Navy awards $16.6M repair contract to Whiting-Turner, highlighting construction sector competition

Contract Overview

Contract Amount: $16,677,241 ($16.7M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-10-28

Contract Duration: 758 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P1594 RR1 REPAIR BY REPLACEMENT (210036)

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: P1594 RR1 REPAIR BY REPLACEMENT (210036) Key points: 1. Contract value of $16.6 million for repair and replacement services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm-fixed-price contract type indicates predictable costs for the government. 4. Long duration of 758 days suggests a significant scope of work. 5. Contractor has a track record with government projects. 6. Geographic focus on North Carolina for this specific delivery order.

Value Assessment

Rating: good

The contract value of $16.6 million for repair and replacement services appears reasonable given the duration and scope. Benchmarking against similar large-scale construction and repair projects within the Department of Defense would provide a clearer picture of value for money. The firm-fixed-price structure helps mitigate cost overruns, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: This level of competition is beneficial for taxpayers as it likely drove down the final award price compared to a sole-source or limited competition scenario.

Public Impact

The Department of the Navy benefits from essential infrastructure repairs and upgrades. Services delivered include repair and replacement, ensuring operational readiness. The project has a geographic impact primarily in North Carolina. Potential workforce implications include employment opportunities for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration repair projects.
Ensuring timely completion within the 758-day duration is critical.
Quality control and adherence to specifications for repair work.

Positive Signals

Firm-fixed-price contract limits cost uncertainty.
Full and open competition suggests a competitive award.
Contractor's experience in government contracting is a positive signal.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting landscape. The Department of Defense is a major consumer of construction services for maintaining and upgrading its vast infrastructure. Spending in this sector is often driven by modernization efforts, repairs, and new construction to support military operations and personnel.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify a small business set-aside. While the prime contractor is Whiting-Turner Contracting Company, a large entity, there is no explicit information on subcontracting plans for small businesses. Further review of the contract details would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting activity. Performance monitoring, quality assurance surveillance plans, and regular progress reviews are standard mechanisms to ensure accountability and adherence to contract terms. Transparency is generally maintained through contract award databases, though specific performance details may be less public.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Base Infrastructure Projects
Government Building Construction and Repair
Military Construction Projects

Risk Flags

Potential for cost overruns if unforeseen conditions arise during repairs.
Risk of schedule delays impacting facility availability.
Ensuring quality of repair work meets stringent military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. P1594 RR1 REPAIR BY REPLACEMENT (210036)

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 $16.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-10-28.

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 and renovation projects. Their experience often includes large-scale infrastructure, barracks, and facility upgrades. Reviewing their past performance ratings and the types of contracts they have successfully executed for the DoD can provide insight into their reliability and capability for projects like this repair and replacement task. Data from contract databases often shows a pattern of successful contract completions, though specific details on past issues or commendations would require deeper analysis of individual contract histories and performance reports.

How does the $16.6 million award compare to similar Navy repair contracts?

Comparing the $16.6 million award to similar Navy repair contracts requires access to a broader dataset of recent awards for comparable projects. Factors such as project scope (e.g., type of facility, extent of damage, specific systems involved), geographic location, and contract duration are crucial for a meaningful comparison. Generally, large-scale repair and replacement projects for military facilities can range from several million to tens of millions of dollars. The firm-fixed-price nature and the 758-day duration suggest a substantial undertaking. Benchmarking against projects of similar complexity and scale within the Navy or other DoD branches would help determine if this award represents a fair market price and good value for the services rendered.

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

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, risks can still exist. For the contractor, the primary risk is underestimating the costs associated with the repair and replacement work, potentially leading to reduced profit margins or even losses if unforeseen issues arise. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Effective oversight, clear performance standards, and robust quality assurance are essential to mitigate these risks and ensure the work is completed to the required specifications despite the FFP structure.

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

Full and open competition is widely considered the most effective method for ensuring value for taxpayer money in federal contracting, including construction. By allowing all responsible sources to bid, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most efficient solutions to win the contract. This process typically leads to lower prices, higher quality, and greater innovation compared to limited or sole-source procurements. The presence of multiple bidders, as indicated by the 4 bidders in this case, further strengthens the competitive dynamic, increasing the likelihood that the government secures a favorable deal.

What is the historical spending trend for similar construction services by the Department of the Navy?

The Department of the Navy consistently spends billions of dollars annually on construction services, encompassing new builds, renovations, repairs, and maintenance of its extensive global infrastructure. Historical spending trends show a significant and ongoing investment in facilities to support naval operations, readiness, and personnel. Factors influencing these trends include military readiness requirements, aging infrastructure needing upgrades, new technology integration, and geopolitical demands. Analyzing specific categories like 'Commercial and Institutional Building Construction' (NAICS 236220) reveals substantial outlays, with individual project values varying widely based on scope and complexity. This $16.6 million award represents one component of that larger, consistent spending pattern.

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: 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: $17,458,207

Exercised Options: $16,677,241

Current Obligation: $16,677,241

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