Army Awards $168M for JAHVH New Bed Tower Construction to Turner Construction
Contract Overview
Contract Amount: $168,264,458 ($168.3M)
Contractor: Turner Construction Company
Awarding Agency: Department of Defense
Start Date: 2018-01-30
End Date: 2025-06-27
Contract Duration: 2,705 days
Daily Burn Rate: $62.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT JAHVH NEW BED TOWER
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $168.3 million to TURNER CONSTRUCTION COMPANY for work described as: CONSTRUCT JAHVH NEW BED TOWER Key points: 1. Significant investment in healthcare infrastructure. 2. Full and open competition suggests potential for competitive pricing. 3. Firm Fixed Price contract mitigates cost overrun risk for the government. 4. Project duration of 2705 days indicates a large-scale, complex undertaking.
Value Assessment
Rating: good
The contract value of $168.26M for a new hospital bed tower appears reasonable given the scale and complexity of such a project. Benchmarking against similar large-scale healthcare construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing the value of taxpayer funds allocated to this critical healthcare facility.
Public Impact
Enhances healthcare capacity and patient care capabilities. Supports military readiness and veteran healthcare services. Creates jobs in the construction sector and related industries. Long-term asset for the Department of Defense and the community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Scope creep could increase costs despite fixed-price contract.
- Long project duration increases exposure to market fluctuations.
Positive Signals
- Addresses critical healthcare infrastructure needs.
- Competitive award process likely secured favorable pricing.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for large healthcare facilities can vary significantly based on location, size, and specific requirements, but $168M is substantial for a single tower.
Small Business Impact
While the primary award went to a large contractor, opportunities for small businesses likely exist through subcontracting. The contract details do not specify direct small business participation goals.
Oversight & Accountability
The Department of the Army's oversight is crucial for managing the project's timeline, budget, and quality. Regular progress reviews and adherence to contract terms are key accountability measures.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction delays
- Long project duration
- Market volatility impacting material costs
- Coordination challenges with existing facilities
Tags
commercial-and-institutional-building-co, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $168.3 million to TURNER CONSTRUCTION COMPANY. CONSTRUCT JAHVH NEW BED TOWER
Who is the contractor on this award?
The obligated recipient is TURNER CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $168.3 million.
What is the period of performance?
Start: 2018-01-30. End: 2025-06-27.
What is the projected impact of this new bed tower on patient capacity and wait times?
The new bed tower is expected to significantly increase patient capacity, potentially reducing wait times for critical care and specialized services. This expansion aims to improve the overall efficiency of healthcare delivery and enhance the quality of care provided to service members and veterans, directly addressing a key objective of the facility's modernization efforts.
What are the primary risks associated with the long duration of this construction project?
The 2705-day duration presents risks such as potential material price escalations, labor availability issues, and unforeseen site conditions that could impact the firm fixed price. Additionally, extended project timelines can lead to technological obsolescence in design by completion and may require adjustments to meet evolving healthcare standards or operational needs.
How effectively does the firm fixed price contract manage cost risks for the government on this large project?
The firm fixed price contract is highly effective in managing cost risks for the government by shifting the burden of cost overruns to the contractor. This provides budget certainty, as the government's liability is capped at the agreed-upon price, assuming no changes or modifications are introduced to the contract scope.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127817R0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ACS, Actividades DE Construccion Y Servicios, SA
Address: 375 HUDSON ST FL 6, NEW YORK, NY, 10014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $168,264,458
Exercised Options: $168,264,458
Current Obligation: $168,264,458
Actual Outlays: $713,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-01-30
Current End Date: 2025-06-27
Potential End Date: 2025-06-27 00:00:00
Last Modified: 2025-06-03
More Contracts from Turner Construction Company
- Fort Benning Hospital — $395.2M (Department of Defense)
- Design/Build NKO and DCS Facilities - Offutt AFB,NE — $392.2M (Department of Defense)
- Construction — $287.2M (Department of Health and Human Services)
- Construct a Replacement Hospital AT Fort Irwin, CA to Provide NEW Tertiary Care, Emergency Medicine, Clinical Support Activities, and Renovation of Existing Mary Walker Clinic. Vacated Facilities Will BE Demolished. Supporting Facilities Include Utilities, Site Improvements, Parking, Access Roads, Signage and Environmental Protection Measures. the Project Will BE Designed in Accordance With Criteria Prescribed in 000 Unified Facilities Criteria (UFC) 4 -510-01, World Class and Evidence Based Design Principles, 000 Minimum Anti Terrorism Standards for Buildings UFC 4-010-01, Barrier-Free Design in Accordance With DOD Criteria and the Depsecdef Memorandum "access for People With Disabilities ACT Dated October 31 2008, Base Architectural Guidelines, and Applicable Energy Conservation Legislation. Enhanced Commissioning, Operations and Maintenance (O&M) Manuals, Comprehensive Interior Design (CID), and Construction (DOC) Will BE Provided. Demolish 5 Buildings (106,950 Total SF) — $236.2M (Department of Defense)
- 200412!002824!2100!W912DR!* !w912dr04c0049 !A!N! !N! ! !20040920!20070301!006991525!128604506!315922807!n!turner Construction Company !11921 Freedom Drive !reston !ny!20190!50000!001!11!washington !district of Columbia !D.C. !+000076695120!n!n!000076695120!y119!other Administrative & Service Buildings !C2 !construction !000 !* !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !a!u!j!2!004!b! !D!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!y! !N! ! ! ! !0001! ! — $186.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)