Navy awards $58.7M for troop housing construction at Camp Lejeune, completed in 2009

Contract Overview

Contract Amount: $58,680,356 ($58.7M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2005-08-26

End Date: 2009-02-25

Contract Duration: 1,279 days

Daily Burn Rate: $45.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200511!377884!1700!N62470!NAV FACILITIES ENGINEERING COMMA!N6247001D1141 !A!N! !N!0003 ! !20050826!20071031!006950604!006950604!006950604!N!THE WHITING-TURNER CONTRACTING!300 E JOPPA RD STE 800 !BALTIMORE !MD!21286!09900!133!37!CAMP LEJEUNE !ONSLOW !N CAROLINA!+000057746000!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236220!A!A!5!B!M! !A!B!20060426!B! ! !A! !A!U!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! !1700!N00025!0001! !

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $58.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: 200511!377884!1700!N62470!NAV FACILITIES ENGINEERING COMMA!N6247001D1141 !A!N! !N!0003 ! !20050826!20071031!006950604!006950604!006950604!N!THE WHITING-TURNER CONTRACTING!300 E JOPPA RD STE 800 !BALTIMORE !MD!21286!09900!133!37!CAMP LEJEUNE !ONSL… Key points: 1. Contract awarded for construction services, indicating a need for facility development. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract was over three years, typical for construction projects of this scale. 4. The project was located in North Carolina, impacting the local construction industry and workforce. 5. The firm-fixed-price contract type suggests that the contractor assumed most of the cost risk. 6. The award was made by the Department of the Navy, a major federal construction client.

Value Assessment

Rating: good

The contract value of $58.7 million for troop housing facilities at Camp Lejeune appears reasonable for a large-scale construction project. Benchmarking against similar military construction contracts would provide a more precise assessment, but the scope suggests a significant investment in infrastructure. The firm-fixed-price nature of the contract generally leads to better cost control for the government compared to cost-plus contracts, assuming the initial bid was competitive.

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 presence of multiple bidders (3 indicated) suggests a healthy level of competition, which typically drives down prices and improves the quality of proposals. The government received competitive offers, leading to the selection of The Whiting-Turner Contracting Company.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors vie to offer the best value, preventing inflated prices and encouraging innovation.

Public Impact

Service members at Camp Lejeune will benefit from improved troop housing facilities. The construction project directly supports military readiness and quality of life for personnel. The project's geographic impact is concentrated in Onslow County, North Carolina. The construction activities likely created numerous jobs for skilled and unskilled labor in the region. The successful completion of the facilities contributes to the operational capabilities of the U.S. Marine Corps.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates were inaccurate, though mitigated by fixed-price contract.
Delays in construction could impact troop readiness and housing availability.
Quality control during construction is crucial to ensure long-term durability of facilities.

Positive Signals

Award to a known contractor suggests a degree of confidence in their capabilities.
Firm-fixed-price contract shifts cost risk to the contractor, benefiting the government.
Full and open competition likely resulted in a competitive price.
Project completion contributes to essential military infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically military infrastructure development. The U.S. federal government is a significant investor in construction, with substantial annual spending on building and infrastructure projects across various agencies. Military construction, in particular, is a large sub-segment, driven by the need to maintain and modernize bases and facilities. Comparable spending benchmarks would involve analyzing other large-scale military barracks or troop housing projects awarded by the Department of Defense.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. However, large construction contracts often involve subcontracting opportunities. It is possible that The Whiting-Turner Contracting Company engaged small businesses as subcontractors for specialized tasks, contributing to the small business ecosystem. Further analysis of subcontracting reports would be needed to confirm this.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy's facilities engineering command. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver the specified facilities within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Naval Facilities Engineering Command Contracts
Department of Defense Construction Projects
Troop Housing and Barracks Construction

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Need for stringent quality control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. 200511!377884!1700!N62470!NAV FACILITIES ENGINEERING COMMA!N6247001D1141 !A!N! !N!0003 ! !20050826!20071031!006950604!006950604!006950604!N!THE WHITING-TURNER CONTRACTING!300 E JOPPA RD STE 800 !BALTIMORE !MD!21286!09900!133!37!CAMP LEJEUNE !ONSLOW !N CAROLINA!+000057746000!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236220!A!A!5!B!M! !A!B!200

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $58.7 million.

What is the period of performance?

Start: 2005-08-26. End: 2009-02-25.

What was the track record of The Whiting-Turner Contracting Company with the Department of Defense prior to this award?

The Whiting-Turner Contracting Company has a significant history of working with the Department of Defense and other federal agencies on various construction projects. While this specific contract was for troop housing at Camp Lejeune, the company has a broad portfolio that includes military installations, healthcare facilities, educational institutions, and commercial buildings. Their extensive experience suggests a proven ability to manage large-scale construction projects, adhere to complex specifications, and meet performance requirements. Prior performance evaluations and past project outcomes would have been key factors considered during the bidding process for this $58.7 million award.

How does the final contract value compare to the initial estimated cost or bid prices from other competitors?

The provided data indicates an award amount of $58,680,356. While the initial estimated cost or the bid prices from other competitors are not explicitly detailed in this dataset, the fact that the contract was awarded under 'full and open competition' with three bidders suggests that Whiting-Turner's price was deemed the most advantageous. To perform a thorough value comparison, one would need access to the original solicitation documents, including the government's cost estimate and the bids submitted by all participating firms. Without this comparative data, it's challenging to definitively state if the final value was exceptionally low, high, or in line with expectations.

What were the primary risk indicators associated with this troop housing construction project?

Primary risk indicators for a large construction project like this troop housing facility would typically include potential for schedule delays due to weather, material availability, or unforeseen site conditions. Cost overruns are another significant risk, although mitigated by the firm-fixed-price contract type which places the financial risk primarily on the contractor. Technical risks could involve complex engineering requirements or integration of new technologies. Furthermore, ensuring compliance with stringent military construction standards and environmental regulations presents ongoing risks. The contractor's ability to manage these risks effectively is crucial for successful project completion.

How effective was this contract in delivering the intended troop housing facilities on time and within budget?

The contract was awarded on August 26, 2005, with an estimated completion date of October 31, 2007, and an original duration of 1279 days. The provided data indicates an end date of February 25, 2009, suggesting a delay of approximately 16 months beyond the initial estimated completion. The final award amount was $58.7 million. While the project was completed and delivered, the schedule slippage indicates potential challenges in execution, which could have implications for troop readiness and budget management if not adequately controlled. The firm-fixed-price nature means the final cost was likely maintained, but the extended timeline might have incurred indirect costs or operational impacts.

What are the historical spending patterns for troop housing construction at Camp Lejeune or within the Navy?

Historical spending patterns for troop housing construction within the Navy, and specifically at large installations like Camp Lejeune, are substantial and cyclical. The Navy, as part of the Department of Defense, consistently allocates significant funds to Military Construction (MILCON) projects, which include barracks, family housing, and other troop support facilities. Spending levels are influenced by factors such as troop levels, aging infrastructure requiring replacement, and modernization initiatives. Analyzing historical data would reveal trends in contract values, project types, and the frequency of such awards. This specific $58.7 million contract represents one investment within a larger, ongoing program to maintain and upgrade military housing infrastructure across the globe.

Were there any significant contract modifications or change orders issued during the performance period?

The provided dataset does not explicitly detail contract modifications or change orders. However, for a construction project spanning over three years (from August 2005 to February 2009), it is common to encounter modifications. These can arise from unforeseen site conditions, design adjustments, changes in requirements, or scope adjustments requested by the government. The firm-fixed-price nature of the contract generally makes modifications more scrutinized, as they can impact the overall cost. A comprehensive review of the contract's official modification history would be necessary to determine if significant changes occurred and their impact on the final cost and schedule.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247001D1141

IDV Type: IDC

Timeline