Pocatello ATCT Design-Build contract awarded to Walsh Federal LLC for $78.3M

Contract Overview

Contract Amount: $78,282,000 ($78.3M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Transportation

Start Date: 2025-09-03

End Date: 2028-11-06

Contract Duration: 1,160 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PIH ATCT DESIGN-BUILD. THIS CONTRACT IS TO FOR THE DESIGN AND BUILD OF A NEW AIRPORT TRAFFIC CONTROL TOWER (ATCT) AT POCATELLO REGIONAL AIRPORT (PIH) IN POCATELLO, IDAHO. THE CONTRACTOR SHALL PROVIDE ALL WORK IN ACCORDANCE WITH THE ATTACHED SPECIFICA

Place of Performance

Location: POCATELLO, BANNOCK County, IDAHO, 83204

State: Idaho Government Spending

Plain-Language Summary

Department of Transportation obligated $78.3 million to WALSH FEDERAL LLC for work described as: PIH ATCT DESIGN-BUILD. THIS CONTRACT IS TO FOR THE DESIGN AND BUILD OF A NEW AIRPORT TRAFFIC CONTROL TOWER (ATCT) AT POCATELLO REGIONAL AIRPORT (PIH) IN POCATELLO, IDAHO. THE CONTRACTOR SHALL PROVIDE ALL WORK IN ACCORDANCE WITH THE ATTACHED SPECIFICA Key points: 1. Contract focuses on design and construction of a new Air Traffic Control Tower (ATCT) at Pocatello Regional Airport. 2. The firm-fixed-price contract aims to deliver a critical infrastructure upgrade for air traffic management. 3. Awarded under full and open competition, suggesting a potentially competitive bidding process. 4. The duration of the contract is 1160 days, indicating a significant construction timeline. 5. The project is situated in Idaho, potentially impacting local construction workforce and economy. 6. The contract value of $78.3 million represents a substantial investment in airport infrastructure.

Value Assessment

Rating: good

The contract value of $78.3 million for a design-build ATCT project appears within a reasonable range for major airport infrastructure. Benchmarking against similar ATCT construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for cost control if well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the open competition suggests a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is designed to secure the best value for public funds. Full and open competition increases the likelihood of receiving multiple proposals, driving down costs and improving the quality of the final product.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the users of Pocatello Regional Airport, who will gain an upgraded air traffic control facility. The project will deliver a new, modern Air Traffic Control Tower, enhancing safety and efficiency of air traffic operations. The geographic impact is focused on Pocatello, Idaho, with potential indirect benefits to the regional economy through construction jobs and increased airport capacity. The construction phase will likely create employment opportunities for skilled labor in the construction sector within Idaho.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design complexities arise during the build phase.
Delays in construction could impact the operational readiness of the new ATCT, affecting air traffic management.
Ensuring the long-term maintainability and operational efficiency of the new tower design is crucial.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Awarding to Walsh Federal LLC, a known entity in federal construction, suggests a level of contractor experience.
The design-build approach can streamline the project delivery timeline by integrating design and construction phases.

Sector Analysis

The construction of Air Traffic Control Towers falls within the broader commercial and institutional building construction sector. This contract represents a significant investment in critical aviation infrastructure, a sub-sector that often involves specialized engineering and construction expertise. Comparable spending benchmarks for similar large-scale airport facility projects would be necessary for a full sector analysis, but the scale suggests a major project within this niche.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. While Walsh Federal LLC may engage small businesses as subcontractors, there is no explicit requirement for a small business set-aside. This means opportunities for small businesses will depend on the prime contractor's subcontracting plan and the availability of qualified small business partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA), with potential involvement from the Department of Transportation's Office of Inspector General. Accountability measures will be embedded in the contract terms, including performance milestones and quality control requirements. Transparency will be facilitated through contract award databases and public reporting mechanisms, though detailed project-specific oversight activities are not explicitly stated.

Related Government Programs

Airport Improvement Program (AIP)
Federal Aviation Administration Capital Investment Plan
Air Traffic Control Modernization Projects
Design-Build Construction Contracts

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Contractor performance and quality control
Integration with existing air traffic systems
Compliance with FAA regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $78.3 million to WALSH FEDERAL LLC. PIH ATCT DESIGN-BUILD. THIS CONTRACT IS TO FOR THE DESIGN AND BUILD OF A NEW AIRPORT TRAFFIC CONTROL TOWER (ATCT) AT POCATELLO REGIONAL AIRPORT (PIH) IN POCATELLO, IDAHO. THE CONTRACTOR SHALL PROVIDE ALL WORK IN ACCORDANCE WITH THE ATTACHED SPECIFICA

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 $78.3 million.

What is the period of performance?

Start: 2025-09-03. End: 2028-11-06.

What is Walsh Federal LLC's track record with similar FAA design-build ATCT projects?

Walsh Federal LLC has a history of performing large-scale federal construction projects, including infrastructure work. While specific details on their prior design-build ATCT projects for the FAA are not immediately available in this data snippet, their general experience in federal contracting suggests a capacity to undertake such complex endeavors. A deeper dive into their past performance on similar projects, including client feedback and project completion records, would be necessary to fully assess their suitability and risk profile for this specific ATCT construction. Reviewing their portfolio for projects with comparable scope, complexity, and regulatory requirements would provide further insight into their capabilities and potential performance on the Pocatello ATCT project.

How does the $78.3 million contract value compare to similar ATCT construction projects?

The $78.3 million contract value for the Pocatello ATCT design-build project is substantial. Benchmarking this against other recent ATCT construction projects is crucial for assessing value for money. Factors such as airport size, complexity of the design, site conditions, and the specific technological requirements of the air traffic control systems can significantly influence costs. For instance, a new tower at a major international airport would naturally cost more than one at a regional airport like Pocatello. Without specific comparable data points for similarly sized regional airports, it's difficult to definitively state if this price is high or low. However, the firm-fixed-price nature suggests the government has negotiated a ceiling cost.

What are the primary risks associated with this design-build ATCT project?

Key risks for this design-build ATCT project include potential scope creep if the design is not meticulously defined upfront, leading to cost overruns despite the fixed-price nature. Unforeseen geological or environmental conditions at the Pocatello site could also pose significant challenges and increase costs or delay timelines. Contractor performance risk, including potential quality issues or schedule slippage by Walsh Federal LLC, is another concern. Furthermore, integration risks with existing air traffic control systems and ensuring compliance with stringent FAA regulations throughout the design and construction phases are critical. The long duration of the project (over three years) also increases exposure to market fluctuations in material costs and labor availability.

How effective is the design-build approach for delivering critical infrastructure like ATCTs?

The design-build approach is often favored for critical infrastructure projects like ATCTs because it can streamline the delivery process by consolidating design and construction under a single contract. This single point of responsibility can reduce potential conflicts between designers and builders, potentially leading to faster project completion and cost savings. It allows for early contractor input into the design, which can identify constructability issues sooner and optimize the design for efficiency. However, the success heavily relies on the contractor's ability to manage both aspects effectively and the government's clear definition of requirements. For ATCTs, where safety and operational integrity are paramount, a robust government oversight process is essential to ensure the design meets all functional and regulatory standards.

What is the historical spending trend for ATCT construction by the FAA?

Historical spending on Air Traffic Control Tower (ATCT) construction by the Federal Aviation Administration (FAA) fluctuates based on modernization needs, infrastructure aging, and budget allocations. The FAA has undertaken numerous projects over the decades to upgrade and replace aging towers, incorporate new technologies, and enhance safety standards. Major capital improvement programs often drive significant spending in this area. Analyzing FAA's historical budget data and capital investment plans would reveal trends in ATCT construction spending, highlighting periods of increased investment driven by specific initiatives, such as the Next Generation Air Transportation System (NextGen) program, which has influenced technology and infrastructure upgrades.

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: 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: $78,282,000

Exercised Options: $78,282,000

Current Obligation: $78,282,000

Actual Outlays: $3,636,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 697DCK23G00011

IDV Type: BOA

Timeline