DoD's $31.8M medical facility contract awarded to Whiting-Turner, a single definitive contract

Contract Overview

Contract Amount: $31,816,278 ($31.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2016-09-01

End Date: 2018-08-16

Contract Duration: 714 days

Daily Burn Rate: $44.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P125 TEMPORARY MEDICAL FACILITIES, NSA BETHESDA

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF P125 TEMPORARY MEDICAL FACILITIES, NSA BETHESDA Key points: 1. The contract's value of $31.8 million for temporary medical facilities suggests a significant investment in healthcare infrastructure. 2. Awarded as a definitive contract, it implies a clear scope and expected deliverables for the construction project. 3. The fixed-price nature of the contract provides cost certainty for the government, mitigating budget overruns. 4. The duration of 714 days indicates a substantial construction timeline, requiring careful project management. 5. The absence of small business set-asides may warrant further investigation into subcontracting opportunities. 6. The contract's focus on temporary medical facilities highlights a response to specific, potentially urgent, healthcare needs.

Value Assessment

Rating: fair

The contract value of $31.8 million for temporary medical facilities appears substantial. Benchmarking against similar construction projects for temporary medical structures would be necessary to assess value for money. Without comparable data on per-square-foot costs or specific facility types, it's difficult to definitively state if this represents excellent or questionable value. The fixed-price nature, however, offers some predictability.

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. The fact that it resulted in a single definitive contract award suggests that either only one bid was deemed acceptable or that the competition narrowed down to a single strong contender. The level of competition is generally positive for price discovery, but the outcome of a single award warrants a closer look at the bidding process.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices. However, if only one bid was truly viable, the taxpayer may not have received the full benefit of competitive pricing.

Public Impact

The primary beneficiaries are likely military personnel and their families requiring medical services at NSA Bethesda. The contract delivers temporary medical facilities, enhancing healthcare capacity and potentially reducing wait times or improving access to care. The geographic impact is localized to Naval Support Activity Bethesda, Maryland. The project implies a demand for construction labor and potentially related trades in the Maryland area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation: The contract does not appear to have specific small business set-aside provisions, which could limit opportunities for smaller firms.
Potential for cost overruns if scope changes: While fixed-price, significant unforeseen issues during construction could still lead to change orders and increased costs.

Positive Signals

Full and open competition: This method generally leads to better pricing and a wider pool of qualified contractors.
Fixed-price contract: Provides cost certainty for the government, reducing the risk of budget overruns.
Definitive contract: Indicates a clear scope of work and deliverables, simplifying project management.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant area of federal spending. This contract falls within the broader category of infrastructure development and facility construction, which the Department of Defense frequently engages in to support its operational needs. The market for large-scale construction projects is competitive, with established firms like Whiting-Turner often securing significant government contracts.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates 'sb' is false. This suggests that small businesses were not specifically targeted for this particular award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses by the prime contractor, Whiting-Turner, and what the overall impact on the small business ecosystem in this sector might be.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and project management offices. The Inspector General's office for the Department of Defense may also conduct audits or investigations into contract performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided.

Related Government Programs

Military Construction
Healthcare Facility Construction
Department of Defense Contracts
Naval Facilities Engineering Command Projects

Risk Flags

Potential for scope creep despite fixed-price contract.
Limited visibility into small business subcontracting opportunities.
Dependence on a single contractor for a critical facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF P125 TEMPORARY MEDICAL FACILITIES, NSA BETHESDA

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 $31.8 million.

What is the period of performance?

Start: 2016-09-01. End: 2018-08-16.

What is Whiting-Turner Contracting Company's track record with the federal government, particularly in large-scale construction projects?

Whiting-Turner Contracting Company has a substantial history of working with the federal government, including numerous contracts with the Department of Defense and other agencies. They are known for undertaking large and complex construction projects across various sectors, including healthcare, education, and infrastructure. Their federal contracting history often involves significant dollar values and diverse project types. A detailed review of their past performance, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and capability for projects of this magnitude. Their extensive experience suggests a strong understanding of federal procurement regulations and project execution requirements.

How does the $31.8 million cost compare to similar temporary medical facility construction projects awarded by the DoD or other federal agencies?

Benchmarking the $31.8 million cost requires detailed comparison with similar projects, considering factors like square footage, complexity, location, and specific medical capabilities. Temporary medical facilities can vary widely in scope, from basic structures to highly specialized units. Without specific details on the facility's size, intended use (e.g., general ward, ICU, surgical), and duration of temporary use, a direct cost comparison is challenging. However, for large-scale construction projects, especially those with specialized requirements like medical facilities, this figure is within a plausible range for significant undertakings. A more precise assessment would involve analyzing per-square-foot costs and the specific medical equipment and infrastructure integrated into the temporary structures.

What are the primary risk indicators associated with this definitive contract for temporary medical facilities?

Key risk indicators for this contract include the inherent risks of large-scale construction projects, such as potential delays due to weather, supply chain disruptions, or unforeseen site conditions. The 'temporary' nature of the facility might introduce risks related to its long-term durability or adaptability if the need extends beyond the initial planned duration. Furthermore, the fixed-price nature, while beneficial for cost control, can become a risk if the scope of work is not precisely defined, leading to change order disputes. The reliance on a single definitive contract award, even under full and open competition, could indicate potential risks if the chosen contractor faces performance issues or financial instability.

How effective are temporary medical facilities in meeting surge capacity needs for the military, and what is the typical lifespan of such structures?

Temporary medical facilities are designed to provide surge capacity during emergencies, outbreaks, or periods of high demand, effectively augmenting existing healthcare infrastructure. Their effectiveness lies in their rapid deployment and ability to offer essential medical services when permanent facilities are overwhelmed. The typical lifespan of such structures can vary significantly based on their construction materials, intended use, and maintenance. Some may be designed for short-term deployment (months), while others, built with more robust materials, could serve for several years. The DoD's investment in such facilities suggests a strategic approach to ensuring healthcare readiness, but their long-term utility and cost-effectiveness depend on careful planning and management of their deployment and eventual decommissioning.

What has been the historical spending pattern for temporary medical facilities or similar construction projects by the Department of the Navy?

Historical spending patterns for temporary medical facilities by the Department of the Navy would likely show fluctuations tied to specific needs, such as military deployments, base expansions, or public health crises. The Navy, like other branches of the DoD, invests in construction projects to maintain and upgrade its infrastructure. Spending on temporary facilities might be more episodic, triggered by immediate requirements, compared to sustained spending on permanent base infrastructure. Analyzing past contracts for similar projects, including their value, duration, and purpose, would reveal trends in the Navy's approach to addressing healthcare capacity challenges through construction.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008016R5312

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: $31,816,278

Exercised Options: $31,816,278

Current Obligation: $31,816,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline