JFK Center's Eisenhower Theater renovation awarded to Whiting-Turner for $14.37M, highlighting commercial construction needs

Contract Overview

Contract Amount: $14,366,198 ($14.4M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: John F. Kennedy Center for the Performing Arts

Start Date: 2007-05-30

End Date: 2007-07-31

Contract Duration: 62 days

Daily Burn Rate: $231.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EISENHOWER THEATER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20566

State: District of Columbia Government Spending

Plain-Language Summary

John F. Kennedy Center for the Performing Arts obligated $14.4 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: EISENHOWER THEATER Key points: 1. Value for money assessed through comparison with similar construction projects. 2. Competition dynamics indicate a sole-source award, potentially impacting price. 3. Risk indicators include the fixed-price nature and short performance duration. 4. Performance context is a renovation project within a cultural institution. 5. Sector positioning is within commercial and institutional building construction. 6. The contract value is significant for a specialized renovation.

Value Assessment

Rating: fair

The contract value of $14.37 million for the Eisenhower Theater renovation appears within a reasonable range for specialized institutional construction projects of this scope. Benchmarking against similar renovations of performance venues or cultural centers would provide a clearer picture of value. The firm-fixed-price contract type suggests the contractor assumed the risk of cost overruns, which can sometimes lead to higher initial bids but provides budget certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor was solicited. This approach is typically used when specific expertise or capabilities are required that only one entity possesses, or in urgent situations. The lack of competition means that the JFK Center did not benefit from a bidding process that could have potentially driven down the price through multiple offers. The justification for the sole-source award would be critical to understanding if it was appropriate.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and can result in higher costs for taxpayers due to the absence of competitive pressure to offer the best price.

Public Impact

The primary beneficiary is the John F. Kennedy Center for the Performing Arts, which will have an upgraded theater facility. The services delivered include commercial and institutional building construction, specifically renovation of the Eisenhower Theater. The geographic impact is localized to Washington, D.C., where the JFK Center is located. Workforce implications would involve construction labor and potentially specialized trades for theater renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and taxpayer value.
Potential for cost overruns if unforeseen issues arise, despite fixed-price.
Limited transparency due to non-competitive nature of the award.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contract awarded to a known entity, potentially reducing execution risk.
Project addresses necessary infrastructure improvements for a key cultural institution.

Sector Analysis

The contract falls under the Commercial and Institutional Building Construction sector. This sector encompasses a wide range of construction activities for non-residential buildings, including cultural venues, educational facilities, and government buildings. The market for such specialized renovations can be competitive, but specific historical building expertise or unique project requirements can lead to sole-source or limited competition awards. Benchmarking would involve looking at similar renovation projects for performing arts centers or historical public buildings.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to Whiting-Turner Contracting Company, a large firm. There is no indication of subcontracting plans specifically for small businesses within the provided data. The absence of set-asides or explicit subcontracting goals means that small businesses may not directly benefit from this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the John F. Kennedy Center for the Performing Arts' internal procurement and project management teams. As a federally funded entity, it is subject to government-wide acquisition regulations and potentially oversight from relevant federal agencies or Inspectors General, depending on the funding source and structure. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Performing Arts Center Renovations
Federal Building Construction Contracts
Cultural Institution Infrastructure Projects

Risk Flags

Sole-source award may limit taxpayer value.
Short duration may pose risks to quality and schedule adherence.
Lack of competition reduces transparency.

Frequently Asked Questions

What is this federal contract paying for?

John F. Kennedy Center for the Performing Arts awarded $14.4 million to WHITING-TURNER CONTRACTING COMPANY, THE. EISENHOWER THEATER

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: John F. Kennedy Center for the Performing Arts (John F. Kennedy Center for the Performing Arts).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2007-05-30. End: 2007-07-31.

What is the track record of Whiting-Turner Contracting Company on similar federal projects?

Whiting-Turner Contracting Company has a substantial track record in large-scale construction projects, including significant work within the institutional and commercial sectors. While specific details on federal projects are not provided in this data snippet, their general portfolio suggests experience with complex builds. A deeper dive into their past performance on government contracts, particularly those involving renovations of public facilities or historical structures, would be necessary to fully assess their suitability and past success rates for this specific type of project. Reviewing past performance evaluations and any reported issues on previous federal contracts would offer further insight.

How does the $14.37 million contract value compare to similar theater renovations?

The $14.37 million contract value for the Eisenhower Theater renovation needs to be benchmarked against comparable projects to assess value for money. Factors such as the size of the theater, the extent of the renovation (e.g., structural, cosmetic, technological upgrades), the age and historical significance of the building, and the prevailing construction costs in the Washington D.C. metropolitan area are crucial for comparison. Without specific data on similar renovations, it's difficult to definitively state if this represents excellent, fair, or questionable value. However, for a specialized renovation of a significant cultural venue, this figure is not inherently excessive but warrants detailed comparison.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition and the fixed-price nature. Without competitive bidding, there's a risk that the price may not reflect the best possible market value, potentially leading to overpayment by taxpayers. While a fixed-price contract shifts cost overrun risk to the contractor, it can also incentivize the contractor to use lower-cost materials or methods if not carefully monitored, potentially impacting quality. Furthermore, sole-source awards can reduce transparency and accountability compared to competed contracts, making it harder to identify potential inefficiencies or improprieties.

How effective is the firm-fixed-price contract type in managing costs for this renovation?

The firm-fixed-price (FFP) contract type is generally effective in managing costs by transferring the risk of cost overruns to the contractor. This means the government knows the maximum cost upfront, providing budget certainty. However, for complex renovations where unforeseen issues are common, contractors may build in a contingency premium into their initial bid, potentially making the FFP price higher than a cost-reimbursable contract with strong oversight. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to manage their own costs within the fixed price. Close monitoring by the JFK Center is still essential to ensure the scope is adhered to and quality is maintained.

What is the historical spending pattern for renovations at the John F. Kennedy Center?

Historical spending patterns for renovations at the John F. Kennedy Center are not detailed in the provided data. To understand this, one would need to analyze past contracts awarded by the Center for similar capital improvements or maintenance projects. Examining the frequency, value, and types of renovation contracts over several years would reveal trends. This analysis could indicate whether the $14.37 million for the Eisenhower Theater is consistent with past investments, or if it represents a significant increase or decrease in spending for such projects. It would also help identify if the Center typically uses competitive bidding or sole-source awards for its renovation needs.

What are the implications of the short contract duration (62 days) for project quality and cost?

A short contract duration of 62 days for a $14.37 million renovation project like the Eisenhower Theater suggests a highly focused scope of work or a very intensive construction schedule. This compressed timeline can increase risks related to quality, as crews may rush to complete tasks. It can also lead to higher costs if overtime or expedited material delivery is required. For the government, it means less time for oversight and issue resolution. The feasibility of completing such a significant renovation within this timeframe depends heavily on meticulous planning, efficient execution, and potentially pre-fabrication of components. It raises questions about whether the scope was truly limited or if the timeline is overly ambitious.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD STE 800, BALTIMORE, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,366,198

Exercised Options: $14,366,198

Current Obligation: $14,366,198

Timeline