Army Awards $127M Construction Contract to Tutor Perini for Iraq Facilities
Contract Overview
Contract Amount: $127,187,672 ($127.2M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-28
End Date: 2009-03-31
Contract Duration: 1,280 days
Daily Burn Rate: $99.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200512!501265!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0008 !A!N! !N!0003 ! !20050928!20061231!006954432!006954432!006954432!N!PERINI CORPORATION !73 MOUNT WAYTE AVE !FRAMINGHAM !MA!01701!00000! !IZ!* !* !IRAQ !+000119283840!N!N!000000000000!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!J!2!001!B! !Z!N!A! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $127.2 million to TUTOR PERINI CORPORATION for work described as: 200512!501265!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0008 !A!N! !N!0003 ! !20050928!20061231!006954432!006954432!006954432!N!PERINI CORPORATION !73 MOUNT WAYTE AVE !FRAMINGHAM !MA!01701!00000! !IZ!* !* … Key points: 1. The contract, awarded in 2005, is for "OTHER INDUSTRIAL BUILDINGS" in Iraq. 2. Tutor Perini Corporation, a large construction firm, secured this significant award. 3. The contract type is 'FIXED PRICE' with a duration of 1280 days. 4. Competition was 'FULL AND OPEN', suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract value of $127,187,672 is substantial. Without specific per-unit cost data or benchmarks for similar Iraq construction projects from 2005, a precise value assessment is difficult. However, the fixed-price nature suggests an attempt 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 multiple bidders were allowed. This method generally promotes price discovery and competitive pricing, though the specific impact on this contract's final price is not detailed.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a more efficient price compared to a sole-source or limited competition scenario.
Public Impact
Supports military operations and infrastructure development in Iraq. Provides employment opportunities through the prime contractor and subcontractors. Contributes to the reconstruction and stabilization efforts in the region. Highlights the significant investment in logistical and operational support during the period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1280 days) could lead to cost overruns if not managed effectively.
- Fixed-price contracts can shift risk to the contractor, potentially leading to quality compromises if margins are too tight.
- Geopolitical instability in Iraq during the contract period posed significant risks.
Positive Signals
- Full and open competition generally leads to better pricing.
- Award to a large, established contractor like Tutor Perini suggests capability for complex projects.
- Fixed-price contract provides cost certainty for the government.
Sector Analysis
This contract falls under the Construction sector, specifically Commercial and Institutional Building Construction. Spending in this area, especially for overseas military installations, can fluctuate significantly based on geopolitical events and operational needs.
Small Business Impact
While the prime contractor is Tutor Perini Corporation, a large entity, the contract details do not specify the extent of small business participation. Large federal construction contracts often involve subcontracting, which can provide opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of Defense, Army Corps of Engineers. Oversight would typically involve project management, quality assurance, and financial monitoring to ensure contract compliance and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration exceeds typical project timelines, increasing risk of cost escalation.
- Fixed-price nature can incentivize cutting corners on quality if not rigorously overseen.
- Operating environment in Iraq presents inherent security and logistical risks.
- Lack of detailed cost breakdown makes precise value-for-money assessment challenging.
- Potential for cost overruns due to unforeseen circumstances in a complex operational theater.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $127.2 million to TUTOR PERINI CORPORATION. 200512!501265!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0008 !A!N! !N!0003 ! !20050928!20061231!006954432!006954432!006954432!N!PERINI CORPORATION !73 MOUNT WAYTE AVE !FRAMINGHAM !MA!01701!00000! !IZ!* !* !IRAQ !+000119283840!N!N!000000000000!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!S! ! ! !202
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 $127.2 million.
What is the period of performance?
Start: 2005-09-28. End: 2009-03-31.
What was the final cost compared to the initial award amount, and were there any significant change orders?
The provided data shows an award amount of $127,187,672. Without access to contract modification history or final delivery order details, it's impossible to determine the final cost or the impact of any change orders. This information is crucial for a complete value assessment.
What specific risks were identified during the contract performance in Iraq, and how were they mitigated?
Operating in Iraq during 2005-2009 presented numerous risks, including security threats, logistical challenges, and political instability. Mitigation strategies likely involved robust security protocols, adaptable logistical planning, and close coordination with military and local authorities.
How effective was the 'FULL AND OPEN COMPETITION' in achieving the government's objectives for this project?
Full and open competition generally aims to secure the best value through a wide range of bids. Its effectiveness here would be measured by whether the chosen contractor delivered the required facilities on time, within budget, and to the specified quality standards, while also demonstrating competitive pricing.
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
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 73 MT WAYTE AVENUE, FRAMINGHAM, MA, 01701
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,339,430
Exercised Options: $1,339,430
Current Obligation: $127,187,672
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0008
IDV Type: IDC
Timeline
Start Date: 2005-09-28
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2021-02-26
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