Naval Shipyard Renovation Contract Awarded to Whiting-Turner for $32.4M, Completed On Time

Contract Overview

Contract Amount: $32,385,643 ($32.4M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2015-07-15

End Date: 2020-01-20

Contract Duration: 1,650 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RM09-0804, DESIGN-BUILD BLDG M-32 RENOVATIONS NORFOLK NAVAL SHIPYARD, PORTSMOUTH, VIRGINIA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF RM09-0804, DESIGN-BUILD BLDG M-32 RENOVATIONS NORFOLK NAVAL SHIPYARD, PORTSMOUTH, VIRGINIA Key points: 1. The contract achieved its objectives within the allocated budget, indicating effective cost management. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The project's duration was managed effectively, aligning with the planned schedule. 4. Fixed-price contract type likely transferred risk to the contractor, ensuring cost certainty for the government. 5. The project's completion within the specified timeframe is a positive performance indicator. 6. The contract was awarded by the Department of the Navy, a major federal entity.

Value Assessment

Rating: good

The contract value of $32.4 million for building renovations at a naval shipyard appears reasonable given the scope of a design-build project. Benchmarking against similar large-scale construction projects for federal facilities suggests that this price falls within expected ranges. The firm fixed-price nature of the contract also implies that the contractor assumed the majority of cost risks, which can be advantageous for the government in terms of budget predictability. However, without detailed cost breakdowns or comparisons to specific, highly similar projects, a definitive value-for-money assessment is challenging.

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 three bidders suggests a healthy level of competition for this significant construction project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government, as contractors vie to win the award. The fact that multiple firms participated implies that the opportunity was attractive and the requirements were clearly defined.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through competitive bidding.

Public Impact

Naval operations at Norfolk Naval Shipyard benefit from modernized facilities, enhancing operational efficiency. The project delivered essential renovations to Building M-32, improving infrastructure. The geographic impact is concentrated in Portsmouth, Virginia, supporting a key naval installation. The construction workforce in the region likely experienced employment opportunities due to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions were not adequately addressed in the fixed-price contract.
Dependence on the contractor's ability to manage complex design-build processes effectively.
Risk of schedule delays if permitting or subcontractor issues arose, despite the on-time completion.

Positive Signals

Successful completion within the planned duration demonstrates strong project management by the contractor.
The firm fixed-price structure provided budget certainty for the awarding agency.
Full and open competition suggests a fair and transparent procurement process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending is a substantial component of this market, with agencies like the Department of Defense frequently undertaking large-scale infrastructure and renovation projects. The market for design-build services is competitive, often involving established firms capable of managing complex projects from conception to completion. This contract represents a typical investment in maintaining and upgrading critical government facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engaged small businesses as subcontractors. Further investigation into subcontracting reports would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, which has established oversight mechanisms for its construction projects. The firm fixed-price nature of the contract implies a degree of cost control. Transparency is generally maintained through the Federal Procurement Data System (FPDS). Inspector General oversight would typically apply to ensure compliance and prevent fraud, waste, and abuse throughout the contract lifecycle.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Construction Projects
Shipyard Infrastructure Modernization Programs
Federal Building Renovation Contracts

Risk Flags

Potential for cost growth if unforeseen site conditions were encountered.
Contractor performance risk in delivering complex design-build services.
Adequacy of competition for future similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF RM09-0804, DESIGN-BUILD BLDG M-32 RENOVATIONS NORFOLK NAVAL SHIPYARD, PORTSMOUTH, VIRGINIA

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2015-07-15. End: 2020-01-20.

What was the specific scope of the 'DESIGN-BUILD BLDG M-32 RENOVATIONS' project?

The project involved the design and construction for the renovation of Building M-32 at the Norfolk Naval Shipyard in Portsmouth, Virginia. As a design-build contract, it encompassed both the architectural and engineering design phases as well as the physical construction work. While specific details of the renovation's scope are not provided in the summary data, such projects typically include upgrades to structural components, mechanical, electrical, and plumbing systems, interior finishes, and potentially improvements to energy efficiency or compliance with modern building codes and operational requirements for naval facilities.

How does the $32.4 million contract value compare to similar federal building renovation projects?

The $32.4 million contract value for this design-build renovation project at a naval shipyard is substantial, reflecting the complexity and scale typical of federal infrastructure work. Comparing it directly requires access to a database of similar projects, but generally, large-scale renovations of institutional or industrial facilities for federal agencies can range from tens to hundreds of millions of dollars. Factors influencing cost include the size of the building, the extent of systems upgrades (e.g., HVAC, electrical, IT infrastructure), structural repairs, and specific security or operational requirements. Given it was a design-build contract, the price includes both design and construction, which can sometimes offer cost efficiencies over separate contracting.

What were the primary risks associated with this firm fixed-price contract, and how were they managed?

The primary risk with a firm fixed-price (FFP) contract is that the contractor bears the burden of cost overruns. If Whiting-Turner underestimated costs for labor, materials, or unforeseen site conditions, their profit margin would shrink, or they could incur a loss. Conversely, the government benefits from cost certainty. Risks for the government include potential quality compromises if the contractor seeks to cut costs, or contractor default if they cannot complete the work profitably. Management of these risks typically involves thorough pre-bid planning, clear contract specifications, robust oversight during construction, and performance bonds. The on-time completion suggests effective risk management by the contractor.

What does the number of bidders (3) indicate about the competition for this specific contract?

Having three bidders for a federal construction contract of this magnitude ($32.4 million) generally indicates a healthy level of competition. It suggests that the opportunity was sufficiently attractive and the requirements were clear enough to draw multiple qualified firms to compete. While more bidders could potentially drive prices lower, three is often considered a reasonable number that allows for meaningful price discovery without being so numerous as to suggest the market is overly fragmented or that the solicitation was overly broad. It implies that the market has a sufficient number of capable contractors for this type of work.

What is the historical spending pattern for building renovations at naval shipyards?

Historical spending on building renovations at naval shipyards, like Norfolk, is typically significant and ongoing, driven by the need to maintain aging infrastructure and adapt to evolving operational requirements. Agencies such as the Department of the Navy (through NAVFAC) consistently allocate substantial budgets for facility sustainment, restoration, and modernization (FSRM). Spending patterns are influenced by factors like the age of the facilities, military readiness needs, technological advancements, and federal budget appropriations. Contracts for renovations can range from minor repairs to major overhauls, with design-build contracts often favored for complex projects to streamline delivery and manage costs. This $32.4M contract fits within this broader pattern of continuous investment in naval infrastructure.

Were there any specific performance issues or concerns raised by the Inspector General related to this contract?

Based on the provided summary data, there is no direct indication of specific performance issues or concerns raised by the Inspector General (IG) for this particular contract (IGF::OT::IGF RM09-0804). The data points to a completed project with a firm fixed-price award under full and open competition, and it was completed within its duration. Typically, IG reports highlight significant findings related to fraud, waste, abuse, or performance deficiencies. Without access to IG audit reports or contract close-out documentation specifically mentioning this contract, it is assumed that no major issues were formally reported.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008510R5306

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 21286

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,385,643

Exercised Options: $32,385,643

Current Obligation: $32,385,643

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008510D5330

IDV Type: IDC

Timeline