DoD Awards $167.9M J5 Facility Project to Turner Construction via FARM II IDIQ

Contract Overview

Contract Amount: $16,794,316 ($16.8M)

Contractor: Turner Construction Company

Awarding Agency: Department of Defense

Start Date: 2024-08-12

End Date: 2026-12-21

Contract Duration: 861 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: J5 FACILITY AND INFRASTRUCTURE PROJECT TO BE AWARDED USING THE FARM II IDIQ.

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to TURNER CONSTRUCTION COMPANY for work described as: J5 FACILITY AND INFRASTRUCTURE PROJECT TO BE AWARDED USING THE FARM II IDIQ. Key points: 1. Significant investment in facility infrastructure for the Air Force. 2. Turner Construction is a major player in the construction sector. 3. Potential for cost overruns or schedule delays in large infrastructure projects. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The award amount of $167.9M for a facility project is substantial. Benchmarking against similar large-scale infrastructure projects is difficult without more detailed scope information, but the price appears within a typical range for such endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a competitive bidding process. The use of the FARM II IDIQ suggests a pre-competed framework, which can streamline acquisition but may limit price discovery compared to a standalone solicitation.

Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure upgrade, with the expectation of long-term value and utility from the facility.

Public Impact

Enhances critical Air Force operational capabilities through improved infrastructure. Supports local economy through construction jobs and related services in Tennessee. Long-term asset for national defense, potentially increasing operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Project scale and complexity increase risk of delays and cost overruns.
  • Reliance on IDIQ may limit competitive pricing advantages.
  • Potential for scope creep during the multi-year execution phase.

Positive Signals

  • Awarded via full and open competition.
  • Experienced contractor selected.
  • Clear project end date set.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector that sees substantial government investment for operational facilities. Benchmarks for similar large-scale construction projects vary widely based on scope, location, and specific requirements.

Small Business Impact

While the prime contractor is Turner Construction, a large entity, the subcontracting opportunities for small businesses are not detailed in this award notice. Large federal construction projects often involve significant subcontracting, which could benefit small businesses in various trades.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The use of an IDIQ and delivery order structure implies a degree of pre-negotiated terms, but detailed oversight of performance, cost, and schedule will be crucial throughout the project's duration.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Large contract value increases financial risk.
  • Long project duration (over 2 years) raises concerns about schedule adherence.
  • Potential for unforeseen site conditions or material cost fluctuations.
  • Reliance on IDIQ may not guarantee the most competitive pricing.
  • Scope definition clarity is crucial for project success.

Tags

commercial-and-institutional-building-co, department-of-defense, tn, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to TURNER CONSTRUCTION COMPANY. J5 FACILITY AND INFRASTRUCTURE PROJECT TO BE AWARDED USING THE FARM II IDIQ.

Who is the contractor on this award?

The obligated recipient is TURNER CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2024-08-12. End: 2026-12-21.

What specific facility improvements does the J5 project entail, and how do they align with current Air Force operational needs?

The provided data does not specify the exact nature of the J5 Facility and Infrastructure Project. Further analysis would require access to the project's SOW or PWS to understand the scope of work, such as new construction, renovation, or specialized facility upgrades, and to assess its direct contribution to Air Force mission requirements and modernization efforts.

What is the estimated cost per square foot or per functional unit for this project, and how does it compare to industry benchmarks for similar government facilities?

Without detailed project specifications (e.g., square footage, type of facility, specific systems installed), calculating a meaningful per-unit cost is not feasible. The total award of $167.9M is a broad figure. A comparison to industry benchmarks would require breaking down the project into specific components and comparing those costs to similar government or commercial construction projects.

What mechanisms are in place to ensure cost control and prevent scope creep, given the project's duration and the use of an IDIQ vehicle?

The contract is Firm Fixed Price, which provides a strong incentive for the contractor to control costs. However, the multi-year duration (2026 end date) and the use of an IDIQ delivery order necessitate robust government oversight. Change order management processes and regular progress reviews will be critical to prevent scope creep and manage any unforeseen issues effectively.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ACS, Actividades DE Construccion Y Servicios, SA

Address: 66 HUDSON BLVD E FL 36, NEW YORK, NY, 10001

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

Financial Breakdown

Contract Ceiling: $16,794,316

Exercised Options: $16,794,316

Current Obligation: $16,794,316

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $14,051,563

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA910122DB002

IDV Type: IDC

Timeline

Start Date: 2024-08-12

Current End Date: 2026-12-21

Potential End Date: 2026-12-21 00:00:00

Last Modified: 2025-12-03

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