What is the period of performance?

Start: 2025-04-07. End: 2029-10-31.

What is the specific scope of work for the CHS TRACON construction project?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' and specifically relates to 'CHS TRACON'. However, the detailed scope of work is not specified in the abbreviated data. Typically, TRACON (Terminal Radar Approach Control) facilities require specialized construction for radar systems, communication equipment, control rooms, and administrative areas. The project likely involves building or renovating a facility to house air traffic controllers and their essential technology. A full review of the contract's Statement of Work (SOW) would be necessary to understand the precise deliverables, including any demolition, new construction, system integration, or upgrades required.

How does the $60.5 million contract value compare to similar FAA TRACON construction projects?

Benchmarking the $60.5 million award requires comparing it to similar FAA TRACON construction or modernization projects. Without access to a database of comparable federal construction contracts, a precise comparison is difficult. However, large-scale infrastructure projects for critical government functions like air traffic control can range significantly in cost based on location, size, complexity, and the extent of technological integration. Factors such as new construction versus renovation, seismic requirements, and specific equipment needs heavily influence total cost. A preliminary assessment suggests that $60.5 million is a substantial investment, indicative of a significant project, but its value-for-money can only be truly assessed against projects with similar specifications and timelines.

What are the key risks associated with a construction project of this duration (1668 days)?

A performance period of 1668 days (approximately 4.5 years) for a construction project introduces several key risks. Material cost escalation is a significant concern, although mitigated by the Firm Fixed Price (FFP) contract type, the contractor still bears the risk of price increases. Labor availability and cost fluctuations over such a long period can impact project timelines and contractor profitability. Unforeseen site conditions (e.g., environmental hazards, unexpected subsurface issues) can lead to delays and change orders. Furthermore, regulatory changes or evolving building codes during the construction phase may necessitate design modifications. Finally, maintaining consistent project management focus and quality control over an extended period requires robust oversight from both the contractor and the government agency.

What is the track record of Walsh Federal LLC in completing large federal construction contracts?

Walsh Federal LLC is part of The Walsh Group, a large, established construction firm with a long history of undertaking significant federal projects. While specific details on their track record for FAA TRACON facilities are not in the provided data, The Walsh Group has extensive experience in various federal sectors, including aviation, infrastructure, and institutional buildings. Their portfolio often includes complex projects requiring adherence to stringent government standards and timelines. A deeper dive into their past performance ratings, project completion history, and any past disputes or claims on similar federal contracts would provide a more comprehensive assessment of their reliability for this specific project.

What are the implications of this contract being 'COMPETED UNDER SAP' for taxpayers?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) implies that the contract was awarded through a streamlined procurement process designed for purchases below certain dollar thresholds (typically $250,000, though thresholds can be higher for specific categories or agencies). For taxpayers, this generally means the procurement process was more efficient and potentially less costly in terms of administrative overhead compared to full and open competition using sealed bids or full proposals. However, it also suggests that the number of bidders might have been smaller than in a full and open competition. The key implication for taxpayers is that while efficiency gains are possible, the level of competition achieved under SAP is crucial to ensure that the government still secured the best possible price and value. The FAA's adherence to SAP regulations and effective solicitation practices would be paramount.

How does the 'FIRM FIXED PRICE' contract type benefit the government and taxpayers?

A Firm Fixed Price (FFP) contract type is generally considered advantageous for the government and taxpayers because it establishes a ceiling on the total cost of the contract. The contractor assumes the primary risk for any cost overruns incurred during performance. This means that regardless of the contractor's actual costs, the government will pay the agreed-upon fixed price, provided the contractor meets all contract requirements. This structure enhances cost predictability and budget certainty for the government. For taxpayers, it helps prevent unexpected increases in project costs, ensuring that funds allocated for the project are used as efficiently as possible. While FFP contracts may sometimes have a slightly higher initial price to account for the contractor's risk, the overall benefit of cost certainty often outweighs this.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $60,517,682

Exercised Options: $60,517,682

Current Obligation: $60,517,682

Actual Outlays: $5,299,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 697DCK23G00011

IDV Type: BOA

Timeline