Department of Defense awards $98.6M contract for Portsmouth Naval Shipyard facility construction

Contract Overview

Contract Amount: $98,588,994 ($98.6M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2020-09-17

End Date: 2025-09-30

Contract Duration: 1,839 days

Daily Burn Rate: $53.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM17-2119 VA CLASS WATERFRONT SUPPORT FACILITY, B178, PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE.

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $98.6 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: RM17-2119 VA CLASS WATERFRONT SUPPORT FACILITY, B178, PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE. Key points: 1. Contract awarded to Whiting-Turner Contracting Company for construction services. 2. Project involves building a waterfront support facility at Portsmouth Naval Shipyard. 3. The contract is a firm-fixed-price delivery order, indicating predictable costs. 4. Duration of the contract is approximately 5 years, suggesting a significant project scope. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The total contract value of $98.6 million for a large-scale facility construction project appears reasonable given the scope and duration. Benchmarking against similar naval shipyard infrastructure projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. This process typically fosters competitive pricing and allows the government to select the best value proposal. The presence of two bids indicates a moderate level of competition for this significant construction project.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging a wider range of bids and potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness through improved infrastructure. The project will deliver a new waterfront support facility, enhancing capabilities at Portsmouth Naval Shipyard. The geographic impact is concentrated in Kittery, Maine, supporting the local economy through construction jobs and related services. Workforce implications include employment opportunities for construction workers, engineers, and project managers during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring change orders.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract limits cost escalation.
Awarded under full and open competition, suggesting competitive pricing.
Long-term contract duration allows for phased construction and integration.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The construction of naval facilities is a specialized area within the broader construction market, often involving complex engineering and security requirements. Comparable spending benchmarks would involve analyzing other large-scale military construction projects awarded by the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that the prime contractor is not a small business. There is no explicit information on subcontracting plans for small businesses within this award. Further investigation into the contractor's subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance requirements. Transparency is generally maintained through contract award databases, though specific project details may be subject to security restrictions.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) projects
Department of Defense Military Construction
Portsmouth Naval Shipyard Operations

Risk Flags

Potential for cost overruns if change orders are extensive.
Risk of project delays impacting naval operations.
Ensuring adequate small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.6 million to WHITING-TURNER CONTRACTING COMPANY, THE. RM17-2119 VA CLASS WATERFRONT SUPPORT FACILITY, B178, PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE.

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 $98.6 million.

What is the period of performance?

Start: 2020-09-17. End: 2025-09-30.

What is the track record of Whiting-Turner Contracting Company on similar government projects?

Whiting-Turner Contracting Company has a significant history of performing large-scale construction projects for various government agencies, including the Department of Defense. Their portfolio often includes complex infrastructure, institutional, and commercial buildings. While specific performance metrics for past government contracts are not detailed here, their consistent award of substantial projects suggests a generally positive track record. A deeper dive into past performance evaluations and any past performance issues would be necessary for a comprehensive assessment. Their experience in building facilities for sensitive government operations, like naval shipyards, indicates a capability to meet stringent requirements.

How does the awarded amount compare to similar waterfront facility construction projects?

The awarded amount of $98.6 million for a waterfront support facility at Portsmouth Naval Shipyard is substantial, reflecting the complexity and scale typical of such defense infrastructure. To benchmark this value effectively, one would need to compare it against recently awarded contracts for similar facilities at other naval installations or military bases. Factors such as square footage, specific functionalities (e.g., dry dock support, repair bays, administrative areas), and geographic location (which influences labor and material costs) are critical for a precise comparison. Without access to a database of comparable projects with detailed cost breakdowns, it is difficult to definitively state if this represents excellent or fair value, but it aligns with the expected investment for a project of this nature.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential construction delays due to unforeseen site conditions, weather disruptions, or supply chain issues, which could impact the operational readiness of the shipyard. There is also a risk of cost escalation if the firm-fixed-price contract contains provisions for change orders due to scope creep or design modifications, although the firm-fixed-price nature aims to mitigate this. Environmental compliance during construction and ensuring the security of the site are also significant considerations. Furthermore, the long duration of the contract (nearly five years) increases the exposure to market fluctuations in material costs and labor availability.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects like this one, as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor agrees to perform the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to control expenses and manage the project efficiently to maximize their profit. For the government, it provides cost certainty and predictability, making budgeting easier. However, the effectiveness can be diminished if the initial price is not well-negotiated or if numerous change orders are issued, which can add costs and complexity.

What is the historical spending trend for similar construction projects at naval shipyards?

Historical spending on similar construction projects at naval shipyards has generally shown a consistent and significant investment by the Department of Defense to maintain and modernize its infrastructure. These projects often range from tens of millions to hundreds of millions of dollars, depending on their scope, such as new facility construction, upgrades to existing structures, or specialized repair capabilities. Spending trends are influenced by military readiness requirements, aging infrastructure, and strategic defense priorities. Analyzing past budgets allocated to naval shipyard improvements would reveal a pattern of substantial, long-term capital investment in these critical assets.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008519R9048

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: $98,588,994

Exercised Options: $98,588,994

Current Obligation: $98,588,994

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