DoD Awards $25.5M Contract for Helicopter Pad Design and Construction to Tutor Perini Corporation
Contract Overview
Contract Amount: $25,547,887 ($25.5M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2011-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 60
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT HELICOPTER PAD.
Plain-Language Summary
Department of Defense obligated $25.5 million to TUTOR PERINI CORPORATION for work described as: DESIGN AND CONSTRUCT HELICOPTER PAD. Key points: 1. The contract value of $25.5 million is for a specific construction project. 2. Tutor Perini Corporation, a large established firm, secured the award. 3. The project involves construction, a sector with varying cost pressures. 4. The firm fixed price contract shifts cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $25.5 million for designing and constructing a helicopter pad appears within a reasonable range for complex construction projects of this nature. Benchmarking against similar specialized construction contracts 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive award process is beneficial for taxpayers, as it aims to secure the best value and price for the government's investment in infrastructure.
Public Impact
Construction projects can impact local economies through job creation and material sourcing. Infrastructure improvements like helicopter pads can enhance military operational capabilities. The duration of the project (1095 days) indicates a significant undertaking with potential for extended public interest or disruption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in construction projects, despite fixed-price contract.
- Long project duration increases exposure to market fluctuations and unforeseen issues.
- Complexity of specialized construction may lead to unexpected challenges.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Firm fixed price contract transfers cost risk to the contractor.
- Experienced contractor likely to manage project effectively.
Sector Analysis
The construction sector is characterized by project-specific bidding and varying levels of competition. Spending benchmarks for similar military construction projects would be necessary for a detailed comparison.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, Tutor Perini Corporation, is a large business.
Oversight & Accountability
Standard oversight for construction projects would involve monitoring progress, quality, and adherence to contract terms. The Department of Defense typically has robust oversight mechanisms for its construction contracts.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (1095 days).
- Specialized construction requirements.
- Potential for unforeseen site conditions.
- Market volatility affecting material costs over project duration.
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 $25.5 million to TUTOR PERINI CORPORATION. DESIGN AND CONSTRUCT HELICOPTER PAD.
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 $25.5 million.
What is the period of performance?
Start: 2008-09-30. End: 2011-09-30.
What is the typical cost range for designing and constructing a military-grade helicopter pad of this size and complexity?
The typical cost range for designing and constructing a military-grade helicopter pad can vary significantly based on location, soil conditions, required load-bearing capacity, lighting, safety features, and integration with existing infrastructure. While $25.5 million is substantial, specialized military requirements can drive costs higher than civilian equivalents. A detailed cost analysis would compare this to similar DoD projects.
What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this?
The primary risks for the government under a firm fixed-price contract for a long-duration project include potential for contractor default if costs escalate unexpectedly, or if the contractor miscalculates the scope or complexity. For the contractor, risks include underestimating costs, material price increases, labor shortages, and unforeseen site conditions, which could lead to reduced profit margins or financial losses.
How effectively does full and open competition ensure value for money in specialized construction contracts?
Full and open competition is generally effective in ensuring value for money by fostering a competitive environment where multiple qualified contractors bid. This pressure incentivizes contractors to offer their most competitive pricing and innovative solutions. However, for highly specialized or technically complex projects, the number of truly capable bidders might be limited, potentially reducing the competitive intensity compared to more common construction types.
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: $25,547,887
Exercised Options: $25,547,887
Current Obligation: $25,547,887
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0008
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2012-05-17
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