Navy awards $13.2M contract for power and communication line construction to Whiting-Turner

Contract Overview

Contract Amount: $13,217,625 ($13.2M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2006-06-27

End Date: 2008-03-07

Contract Duration: 619 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: RENOVATE MARINE CORP EXCHANGE

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: RENOVATE MARINE CORP EXCHANGE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 619 days indicates a significant project timeline. 3. The fixed-price contract type suggests cost certainty for the government. 4. The project falls under the construction of power and communication lines. 5. The award was made by the Department of the Navy, a major defense agency. 6. The contract was awarded as a delivery order, implying it's part of a larger agreement or schedule.

Value Assessment

Rating: fair

The total award amount of $13.2 million for power and communication line construction over approximately 20 months appears within a reasonable range for such infrastructure projects. However, without specific details on the scope of work, location, and complexity, a precise value-for-money assessment is challenging. Benchmarking against similar projects by the Department of the Navy or other federal agencies would be necessary to determine if the pricing was competitive and offered good value. The fixed-price nature of the contract provides some cost control, but the final cost could still be influenced by unforeseen circumstances.

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 data shows 17 bids were received, which suggests a healthy level of competition for this project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors compete to win the award.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is receiving services at a price driven by market forces.

Public Impact

The primary beneficiaries are the Department of the Navy and its facilities, which will receive upgraded or new power and communication infrastructure. The services delivered include the construction of power and communication lines, essential for operational readiness and base support. The geographic impact is concentrated in Virginia, where the contract was awarded. The project will likely involve a workforce of skilled construction laborers, electricians, and technicians, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price contract.
Dependence on the contractor's ability to manage complex construction timelines and potential delays.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded through full and open competition with multiple bids received, indicating competitive pricing.
Fixed-price contract type provides cost certainty for the government.
The contractor, Whiting-Turner Contracting Company, is a well-established firm with experience in large-scale construction projects.
The project addresses critical infrastructure needs for the Department of the Navy.

Sector Analysis

The construction of power and communication lines falls within the broader infrastructure and construction sector. This sector is characterized by significant government spending, particularly on defense installations and public works. The market size for such specialized construction services is substantial, with numerous firms capable of undertaking these projects. This contract represents a specific instance of federal investment in maintaining and upgrading essential utility infrastructure at military facilities, a common requirement within the defense sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The presence of 17 bids suggests that larger, established construction firms likely participated. While there's no direct indication of small business subcontracting requirements in the provided data, large prime contractors are often encouraged or mandated to include small businesses in their subcontracting plans for projects of this magnitude.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the fixed-price contract terms, with payments tied to performance and completion milestones. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Infrastructure Projects
Naval Facilities Engineering Command Contracts
Utility Infrastructure Construction
Federal Construction Contracts
Power Grid Modernization

Risk Flags

Potential for cost overruns
Schedule delays
Unforeseen site conditions
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to WHITING-TURNER CONTRACTING COMPANY, THE. RENOVATE MARINE CORP EXCHANGE

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 $13.2 million.

What is the period of performance?

Start: 2006-06-27. End: 2008-03-07.

What is the track record of Whiting-Turner Contracting Company with the Department of the Navy?

Whiting-Turner Contracting Company has a significant history of working with the Department of Defense and its various branches, including the Navy. They have been awarded numerous contracts for construction and renovation projects across different military installations. Their experience often includes large-scale, complex projects similar to infrastructure upgrades. A review of federal procurement data would reveal the volume and types of contracts they have secured, their performance ratings on past projects, and their overall success rate in competing for and executing government work. This specific contract award suggests they met the Navy's requirements and were deemed a responsible contractor.

How does the $13.2 million award compare to similar power and communication line construction contracts?

Comparing the $13.2 million award requires identifying contracts with similar scope, scale, and geographic location. Projects involving the construction or upgrade of power and communication lines for military bases can vary widely in cost depending on factors like underground vs. overhead installation, the complexity of the existing infrastructure, the required capacity, and specific security or environmental requirements. Without detailed project specifications, a direct comparison is difficult. However, for a project spanning over 600 days and involving significant infrastructure, $13.2 million appears to be a moderate to substantial investment. Benchmarking against other Navy or DoD contracts for similar utility work would provide better context on whether this represents a competitive price point.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this fixed-price construction contract include potential cost overruns due to unforeseen site conditions (e.g., encountering unexpected underground utilities, soil issues), material price escalations, labor shortages, or weather-related delays. Schedule risks are also significant, as construction projects can be complex and prone to delays. Performance risks involve ensuring the quality of work meets specifications and lasts for the intended lifespan. The government also faces risks related to contractor performance, such as potential defaults or disputes. Mitigation strategies include thorough site investigations, robust contract clauses, contingency planning, and diligent oversight by the government.

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

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in construction contracts. By allowing all responsible sources to bid, it fosters a competitive environment where contractors strive to offer the best price and quality to win the award. The presence of multiple bids, as seen with 17 submissions in this case, increases the likelihood of receiving competitive pricing. This process helps prevent price gouging and encourages efficiency among bidders. While oversight is still crucial to ensure the contract is executed as intended, the initial competition phase is a critical step in achieving cost-effectiveness and maximizing the value derived from public funds.

What is the historical spending trend for power and communication line construction by the Department of the Navy?

Historical spending by the Department of the Navy on power and communication line construction is substantial, reflecting the ongoing need to maintain and upgrade infrastructure across numerous bases and facilities. Annual spending can fluctuate based on modernization initiatives, base closures or expansions, and specific infrastructure vulnerabilities identified. The Navy, like other branches of the DoD, invests heavily in ensuring reliable utility services are available for operational readiness. Analyzing past spending data would reveal patterns, identify peak spending periods, and highlight the average contract values for similar projects, providing context for the $13.2 million award.

What are the implications of the fixed-price contract type for cost management?

The fixed-price contract type (PT: FIXED PRICE) has significant implications for cost management. It shifts the majority of the cost risk from the government to the contractor. The contractor agrees to perform the work for a predetermined price, and is responsible for managing their costs to remain profitable. This provides the government with a high degree of cost certainty, as the final price is largely fixed, barring any contract modifications or unforeseen circumstances that trigger equitable adjustments. For the contractor, it incentivizes efficiency and cost control, as any savings achieved below the fixed price contribute to their profit. Conversely, if costs exceed the fixed price, the contractor absorbs the loss.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: 17

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 21286

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,538,009

Exercised Options: $13,538,009

Current Obligation: $13,217,625

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247704D0032

IDV Type: IDC

Timeline