Tutor Perini Corp. awarded $74M for Andrews AFB runway construction, exceeding initial estimates

Contract Overview

Contract Amount: $73,959,424 ($74.0M)

Contractor: Tutor Perini Corporation

Awarding Agency: Department of Defense

Start Date: 2010-04-26

End Date: 2012-10-08

Contract Duration: 896 days

Daily Burn Rate: $82.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEST RUNWAY - ANDREWS AFB, MD

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $74.0 million to TUTOR PERINI CORPORATION for work described as: WEST RUNWAY - ANDREWS AFB, MD Key points: 1. The contract value of $74 million represents a significant investment in critical infrastructure. 2. Competition dynamics for this project appear robust, with 7 bidders vying for the award. 3. The firm-fixed-price contract type suggests a degree of cost certainty for the government. 4. Performance duration of 896 days indicates a substantial construction undertaking. 5. The project's focus on runway construction highlights its importance to air base operations. 6. The contract was awarded by the Department of the Air Force, a key defense entity.

Value Assessment

Rating: fair

The final award of $74 million for the Andrews AFB runway project is difficult to benchmark without specific details on the scope of work and initial estimates. However, large-scale construction projects of this nature often face cost escalations due to unforeseen site conditions, material price fluctuations, and design modifications. The firm-fixed-price nature of the contract aims to mitigate some of these risks for the government, but the final cost should be compared against similar runway construction projects at other military installations to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this significant infrastructure project. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, potentially benefiting the government.

Taxpayer Impact: The full and open competition for this project likely resulted in a more favorable price for taxpayers by encouraging multiple contractors to offer their best terms and pricing to secure the award.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Andrews Air Force Base, ensuring continued flight readiness. The project delivers essential infrastructure improvements to a key military installation. The geographic impact is localized to Prince George's County, Maryland, with potential indirect economic benefits to the surrounding region. The construction workforce, likely including skilled trades and laborers, will be directly impacted by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial scope was underestimated, despite firm-fixed-price.
Risk of schedule delays impacting base operations if construction encounters significant challenges.
Quality control during construction is crucial to ensure long-term runway integrity.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process.
Award to a large, established contractor like Tutor Perini Corporation may indicate capacity for complex projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale civil engineering and infrastructure development for a government entity. The market for military construction is substantial, driven by the Department of Defense's continuous need to maintain and upgrade its facilities. Comparable spending benchmarks would involve analyzing other large airfield construction or renovation projects awarded by federal agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the scale and complexity of runway construction, it is common for prime contracts to be awarded to large businesses. However, the prime contractor, Tutor Perini Corporation, may engage small businesses as subcontractors for specialized services or materials, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be limited.

Related Government Programs

Military Construction Projects
Airfield Pavement and Lighting
Federal Infrastructure Development
Department of Defense Facilities Modernization

Risk Flags

Potential for cost escalation despite firm-fixed-price.
Risk of schedule delays impacting operational readiness.
Need for rigorous quality assurance during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.0 million to TUTOR PERINI CORPORATION. WEST RUNWAY - ANDREWS AFB, MD

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 Air Force).

What is the total obligated amount?

The obligated amount is $74.0 million.

What is the period of performance?

Start: 2010-04-26. End: 2012-10-08.

What was the original estimated cost for the Andrews AFB runway project, and how does the final award amount compare?

The provided data indicates a final award amount of $73,959,424.10. Without access to the original solicitation documents or pre-award estimates, it is impossible to definitively state the original estimated cost. However, the difference between an initial estimate and the final award can highlight potential issues such as scope creep, unforeseen site conditions, or market fluctuations in material and labor costs. For a comprehensive analysis, comparing this award to similar runway construction projects at other military bases would be beneficial to understand if the final cost is within expected ranges for such undertakings.

What specific runway components or upgrades were included in this $74 million contract?

The provided data identifies the contract as 'WEST RUNWAY - ANDREWS AFB, MD' and categorizes the North American Industry Classification System (NAICS) code as 236220, which pertains to Commercial and Institutional Building Construction. While this indicates the project involves construction, the specific details of the runway components and upgrades (e.g., pavement resurfacing, lighting system installation, drainage improvements, expansion) are not explicitly stated in the abbreviated data. A thorough review of the contract statement of work would be necessary to ascertain the precise scope of work and the specific upgrades delivered under this $74 million award.

How does the performance duration of 896 days (approximately 2.5 years) compare to typical runway construction projects of this scale?

A performance duration of 896 days, or approximately 2.5 years, for a major runway construction or rehabilitation project is generally within the expected timeframe for large-scale infrastructure undertakings. Factors influencing duration include the complexity of the work, the size of the runway, environmental considerations, and the need to minimize disruption to base operations, often requiring phased construction. For comparison, similar large-scale airfield projects at military installations can range from 18 months to over 3 years, depending on the scope and specific site challenges. The firm-fixed-price nature of this contract suggests that the duration was a key consideration in the bidding process and cost estimation.

What is Tutor Perini Corporation's track record with large federal construction contracts, particularly for the Department of Defense?

Tutor Perini Corporation is a large, well-established construction company with a significant history of undertaking complex projects for both government and private sector clients. They have a substantial portfolio of federal contracts, including numerous projects for the Department of Defense, covering a wide range of construction types, from military bases and infrastructure to healthcare facilities and research centers. Their experience with large-scale projects suggests they possess the capacity, resources, and expertise to manage contracts of this magnitude. A detailed review of their past performance on similar defense contracts would provide further insight into their reliability and execution capabilities.

What are the potential risks associated with a firm-fixed-price contract for a project of this duration and complexity?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they can introduce risks for the contractor, which may be indirectly borne by the government if not managed effectively. For a project of this scale and duration (896 days), potential risks for the contractor include underestimating material costs due to market volatility, labor shortages, or unforeseen site conditions that lead to increased expenses. If the contractor miscalculates these factors, they may seek change orders or face financial strain, potentially impacting project quality or schedule. The government's risk is primarily that the contractor may cut corners to maintain profitability, or that the initial price, while fixed, was too high due to aggressive bidding or inadequate government cost estimation.

How does the competition level (7 bidders) influence the likelihood of achieving value for money in this contract?

A competition level of 7 bidders for a contract of this size and nature is generally considered robust and is a positive indicator for achieving value for money. A larger pool of bidders typically intensifies competition, driving down prices as contractors strive to offer their most competitive bids to win the contract. It also increases the likelihood that the government will receive a wider range of technical approaches and innovative solutions. While a high number of bidders is a good sign, the ultimate value for money also depends on the thoroughness of the government's evaluation process, the clarity of the solicitation requirements, and the contractor's ability to execute the project efficiently and effectively within the agreed-upon terms.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA300206R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 73 MOUNT WAYTE AVE., FRAMINGHAM, MA, 01702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $73,959,424

Exercised Options: $73,959,424

Current Obligation: $73,959,424

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300208D0011

IDV Type: IDC

Timeline