DoD Awards $392M Design/Build Contract for Offutt AFB Facilities to Turner Construction
Contract Overview
Contract Amount: $392,152,823 ($392.2M)
Contractor: Turner Construction Company
Awarding Agency: Department of Defense
Start Date: 2023-06-27
End Date: 2028-01-02
Contract Duration: 1,650 days
Daily Burn Rate: $237.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD NKO AND DCS FACILITIES - OFFUTT AFB,NE
Place of Performance
Location: BELLEVUE, SARPY County, NEBRASKA, 68005
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $392.2 million to TURNER CONSTRUCTION COMPANY for work described as: DESIGN/BUILD NKO AND DCS FACILITIES - OFFUTT AFB,NE Key points: 1. The contract value of $392.2 million is substantial, indicating a significant infrastructure project. 2. Turner Construction Company, a large firm, secured this award, suggesting a competitive but potentially consolidated market for large-scale federal construction. 3. The project carries risks associated with large, complex design-build initiatives, including potential cost overruns and schedule delays. 4. The sector is Commercial and Institutional Building Construction, a vital area for federal infrastructure development.
Value Assessment
Rating: good
The contract value of $392.2 million appears reasonable for a large-scale design/build project of this nature. Benchmarking against similar DoD construction contracts would provide a more precise assessment, but the fixed-price nature suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this significant infrastructure investment.
Public Impact
Modernization of critical Air Force infrastructure at Offutt AFB. Potential for job creation in Nebraska and surrounding areas during the construction phase. Ensures enhanced operational capabilities for the Department of Defense. Long-term asset for national security and military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for scope creep in design-build projects.
- Long project duration (over 4 years) increases exposure to economic fluctuations.
- Reliance on a single large contractor for a significant project.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps control costs.
- Experienced contractor likely involved.
- Project supports critical national defense infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar large-scale military facility construction projects would be necessary for a precise comparison, but the value suggests a major undertaking.
Small Business Impact
The award went to Turner Construction Company, a large business. There is no indication in the provided data that small businesses were specifically targeted or subcontracted for this particular award, which is common for large prime contracts.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will be critical throughout the design and construction phases to ensure adherence to specifications, budget, and timeline, especially given the project's scale and duration.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Design/Build delivery method.
- Complex facility requirements.
- Potential for cost overruns despite fixed price.
- Reliance on a single large prime contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, ne, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $392.2 million to TURNER CONSTRUCTION COMPANY. DESIGN/BUILD NKO AND DCS FACILITIES - OFFUTT AFB,NE
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 $392.2 million.
What is the period of performance?
Start: 2023-06-27. End: 2028-01-02.
What is the estimated cost savings achieved through the full and open competition process for this design/build contract?
Quantifying exact savings from competition is challenging without pre-bid estimates or alternative proposals. However, full and open competition generally drives down prices by fostering a competitive environment where multiple contractors vie for the award. This process likely resulted in a price significantly lower than a sole-source or limited competition scenario, maximizing taxpayer value.
What are the primary risks associated with the 1650-day duration of this construction project, and how are they being mitigated?
The extended duration presents risks such as material price escalation, labor availability fluctuations, and potential design obsolescence. Mitigation strategies likely include robust contract clauses addressing price adjustments (if any), detailed scheduling and resource planning, and incorporating flexibility into the design to accommodate future technological changes. The firm fixed-price nature also incentivizes the contractor to manage these risks proactively.
How does the 'design/build' delivery method impact the overall effectiveness and cost-efficiency of this facility construction compared to traditional design-bid-build?
The design/build method can enhance effectiveness and cost-efficiency by consolidating design and construction under one entity, streamlining communication and reducing potential conflicts. This integrated approach can accelerate project delivery and allow for early contractor input on constructability, potentially leading to cost savings and a more optimized final product compared to the sequential nature of design-bid-build.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9128F22R0004
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ACS, Actividades DE Construccion Y Servicios, SA
Address: 66 HUDSON BLVD E FL 36, NEW YORK, NY, 10001
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: $392,152,823
Exercised Options: $392,152,823
Current Obligation: $392,152,823
Actual Outlays: $30,854,958
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $235,400,449
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-27
Current End Date: 2028-01-02
Potential End Date: 2028-01-02 00:00:00
Last Modified: 2025-11-05
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