DoD's $36.6M Navy contract for industrial building construction awarded to Whiting-Turner Contracting Company

Contract Overview

Contract Amount: $36,634,188 ($36.6M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2008-04-10

End Date: 2010-08-06

Contract Duration: 848 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: BASE BID Key points: 1. The contract value of $36.6 million represents a significant investment in industrial infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability. 4. The duration of 848 days indicates a substantial construction project. 5. The contract was awarded by the Department of the Navy, a major defense spender. 6. The project is located in North Carolina, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed project specifications and comparable construction costs in North Carolina during 2008-2010. However, the firm-fixed-price structure suggests an effort to manage costs upfront. The absence of detailed cost breakdowns or performance metrics makes a precise value-for-money assessment difficult. Further analysis would require comparing the final cost against the initial bid and the scope of work delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive sign for ensuring a fair market price was achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging multiple companies to vie for the contract, leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Navy, which gains enhanced industrial facilities. The contract delivers essential industrial building construction services. The geographic impact is concentrated in North Carolina, potentially creating local jobs and stimulating the regional economy. The project likely involved a significant construction workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the contractor's ability to manage complex construction timelines and logistics.
Risk associated with the long duration of the project, potentially leading to material price fluctuations.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a competitive bidding process.
The contractor, Whiting-Turner Contracting Company, is a well-established entity in the construction industry.

Sector Analysis

This contract falls within the construction sector, specifically industrial building construction. The market for large-scale government construction projects is substantial, driven by the need for infrastructure maintenance, upgrades, and new facilities across various federal agencies. Comparable spending benchmarks would involve analyzing other large industrial construction contracts awarded by the Department of Defense or other federal entities during the same period.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is unclear from this data alone. Further investigation into subcontracting plans would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy program office. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project performance data may be less publicly accessible.

Related Government Programs

Department of Defense Facilities Construction
Naval Facilities Engineering Command Projects
Industrial Infrastructure Development
Federal Government Construction Contracts

Risk Flags

Long project duration may increase exposure to market volatility.
Lack of detailed cost breakdown makes precise value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to WHITING-TURNER CONTRACTING COMPANY, THE. BASE BID

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 $36.6 million.

What is the period of performance?

Start: 2008-04-10. End: 2010-08-06.

What was the specific scope of work for this industrial building construction contract?

The provided data indicates the contract was for 'Industrial Building Construction' awarded to Whiting-Turner Contracting Company by the Department of the Navy. However, the specific scope of work, such as the type of industrial building, its intended use, size, and specific construction requirements (e.g., specialized equipment installation, environmental controls), is not detailed in the summary data. A comprehensive understanding would require accessing the contract's statement of work (SOW) or performance work statement (PWS).

How did Whiting-Turner Contracting Company's bid compare to other bidders in terms of price?

The data shows that 4 bids were received for this contract. While the base bid amount of $36,634,188 is provided for Whiting-Turner Contracting Company, the bid amounts of the other three competitors are not publicly available in this dataset. To assess how Whiting-Turner's price compared, one would need access to the bid tabulation or award decision documentation, which would list all submitted bids and potentially provide a rationale for the selection if the lowest bidder was not chosen.

What are the potential risks associated with a firm-fixed-price contract for a long-duration construction project?

Firm-fixed-price (FFP) contracts aim to provide cost certainty. However, for long-duration projects like this 848-day contract, risks can emerge. If material costs escalate significantly beyond initial projections, the contractor may face reduced profit margins or seek change orders. Conversely, if the contractor finds efficiencies, they could realize higher profits. The primary risk for the government is ensuring the contractor adequately priced all potential contingencies and that the final cost reflects fair market value, especially if unforeseen site conditions or design changes necessitate modifications.

What is the historical spending pattern for industrial building construction by the Department of the Navy in North Carolina?

Analyzing historical spending patterns for industrial building construction by the Department of the Navy in North Carolina would require accessing and aggregating contract data over multiple fiscal years. This specific contract, awarded in 2008, represents a single data point. To establish a pattern, one would need to examine databases like FPDS or USAspending to identify similar contracts awarded to various entities for industrial construction within that geographic region and agency over a longer period, looking for trends in contract values, types, and durations.

What performance metrics or quality assurance measures were likely in place for this construction contract?

While specific performance metrics are not detailed in the provided summary, government construction contracts typically include robust quality assurance (QA) surveillance plans. These plans outline how the government will monitor the contractor's performance to ensure compliance with contract requirements, specifications, and industry standards. This often involves government representatives conducting site inspections, reviewing progress reports, testing materials, and verifying adherence to safety protocols. Failure to meet these standards could result in corrective actions or withholding of payments.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N4008507R1906

Offers Received: 4

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

Financial Breakdown

Contract Ceiling: $36,634,188

Exercised Options: $36,634,188

Current Obligation: $36,634,188

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline