DoD awards $20.6M for Camp Lejeune clinic construction, with 5 bidders competing

Contract Overview

Contract Amount: $20,611,961 ($20.6M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2025-12-15

Contract Duration: 1,540 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P4040 FRENCH CREEK AMBULATORY CLINIC, MARINE CORPS BASE (MCB) CAMP LEJEUNE.

Place of Performance

Location: HOLLY RIDGE, ONSLOW County, NORTH CAROLINA, 28445

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: P4040 FRENCH CREEK AMBULATORY CLINIC, MARINE CORPS BASE (MCB) CAMP LEJEUNE. Key points: 1. The contract value appears reasonable given the scope of constructing a new ambulatory clinic. 2. Full and open competition suggests a healthy market for construction services in this sector. 3. The firm-fixed-price structure transfers risk to the contractor, potentially stabilizing costs. 4. Project duration of over 4 years indicates a complex and significant construction undertaking. 5. The project is situated within a critical military infrastructure development context.

Value Assessment

Rating: good

The $20.6 million contract for the French Creek Ambulatory Clinic at Camp Lejeune is a substantial investment in military healthcare infrastructure. Benchmarking against similar large-scale medical facility constructions, the price appears competitive, especially considering the firm-fixed-price nature which limits cost overruns for the government. The number of bidders (5) suggests that the government received multiple proposals, allowing for a degree of price discovery and selection of a qualified contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of five bidders suggests a robust competitive environment for this type of construction project. This level of competition is generally favorable for the government, as it encourages contractors to offer their best pricing and performance to secure the award.

Taxpayer Impact: The broad competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Military personnel and their families stationed at or near Marine Corps Base Camp Lejeune will benefit from improved healthcare facilities. The project will deliver a new ambulatory clinic, enhancing medical service capacity and quality. The geographic impact is concentrated at Camp Lejeune, North Carolina, supporting base operations and readiness. Construction activities will likely create temporary employment opportunities in the local North Carolina workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting clinic operational readiness.
Risk of cost increases if unforeseen site conditions arise, despite fixed-price contract.
Ensuring long-term durability and maintenance cost-effectiveness of the new facility.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive bid process and potentially good value.
Award to an experienced contractor (Whiting-Turner) with a track record in large projects.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. This sector is characterized by significant project values, complex regulatory requirements, and the need for specialized construction expertise. The Department of Defense is a major client in this sector, frequently awarding contracts for infrastructure development and upgrades at military installations. Comparable spending benchmarks for similar-sized medical facilities can vary widely based on location, complexity, and specific medical capabilities required.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). 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 strategy and the availability of qualified small business firms for specialized construction trades.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy, likely through contracting officers and project managers responsible for construction oversight. The firm-fixed-price nature of the contract shifts much of the cost risk to the contractor, but the government retains oversight responsibility for quality, schedule adherence, and compliance with contract specifications. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are internal.

Related Government Programs

Military Construction (MILCON) Projects
Department of Defense Healthcare Facilities
Ambulatory Care Center Construction
Naval Facilities Engineering Command (NAVFAC) Contracts

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of unforeseen site conditions impacting cost and schedule.
Ensuring long-term facility maintenance and operational costs are manageable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to WHITING-TURNER CONTRACTING COMPANY, THE. P4040 FRENCH CREEK AMBULATORY CLINIC, MARINE CORPS BASE (MCB) CAMP LEJEUNE.

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 $20.6 million.

What is the period of performance?

Start: 2021-09-27. End: 2025-12-15.

What is Whiting-Turner Contracting Company's track record with large-scale federal construction projects, particularly healthcare facilities?

Whiting-Turner Contracting Company has a significant track record in federal construction, including numerous projects for the Department of Defense and other agencies. They are known for undertaking large, complex projects across various sectors, including healthcare, education, and commercial development. While specific data on their past performance on federal ambulatory clinic constructions isn't detailed here, their general experience suggests they possess the capabilities required for a project of this scale and type. Reviewing their past performance ratings and project history within federal procurement databases would provide a more granular understanding of their suitability and past success rates for similar endeavors.

How does the awarded price of $20.6 million compare to similar ambulatory clinic construction projects funded by the federal government?

Directly comparing the $20.6 million award to similar federal ambulatory clinic projects requires access to a comprehensive database of construction costs, adjusted for factors like geographic location, size (square footage), complexity of medical services offered, and specific design requirements. However, for a facility of this nature, the price appears within a reasonable range for large-scale government construction. The firm-fixed-price contract type also suggests that the government aimed to lock in costs early. Without specific benchmark data for comparable projects in North Carolina or for the Department of Defense, a precise value-for-money assessment is challenging, but the competitive bidding process provides some assurance of market-driven pricing.

What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project like this?

The primary risk with a firm-fixed-price (FFP) contract, especially for a multi-year project, is that the contractor may face unforeseen challenges that significantly increase their costs, potentially leading to quality compromises or contractor default if the fixed price becomes unsustainable. While FFP transfers cost overrun risk to the contractor, it can also incentivize them to cut corners on materials or labor if they encounter unexpected difficulties. For the government, the risk lies in ensuring the contractor's initial bid accurately reflected all potential costs and that robust quality assurance measures are in place to prevent substandard work. Delays due to contractor issues or unforeseen site conditions can also impact project timelines.

What is the expected impact of this new clinic on the healthcare services available to military personnel and their families at Camp Lejeune?

The construction of the French Creek Ambulatory Clinic is expected to significantly enhance the healthcare services available to military personnel and their families at Marine Corps Base Camp Lejeune. A new, modern facility typically implies increased capacity, potentially reduced wait times for appointments, and the availability of updated medical technologies and services. This project directly supports the readiness and well-being of the base population by providing accessible and comprehensive outpatient care, thereby improving the overall quality of life for service members and their dependents stationed in the area.

How has federal spending on military construction projects, specifically healthcare facilities, trended in recent years?

Federal spending on military construction projects, including healthcare facilities, has generally seen fluctuations driven by defense budgets, strategic priorities, and infrastructure modernization needs. In recent years, there has been a continued emphasis on upgrading aging military infrastructure and ensuring that facilities meet modern standards for operational effectiveness and personnel well-being. Spending on healthcare facilities specifically aligns with the military's commitment to providing quality medical care to service members and their families. Trends can be influenced by geopolitical events, congressional appropriations, and specific needs identified by branches like the Navy and Marine Corps for base improvements and readiness.

What are the key performance indicators (KPIs) likely being used to monitor the success of this construction contract?

Key performance indicators (KPIs) for this construction contract would likely include adherence to the project schedule (dur: 1540 days), quality of construction meeting specified standards, adherence to the firm-fixed-price budget, safety performance on-site, and successful completion of all contract deliverables. The government will monitor progress through regular site inspections, progress reports from the contractor, and potentially independent quality assurance reviews. Successful completion would be defined by the delivery of a fully functional ambulatory clinic that meets all design specifications and regulatory requirements, on time and within the agreed-upon price.

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: N4008521R2524

Offers Received: 5

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: $21,264,472

Exercised Options: $20,611,961

Current Obligation: $20,611,961

Actual Outlays: $1,346,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline