Department of the Navy awards $28.2M design-build contract for Camp Lejeune staff NCO academy

Contract Overview

Contract Amount: $28,177,895 ($28.2M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2013-09-04

End Date: 2017-10-06

Contract Duration: 1,493 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN-BUILD, P003 STAFF NCO ACADEMY, MCB, CAMP LEJEUNE, NORTH CAROLINA.

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF DESIGN-BUILD, P003 STAFF NCO ACADEMY, MCB, CAMP LEJEUNE, NORTH CAROLINA. Key points: 1. Contract awarded to Whiting-Turner Contracting Company for construction services. 2. Project scope includes design and construction of a staff non-commissioned officer academy. 3. The contract was awarded under full and open competition. 4. Fixed-price contract type suggests defined scope and cost control. 5. Project duration of approximately 1493 days indicates a significant construction undertaking. 6. The contract was awarded as a delivery order against an existing contract. 7. Geographic focus on Camp Lejeune, North Carolina, highlights regional investment.

Value Assessment

Rating: good

The contract value of $28.2 million for a design-build academy project appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overruns for the government, assuming the initial scope was well-defined. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the award under full competition suggests a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bids typically leads to more competitive pricing and a wider range of innovative solutions. The government's ability to secure a firm fixed-price contract under these conditions is a positive sign for price discovery.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by driving down prices and ensuring the government receives the best value. It reduces the risk of inflated costs associated with sole-source or limited competition awards.

Public Impact

The primary beneficiaries are U.S. Marine Corps personnel at Camp Lejeune, North Carolina, who will receive enhanced training facilities. The project delivers essential infrastructure for the professional development of non-commissioned officers. The geographic impact is concentrated in Jacksonville, North Carolina, supporting local economic activity through construction. The construction phase will likely create temporary jobs for skilled trades and labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design is not fully detailed, impacting final cost.
Construction delays due to unforeseen site conditions or weather could increase costs.
Ensuring quality of construction to meet long-term operational needs of the academy.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting competitive pricing.
Experienced contractor likely selected, implying a track record of successful project completion.
Delivery order against an existing contract may indicate streamlined procurement processes.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, particularly for infrastructure development at military installations. The market for design-build services is competitive, with many firms capable of undertaking such projects. The value of this contract is moderate within the context of large federal construction projects, which can range from tens of millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Whiting-Turner Contracting Company, may engage small businesses as subcontractors for specialized services or materials, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified project within the agreed-upon cost. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Training Facilities Construction
Design-Build Contracts
Department of Defense Facilities

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of construction delays impacting project timeline.
Ensuring long-term quality and durability of the constructed facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF DESIGN-BUILD, P003 STAFF NCO ACADEMY, MCB, CAMP LEJEUNE, NORTH CAROLINA.

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 $28.2 million.

What is the period of performance?

Start: 2013-09-04. End: 2017-10-06.

What is Whiting-Turner Contracting Company's track record with similar federal design-build projects?

Whiting-Turner Contracting Company has a substantial history of executing large-scale design-build projects for various federal agencies, including the Department of Defense. Their portfolio often includes educational facilities, barracks, and other institutional buildings on military bases. While specific details on past performance for projects of identical scope and value to the Camp Lejeune academy are not provided in this data snippet, their general experience suggests a capacity to manage complex construction endeavors. A deeper dive into their past performance evaluations (e.g., CPARS reports) would offer more granular insights into their reliability, quality of work, and adherence to schedule and budget on comparable federal contracts.

How does the $28.2 million cost compare to similar staff NCO academy construction projects?

Benchmarking the $28.2 million cost against similar staff NCO academy construction projects requires access to a database of comparable federal contracts. Factors such as square footage, specific training facility requirements, site conditions, and regional construction cost indices significantly influence project pricing. Given that this is a design-build contract, it encompasses both design and construction costs. Without specific details on the size and complexity of the academy, a precise comparison is difficult. However, for a substantial institutional building project of this nature, $28.2 million appears to be within a reasonable range, especially considering it was awarded under full and open competition, which typically drives competitive pricing.

What are the primary risks associated with this design-build contract for the Department of the Navy?

The primary risks for the Department of the Navy in this design-build contract include potential cost overruns if the initial design scope is not thoroughly defined, leading to change orders. Construction delays due to unforeseen site conditions, environmental factors, or contractor performance issues are also significant risks that could impact the academy's operational readiness. Ensuring the final construction quality meets the long-term durability and functional requirements of a military training facility is crucial. Furthermore, contractor performance risk, though mitigated by competition and selection processes, always exists. The firm fixed-price nature shifts some cost risk to the contractor, but the government bears the risk of scope definition and potential disputes.

How effective is the firm fixed-price contract type in controlling costs for this project?

The firm fixed-price (FFP) contract type is generally considered highly effective in controlling costs for projects with a well-defined scope, such as the construction of a staff NCO academy. Under an FFP contract, the contractor assumes the majority of the risk for cost overruns. This incentivizes the contractor to manage their expenses efficiently and to accurately estimate all costs associated with the project. For the Department of the Navy, this means a high degree of cost certainty, as the final price is largely predetermined. However, the effectiveness relies heavily on the clarity and completeness of the initial design and specifications. Any significant changes or unforeseen issues that necessitate modifications to the scope can lead to costly change orders, potentially negating some of the cost control benefits.

What does the limited competition (2 bidders) suggest about the market for this type of construction service?

The fact that this contract received only two bids, despite being awarded under full and open competition, could suggest several things about the market for this specific type of construction service at Camp Lejeune. It might indicate that the project's size, complexity, or specific requirements (e.g., security clearances, specialized design elements) limited the number of qualified contractors capable of bidding. Alternatively, it could reflect the current workload and capacity of major construction firms operating in that geographic region. A low number of bidders can sometimes lead to less competitive pricing than if there were numerous offers, although the firm fixed-price nature here still provides a degree of cost certainty for the government.

What is the historical spending pattern for similar construction projects at Camp Lejeune?

Analyzing historical spending patterns for similar construction projects at Camp Lejeune would require access to historical contract data for the base. This would involve identifying past awards for barracks, training facilities, administrative buildings, and other infrastructure projects, noting their contract types, values, and durations. Such an analysis could reveal trends in construction costs, the prevalence of design-build versus other contracting methods, and the typical number of bidders for projects of comparable scale. Understanding these patterns can help in evaluating the current contract's value and assessing whether spending is consistent with historical norms or if there are significant deviations that warrant further investigation.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008510R5306

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,177,895

Exercised Options: $28,177,895

Current Obligation: $28,177,895

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008510D5330

IDV Type: IDC

Timeline