DoD's $157M Embassy Housing Project Awarded to Tutor Perini Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $157,187,945 ($157.2M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2013-03-31
Contract Duration: 1,644 days
Daily Burn Rate: $95.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 60
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD EMBASSY HOUSING
Plain-Language Summary
Department of Defense obligated $157.2 million to TUTOR PERINI CORPORATION for work described as: DESIGN/BUILD EMBASSY HOUSING Key points: 1. The contract value of $157.19 million for embassy housing design/build is substantial. 2. Tutor Perini Corporation, a large construction firm, secured this award. 3. The project falls within the Commercial and Institutional Building Construction sector. 4. The use of Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $157.19 million is significant for embassy housing. Benchmarking against similar large-scale construction projects is difficult without more specific cost breakdowns, but the scale suggests a complex undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation of potential bidders. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and improves quality.
Public Impact
Ensures adequate housing for diplomatic personnel abroad. Supports the construction industry and associated supply chains. Potential for job creation in the construction sector. Contributes to the physical security and functionality of U.S. embassies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 4 years) may lead to cost overruns or scope creep.
- Firm Fixed Price contracts can be risky if unforeseen issues arise during construction.
- Reliance on a single large contractor for a critical infrastructure project.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm Fixed Price contract type helps manage cost certainty.
- Project addresses a critical need for diplomatic housing.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, which is a significant area of government spending. Benchmarks for large-scale construction projects of this nature vary widely based on location, complexity, and specific requirements.
Small Business Impact
While the prime contractor is Tutor Perini Corporation, a large entity, the contract details do not specify any small business subcontracting goals or achievements. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to specifications, timelines, and budget, with potential for audits and reviews.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is lengthy.
- Potential for cost overruns due to fixed price.
- Lack of specific small business participation details.
- Complexity of design/build for critical infrastructure.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $157.2 million to TUTOR PERINI CORPORATION. DESIGN/BUILD EMBASSY HOUSING
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 $157.2 million.
What is the period of performance?
Start: 2008-09-29. End: 2013-03-31.
What was the basis for selecting Tutor Perini Corporation over other potential bidders, considering the full and open competition?
The selection likely hinged on a combination of factors evaluated during the full and open competition process. This typically includes the proposed price, technical approach, past performance, and adherence to contract requirements. The government would have assessed which offer provided the best overall value, balancing cost with the contractor's ability to meet the project's complex design and construction demands for embassy housing.
What are the primary risks associated with a Firm Fixed Price contract for a long-duration design/build project like this?
The primary risk with a Firm Fixed Price contract for a long-duration design/build project is that the contractor assumes most of the cost risk. If unforeseen issues arise during design or construction (e.g., material cost increases, site conditions, design changes), the contractor may incur significant losses unless contract modifications are negotiated. This can sometimes lead to disputes or a contractor seeking to minimize costs, potentially impacting quality if not closely monitored.
How effectively does this contract address the long-term needs for secure and functional embassy housing?
The contract's effectiveness in addressing long-term needs depends on the quality of the design and construction executed by Tutor Perini Corporation. The 'design/build' nature allows for integrated planning, potentially leading to more efficient and cohesive facilities. However, the true measure of effectiveness will be in the durability, security, and functionality of the completed housing over its lifecycle, which requires robust government oversight and quality assurance throughout the project.
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
Solicitation ID: W912ER04R0004
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
Financial Breakdown
Contract Ceiling: $171,499,563
Exercised Options: $157,187,945
Current Obligation: $157,187,945
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0008
IDV Type: IDC
Timeline
Start Date: 2008-09-29
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2013-09-13
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