Navy awards $20.2M construction contract to Whiting-Turner, highlighting firm fixed-price approach

Contract Overview

Contract Amount: $20,256,335 ($20.3M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2020-07-28

End Date: 2027-04-16

Contract Duration: 2,453 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MC MACC

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: MC MACC Key points: 1. Contract utilizes a firm fixed-price structure, aiming to control costs and provide predictability. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of approximately 2453 days indicates a long-term need for construction services. 4. Performance is located in North Carolina, suggesting a regional focus for this project. 5. The contract type is a delivery order under a larger Multiple Award Construction Contract (MACC).

Value Assessment

Rating: good

The contract's firm fixed-price nature is a positive indicator for cost control. Benchmarking against similar large-scale construction projects awarded by the Navy would provide further insight into the value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process suggests a reasonable price was likely achieved.

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 3 bids suggests a healthy level of competition for this specific delivery order, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available from a wide pool of contractors.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving construction services for its facilities. Services delivered include commercial and institutional building construction, supporting military infrastructure. The geographic impact is concentrated in North Carolina, where the construction projects will be executed. Workforce implications include job creation for construction trades and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in a firm fixed-price contract.
Dependence on the contractor's ability to manage complex construction timelines effectively.
Risk of scope creep if project requirements are not clearly defined and managed.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a competitive bidding process.
Long contract duration allows for phased execution and potential for relationship building with the contractor.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, with substantial annual spending on facilities maintenance, upgrades, and new builds. Benchmarking this contract's value against other similar-sized military construction projects would be informative.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Whiting-Turner, may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Navy contracting command. The firm fixed-price nature implies that the contractor bears most of the financial risk, but performance monitoring is still crucial. Transparency is generally maintained through contract award databases, though specific project details might be limited.

Related Government Programs

Navy MACC Contracts
Department of Defense Construction Projects
Commercial Building Construction
Institutional Building Construction

Risk Flags

Long contract duration may increase risk of material cost fluctuations.
Firm fixed-price contract places cost risk on the contractor.
Potential for scope creep if project requirements are not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to WHITING-TURNER CONTRACTING COMPANY, THE. MC MACC

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 $20.3 million.

What is the period of performance?

Start: 2020-07-28. End: 2027-04-16.

What is Whiting-Turner Contracting Company's track record with the Department of Defense?

Whiting-Turner Contracting Company has a significant history of working with the Department of Defense and other federal agencies on various construction projects. Their experience typically spans a wide range of facility types, including military barracks, research facilities, and administrative buildings. Analyzing their past performance on similar firm fixed-price contracts, particularly those awarded under full and open competition, would provide insight into their reliability, project completion rates, and adherence to budget and schedule. Federal procurement databases often contain performance ratings and past performance information that can be reviewed to assess their suitability for large-scale projects like this one.

How does the $20.2 million award compare to typical construction contracts of this nature?

The $20.2 million award for commercial and institutional building construction is a substantial but not uncommon figure for large-scale projects undertaken by the Department of Defense. Construction contracts of this magnitude often involve complex requirements, extensive site work, and significant material and labor costs. Comparing this award to other recent Navy or DoD construction contracts of similar scope, duration, and complexity, particularly those awarded under full and open competition, would help determine if the price is competitive. Factors such as geographic location, specific building types, and prevailing market conditions in North Carolina would also influence this comparison.

What are the primary risks associated with a firm fixed-price contract of this duration?

The primary risks associated with a firm fixed-price contract of this duration (approximately 2453 days) revolve around potential cost escalations for the contractor and the possibility of scope creep. While the fixed price offers cost certainty to the government, unforeseen material price increases, labor shortages, or complex site conditions discovered mid-project can significantly impact the contractor's profitability. For the government, the risk lies in ensuring the contractor maintains quality and completes the project to specifications despite potential financial pressures. Robust contract management, clear change order procedures, and diligent oversight are crucial to mitigate these risks and ensure successful project delivery.

How effective is full and open competition in ensuring value for money in construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including construction. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the 3 bids received for this delivery order, suggests that the government likely received competitive pricing. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals to select the best overall value, not just the lowest price.

What are the implications of this contract being a delivery order under a MACC?

This contract being a delivery order under a Multiple Award Construction Contract (MACC) implies that a broader contract vehicle was previously established through a competitive process, allowing for multiple prime contractors. Delivery orders are then issued against this MACC for specific projects. This approach can streamline the procurement process for individual projects, as much of the initial vetting and contract negotiation has already occurred. It also allows the agency to leverage pre-qualified contractors, potentially leading to faster project initiation and execution. The MACC structure can also foster ongoing relationships and competition among the awardees over time.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008519R9048

Offers Received: 3

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: $20,256,335

Exercised Options: $20,256,335

Current Obligation: $20,256,335

Actual Outlays: $3,698,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008520D0036

IDV Type: IDC

Timeline