DoD awards $23.7M for F-35B vertical lift fan facility, with construction expected to conclude in late 2025

Contract Overview

Contract Amount: $23,723,490 ($23.7M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2021-05-27

End Date: 2025-12-01

Contract Duration: 1,649 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DBB P-990 F-35B VERTICAL LIFT FAN TEST FACILITY MCAS CHERRY POINT, NC

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: DBB P-990 F-35B VERTICAL LIFT FAN TEST FACILITY MCAS CHERRY POINT, NC Key points: 1. Construction contract awarded to Whiting-Turner Contracting Company for a specialized F-35B test facility. 2. The project aims to support the operational readiness and testing capabilities for the F-35B variant. 3. Competition was robust, with four bids received, suggesting a competitive bidding environment. 4. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 5. The facility is located at MCAS Cherry Point, North Carolina, a key naval aviation installation. 6. Project duration spans over four years, indicating a significant construction undertaking.

Value Assessment

Rating: good

The contract value of $23.7 million for a specialized military construction project appears reasonable given the scope. Benchmarking against similar large-scale military facility constructions is challenging without more specific project details. However, the firm-fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value management. The number of bidders also suggests that the pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. This level of competition is generally considered healthy and suggests that multiple qualified contractors were interested and able to bid on the project. The presence of four bidders likely contributed to a more competitive pricing structure and allowed the government to select the best value proposal.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages high-quality bids.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who will gain enhanced testing and maintenance capabilities for the F-35B aircraft. The facility will enable critical testing of the F-35B's unique vertical lift fan system, ensuring its operational readiness. The project's geographic impact is concentrated at MCAS Cherry Point, North Carolina, supporting regional economic activity through construction jobs. Workforce implications include employment opportunities for construction workers and specialized trades in North Carolina during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness timelines.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on specialized construction expertise which may be limited.

Positive Signals

Firm-fixed-price contract structure limits government cost exposure.
Award to an experienced contractor, Whiting-Turner Contracting Company, suggests capability.
Full and open competition indicates a robust bidding process and potential for value.
Strategic location at MCAS Cherry Point ensures integration with existing infrastructure.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on specialized institutional and commercial building. The market for military construction is significant, driven by ongoing modernization and infrastructure needs within the Department of Defense. Comparable spending benchmarks would typically involve other large-scale military facility projects, such as hangars, training centers, or maintenance depots, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Whiting-Turner Contracting Company, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's procurement practices and the availability of qualified small business vendors for specific construction trades and materials.

Oversight & Accountability

Oversight for this construction project will likely be managed by the Naval Facilities Engineering Command (NAVFAC) or a similar entity within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the facility within the agreed-upon cost and schedule. Transparency is generally maintained through contract award announcements and potential public reporting on project milestones, though detailed cost breakdowns may be proprietary.

Related Government Programs

F-35 Lightning II Program
Naval Aviation Facilities Construction
Military Base Infrastructure Modernization
Defense Construction Projects

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Integration complexity of specialized systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. DBB P-990 F-35B VERTICAL LIFT FAN TEST FACILITY MCAS CHERRY POINT, NC

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 $23.7 million.

What is the period of performance?

Start: 2021-05-27. End: 2025-12-01.

What is the track record of Whiting-Turner Contracting Company on similar large-scale military construction projects?

Whiting-Turner Contracting Company has a substantial track record in large-scale construction, including significant work within the federal and military sectors. They have been involved in numerous projects for the Department of Defense and other government agencies, encompassing a wide range of facility types. While specific details on F-35 related facilities might vary, their experience with complex projects, adherence to stringent military specifications, and history of project delivery suggest a strong capability to execute this contract. A deeper dive into their past performance reviews and project completion data would provide more granular insights into their reliability and efficiency on comparable defense infrastructure endeavors.

How does the cost of this facility compare to other F-35 support infrastructure projects?

Direct cost comparisons for specialized military facilities like this F-35B vertical lift fan test facility are complex due to unique design requirements, location-specific factors, and varying project scopes. However, the $23.7 million award falls within a typical range for significant construction projects at military installations. For context, other projects involving specialized aircraft maintenance or testing facilities, or even substantial upgrades to existing infrastructure at major bases, can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract provides a defined ceiling, which aids in budget predictability compared to cost-plus contracts often seen in earlier, more research-oriented phases of defense programs.

What are the primary risks associated with the construction of this specialized test facility?

The primary risks associated with this construction project include potential delays due to unforeseen site conditions, weather disruptions, or supply chain issues affecting specialized materials or equipment. Given the specialized nature of the vertical lift fan testing, integration risks between the facility's infrastructure and the F-35B's unique systems also present a challenge. Furthermore, while the contract is firm-fixed-price, there's always a residual risk of contractor performance issues or disputes, although the selection process and oversight aim to mitigate this. Ensuring compliance with stringent military standards and security protocols adds another layer of complexity and potential risk if not managed meticulously.

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

The firm-fixed-price (FFP) contract type is generally considered highly effective for managing costs in construction projects where the scope of work is well-defined, as is typical for building a facility with specific design requirements. FFP shifts the majority of cost risk from the government to the contractor, incentivizing the contractor to control costs and work efficiently to maximize profit. This provides the government with significant budget certainty. However, if unforeseen issues arise that necessitate scope changes, the change order process under an FFP contract can sometimes lead to disputes or increased costs if not managed carefully. For a project like this, where the physical construction is the primary effort, FFP is a suitable choice for cost control.

What is the historical spending trend for F-35 support infrastructure at MCAS Cherry Point?

Historical spending data specifically for F-35 support infrastructure at MCAS Cherry Point is not readily available in public databases without more granular access. However, as a major operating base for the F-35B variant, it is reasonable to infer that significant and ongoing investments have been made and will continue to be made in facilities supporting its maintenance, training, and operational readiness. This includes hangars, specialized repair shops, training simulators, and testing facilities like the one being constructed. Spending trends would likely correlate with the F-35 program's lifecycle, increasing during initial basing and modernization phases and continuing for sustainment and upgrades.

What are the implications of awarding this contract to Whiting-Turner Contracting Company for the F-35 program's overall budget?

The award of this $23.7 million contract to Whiting-Turner Contracting Company has a direct, albeit relatively small, impact on the overall F-35 program budget. As a firm-fixed-price contract, the cost to the government is largely predetermined, contributing to budget predictability for this specific infrastructure component. The efficiency and timeliness of Whiting-Turner's execution will influence whether this portion of the F-35 program's infrastructure spending remains within projections. A successful and cost-effective completion could positively influence future infrastructure budget requests, while significant overruns or delays could necessitate budget adjustments or reallocations within the broader F-35 sustainment and modernization accounts.

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: N4008519R9019

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,723,490

Exercised Options: $23,723,490

Current Obligation: $23,723,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline