DoD's $25.5M Access Control Point Upgrade Contract Awarded to Walsh Federal LLC

Contract Overview

Contract Amount: $25,505,107 ($25.5M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-10

End Date: 2025-05-13

Contract Duration: 1,798 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE MAIN ACCESS CONTROL POINT

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60607

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to WALSH FEDERAL LLC for work described as: UPGRADE MAIN ACCESS CONTROL POINT Key points: 1. Contract value represents a significant investment in critical infrastructure security. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly five years indicates a long-term need for the services. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The project is located in Illinois, potentially impacting the local construction workforce. 6. This contract falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $25.5 million for upgrading an access control point appears reasonable given the project's scope and duration. While direct comparisons are difficult without specific project details, similar large-scale construction and security infrastructure projects for the Department of Defense often range in the tens of millions. The firm-fixed-price contract type suggests that the contractor has assessed the risks and costs, and the price reflects this assessment. Benchmarking against similar projects would require more granular data on the specific upgrades included (e.g., technology, materials, security features).

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 bids. The fact that there were three bidders suggests a moderate level of competition for this specific project. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. However, three bidders can still result in a fair market price, especially if the bidders were highly qualified and the scope was well-defined.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. This approach ensures that the government receives the best value by considering all qualified vendors, rather than being limited to a select few.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will gain enhanced security at a critical access point. The contract will deliver upgraded physical security infrastructure, likely including barriers, gates, surveillance, and control systems. The geographic impact is focused on the specific military installation in Illinois where the access control point is located. The project is expected to create or sustain jobs within the construction sector in Illinois, supporting local economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Risk of schedule delays due to contractor performance or external factors.
Ensuring the technology integrated meets current and future security standards.
Dependence on a single contractor for a critical security function over a multi-year period.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting of potential contractors.
Firm-fixed-price contract aligns contractor incentives with cost control.
Long contract duration allows for phased implementation and potential learning curve efficiencies.
Contractor has a track record, implying experience in similar projects.
The project addresses a clear and present need for enhanced security infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction. The market for defense infrastructure upgrades is substantial, driven by the need to maintain and modernize facilities to meet evolving security threats and operational requirements. Comparable spending benchmarks in this area are highly variable, depending on the scale and complexity of the security enhancements. However, projects involving significant physical security upgrades and technology integration for government entities often represent multi-million dollar investments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Walsh Federal LLC, a likely larger entity given the contract value, suggests that the primary focus was on securing a capable contractor for a large-scale project. This may limit direct opportunities for small businesses to participate in the prime contract, although they could potentially be involved as subcontractors if Walsh Federal chooses to engage them.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, a component of the Department of Defense. Mechanisms likely include contract performance monitoring, regular progress reports from Walsh Federal LLC, and site inspections. Accountability is ensured through the firm-fixed-price contract terms, which penalize the contractor for cost overruns. Transparency is typically maintained through contract award databases and public reporting, though specific project details might be limited due to security considerations.

Related Government Programs

Department of Defense Facilities Modernization Programs
Army Corps of Engineers Construction Contracts
Physical Security Infrastructure Upgrades
Access Control System Modernization

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Firm-fixed-price contracts can incentivize cost-cutting that may impact quality if not closely monitored.
Dependence on a single contractor for critical security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to WALSH FEDERAL LLC. UPGRADE MAIN ACCESS CONTROL POINT

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 $25.5 million.

What is the period of performance?

Start: 2020-06-10. End: 2025-05-13.

What is Walsh Federal LLC's track record with similar Department of Defense construction contracts?

Walsh Federal LLC has a history of performing construction services for the Department of Defense. While specific details on past access control point upgrades are not provided, their experience likely encompasses large-scale building and infrastructure projects. Analyzing their past performance on similar firm-fixed-price contracts, adherence to schedules, and budget performance would provide further insight into their capability to execute this $25.5 million project successfully. Reviewing past contract awards and performance evaluations, if publicly available, would be crucial for a comprehensive assessment of their track record.

How does the $25.5 million contract value compare to similar access control point upgrade projects?

Benchmarking the $25.5 million contract value requires comparing it to similar projects in terms of scope, complexity, and location. Access control point upgrades can vary significantly, from simple gate installations to comprehensive security systems involving advanced technology, physical barriers, and integration with existing base infrastructure. Projects of this magnitude for military installations often involve substantial costs due to stringent security requirements, specialized materials, and the need for minimal disruption to ongoing operations. Without specific details on the technological components and the extent of physical modifications, a precise comparison is challenging, but the value appears consistent with large-scale defense infrastructure security investments.

What are the primary risks associated with this firm-fixed-price contract for the government?

The primary risk for the government with a firm-fixed-price contract is that the contractor may cut corners on quality or scope to maximize profit if unforeseen issues arise or if their initial cost estimates were too low. While the price is fixed, the government still bears the risk of the contractor failing to deliver the specified quality or performance. Another risk is that the contractor might become unresponsive or go out of business, although this is less likely for a large, established firm. The government's recourse in such cases is through contract termination and potentially seeking damages, but this can lead to delays and additional costs to find a replacement contractor.

How effective is full and open competition in ensuring value for taxpayer money in defense construction?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense construction. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. This process typically results in multiple proposals offering different approaches and price points, allowing the government to select the best overall value. While it requires more administrative effort upfront to solicit and evaluate bids, the long-term savings and improved outcomes often outweigh these initial costs. It also promotes transparency and reduces the risk of favoritism or sole-source awards that might be less cost-effective.

What is the historical spending pattern for access control point upgrades by the Department of the Army?

Historical spending patterns for access control point upgrades by the Department of the Army are likely characterized by consistent investment in physical security infrastructure. These upgrades are often driven by evolving threat assessments, technological advancements, and the need to maintain operational readiness across numerous installations. Spending can fluctuate based on broader defense budgets, specific security initiatives, and the lifecycle of existing infrastructure. While aggregate data on 'access control point upgrades' might be difficult to isolate, it falls under the larger categories of military construction, facility maintenance, and security system procurement, which collectively represent billions of dollars annually.

What are the potential implications of the nearly five-year contract duration on project management and oversight?

A contract duration of nearly five years (1798 days) for an access control point upgrade implies a phased approach to implementation, potentially involving multiple stages of construction, technology integration, and testing. This extended timeline allows for more thorough planning and execution, reducing the pressure of rapid deployment. However, it also necessitates sustained oversight from the contracting agency to ensure consistent quality, adherence to evolving security standards, and effective management of contractor performance over the long term. Regular reviews and communication are crucial to mitigate risks associated with prolonged project lifecycles, such as scope creep, contractor fatigue, or changes in operational requirements.

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: SEALED BID

Solicitation ID: W9123820B0001

Offers Received: 3

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: $26,541,107

Exercised Options: $25,505,107

Current Obligation: $25,505,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline