DoD awards $30.7M for Fort Campbell vehicle maintenance facility, with 7 bidders vying for the construction contract

Contract Overview

Contract Amount: $30,686,086 ($30.7M)

Contractor: Walsh Federal LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-24

End Date: 2024-09-14

Contract Duration: 933 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION AWARD FOR FT. CAMPBELL VEHICLE MAINTENANCE SHOP LOCATED AT FT. CAMPBELL, KY, AWARDED TO WALSH FEDERAL, LLC. BASE ONLY AMOUNT BEING AWARDED AT THIS TIME.

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to WALSH FEDERAL LLC for work described as: CONSTRUCTION AWARD FOR FT. CAMPBELL VEHICLE MAINTENANCE SHOP LOCATED AT FT. CAMPBELL, KY, AWARDED TO WALSH FEDERAL, LLC. BASE ONLY AMOUNT BEING AWARDED AT THIS TIME. Key points: 1. The contract value represents a significant investment in military infrastructure, focusing on essential vehicle maintenance capabilities. 2. Competition was robust, with seven bids submitted, suggesting a healthy market interest and potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient project completion. 4. The project's location in Kentucky places it within a region with active construction and federal contracting. 5. The award to Walsh Federal, LLC, indicates their capacity to handle large-scale construction projects for the Department of the Army.

Value Assessment

Rating: good

The base award of $30.7 million for the vehicle maintenance shop appears reasonable given the scope of construction for a military facility. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is standard for construction and helps control costs, but detailed cost breakdowns are not publicly available to fully assess pricing strategies. The bid range of $32.9 million suggests the awarded price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive, indicating that multiple capable contractors were interested and able to bid. The presence of seven bidders suggests a healthy market for this type of construction service and likely contributed to achieving a competitive price for the government.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as the government received multiple proposals and selected the most advantageous offer. This process helps drive down costs compared to less competitive or sole-source awards.

Public Impact

Military personnel and vehicles at Fort Campbell will benefit from improved maintenance facilities, enhancing operational readiness. The construction services delivered will result in a new, specialized facility designed for vehicle upkeep. The geographic impact is concentrated at Fort Campbell, Kentucky, supporting the base's infrastructure. The project will likely create temporary construction jobs in the Kentucky region, benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the base award does not encompass all necessary construction phases or unforeseen site conditions.
Dependence on a single contractor for the entire base construction could lead to delays if Walsh Federal encounters resource issues.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award was made under full and open competition, indicating a competitive bidding process.
The contract duration of 933 days suggests a well-planned project timeline.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Defense is a major client for construction services, with substantial annual spending on facilities and infrastructure. Comparable spending benchmarks for military construction projects of this scale can vary widely based on location, complexity, and specific requirements, but awards in the tens of millions are common for specialized facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Walsh Federal, LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contractors often utilize small businesses for specialized trades.

Oversight & Accountability

Oversight for this definitive contract will primarily be managed by the Department of the Army, likely through contracting officers and project managers. Transparency is facilitated by the public award notice, which includes basic details like the contractor, amount, and competition level. Accountability is inherent in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction (MILCON)
Department of Defense Facilities Management
Vehicle Maintenance and Repair Contracts
General Building Construction Services

Risk Flags

Potential for cost overruns if base award is insufficient for full scope.
Risk of project delays due to extended duration and external factors.
Need for robust oversight to ensure quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to WALSH FEDERAL LLC. CONSTRUCTION AWARD FOR FT. CAMPBELL VEHICLE MAINTENANCE SHOP LOCATED AT FT. CAMPBELL, KY, AWARDED TO WALSH FEDERAL, LLC. BASE ONLY AMOUNT BEING AWARDED AT THIS TIME.

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 $30.7 million.

What is the period of performance?

Start: 2022-02-24. End: 2024-09-14.

What is the track record of Walsh Federal, LLC in completing similar large-scale construction projects for the Department of Defense?

Walsh Federal, LLC has a history of performing construction work for the federal government, including projects for the Department of Defense. While specific details on past projects of identical scale and scope are not provided in this summary, their ability to win a $30.7 million definitive contract suggests they possess the necessary experience and capacity. A deeper analysis would involve reviewing their contract performance history, including past performance evaluations, any reported disputes or terminations, and the types of facilities they have previously constructed for federal agencies. This would help assess their reliability and expertise in delivering complex military infrastructure projects on time and within budget.

How does the awarded price of $30.7 million compare to the bid range of $32.9 million and the number of bidders?

The awarded amount of $30.7 million is notably below the highest bid of $32.9 million, indicating a successful negotiation or selection process that secured a price favorable to the government. With seven bidders participating in a full and open competition, the presence of a bid range suggests varying cost proposals from different firms. The fact that the award is below the highest bid, and presumably below the average or median bid as well, suggests that the competition was effective in driving down costs. This outcome is generally positive for taxpayer value, as it implies the government did not overpay for the construction services.

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

The primary risk with a firm-fixed-price (FFP) contract, while beneficial for cost certainty, lies in potential contractor performance issues. If Walsh Federal, LLC underestimates costs, encounters unforeseen site conditions, or faces labor/material shortages, they bear the financial burden of cost overruns. This could lead to pressure to cut corners on quality or safety, although contract clauses and oversight aim to mitigate this. Another risk is contractor default or significant delays, which could disrupt military operations requiring the facility. The government's risk is primarily related to the contractor's ability to execute the project successfully within the agreed-upon price and timeline.

How effective is the 'full and open competition' strategy likely to be in ensuring program effectiveness for this facility?

The 'full and open competition' strategy is generally effective in promoting program effectiveness by ensuring that the most capable and cost-efficient contractor is selected. By allowing all responsible sources to submit bids, the Department of the Army increases the likelihood of finding a contractor with the best technical expertise and proven track record for constructing a specialized vehicle maintenance facility. This competitive pressure incentivizes the chosen contractor, Walsh Federal, LLC, to deliver a high-quality facility that meets all performance requirements to avoid disputes and maintain their reputation for future contracts. The selection of a qualified bidder under competitive conditions typically leads to a facility that is built to specification and functions as intended.

What are the historical spending patterns for vehicle maintenance facilities at Army installations like Fort Campbell?

Historical spending on vehicle maintenance facilities at Army installations like Fort Campbell typically involves significant capital investments, often categorized under Military Construction (MILCON) appropriations. These projects are complex and can range from tens to hundreds of millions of dollars depending on size, technological requirements, and location. Spending patterns are influenced by factors such as the age of existing facilities, the size and type of vehicle fleet requiring maintenance, and evolving military operational needs. Awards like this $30.7 million contract for Fort Campbell are consistent with the typical investment required to build or modernize essential support infrastructure for Army bases, reflecting a sustained commitment to maintaining readiness.

What are the implications of the contract duration (933 days) on the overall project timeline and potential delays?

A contract duration of 933 days (approximately 2.5 years) for a construction project of this magnitude is substantial and suggests a complex build. This extended timeline allows for thorough planning, execution, and potential contingencies. However, it also increases the window of opportunity for delays caused by weather, supply chain disruptions, labor issues, or unforeseen site conditions. The firm-fixed-price nature means Walsh Federal, LLC is incentivized to manage these factors efficiently to avoid impacting their profit margin. The government's oversight will be crucial in monitoring progress against this schedule and ensuring timely completion to meet operational needs at Fort Campbell.

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: W912QR21R0015

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: $37,992,086

Exercised Options: $30,686,086

Current Obligation: $30,686,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline