Department of the Navy awards $16.3M contract for pre-construction services, highlighting significant investment in infrastructure

Contract Overview

Contract Amount: $16,344,191 ($16.3M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2009-12-17

End Date: 2013-06-14

Contract Duration: 1,275 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID PRE CONSTRUCTION SERVICES FOR P714

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: BASE BID PRE CONSTRUCTION SERVICES FOR P714 Key points: 1. Contract value represents a substantial commitment to project planning and design phases. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. The definitive contract type indicates a clear scope and established terms for service delivery. 4. Fixed-price structure aims to control costs and provide budget certainty for the Navy. 5. The contract duration of 1275 days points to a complex and long-term project requirement. 6. Awarded to a single contractor, emphasizing the need for specialized pre-construction expertise.

Value Assessment

Rating: good

The $16.3 million award for pre-construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale infrastructure projects managed by the Department of Defense suggests that costs for detailed planning and design phases can range significantly, but this figure falls within expected parameters for complex undertakings. The firm fixed-price nature of the contract provides a degree of cost control, though the ultimate construction costs are not yet determined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 13 bids suggests a healthy level of interest and competition within the market for these specialized pre-construction services. This broad competition is generally favorable for price discovery and ensures the government can select from a wide pool of capable firms.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers by driving down bids. It also signifies that the Navy received proposals from a diverse range of experienced companies, increasing the likelihood of selecting the best value.

Public Impact

The Department of the Navy benefits from detailed planning and design, leading to more efficient future construction. Local economies in North Carolina may see indirect benefits through job creation and related service demands during the pre-construction phase. The project's success will contribute to the Navy's operational readiness and infrastructure capabilities. Specialized construction firms and their workforce will be engaged, fostering expertise in large-scale building projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates during pre-construction do not accurately reflect final construction needs.
Dependence on a single contractor for critical pre-construction planning could lead to schedule delays if performance issues arise.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the pre-construction phase.
Full and open competition with 13 bidders suggests a competitive market and potentially strong value.
The long contract duration allows for thorough planning and risk mitigation before full construction begins.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for pre-construction services is crucial for managing the complexities of large federal building projects, ensuring that design, budgeting, and scheduling are meticulously planned. Comparable federal spending in this sector often involves substantial investments in military bases, research facilities, and administrative buildings, where detailed planning is paramount.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary award went to a large contractor, there may be opportunities for small businesses to participate as subcontractors during the pre-construction and subsequent construction phases. The Navy's subcontracting plans, if any, will determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified pre-construction services within the agreed budget and timeline. Transparency is facilitated through contract award data, though detailed internal project oversight documents are generally not public.

Related Government Programs

Department of Defense Infrastructure Projects
Naval Facilities Engineering Command Contracts
Federal Building Construction Services
Large-Scale Construction Planning Contracts

Risk Flags

Potential for scope creep impacting fixed price
Contractor performance risk over long duration
Accuracy of pre-construction cost estimates for future construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to WHITING-TURNER CONTRACTING COMPANY, THE. BASE BID PRE CONSTRUCTION SERVICES FOR P714

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 $16.3 million.

What is the period of performance?

Start: 2009-12-17. End: 2013-06-14.

What is the track record of Whiting-Turner Contracting Company with federal contracts, particularly within the Department of Defense?

Whiting-Turner Contracting Company has a substantial history of securing and performing federal contracts, including numerous awards from the Department of Defense and its various branches like the Navy and Air Force. Their experience often spans large-scale construction and infrastructure projects, encompassing design-build, general contracting, and specialized services. Publicly available data indicates a consistent pattern of successful contract completions, often within complex environments and demanding specifications. While specific performance metrics for every contract are not always public, their sustained presence and repeated awards suggest a generally positive track record in delivering on federal requirements. Further analysis would involve examining specific past performance evaluations if available through federal databases.

How does the $16.3 million pre-construction service cost compare to the estimated total construction cost for similar Navy projects?

The $16.3 million allocated for pre-construction services represents a significant investment in the initial planning stages. Typically, pre-construction costs can range from 5% to 15% of the total estimated construction value, depending on project complexity, scope, and the level of detail required. For a project valued at potentially hundreds of millions or even billions, this $16.3 million figure might represent a reasonable proportion. However, without knowing the total anticipated construction cost for P714, a direct comparison is difficult. If the total construction cost is projected to be significantly higher, this pre-construction award would be considered standard. Conversely, if the total project is smaller, it might indicate a more intensive planning phase or a higher-than-average cost for pre-construction activities.

What are the primary risks associated with a firm fixed-price contract for pre-construction services, and how are they mitigated?

A primary risk with a firm fixed-price contract for pre-construction services is that the contractor may face unforeseen challenges or scope creep that could lead to financial losses if not managed effectively. Conversely, the government bears the risk of paying a premium if the initial fixed price is set too high due to incomplete information. Mitigation strategies often involve detailed contract language defining the scope of work precisely, including clear deliverables and milestones. Robust government oversight, regular progress reviews, and change order management processes are crucial. For pre-construction, the contractor's incentive is to accurately estimate and manage costs within the fixed price, while the government relies on the contractor's expertise to identify potential issues early to prevent larger cost overruns in the subsequent construction phase.

What does the duration of 1275 days (approximately 3.5 years) for pre-construction services imply about the complexity of the P714 project?

A pre-construction phase lasting 1275 days, or roughly 3.5 years, strongly suggests that the P714 project is exceptionally complex and requires extensive planning, design development, and potentially multiple phases of review and approval. Such a long duration is not typical for standard building projects and may indicate factors like advanced technological integration, specialized environmental considerations, intricate structural requirements, or the need for phased development across multiple sites or components. It also implies a significant commitment from the Department of the Navy to ensure all aspects are thoroughly vetted before full construction commences, aiming to minimize risks and optimize the final outcome. This extended timeline allows for detailed site investigations, comprehensive design iterations, and thorough cost estimation.

Given the 'full and open competition' and 13 bidders, what is the likelihood that the selected contractor, Whiting-Turner, offered the best value proposition?

The fact that the contract was awarded under full and open competition with 13 bidders significantly increases the likelihood that Whiting-Turner Contracting Company offered the best value proposition. This competitive environment forces bidders to submit their most attractive proposals, balancing price, technical capabilities, past performance, and other evaluation factors. A large number of bids suggests that the government had a wide range of options to choose from, allowing for a thorough evaluation process. While 'best value' awards can sometimes involve a price premium for superior technical merit, the presence of numerous competitors generally drives prices down and ensures that the chosen contractor is highly qualified and offers a compelling overall package that meets or exceeds the government's requirements.

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: N4008509R3228

Offers Received: 13

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: $16,344,191

Exercised Options: $16,344,191

Current Obligation: $16,344,191

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline