DoD's $72.1M P-547 Power Facility Contract Awarded to Whiting-Turner Under Full and Open Competition

Contract Overview

Contract Amount: $72,098,730 ($72.1M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2015-05-18

End Date: 2022-08-10

Contract Duration: 2,641 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN/BID/BUILD, P-547 POWER&PROPULSION FACILITY, DET PHIL PNY, ANNEX, PHILADELPHIA, PA

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $72.1 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF DESIGN/BID/BUILD, P-547 POWER&PROPULSION FACILITY, DET PHIL PNY, ANNEX, PHILADELPHIA, PA Key points: 1. The contract awarded to Whiting-Turner Contracting Company for the P-547 Power & Propulsion Facility represents a significant investment in naval infrastructure. 2. Full and open competition was utilized, suggesting a robust market for this type of construction service. 3. The project's duration of 2641 days (approx. 7.2 years) indicates a complex, long-term undertaking. 4. The firm-fixed-price contract type aims to control costs for the Department of the Navy.

Value Assessment

Rating: good

The contract value of $72.1 million for a large-scale facility construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale DoD construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests that multiple qualified contractors were able to bid, fostering a competitive environment that should lead to a fair price discovery process.

Taxpayer Impact: Taxpayer funds were utilized through a competitive bidding process, aiming for value for money in the construction of critical naval infrastructure.

Public Impact

Enhances critical power and propulsion capabilities for naval operations at Detachment Philadelphia. Supports the Department of the Navy's infrastructure modernization efforts. Creates construction jobs and economic activity in Philadelphia, Pennsylvania. Ensures the long-term operational readiness of naval facilities.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long project duration increases risk of cost overruns and schedule delays.
Firm Fixed Price can shift risk to contractor, potentially impacting quality if not managed.
Dependence on a single contractor for an extended period.

Positive Signals

Full and open competition promotes market efficiency.
Clear project scope for a critical facility.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls under the Construction sector, specifically Highway, Street, and Bridge Construction (NAICS 237310), though the project itself is a facility. Large-scale federal construction projects often involve significant budgets and complex execution.

Small Business Impact

While the primary award went to Whiting-Turner Contracting Company, a large firm, there may be opportunities for small businesses to participate as subcontractors on this project. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Navy, as the procuring agency, is responsible for oversight. The Inspector General's office may conduct audits or reviews to ensure contract compliance and proper use of funds.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Extended project duration (2641 days) increases risk.
Potential for scope creep despite firm-fixed-price.
Contractor performance history needs monitoring.
Reliance on a single prime contractor for a long period.
Economic fluctuations impacting material and labor costs over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.1 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF DESIGN/BID/BUILD, P-547 POWER&PROPULSION FACILITY, DET PHIL PNY, ANNEX, PHILADELPHIA, PA

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 $72.1 million.

What is the period of performance?

Start: 2015-05-18. End: 2022-08-10.

What specific power and propulsion capabilities does the P-547 facility support, and how critical are these to current naval operations?

The P-547 facility is designed to support essential power and propulsion systems for naval assets stationed at or operating from Detachment Philadelphia. Its criticality lies in ensuring the continuous readiness and operational effectiveness of these naval units, particularly in scenarios requiring robust power generation and maintenance capabilities for propulsion systems. This infrastructure is vital for maintaining the Navy's strategic presence and response readiness in the region.

Given the firm-fixed-price contract and long duration, what mechanisms are in place to ensure quality and prevent contractor corner-cutting?

The contract likely includes detailed specifications, quality assurance surveillance plans (QASP), and regular inspections by government representatives. The Department of the Navy's contracting officer and technical representatives will monitor progress and adherence to standards. Penalties for non-compliance or liquidated damages for delays may also be stipulated, incentivizing the contractor to maintain quality throughout the project's extended timeline.

How does the $72.1 million cost compare to similar large-scale DoD facility construction projects, and what factors might justify any deviations?

Benchmarking $72.1 million against similar DoD power and propulsion facility projects is crucial. Factors like geographic location, specific technological requirements, site conditions, and prevailing labor/material costs can significantly influence project expenses. Any deviations from typical cost ranges would need to be justified by unique project complexities, advanced technological integration, or unforeseen environmental challenges encountered during the planning or execution phases.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008514R5222

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: $72,098,730

Exercised Options: $72,098,730

Current Obligation: $72,098,730

Actual Outlays: $37,152

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $13,895,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline