Naval Special Warfare Command awards $99.7M construction contract to Whiting-Turner for Coronado base facilities

Contract Overview

Contract Amount: $99,672,289 ($99.7M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2023-12-20

Contract Duration: 1,542 days

Daily Burn Rate: $64.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: Q-855 BASIC TRAINING COMMAND FOR NAVAL SPECIAL WARFARE COMMAND AT NAVAL AMPHIBIOUS BASE, CORONADO, CA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92155

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $99.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: Q-855 BASIC TRAINING COMMAND FOR NAVAL SPECIAL WARFARE COMMAND AT NAVAL AMPHIBIOUS BASE, CORONADO, CA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1542 days indicates a significant, long-term construction project. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project is located in California, a state with high construction labor and material costs. 5. The award to a single contractor, Whiting-Turner, highlights their capacity for large-scale defense projects. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited or not explicitly tracked here.

Value Assessment

Rating: good

The contract value of approximately $99.7 million for a multi-year construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. However, without specific details on the scope of work (e.g., square footage, specific facility types), a direct comparison of per-square-foot costs or unit prices is challenging.

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 11 bids suggests a healthy level of interest and competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and better value for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price compared to a sole-source or limited competition scenario. This ensures that taxpayer funds are used more efficiently for essential military infrastructure.

Public Impact

The primary beneficiaries are the Naval Special Warfare Command personnel who will utilize the improved facilities. The contract delivers construction services for essential training and operational infrastructure at Naval Amphibious Base, Coronado. The geographic impact is concentrated in Coronado, California, supporting a key naval installation. The project will likely create numerous jobs in the construction sector, including skilled trades, project management, and support roles in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Dependence on a single large contractor could lead to delays if the contractor faces internal issues or resource constraints.
Limited visibility into subcontracting opportunities for small businesses unless explicitly mandated.
Construction projects of this scale can face environmental impact concerns and require rigorous mitigation strategies.
Potential for schedule slippage due to the complexity of military construction and base operations integration.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Whiting-Turner, is a well-established firm with a track record in large-scale construction.
The project supports critical Naval Special Warfare training infrastructure, aligning with national defense priorities.
The long duration suggests a comprehensive approach to facility development, potentially leading to durable and effective infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for military facilities. The U.S. military construction market is substantial, with significant annual spending on infrastructure upgrades and new builds to support readiness and modernization. Comparable spending benchmarks would involve analyzing other large-scale barracks, training facilities, or operational support buildings awarded by the Department of Defense or other federal agencies. The market is characterized by large, experienced contractors capable of handling complex projects with stringent security and performance requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests the primary contract was awarded to a large business, Whiting-Turner Contracting Company. While there are no explicit set-aside requirements noted, large federal construction contracts often involve significant subcontracting opportunities. The extent to which Whiting-Turner will engage small businesses as subcontractors for specialized trades or services will determine the broader impact on the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess this.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and engineering divisions. The firm-fixed-price nature of the contract provides a degree of cost control. Accountability measures are typically enforced through contract clauses, performance metrics, and regular progress reviews. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction may be involved if allegations of fraud, waste, or abuse arise during the contract performance period.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
Naval Special Warfare Command Infrastructure Support
General Building Construction Services

Risk Flags

Potential for cost escalation in high-cost California market
Risk of schedule delays due to complex military base operations integration
Need for rigorous quality assurance on specialized training facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. Q-855 BASIC TRAINING COMMAND FOR NAVAL SPECIAL WARFARE COMMAND AT NAVAL AMPHIBIOUS BASE, CORONADO, CA

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 $99.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2023-12-20.

What is Whiting-Turner Contracting Company's track record with large federal construction projects, particularly for the Department of Defense?

Whiting-Turner Contracting Company is a well-established construction firm with extensive experience in large-scale projects across various sectors, including significant work for the federal government and the Department of Defense. They have a history of managing complex projects, often involving new construction, renovations, and infrastructure development for military installations. Their portfolio includes projects for different branches of the military, demonstrating their capability to meet the stringent requirements and security protocols associated with defense construction. While specific project details and values vary, their consistent engagement in high-value federal contracts suggests a strong performance record and the capacity to handle substantial budgets and timelines, such as the $99.7 million awarded for the Naval Special Warfare Command facilities.

How does the $99.7 million award compare to other recent construction contracts for similar naval training facilities?

Comparing the $99.7 million award for Naval Special Warfare Command facilities requires context regarding the scope and specific types of construction. Large-scale military construction projects, especially those involving specialized training infrastructure or upgrades to existing bases, can range widely in cost. Projects involving new barracks, training ranges, maintenance facilities, or administrative buildings can easily reach tens or even hundreds of millions of dollars. Given that this contract covers 'BASIC TRAINING COMMAND FOR NAVAL SPECIAL WARFARE COMMAND AT NAVAL AMPHIBIOUS BASE, CORONADO, CA,' it likely involves significant infrastructure development. Without detailed breakdowns of square footage, specific facility types (e.g., classrooms, dormitories, specialized training areas), and the extent of renovations versus new builds, a precise benchmark is difficult. However, the value appears consistent with substantial military infrastructure investments in high-cost areas like Southern California.

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

The primary risk for the government in a firm-fixed-price (FFP) contract, especially for a long-duration construction project like this ($99.7M over 1542 days), is that the contractor may not be incentivized to find cost savings beyond what is necessary to meet contract specifications. If the contractor encounters unforeseen issues (e.g., subsurface conditions, labor shortages, material price spikes), they bear the financial burden, which could lead to pressure to cut corners on quality or scope if not meticulously managed. Conversely, the contractor assumes the risk of cost overruns. For the government, the risk lies in ensuring the contractor has accurately estimated all costs and contingencies. Robust oversight, clear specifications, and diligent progress monitoring are crucial to mitigate risks related to quality and timely completion under an FFP structure.

What is the expected impact of this contract on the local construction workforce in the San Diego area?

This $99.7 million construction contract is expected to have a significant positive impact on the local construction workforce in the San Diego area. Projects of this scale typically require a substantial number of skilled laborers, tradespeople (electricians, plumbers, carpenters, masons), equipment operators, and project management professionals. Whiting-Turner Contracting Company, as the prime contractor, will likely source a significant portion of its workforce locally or regionally. Furthermore, the engagement of subcontractors for specialized tasks will create additional employment opportunities. The duration of the project (over four years) suggests sustained employment for many individuals throughout its lifecycle, contributing to economic activity and job creation within the construction sector and related support industries in California.

How does the 'Commercial and Institutional Building Construction' classification influence the oversight and regulatory requirements for this contract?

The 'Commercial and Institutional Building Construction' (NAICS code 236220) classification signifies that the contract involves the construction of non-residential buildings intended for commercial or institutional use, such as military facilities. This classification subjects the contract to standard construction industry regulations, including building codes, safety standards (like OSHA), environmental regulations, and labor laws. For federal projects, this also includes specific requirements related to Davis-Bacon Act prevailing wages, Buy American provisions, and potentially specific military construction standards set by the Department of Defense or Navy. Oversight will focus on adherence to these regulations, quality control, project scheduling, and compliance with the technical specifications outlined in the contract to ensure the facilities are built safely, durably, and meet the operational needs of the Naval Special Warfare Command.

Given the contract's location in Coronado, CA, what are the potential implications of California's construction market on project costs and timelines?

California, particularly the San Diego region, is known for having one of the most expensive construction markets in the United States. This is driven by high labor costs due to strong union presence and demand for skilled workers, as well as elevated material costs and stringent environmental regulations. For this $99.7 million contract, these factors likely contributed to the overall project cost. The firm-fixed-price nature means Whiting-Turner assumed the risk of these high costs. Potential implications include a greater need for efficient project management to control labor and material expenses, and careful planning to navigate California's specific permitting and environmental review processes, which can sometimes add time to project schedules if not managed proactively.

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: TWO STEP

Solicitation ID: N6247317R0823

Offers Received: 11

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: $99,672,289

Exercised Options: $99,672,289

Current Obligation: $99,672,289

Actual Outlays: $63,547,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline