DoD's $34.5M Reno Primary Standards Lab contract awarded to Turner Construction faces scrutiny over value and competition
Contract Overview
Contract Amount: $34,469,104 ($34.5M)
Contractor: Turner Construction Company
Awarding Agency: Department of Defense
Start Date: 2019-09-25
End Date: 2021-06-02
Contract Duration: 616 days
Daily Burn Rate: $56.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RENO PRIMARY STANDARDS LAB, REDSTONE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $34.5 million to TURNER CONSTRUCTION COMPANY for work described as: RENO PRIMARY STANDARDS LAB, REDSTONE Key points: 1. The contract value of $34.5 million for construction services appears high relative to the benchmark. 2. Despite full and open competition, the pricing effectiveness warrants further investigation. 3. Potential risks include cost overruns and schedule delays common in large construction projects. 4. The sector is commercial and institutional building construction, a competitive but complex field.
Value Assessment
Rating: questionable
The contract value of $34.5 million for a 616-day duration seems high when compared to similar institutional building construction projects. The benchmark of $5.6 million suggests a significant deviation.
Cost Per Unit: $55,956
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the high final award value relative to the benchmark raises questions about the effectiveness of price discovery during the bidding process.
Taxpayer Impact: The significant deviation from the benchmark suggests potential overspending of taxpayer funds.
Public Impact
Taxpayers may have overpaid for construction services due to the high contract value. The project's success impacts the operational readiness of the Reno Primary Standards Lab. The Department of Defense's procurement practices are under review for efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value relative to benchmark
- Potential for cost overruns
- Long project duration
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Spending in this sector can vary widely based on project complexity, location, and market conditions. The benchmark suggests this project may be at the higher end of typical spending.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors in this award, as the contract was awarded to Turner Construction Company. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams monitoring progress, costs, and adherence to specifications to ensure accountability and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value relative to benchmark
- Potential for cost overruns
- Long project duration
- Lack of small business prime participation
Tags
commercial-and-institutional-building-co, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to TURNER CONSTRUCTION COMPANY. RENO PRIMARY STANDARDS LAB, REDSTONE
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 $34.5 million.
What is the period of performance?
Start: 2019-09-25. End: 2021-06-02.
What specific factors contributed to the contract's final award value being significantly higher than the benchmark?
The final award value exceeding the benchmark could be attributed to several factors, including unforeseen site conditions, increased material costs during the contract period, specialized labor requirements, or scope adjustments. A detailed review of change orders and the initial bid analysis would be necessary to pinpoint the exact reasons for the deviation.
How effectively did the full and open competition process ensure competitive pricing for this project?
While full and open competition theoretically maximizes competition, the high award value relative to the benchmark raises concerns. It's possible that the initial estimates were inaccurate, or that the bidding pool, despite being open, did not result in sufficiently competitive bids for the specific requirements of this project. Further investigation into the bidding process and the number of bids received is warranted.
What is the potential risk of cost overruns or schedule delays given the project's duration and value?
With a duration of 616 days and a value of $34.5 million, there is a moderate to high risk of cost overruns and schedule delays inherent in large construction projects. Factors such as weather, supply chain disruptions, labor availability, and unforeseen site conditions can impact both timelines and budgets, even with a firm fixed-price contract.
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: W9127818R0063
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vinci
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: $34,469,104
Exercised Options: $34,469,104
Current Obligation: $34,469,104
Actual Outlays: $3,210,921
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $7,264,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-25
Current End Date: 2021-06-02
Potential End Date: 2021-06-02 00:00:00
Last Modified: 2022-02-24
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