DHS awards $29M hangar construction contract to Tutor Perini Corporation, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $29,025,823 ($29.0M)

Contractor: Tutor Perini Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2010-11-16

End Date: 2013-07-31

Contract Duration: 988 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT MPA READY HANGAR CAPE COD - SFRL 01-686686

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23513, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.0 million to TUTOR PERINI CORPORATION for work described as: CONSTRUCT MPA READY HANGAR CAPE COD - SFRL 01-686686 Key points: 1. The contract value of $29 million represents a substantial investment in critical infrastructure for the U.S. Coast Guard. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance risk indicators should be monitored given the complexity of constructing specialized facilities. 4. The project's duration of nearly 1000 days suggests a complex undertaking requiring careful management. 5. This contract positions Tutor Perini Corporation as a key player in government infrastructure development.

Value Assessment

Rating: fair

The contract award of $29,025,823 for hangar construction appears to be within the typical range for large-scale government building projects. Benchmarking against similar U.S. Coast Guard or Department of Homeland Security construction contracts would provide a clearer picture of value for money. Without specific cost breakdowns or comparisons to industry standards for specialized hangar construction, a definitive assessment of pricing efficiency is challenging. However, the fixed-price nature of the contract suggests an attempt to control costs upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. With six bidders participating, the level of competition suggests a healthy market response for this type of specialized construction. This broad competition is generally favorable for price discovery and can lead to more competitive bids, potentially benefiting the government.

Taxpayer Impact: A full and open competition with six bidders increases the likelihood that taxpayer funds were used efficiently by driving down costs through competitive bidding.

Public Impact

The U.S. Coast Guard will benefit from the enhanced operational capabilities provided by the new hangar facility. This contract delivers essential infrastructure for aviation maintenance and support operations. The geographic impact is localized to the area where the hangar is constructed, likely supporting regional Coast Guard operations. The project will likely create numerous jobs in the construction sector, benefiting skilled trades and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Schedule delays could impact operational readiness if construction timelines are not met.
Quality control during construction is paramount to ensure the longevity and functionality of the specialized hangar.

Positive Signals

The firm-fixed-price contract type helps to mitigate financial risk for the government.
Full and open competition suggests a robust bidding process that likely yielded a competitive price.
The award to a known entity like Tutor Perini Corporation may indicate a level of confidence in their ability to execute the project.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Government infrastructure projects, particularly for defense and homeland security agencies, represent a substantial portion of this market. Comparable spending benchmarks would involve analyzing other large-scale facility construction contracts awarded by federal agencies, considering factors like project complexity, size, and location.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the large dollar value and specialized nature of hangar construction, it is likely that prime contractors like Tutor Perini Corporation would subcontract portions of the work. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office, with potential involvement from the Department of Homeland Security's Office of Inspector General. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and public reporting requirements.

Related Government Programs

U.S. Coast Guard Aviation Facilities
Department of Homeland Security Infrastructure Projects
Federal Building Construction Contracts
Large-Scale Hangar Construction

Risk Flags

Potential for schedule slippage
Risk of unforeseen site conditions
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.0 million to TUTOR PERINI CORPORATION. CONSTRUCT MPA READY HANGAR CAPE COD - SFRL 01-686686

Who is the contractor on this award?

The obligated recipient is TUTOR PERINI CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2010-11-16. End: 2013-07-31.

What is Tutor Perini Corporation's track record with similar large-scale federal construction projects, particularly aviation facilities?

Tutor Perini Corporation has a significant history of undertaking large and complex construction projects for government agencies, including aviation facilities. Their portfolio includes airport terminals, hangars, and other specialized structures. While specific details on past performance for identical hangar types would require deeper analysis of their contract history, their experience in large-scale federal projects suggests a capacity to manage such endeavors. Reviewing past performance evaluations and any reported disputes or challenges on similar contracts would provide a more comprehensive understanding of their reliability and execution capabilities in this domain.

How does the awarded price compare to industry benchmarks for constructing specialized aircraft hangars of this size and complexity?

Directly comparing the awarded price of $29 million to precise industry benchmarks for specialized aircraft hangars is challenging without detailed project specifications and current market data. Factors such as the specific aircraft supported, required environmental controls, specialized equipment integration (e.g., fire suppression, ventilation), and site-specific conditions significantly influence costs. However, for large government construction projects, a firm-fixed-price award under full and open competition generally aims to align with market rates. A more thorough analysis would involve consulting construction cost estimating databases and seeking expert opinions on the cost-effectiveness of this particular award relative to its scope and technical requirements.

What are the primary risk indicators associated with this specific hangar construction contract, and how are they being mitigated?

Primary risk indicators for this hangar construction contract likely include potential schedule delays due to complex construction processes, weather impacts, or supply chain issues, and the risk of cost overruns if unforeseen site conditions or design modifications arise, despite the firm-fixed-price structure. Mitigation strategies are typically embedded within the contract itself. The firm-fixed-price nature shifts much of the cost risk to the contractor. Performance bonds, detailed project schedules with milestones, quality assurance plans, and regular progress reviews by the contracting officer are standard mitigation tools. The contractor's experience and financial stability also serve as implicit risk mitigators.

What is the expected program effectiveness or impact of this new hangar facility on U.S. Coast Guard operations?

The new hangar facility is expected to significantly enhance the U.S. Coast Guard's operational effectiveness by providing a dedicated, modern space for aircraft maintenance, repair, and storage. This can lead to improved aircraft readiness, reduced downtime, and more efficient deployment of aviation assets. The facility's design likely incorporates features that support the specific types of aircraft operated by the Coast Guard, potentially enabling more complex maintenance procedures and housing a larger fleet. Ultimately, this infrastructure investment aims to bolster the Coast Guard's mission capabilities in areas such as search and rescue, maritime law enforcement, and national security.

How has federal spending on similar large-scale construction projects for aviation infrastructure evolved over the past five years?

Federal spending on large-scale construction projects, including aviation infrastructure, has generally remained robust, driven by the need to modernize aging facilities and support evolving defense and homeland security requirements. While specific figures for hangar construction fluctuate based on agency priorities and budget allocations, overall investment in military and civilian aviation infrastructure has seen consistent demand. Factors such as geopolitical conditions, technological advancements in aircraft, and the need for enhanced operational resilience influence spending patterns. Analyzing aggregate data from agencies like the Department of Defense and Department of Homeland Security would reveal trends in contract awards for similar facilities.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 73 MT WAYTE AVE, FRAMINGHAM, MA, 01702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,025,823

Exercised Options: $29,025,823

Current Obligation: $29,025,823

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4709D3EFK23

IDV Type: IDC

Timeline