Navy awards $43.4M contract for facility repair and rehab in California, with 2 bids received

Contract Overview

Contract Amount: $43,363,415 ($43.4M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2026-08-22

Contract Duration: 1,065 days

Daily Burn Rate: $40.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AND REHAB FAC NO. 00001

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $43.4 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: REPAIR AND REHAB FAC NO. 00001 Key points: 1. The contract value of $43.4 million for facility repair and rehabilitation appears to be within a reasonable range for large-scale construction projects of this nature. 2. With only two bids received, the competition dynamics suggest a potentially limited pool of qualified contractors for this specific project, which could impact price discovery. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, shifting financial risk to the contractor. 4. The project duration of 1065 days indicates a significant undertaking, requiring substantial contractor resources and oversight. 5. The contract is positioned within the broader Defense sector, specifically supporting the Department of the Navy's infrastructure maintenance needs. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: good

The contract value of $43.4 million for facility repair and rehabilitation is substantial. Benchmarking against similar large-scale construction and renovation projects awarded by the Department of Defense or other federal agencies would provide a clearer picture of value for money. However, given the scope implied by 'facility repair and rehab,' the price seems plausible for a project of this magnitude and duration. The firm-fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, only two bids were received. This limited number of bidders could indicate a specialized scope of work, high barriers to entry for potential competitors, or a concentrated market for such services in the specified region. While competition was open, the low number of actual bids may have reduced the downward pressure on pricing.

Taxpayer Impact: A limited number of bidders, even under full and open competition, can sometimes lead to higher prices for taxpayers compared to scenarios with more robust competition. It suggests that the government may not have received the full benefit of competitive pricing.

Public Impact

The primary beneficiaries of this contract are the Department of the Navy and its personnel, who will gain improved or repaired facilities. The services delivered include essential repair and rehabilitation of existing facilities, ensuring operational readiness and safety. The geographic impact is concentrated in California, where the facilities are located. The contract will likely have implications for the construction workforce in California, creating jobs for skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than if more contractors had participated.
The large contract value and long duration present inherent risks related to project management and potential unforeseen issues.
The specific nature of 'repair and rehab' can sometimes lead to scope creep if not meticulously managed.

Positive Signals

The firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
Awarding to a known entity like Whiting-Turner Contracting Company suggests a level of confidence in their capability to execute the work.
The contract supports critical infrastructure maintenance for a major federal agency (Department of the Navy).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports military infrastructure, government facilities, and public works. The market size for federal construction contracts is substantial, with agencies like the Department of Defense being major clients. This specific contract represents a portion of the Navy's ongoing investment in maintaining and upgrading its physical assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Whiting-Turner Contracting Company, may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services required for the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified repairs and rehabilitation within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, although specific project details and oversight activities may not always be fully public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Facility Maintenance and Repair
Naval Facilities Engineering Command Contracts
General Construction Services
Public Building Construction

Risk Flags

Limited Competition
Potential for Cost Overruns (inherent in large construction)
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.4 million to WHITING-TURNER CONTRACTING COMPANY, THE. REPAIR AND REHAB FAC NO. 00001

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 $43.4 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-08-22.

What is the track record of Whiting-Turner Contracting Company 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 large-scale construction projects. Their portfolio includes a wide range of military construction, renovation, and repair work across various branches. While specific contract values and performance details for past DoD projects are not provided in this data snippet, their selection as a prime contractor for a substantial project like this suggests a demonstrated capability and a generally positive performance history with the government. Further analysis would involve reviewing their past performance evaluations and any reported issues on previous federal contracts.

How does the awarded amount compare to similar facility repair contracts by the Navy?

Comparing the $43.4 million award to similar facility repair and rehabilitation contracts by the Navy requires access to a broader dataset of historical contract awards. However, for large-scale infrastructure projects involving extensive repairs and rehabilitation, this value is not unusual, especially for projects spanning over 1000 days. The Navy, like other branches of the DoD, undertakes numerous multi-million dollar construction and renovation projects annually. The specific location (California) and the nature of the facilities being repaired would influence the cost. Without direct comparable projects with identical scope, location, and duration, a precise value-for-money assessment is challenging, but the amount aligns with the scale of major facility upgrades.

What are the primary risks associated with a firm-fixed-price contract for facility repair?

While firm-fixed-price (FFP) contracts are generally favored for their cost control benefits, they do carry specific risks, particularly in repair and rehabilitation projects. The primary risk for the government is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise that increase their costs significantly. For the contractor, the risk is bearing the full cost of any overruns due to unexpected site conditions, labor cost increases, or scope expansion not formally agreed upon through change orders. Effective project management and stringent quality assurance by the government are crucial to mitigate these risks.

What does the limited competition (2 bids) imply for the effectiveness of the procurement process?

The fact that only two bids were received under a 'full and open competition' solicitation suggests potential limitations in the market for this specific type of work or geographic area. It could mean that fewer contractors possess the necessary qualifications, bonding capacity, or experience to bid on such a substantial project. While the process itself was open, the limited number of bidders might have reduced the competitive pressure on pricing, potentially leading to a higher award price than if there had been, for example, five or more bids. This outcome warrants consideration for future solicitations to understand if outreach or pre-solicitation efforts could encourage broader participation.

How has federal spending on construction and facility maintenance evolved in recent years?

Federal spending on construction and facility maintenance has generally seen fluctuations driven by infrastructure initiatives, defense spending priorities, and economic conditions. In recent years, there has been a renewed focus on modernizing federal infrastructure, including military bases and government buildings, often leading to increased contract awards in this sector. The Department of Defense consistently represents a significant portion of federal construction spending due to its vast real estate holdings and operational requirements. Trends indicate a sustained need for repairs, upgrades, and new construction to ensure the safety, efficiency, and modernization of federal facilities.

What are the potential long-term impacts of this contract on the facilities in California?

The long-term impacts of this contract on the facilities in California are expected to be positive, focusing on improved functionality, safety, and longevity. By undertaking necessary repairs and rehabilitation, the contract aims to extend the useful life of the existing infrastructure, potentially reducing the need for more costly replacements in the future. Enhanced facilities can also contribute to better operational efficiency and morale for the personnel utilizing them. The quality of the work performed will be a critical factor in determining the long-term benefits and the extent to which the facilities meet their intended purpose for years to come.

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: N6247319R1237

Offers Received: 2

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: $43,363,415

Exercised Options: $43,363,415

Current Obligation: $43,363,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1215

IDV Type: IDC

Timeline