Coast Guard awards $74.5M contract for construction at Point Mugu, CA, with 5 bids received

Contract Overview

Contract Amount: $74,479,545 ($74.5M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-08

End Date: 2025-09-30

Contract Duration: 1,971 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT AIR STATION POINT MUGU, NAVAL BASE VENTURA COUNTY (NBVC), POINT MUGU, CA

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $74.5 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: CONSTRUCT AIR STATION POINT MUGU, NAVAL BASE VENTURA COUNTY (NBVC), POINT MUGU, CA Key points: 1. Contract value appears reasonable given the scope of construction services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project delays or cost overruns common in large construction projects. 4. Project performance will be key to ensuring operational readiness at the naval base. 5. This contract falls within the broader Defense and Government Services sector. 6. The firm-fixed-price structure shifts some risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $74.5 million for construction services at a naval base appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale construction projects for government facilities suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award. The number of bids received (5) further supports the notion of a competitive market for such services, indicating that the government likely secured a fair price. However, a detailed cost breakdown and comparison to independent cost estimates would provide a more definitive assessment of value.

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 receipt of five bids suggests a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The open competition process is designed to ensure that the government obtains the best value by leveraging market forces.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through competitive bidding, ensuring that public funds are used efficiently and effectively.

Public Impact

The U.S. Coast Guard will benefit from improved infrastructure at Naval Base Ventura County. The contract will deliver construction services for facilities at Point Mugu, California. The geographic impact is localized to Point Mugu, California. The project is expected to create jobs in the construction sector within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions leading to cost increases.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract limits cost escalation for the government.
Full and open competition suggests a competitive market and fair pricing.
Award to an experienced contractor likely mitigates performance risks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government construction projects, particularly those for defense and homeland security, represent a substantial portion of this market. The value of this contract, at approximately $74.5 million, is considerable and aligns with benchmarks for major infrastructure development. The U.S. Coast Guard's need for facility upgrades is a common driver for such contracts within the federal sector.

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. While the primary award went to Whiting-Turner Contracting Company, a large entity, it is possible that subcontracting opportunities may exist for small businesses within the project's execution. Further investigation into the contractor's subcontracting plan would be necessary to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and project management offices. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight information may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Construction Projects
Coast Guard Infrastructure Modernization
Federal Building and Facility Construction
Department of Homeland Security Capital Investments

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of project delays impacting operational readiness.
Need for robust oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $74.5 million to WHITING-TURNER CONTRACTING COMPANY, THE. CONSTRUCT AIR STATION POINT MUGU, NAVAL BASE VENTURA COUNTY (NBVC), POINT MUGU, CA

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 (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $74.5 million.

What is the period of performance?

Start: 2020-05-08. End: 2025-09-30.

What is the track record of Whiting-Turner Contracting Company on similar federal construction projects?

Whiting-Turner Contracting Company has a substantial track record of executing large-scale construction projects for various federal agencies, including military branches and homeland security entities. Their portfolio often includes complex facilities, infrastructure upgrades, and specialized buildings. Historical data suggests they are a capable contractor for projects of this magnitude. A review of past performance evaluations and any past performance issues on similar government contracts would provide a more granular understanding of their reliability and quality of work. Their experience in delivering projects on time and within budget on federal contracts is a key indicator of their suitability for this award.

How does the awarded price compare to independent cost estimates for similar construction projects?

While specific independent cost estimates are not provided, the awarded price of approximately $74.5 million for the construction at Point Mugu can be benchmarked against similar projects. The firm-fixed-price nature of the contract, coupled with five bids received, suggests a competitive market that likely drove the price towards a reasonable level. However, without access to the government's internal cost estimates or industry-standard cost-per-square-foot data for comparable facilities in California, a precise comparison is difficult. Generally, large-scale government construction projects require rigorous cost validation to ensure value for taxpayer money.

What are the primary risks associated with this specific construction contract?

The primary risks associated with this construction contract include potential project delays due to unforeseen site conditions, weather, or supply chain disruptions, which are common in large-scale construction. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur if scope changes are introduced or if initial estimates were inaccurate. Performance risks, such as quality of work or adherence to safety standards, are also present. Furthermore, ensuring seamless integration with existing base operations and minimizing disruption to the U.S. Coast Guard's mission are critical risk factors that require careful management throughout the project lifecycle.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects like this one, as it places the primary cost risk on the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to control expenses and manage the project efficiently. For the government, it provides cost certainty, making budgeting more predictable. However, FFP contracts can sometimes lead to contractors cutting corners on quality if not rigorously overseen, or may result in higher initial bid prices to account for the contractor's risk.

What is the historical spending trend for construction at Naval Base Ventura County?

Analyzing historical spending trends for construction at Naval Base Ventura County (NBVC) would require access to detailed contract databases and budget allocations specific to the base over several fiscal years. Without this specific data, it's challenging to provide a precise trend. However, it is reasonable to assume that bases like NBVC undergo periodic infrastructure upgrades and maintenance, leading to fluctuating but consistent spending on construction over time. Factors such as aging facilities, evolving mission requirements, and security enhancements would influence the level and type of construction spending.

What are the implications of receiving 5 bids on the overall value for taxpayers?

Receiving five bids for this $74.5 million construction contract is a positive indicator for taxpayers. A higher number of bids generally signifies robust competition, which tends to drive down prices as contractors vie for the award. This competitive pressure encourages bidders to offer their most competitive pricing and terms. It also increases the likelihood that the government will select a contractor offering the best overall value, considering both price and technical qualifications. Fewer bids might suggest a less competitive market, potentially leading to higher costs for the government and, consequently, taxpayers.

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

Offers Received: 5

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: $74,479,545

Exercised Options: $74,479,545

Current Obligation: $74,479,545

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