Coast Guard awards $131.8M for Charleston pier recapitalization, with 5 bids received

Contract Overview

Contract Amount: $131,768,226 ($131.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-25

End Date: 2026-11-21

Contract Duration: 1,580 days

Daily Burn Rate: $83.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CHARLESTON PIER PAPA RECAPITALIZATION, USCG BASE CHARLESTON, CHARLESTON SC

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $131.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: DESIGN BUILD CHARLESTON PIER PAPA RECAPITALIZATION, USCG BASE CHARLESTON, CHARLESTON SC Key points: 1. The contract value represents a significant investment in critical maritime infrastructure. 2. Competition was robust, suggesting potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Project duration spans over four years, indicating a complex undertaking. 5. The project is located in a key strategic area for the U.S. Coast Guard. 6. The award is for construction services, a vital sector for federal infrastructure.

Value Assessment

Rating: good

The contract value of $131.8 million for a pier recapitalization project appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has absorbed potential cost overruns, which is a positive indicator for the government if the project is completed within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This level of competition is generally favorable, indicating that multiple capable contractors were interested and able to bid. The presence of five bidders suggests a healthy market for this type of specialized construction service and likely contributed to a more competitive pricing environment.

Taxpayer Impact: The robust competition for this project is beneficial for taxpayers as it likely drove down the final contract price compared to a sole-source or limited competition scenario. This ensures that federal funds are used more efficiently.

Public Impact

The U.S. Coast Guard will benefit from modernized and reliable pier infrastructure at Base Charleston. This project will support critical Coast Guard operations, including vessel maintenance and deployment. The geographic impact is concentrated in Charleston, South Carolina, a vital naval and port city. The project is expected to create or sustain jobs in the construction sector within the Charleston region. Enhanced facility capabilities will improve the Coast Guard's readiness and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Experienced contractor likely selected through competitive bidding process.
Project addresses critical infrastructure needs, enhancing long-term operational capability.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often focuses on critical infrastructure, military bases, and public facilities. The market for large-scale construction projects is competitive, with established firms capable of undertaking complex federal contracts. This award represents a substantial investment in specialized maritime construction.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Whiting-Turner Contracting Company, a large entity, there is potential for subcontracting opportunities for small businesses within the construction trades. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and project managers. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award notices and reporting requirements. The Department of Homeland Security's Office of Inspector General may also provide oversight depending on the scope and potential for fraud, waste, or abuse.

Related Government Programs

Naval Base Construction
Port Infrastructure Development
Military Base Modernization
Federal Building and Construction Contracts
USCG Facilities Sustainment, Restoration, and Modernization

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance risk on a large, multi-year project.
Ensuring compliance with environmental and historical preservation regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $131.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. DESIGN BUILD CHARLESTON PIER PAPA RECAPITALIZATION, USCG BASE CHARLESTON, CHARLESTON SC

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 $131.8 million.

What is the period of performance?

Start: 2022-07-25. End: 2026-11-21.

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

Whiting-Turner Contracting Company has a substantial track record with federal agencies, including the Department of Defense and other branches of the U.S. military, as well as civilian agencies. They have been involved in numerous large-scale construction and renovation projects, often within complex environments like active military installations or critical infrastructure sites. Their experience typically includes a wide range of project types, from institutional buildings to specialized facilities. A review of their past performance on similar pier or maritime infrastructure projects, particularly those with firm fixed-price contracts and similar durations, would be necessary to fully assess their suitability and historical success rate in delivering such complex undertakings on time and within budget.

How does the awarded amount compare to the estimated cost or budget for this pier recapitalization project?

The awarded contract value of $131,768,226 provides a clear benchmark against the government's expenditure. Without access to the government's independent cost estimate (ICE) or the initial budget allocation for this project, a direct comparison is difficult. However, the fact that five bids were received under full and open competition suggests that the awarded price is likely competitive and reflects market conditions. If the awarded amount is significantly below the ICE, it could indicate strong competition or potentially underestimated project complexity. Conversely, if it's close to or exceeds the ICE, further scrutiny of the estimate and the bids might be warranted to ensure optimal value.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project of this magnitude?

The primary risk with a firm fixed-price (FFP) contract for a large, multi-year construction project like this pier recapitalization lies in potential unforeseen conditions or scope creep that could lead to contractor claims for equitable adjustments, even though the FFP structure aims to place risk on the contractor. For instance, discovering unexpected subsurface issues, encountering hazardous materials, or facing significant design changes could strain the contractor's ability to absorb costs. While the government is protected from general price increases, significant changes to the work scope or unforeseen site conditions can still lead to contract modifications and potential cost increases, albeit typically negotiated. The contractor's financial stability and project management capabilities are crucial to mitigating these risks.

What is the expected impact of this pier modernization on the U.S. Coast Guard's operational effectiveness in Charleston?

The modernization of Pier Papa at USCG Base Charleston is expected to significantly enhance the U.S. Coast Guard's operational effectiveness in the region. Modernized piers typically offer improved structural integrity, greater load-bearing capacity, and enhanced utility connections (power, water, data), which are crucial for the maintenance, repair, and deployment of Coast Guard vessels. This upgrade will likely reduce downtime for vessel servicing, improve safety for personnel working on the pier and vessels, and ensure the base can accommodate current and future Coast Guard assets. Ultimately, a reliable and modern pier infrastructure directly supports the Coast Guard's mission readiness and its ability to conduct its diverse operations efficiently.

How has federal spending on similar maritime infrastructure projects evolved over the past five years?

Federal spending on maritime infrastructure projects, including piers, wharves, and port facilities, has generally seen consistent investment, driven by the need to maintain and modernize aging infrastructure critical for national security and economic activity. Agencies like the Department of Defense (including the Navy and Coast Guard), the Department of Transportation (through the Maritime Administration), and others allocate significant funds annually. Trends often reflect a focus on resilience against climate change impacts, upgrades to accommodate larger vessels, and the replacement of facilities nearing the end of their service life. While specific figures fluctuate year-to-year based on budget appropriations and project pipelines, the overall demand for such construction services remains robust, indicating sustained federal commitment to this sector.

What are the key performance indicators (KPIs) likely being used to monitor the success of this construction contract?

Key performance indicators (KPIs) for this construction contract would likely focus on schedule adherence, cost control (within the fixed-price framework), quality of workmanship, safety performance, and compliance with contract specifications. Schedule adherence would track progress against the planned milestones and final completion date. Quality would be assessed through inspections and testing of materials and construction. Safety KPIs would monitor incident rates and adherence to safety protocols. Compliance would ensure the work meets all technical requirements and design specifications. For a firm fixed-price contract, meeting these KPIs without significant change orders or claims is paramount to the contractor's profitability and the government's satisfaction.

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: $131,768,226

Exercised Options: $131,768,226

Current Obligation: $131,768,226

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