DoD awards $63.5M for California mess hall construction, with a 3-bid competition

Contract Overview

Contract Amount: $63,481,621 ($63.5M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2020-12-17

End Date: 2025-12-20

Contract Duration: 1,829 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X002 P-2000, WO# 1607945 -- 62 AREA MESS HALL AND CONSOLIDATED WA

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.5 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: X002 P-2000, WO# 1607945 -- 62 AREA MESS HALL AND CONSOLIDATED WA Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Project duration of 5 years indicates a long-term commitment to facility development. 4. Fixed-price contract type aims to control costs for the government. 5. Geographic focus on California highlights regional infrastructure priorities. 6. The award is for a critical support facility, impacting service member quality of life.

Value Assessment

Rating: good

The contract value of $63.5 million for a mess hall and consolidated warehouse appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military facilities suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty, although the final value will depend on the contractor's efficiency and management of unforeseen issues. Further analysis would require detailed cost breakdowns and comparison to specific construction cost indices for the region.

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. With three bids received, the competition level suggests a moderately competitive environment. While three bidders are better than one or two, a higher number of bids often leads to more aggressive pricing and better value for the government. The specific pricing of the winning bid relative to the others would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition with three bidders likely resulted in a fair market price, preventing excessive costs for taxpayers. However, a more robust competition with a larger number of bids could have potentially yielded even greater savings.

Public Impact

Service members stationed in California will benefit from improved dining and storage facilities. The project will deliver a new consolidated mess hall and warehouse, enhancing operational efficiency. The geographic impact is concentrated in California, supporting military readiness in the state. The construction project will likely create numerous jobs for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of schedule delays impacting facility readiness.
Dependence on the contractor's ability to manage a large-scale project effectively.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award to an established contractor suggests a degree of reliability.
Consolidated facility design may lead to long-term operational efficiencies.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from government facilities to private commercial spaces. Federal spending in this sector, particularly for defense infrastructure, is substantial and often driven by modernization needs and readiness requirements. This contract for a mess hall and warehouse fits within the broader category of military base infrastructure development, which is a recurring area of government expenditure. Comparable spending benchmarks would typically be assessed against per-square-foot construction costs for similar institutional or government buildings in the specific geographic region.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Whiting-Turner Contracting Company, is a large entity, there is potential for subcontracting opportunities for small businesses within the construction trades and material supply. The extent to which small businesses will participate will depend on the prime contractor's subcontracting plan and the availability of qualified small business vendors in the California region.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy, likely through contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, which incentivize the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and public reporting, although detailed project progress and specific cost management data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Naval Base Infrastructure
Government Building Contracts
Large-Scale Construction Awards

Risk Flags

Potential for cost escalation over the 5-year duration.
Risk of schedule delays impacting facility readiness.
Dependence on contractor's project management capabilities.
Need for robust oversight to ensure quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.5 million to WHITING-TURNER CONTRACTING COMPANY, THE. X002 P-2000, WO# 1607945 -- 62 AREA MESS HALL AND CONSOLIDATED WA

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 $63.5 million.

What is the period of performance?

Start: 2020-12-17. End: 2025-12-20.

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

Whiting-Turner Contracting Company has a substantial track record with federal construction projects, including significant work for the Department of Defense and other government agencies. They are known for undertaking large-scale, complex projects across various sectors. A review of their past performance on similar military infrastructure projects, such as dining facilities, barracks, or logistical support buildings, would be necessary to fully assess their capability and reliability for this specific contract. Data on past project completion times, adherence to budget, and quality of work would be key indicators. Their history suggests they are a capable contractor, but specific project performance details are crucial for a complete risk assessment.

How does the awarded price compare to industry benchmarks for similar mess hall and warehouse construction in California?

To benchmark the awarded price of $63.5 million, one would typically compare it against per-square-foot construction costs for similar institutional or government-mandated facilities in the specific California region. Factors such as prevailing wage rates, material costs, site preparation complexity, and specific design requirements heavily influence these benchmarks. Without the detailed square footage and specific design specifications of the mess hall and warehouse, a precise comparison is difficult. However, general construction cost indices for commercial and institutional buildings in California can provide a preliminary assessment. If the price falls within or below the typical range for comparable projects, it suggests good value; if it significantly exceeds it, further scrutiny of the cost components would be warranted.

What are the primary risks associated with the 5-year duration of this construction contract?

The 5-year duration of this construction contract introduces several potential risks. Firstly, there is an increased risk of escalating material and labor costs over such an extended period, even with a fixed-price contract, which could strain the contractor's margins or lead to claims if not managed proactively. Secondly, changes in military requirements or operational needs during the construction phase could necessitate costly design modifications. Thirdly, the prolonged timeline increases the likelihood of encountering unforeseen site conditions or environmental challenges that could lead to delays and cost increases. Finally, contractor performance and quality control can sometimes degrade over long projects if oversight is not consistently rigorous.

How effective is the 'full and open competition' with three bidders in ensuring optimal value for taxpayers?

Full and open competition is generally the most effective method for ensuring optimal value for taxpayers, as it allows all qualified contractors to compete, fostering a robust bidding environment. However, the effectiveness is amplified by the number of bids received. With three bidders, there is a moderate level of competition. While this is significantly better than a sole-source or limited competition, a larger number of bids (e.g., five or more) typically drives prices down more aggressively. The value realized depends on how closely the bids clustered and whether the winning bid was substantially lower than others, indicating strong price discovery. If the bids were widely spread, it might suggest less intense competition or differing interpretations of the scope.

What are the potential implications of this contract on the local California construction workforce?

This $63.5 million contract for a significant construction project is likely to have a positive impact on the local California construction workforce. It will create numerous direct employment opportunities for skilled trades such as carpenters, electricians, plumbers, masons, and heavy equipment operators, as well as for general laborers. Additionally, indirect employment will be generated in related industries, including material suppliers, equipment rental companies, and support services. The duration of the project suggests sustained employment over several years. The specific impact will depend on the contractor's hiring practices, including their utilization of local labor versus bringing in workers from outside the immediate area.

Are there any historical spending patterns for mess hall and warehouse construction at this specific military installation or within the Navy?

Analyzing historical spending patterns for similar facilities at this specific installation or within the Department of the Navy is crucial for context. Without access to specific historical data for this installation, we can infer general trends. The Navy, like other branches of the DoD, consistently invests in infrastructure upgrades and new constructions to maintain operational readiness and improve quality of life for service members. Spending on mess halls and consolidated storage facilities is a recurring requirement. Examining past contracts for similar projects within the Navy could reveal average contract values, typical durations, and the number of bidders historically. Significant deviations from these historical norms in the current award might warrant further investigation into the underlying reasons, such as inflation, increased scope, or changes in construction costs.

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: N6247316R1868

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: $63,481,621

Exercised Options: $63,481,621

Current Obligation: $63,481,621

Actual Outlays: $31,885,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247318D5858

IDV Type: IDC

Timeline