Navy awards $52.2M contract for Third Fleet MOC construction, highlighting significant investment in fleet readiness

Contract Overview

Contract Amount: $52,197,741 ($52.2M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2025-12-30

End Date: 2030-05-29

Contract Duration: 1,611 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM19-0589 FCTCSD-60 IPT - THIRD FLEET MOC IN C60 AT NBPL

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: RM19-0589 FCTCSD-60 IPT - THIRD FLEET MOC IN C60 AT NBPL Key points: 1. Contract value represents a substantial investment in critical naval infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this project. 3. Project duration indicates a long-term commitment to facility development. 4. The contract's focus on construction aligns with broader defense infrastructure modernization efforts. 5. Geographic concentration in California may impact regional construction labor markets. 6. Fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $52.2 million for the Third Fleet MOC construction appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional building projects within the Department of Defense suggests that pricing is within expected ranges. The firm-fixed-price structure provides a degree of cost control for the government, although the final cost will depend on the contractor's efficiency and management of resources over the project's lifespan.

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 two bidders identified, the level of competition was moderate. While more bidders could potentially drive prices lower, two offers suggest that the market has sufficient interest and capability for this type of construction project. The government likely received competitive proposals, but further analysis of the bid spread would be needed to fully assess price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple firms to bid, which can lead to more competitive pricing and better value. A moderate number of bidders, like two in this case, still provides a basis for price comparison and negotiation.

Public Impact

The primary beneficiaries are the U.S. Navy's Third Fleet, which will gain enhanced operational command and control capabilities. The contract will deliver a new or upgraded Marine Operations Center (MOC) facility. The project's geographic impact is concentrated in San Diego, California, a key naval hub. This construction project is likely to create numerous jobs for skilled tradespeople and construction workers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of schedule delays impacting operational readiness timelines.
Dependency on the availability of specialized construction materials and labor.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bidding process.
Experienced contractor likely selected based on qualifications.
Project duration allows for thorough planning and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of the Navy is a major client for construction services, frequently awarding contracts for military bases, training facilities, and operational centers. Spending in this sector is often driven by defense modernization, infrastructure upgrades, and readiness requirements. Comparable spending benchmarks would involve analyzing other large-scale institutional or government building projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Whiting-Turner Contracting Company, is likely a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem. Further investigation into subcontracting plans would clarify the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with specifications and timelines. Accountability measures are embedded within the firm-fixed-price contract, holding the contractor responsible for delivering the project within the agreed-upon cost and schedule. Transparency is typically maintained through contract award databases and reporting requirements, though specific oversight mechanisms like regular progress reviews and site inspections are standard practice.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
Fleet Readiness Infrastructure Modernization
Base Realignment and Closure (BRAC) Facilities

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of cost escalation due to unforeseen site conditions or market fluctuations.
Dependency on specialized labor and material availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to WHITING-TURNER CONTRACTING COMPANY, THE. RM19-0589 FCTCSD-60 IPT - THIRD FLEET MOC IN C60 AT NBPL

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 $52.2 million.

What is the period of performance?

Start: 2025-12-30. End: 2030-05-29.

What is the track record of Whiting-Turner Contracting Company with the Department of the Navy?

Whiting-Turner Contracting Company has a significant history of performing construction work for the Department of Defense, including the Navy. Their portfolio often includes large-scale institutional and complex building projects. Analyzing their past performance on similar contracts, particularly those involving military facilities or command centers, would provide insight into their reliability, quality of work, and adherence to schedule and budget. Past performance evaluations and contract close-out data from the Federal Procurement Data System (FPDS) or similar databases would be crucial for a comprehensive assessment. Their extensive experience suggests a strong capability to handle projects of this magnitude.

How does the awarded value compare to similar Third Fleet MOC construction projects?

Direct comparison of the $52.2 million award for the Third Fleet MOC construction to identical projects is challenging due to the unique nature of military facilities and specific operational requirements. However, benchmarking against other large-scale institutional building projects awarded by the Navy or other DoD components in similar geographic regions (like Southern California) can provide context. Factors such as square footage, complexity of systems (e.g., IT infrastructure, security), and duration of construction significantly influence cost. If comparable projects of similar size and complexity were awarded in the recent past, their contract values could serve as a benchmark. The firm-fixed-price nature of this award suggests a defined scope, which aids in value assessment.

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

The primary risks associated with this firm-fixed-price construction contract include potential cost overruns if unforeseen site conditions or material price escalations occur beyond what is accounted for in the fixed price. Schedule delays are another significant risk, stemming from weather, labor shortages, supply chain disruptions, or contractor performance issues, which could impact the Navy's operational readiness. Technical risks related to integrating complex command and control systems within the new facility also exist. Furthermore, the concentration of work in a specific geographic area could lead to labor availability issues or increased competition for resources, potentially impacting both cost and schedule. Effective risk mitigation strategies by the contractor and diligent oversight by the Navy are crucial.

How effective is full and open competition in ensuring value for this type of defense construction?

Full and open competition is generally considered the most effective method for ensuring value in defense construction contracts. It maximizes the pool of potential bidders, fostering a competitive environment that encourages lower pricing and higher quality proposals. For a project like the Third Fleet MOC construction, allowing all responsible sources to compete increases the likelihood that the Navy will receive proposals reflecting fair market value. While only two bids were received in this instance, the process itself provides a basis for comparison and negotiation. The effectiveness is further enhanced when the solicitation clearly defines requirements and evaluation criteria, allowing the government to select the best value proposal, not just the lowest price.

What are the historical spending patterns for similar naval infrastructure projects in California?

Historical spending on similar naval infrastructure projects in California, particularly in major hubs like San Diego, has been substantial and consistent, reflecting the state's critical role in U.S. naval operations. The Department of the Navy frequently invests in upgrading and expanding facilities to support fleet readiness, technological advancements, and personnel housing. Spending patterns often show significant outlays for command centers, maintenance facilities, piers, and barracks. These projects typically involve large contract values, often in the tens to hundreds of millions of dollars, and are frequently awarded through competitive bidding processes. Factors influencing spending include geopolitical needs, aging infrastructure requiring replacement, and the introduction of new naval platforms.

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: N6247325RF520

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: $52,634,492

Exercised Options: $52,197,741

Current Obligation: $52,197,741

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