DHS awards $28M dormitory construction contract to Whiting-Turner under full and open competition

Contract Overview

Contract Amount: $28,014,348 ($28.0M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-08

End Date: 2023-03-28

Contract Duration: 778 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL ARCHITECT/ENGINEER AND CONSTRUCTION SERVICES AND MATERIALS REQUIRED FOR THE SITE PREPARATION, DESIGN AND CONSTRUCTION OF A NEW DORMITORY FACILITY.

Place of Performance

Location: ARTESIA, EDDY County, NEW MEXICO, 88210

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.0 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: THE CONTRACTOR SHALL PROVIDE ALL ARCHITECT/ENGINEER AND CONSTRUCTION SERVICES AND MATERIALS REQUIRED FOR THE SITE PREPARATION, DESIGN AND CONSTRUCTION OF A NEW DORMITORY FACILITY. Key points: 1. Contract awarded for comprehensive architect/engineer and construction services for a new dormitory. 2. The contract utilizes a Firm Fixed Price (FFP) structure, indicating price certainty. 3. Delivery Order award suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The project is located in New Mexico, impacting the local construction market. 5. The duration of 778 days suggests a significant construction timeline. 6. The contract was awarded via full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of $28 million for a new dormitory facility appears within a reasonable range for a project of this scale. Benchmarking against similar institutional building construction projects would provide a more precise value-for-money assessment. The Firm Fixed Price (FFP) award suggests the contractor has committed to a set price, which can be advantageous for the government if costs are managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar square footage and amenities, a definitive value 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 a bid. The presence of two bids (no: 2) suggests a moderate level of competition for this specific delivery order. While two bidders participated, a higher number would typically indicate more robust price discovery and potentially lower prices for the government. The process ensures a fair opportunity for various contractors to compete for federal work.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors. The presence of multiple bidders helps ensure that the government is not overpaying for services.

Public Impact

Federal law enforcement personnel will benefit from new dormitory accommodations at the Federal Law Enforcement Training Center. The project delivers essential construction services, including site preparation, design, and building of a new dormitory. The geographic impact is concentrated in New Mexico, potentially creating local construction jobs and economic activity. The construction phase will likely involve a workforce of skilled tradespeople and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite FFP.
Risk of schedule delays due to the extended duration and complexity of construction.
Dependence on the single awarded contractor for successful project completion.
Limited competition (2 bidders) may have resulted in a higher-than-optimal price.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded to a known entity, Whiting-Turner Contracting Company, suggesting a degree of confidence in their capabilities.
Full and open competition process allows for a broad range of potential bidders.
Project addresses a clear need for facility expansion at a federal training center.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of facilities such as dormitories, schools, hospitals, and commercial offices. Federal spending in this area is crucial for maintaining and expanding government infrastructure. Benchmarks for similar institutional building projects can vary widely based on location, size, and specific requirements, but projects in the tens of millions of dollars are common for new construction of this type.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals (ss: false). This suggests that the primary award went to a large business, Whiting-Turner Contracting Company. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of specific set-aside or subcontracting requirements in the provided data means the direct impact on the small business ecosystem is not detailed here. Further investigation into the subcontracting plan would be needed to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Homeland Security (DHS) and the Federal Law Enforcement Training Center (FLETC). The Firm Fixed Price (FFP) nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the performance of the contract.

Related Government Programs

Federal Law Enforcement Training Center Operations
Department of Homeland Security Facilities Management
Government Dormitory Construction Projects
Architectural and Engineering Services for Federal Buildings

Risk Flags

Potential for cost overruns due to construction complexity.
Risk of schedule delays impacting training center operations.
Limited competition may affect final price.
Dependence on contractor performance for successful delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.0 million to WHITING-TURNER CONTRACTING COMPANY, THE. THE CONTRACTOR SHALL PROVIDE ALL ARCHITECT/ENGINEER AND CONSTRUCTION SERVICES AND MATERIALS REQUIRED FOR THE SITE PREPARATION, DESIGN AND CONSTRUCTION OF A NEW DORMITORY FACILITY.

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 Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2021-02-08. End: 2023-03-28.

What is the track record of Whiting-Turner Contracting Company with the Department of Homeland Security and similar federal construction projects?

Whiting-Turner Contracting Company is a large, well-established general contractor with a significant history of performing federal construction projects across various agencies, including the Department of Defense and the General Services Administration. Their portfolio often includes large-scale institutional and commercial buildings. While specific details of their past performance with DHS are not provided in this data snippet, their general reputation in the federal contracting space is that of a capable and experienced firm. A deeper dive into contract databases like FPDS or SAM.gov would reveal specific past performance ratings, past contract values, and the types of projects they have completed for DHS and other federal entities to assess their suitability and reliability for this dormitory construction.

How does the awarded price of $28 million compare to industry benchmarks for similar dormitory construction projects in New Mexico?

Benchmarking the $28 million cost requires detailed project specifications (e.g., square footage, number of rooms, amenities, quality of finishes). However, for a new dormitory facility of significant size, this figure is not inherently excessive. Construction costs in New Mexico, like elsewhere, are influenced by labor rates, material availability, and local market conditions. A typical cost per square foot for institutional construction can range widely, but projects in the tens of millions are common for facilities housing hundreds of individuals. To provide a precise comparison, one would need to analyze the project's scope against data from organizations like RSMeans or consult with construction cost estimators familiar with the New Mexico market for similar government-funded projects.

What are the primary risks associated with this Firm Fixed Price (FFP) contract for dormitory construction?

The primary risks with an FFP contract, especially for a long-duration construction project, revolve around potential scope creep and unforeseen conditions. While the price is fixed, changes to the original scope requested by the government can lead to change orders, increasing the total cost. More significantly, construction projects are susceptible to unforeseen site conditions (e.g., unexpected soil issues, hazardous materials) or material price escalations beyond what was reasonably anticipated, which can strain the contractor's ability to deliver within the fixed price without compromising quality or seeking additional compensation through contract modifications. The contractor bears the risk of cost overruns, but significant issues could still impact the project timeline or lead to disputes.

What is the expected effectiveness of the new dormitory in supporting the Federal Law Enforcement Training Center's mission?

The effectiveness of the new dormitory is directly tied to its ability to provide adequate, safe, and modern housing for trainees and staff at the Federal Law Enforcement Training Center (FLETC). By expanding or upgrading accommodation capacity, the facility can support increased training throughput, potentially reducing wait times for courses and allowing more personnel to receive essential training. Improved living conditions can also contribute to trainee morale and well-being, indirectly enhancing the learning experience and overall effectiveness of the training programs. The new facility is expected to meet current standards for safety, accessibility, and habitability, ensuring a conducive environment for federal law enforcement personnel undergoing critical training.

How has federal spending on similar institutional building construction projects trended in recent years?

Federal spending on institutional building construction has generally seen fluctuations influenced by budget appropriations, infrastructure initiatives, and specific agency needs. In recent years, there has been a continued emphasis on modernizing federal facilities, including training centers, administrative buildings, and research facilities. Spending levels can be affected by broader economic conditions and government priorities. For example, post-recession periods often see increased infrastructure investment. Data from sources like the Congressional Budget Office (CBO) or the Federal Procurement Data System (FPDS) would show trends in obligated amounts for construction contracts across various agencies, highlighting any significant increases or decreases in this specific category of federal spending.

What are the implications of the 'Delivery Order' award type for this contract?

The 'Delivery Order' award type typically signifies that this contract is a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the overarching contract was previously competed and awarded, establishing terms and conditions, and potentially a ceiling amount. This specific delivery order then represents a defined task (the dormitory construction) with its own scope, price, and delivery schedule, issued against that larger IDIQ. This approach allows agencies to procure services or supplies more efficiently once the initial IDIQ contract is in place, streamlining the process for individual task orders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70LART20RPFB00005

Offers Received: 2

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: $28,014,348

Exercised Options: $28,014,348

Current Obligation: $28,014,348

Actual Outlays: $4,758,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04718DWHITUR00

IDV Type: IDC

Timeline