Naval Base Coronado contract awarded to Whiting-Turner for $35.9M for facility and infrastructure upgrades

Contract Overview

Contract Amount: $35,875,561 ($35.9M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2019-10-28

End Date: 2022-12-23

Contract Duration: 1,152 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: Q949/Q950 SOF NSWCEN ATC APPLIED INSTRUCTION FACILITY, TRAINING FACILITY AND SITE UTILITY INFRASTRUCTURE AT SILVER STRAND TRAINING COMPLEX, NAVAL BASE CORONADO, CORONADO, CA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: Q949/Q950 SOF NSWCEN ATC APPLIED INSTRUCTION FACILITY, TRAINING FACILITY AND SITE UTILITY INFRASTRUCTURE AT SILVER STRAND TRAINING COMPLEX, NAVAL BASE CORONADO, CORONADO, CA Key points: 1. The contract focused on applied instruction, training, and site utility infrastructure, indicating a need for modernization and enhanced operational capabilities. 2. Awarded under full and open competition, suggesting a robust market response and potential for competitive pricing. 3. The duration of the contract (1152 days) points to a complex project requiring significant planning and execution over several years. 4. The firm-fixed-price structure shifts performance risk to the contractor, incentivizing cost control. 5. This project aligns with broader defense infrastructure investment trends aimed at improving training facilities and operational readiness.

Value Assessment

Rating: good

The contract value of $35.9 million for a comprehensive training facility and utility infrastructure upgrade appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military bases suggests that costs are within expected ranges, especially considering the specialized nature of military training requirements and the need for compliance with stringent safety and operational standards. The firm-fixed-price contract type also implies that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of three bids suggests a healthy level of competition for this significant infrastructure project. This competitive process is designed to ensure that the government receives the best value by encouraging contractors to offer competitive pricing and innovative solutions to win the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that public funds are used efficiently and effectively for essential infrastructure development.

Public Impact

Naval personnel at Naval Base Coronado will benefit from improved training facilities and reliable utility infrastructure. The project delivers enhanced capabilities for applied instruction and site operations, supporting mission readiness. The geographic impact is concentrated at the Silver Strand Training Complex in Coronado, California. The project likely supported a workforce of construction professionals, tradespeople, and project managers during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large-scale construction projects impacting operational readiness.
Risk of unforeseen site conditions requiring change orders and increasing costs.
Ensuring compliance with environmental regulations during construction and utility upgrades.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Awarded under full and open competition, suggesting competitive pricing.
Project addresses critical infrastructure needs for naval training operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically serving the defense industry's need for specialized facilities. The market for military construction is characterized by large, complex projects often awarded through competitive bidding processes. Spending in this sector is driven by defense modernization efforts, infrastructure upgrades, and the need to maintain operational readiness across various military installations. Comparable benchmarks would include other large-scale construction projects at military bases, focusing on training facilities, barracks, and utility systems.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). While Whiting-Turner Contracting Company is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements outlined in the subcontracting plan, if any. The impact on the small business ecosystem is therefore indirect, relying on the prime contractor's engagement with smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions, ensuring adherence to the contract terms, specifications, and schedule. Accountability measures are embedded in the firm-fixed-price structure, performance milestones, and final acceptance of the work. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) construction projects
Military construction (MILCON) programs
Defense infrastructure modernization
Training facility upgrades
Base utility system modernization

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of project delays impacting training schedules.
Ensuring long-term durability and maintainability of new infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to WHITING-TURNER CONTRACTING COMPANY, THE. Q949/Q950 SOF NSWCEN ATC APPLIED INSTRUCTION FACILITY, TRAINING FACILITY AND SITE UTILITY INFRASTRUCTURE AT SILVER STRAND TRAINING COMPLEX, NAVAL BASE CORONADO, 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 $35.9 million.

What is the period of performance?

Start: 2019-10-28. End: 2022-12-23.

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

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 facilities, infrastructure upgrades, and specialized construction. While specific performance metrics for all government contracts are not publicly detailed, their consistent awards on substantial projects suggest a generally positive track record in terms of capability and delivery. Reviewing past performance evaluations, if available through federal procurement data systems, would provide a more granular assessment of their performance on similar projects, including adherence to schedule, budget, and quality standards. Their experience in institutional and commercial building construction is extensive, positioning them well for projects like the one at Naval Base Coronado.

How does the awarded price compare to similar construction projects for naval training facilities?

The awarded price of approximately $35.9 million for the Applied Instruction Facility, Training Facility, and Site Utility Infrastructure at Naval Base Coronado needs to be benchmarked against comparable projects. Factors such as project scope (size, complexity of training systems, utility upgrades), location (California construction costs), and contract type (firm-fixed-price) significantly influence pricing. Generally, large-scale military construction projects involving specialized training facilities and utility modernization can range from tens to hundreds of millions of dollars. Without specific comparable project data (e.g., square footage, specific training system integration costs, utility upgrade scope), a precise value-for-money assessment is challenging. However, the firm-fixed-price nature and full and open competition suggest an effort to secure competitive pricing within the market.

What are the primary risks associated with this type of infrastructure contract?

The primary risks associated with this type of large-scale infrastructure contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions. Cost risks, although mitigated by the firm-fixed-price structure, can still arise from scope creep if change orders are not managed effectively. Performance risks involve ensuring the constructed facilities meet the stringent operational and safety requirements of a naval training environment. There's also a risk related to the integration of new utility systems with existing base infrastructure, which can be complex. Finally, ensuring adequate workforce availability and managing labor relations during the project's multi-year duration are critical considerations.

How effective are firm-fixed-price contracts in controlling costs for construction projects?

Firm-fixed-price (FFP) contracts are generally considered effective in controlling costs for construction projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes the majority of the cost risk, agreeing to a set price regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and complete the project within budget. However, FFP contracts can lead to higher initial bid prices as contractors factor in potential risks. They are less flexible in accommodating changes; significant modifications often require contract modifications (change orders), which can increase the overall cost and complexity if not managed carefully. For projects with a clear scope like facility construction, FFP is a common and effective tool for cost control.

What is the historical spending trend for similar naval training and infrastructure projects?

Historical spending trends for similar naval training and infrastructure projects indicate a consistent and significant investment by the Department of Defense to maintain and modernize its facilities. These projects, often categorized under Military Construction (MILCON), typically involve substantial capital outlays, frequently in the range of tens to hundreds of millions of dollars per project, depending on scale and complexity. Factors influencing spending include geopolitical priorities, aging infrastructure requiring replacement, and the need for advanced training capabilities to match evolving military technologies and strategies. The Navy, in particular, invests heavily in its shore infrastructure to support fleet readiness and personnel training. Spending can fluctuate annually based on budget allocations and specific program requirements.

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: N6247316R3201

Offers Received: 3

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: $35,875,561

Exercised Options: $35,875,561

Current Obligation: $35,875,561

Actual Outlays: $470,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D0822

IDV Type: IDC

Timeline