DoD Awards $72.6M Construction Contract to Tutor Perini Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $72,563,195 ($72.6M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2004-07-09
End Date: 2009-01-29
Contract Duration: 1,665 days
Daily Burn Rate: $43.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 60
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Plain-Language Summary
Department of Defense obligated $72.6 million to TUTOR PERINI CORPORATION for work described as: Key points: 1. The contract value of $72.6 million falls within a typical range for large-scale construction projects. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The project duration of 1665 days indicates a significant, long-term undertaking. 4. The fixed-price contract type shifts risk to the contractor, Tutor Perini Corporation.
Value Assessment
Rating: good
The award amount of $72.6 million for a 1665-day construction project appears reasonable given the scope. Benchmarking against similar large-scale commercial and institutional building construction contracts awarded by the Department of Defense would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were allowed to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to benefit taxpayers by ensuring the government receives fair market value for the construction services.
Public Impact
Taxpayers benefit from competitive bidding on large infrastructure projects. The Department of the Army's investment in construction supports military readiness and infrastructure. The long project duration suggests a substantial construction effort with potential economic impact in the local area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration could lead to cost overruns if not managed effectively.
- Fixed-price contracts can be disadvantageous if unforeseen issues arise that significantly increase contractor costs.
Positive Signals
- Full and open competition likely secured a competitive price.
- Fixed-price contract shifts cost risk to the contractor.
- The project is awarded to a known entity, Tutor Perini Corporation.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector by the Department of Defense is substantial, supporting infrastructure development and maintenance for military installations. Benchmarks for similar projects vary widely based on scope, location, and complexity.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, it is unlikely that small businesses were directly involved as prime contractors, though they may participate as subcontractors.
Oversight & Accountability
Oversight for this contract would typically involve contract officers, contracting specialists, and potentially contracting officer's representatives (CORs) to monitor performance, ensure compliance with terms, and manage payments. The fixed-price nature requires careful monitoring of progress and adherence to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (1665 days).
- Fixed-price contract type.
- Potential for material cost escalation over the project's lifespan.
- Contractor's financial stability and past performance on similar large-scale projects.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.6 million to TUTOR PERINI CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $72.6 million.
What is the period of performance?
Start: 2004-07-09. End: 2009-01-29.
What specific type of construction is this contract for, and how does its scope compare to typical DoD construction projects of similar value?
The contract is for Commercial and Institutional Building Construction. Without more specific details on the project's scope (e.g., barracks, administrative facilities, training centers), a direct comparison is difficult. However, $72.6 million for a 1665-day project suggests a significant undertaking, potentially a large barracks complex, headquarters building, or specialized facility requiring extensive planning and execution.
What are the primary risks associated with a fixed-price contract for a long-duration construction project like this?
The primary risk with a fixed-price contract for a long-duration project is the potential for unforeseen cost increases due to factors like material price volatility, labor shortages, or unexpected site conditions. If these occur, the contractor bears the financial burden, which could lead to quality compromises or contractor default if not managed proactively. The government's risk is primarily related to potential delays or contractor performance issues.
How effectively does the 'full and open competition' method ensure value for money in large construction contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in large construction contracts. It allows a wide range of qualified contractors to compete, driving down prices through market forces. This process encourages bidders to offer their most competitive terms and pricing, reducing the likelihood of overpayment and increasing the probability of selecting a contractor capable of delivering the required quality and schedule.
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
Offers Received: 60
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 73 MT WAYTE AVENUE, FRAMINGHAM, MA, 05
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0008
IDV Type: IDC
Timeline
Start Date: 2004-07-09
Current End Date: 2009-01-29
Potential End Date: 2009-01-29 00:00:00
Last Modified: 2008-12-07
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