DHS awards $15.3M for construction, with 3 bids received for Coast Guard facility

Contract Overview

Contract Amount: $15,268,922 ($15.3M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Homeland Security

Start Date: 2022-11-29

End Date: 2026-03-17

Contract Duration: 1,204 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB CONSTRUCTION SERVICES FOR CDC, PLAY AREA TRACEN PETALUMA, CA

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94954

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.3 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: DB CONSTRUCTION SERVICES FOR CDC, PLAY AREA TRACEN PETALUMA, CA Key points: 1. The contract value represents a significant investment in infrastructure. 2. Competition was present, with three bids submitted for the project. 3. The firm-fixed-price contract type aims to control costs. 4. The project duration spans over three years, indicating a substantial undertaking. 5. The contract is for commercial and institutional building construction. 6. The award was made by the U.S. Coast Guard, a component of DHS.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and comparable projects. The $15.3 million price tag for construction services, while substantial, needs to be evaluated against the size and complexity of the facility being built. The firm-fixed-price structure suggests an attempt to manage cost overruns, but the ultimate value for money will depend on the quality of the delivered facility and its long-term operational costs. Further analysis would require comparing the per-square-foot cost or specific component costs to similar government or commercial construction projects.

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. Three bids were received, suggesting a moderate level of competition for this project. While three bidders are better than one or two, a higher number of bids often leads to more competitive pricing and a wider range of innovative solutions. The level of competition here may have provided some price discovery but could potentially have been more robust.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are exposed to a competitive market, aiming to secure the best possible price and quality for the construction services. The presence of three bidders suggests a reasonable effort to leverage market forces, though further competition could have potentially yielded greater savings.

Public Impact

The U.S. Coast Guard will benefit from the new or improved facilities, enhancing its operational capabilities. The project will deliver construction services for a play area and related facilities. The geographic impact is localized to Petaluma, California. The construction project will likely create jobs for skilled trades and laborers in the region. The successful completion of this project will support the Coast Guard's mission readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond the initial fixed-price agreement.
Risk of delays in project completion impacting the operational readiness of the Coast Guard facility.
Ensuring the quality of construction meets long-term durability and safety standards.
Dependency on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm-fixed-price contract type helps to establish a ceiling on costs.
Full and open competition process generally promotes competitive pricing.
The project duration is clearly defined, allowing for structured planning.
The contractor has a defined contract with the U.S. Coast Guard, indicating a clear client relationship.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure development to facility maintenance. This contract falls under commercial and institutional building construction, a segment that includes building and renovating facilities for government agencies, educational institutions, and other public or private organizations. Federal spending in this area is often driven by the need to maintain, upgrade, or expand existing government infrastructure and to provide necessary facilities for agency operations. Comparable spending benchmarks would typically involve analyzing per-square-foot construction costs for similar government facilities in the same geographic region.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the prime contractor, Whiting-Turner Contracting Company, is not obligated to meet a small business subcontracting goal under this specific award. This means that opportunities for small businesses would primarily arise through subcontracting opportunities offered by the prime contractor, rather than through a mandated set-aside. The impact on the small business ecosystem depends on the prime contractor's subcontracting strategy and their willingness to engage with small businesses for various construction trades and services.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and potentially the Department of Homeland Security's Office of Inspector General. The firm-fixed-price contract type provides a degree of cost control, but oversight will focus on ensuring adherence to the contract schedule, quality standards, and scope of work. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms are typically internal to the agency and contractor.

Related Government Programs

Department of Homeland Security Construction Contracts
U.S. Coast Guard Facility Modernization
Federal Commercial Building Construction
Public Works and Facilities Management

Risk Flags

Potential for cost escalation over the multi-year duration.
Risk of project delays impacting Coast Guard operational needs.
Ensuring long-term quality and durability of construction.
Dependency on effective subcontractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.3 million to WHITING-TURNER CONTRACTING COMPANY, THE. DB CONSTRUCTION SERVICES FOR CDC, PLAY AREA TRACEN PETALUMA, 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 $15.3 million.

What is the period of performance?

Start: 2022-11-29. End: 2026-03-17.

What is the specific scope of work for the "Play Area" and associated construction at the Tracen Petaluma facility?

The provided data does not detail the specific scope of work for the "Play Area" construction. The contract description 'DB CONSTRUCTION SERVICES FOR CDC, PLAY AREA TRACEN PETALUMA, CA' suggests it involves design-build services for a Child Development Center (CDC) and a play area. To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would typically include details on the size of the play area, types of equipment, safety surfacing, landscaping, and any associated CDC building modifications or new construction, including architectural designs, engineering specifications, and materials to be used. Without the SOW, it's impossible to fully assess the value or risks associated with this specific component of the $15.3 million award.

How does the $15.3 million contract value compare to similar U.S. Coast Guard construction projects?

Comparing the $15.3 million contract value requires access to a database of similar U.S. Coast Guard construction projects, ideally for facilities of comparable size and function in similar geographic locations. Without such a benchmark, it's difficult to definitively state if this value is high, low, or average. Factors influencing cost include the specific requirements for the facility (e.g., security, specialized equipment), the local construction market labor rates and material costs in Petaluma, CA, and the complexity of the design-build process. A comprehensive analysis would involve identifying recent Coast Guard construction awards for child development centers, recreational facilities, or administrative buildings and comparing their total contract values, durations, and scope.

What are the key performance indicators (KPIs) or quality assurance measures outlined in the contract?

The provided data does not specify the Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. However, for a design-build construction project of this magnitude, typical KPIs and QA measures would likely include adherence to project schedules (milestones and final completion), compliance with building codes and safety regulations (e.g., OSHA standards), quality of materials used, workmanship standards, and successful completion of inspections and testing. The contract would likely detail inspection protocols, defect rectification procedures, and acceptance criteria. The U.S. Coast Guard would have a quality assurance representative (QAR) responsible for monitoring contractor performance against these measures throughout the project lifecycle.

What is the track record of Whiting-Turner Contracting Company with the U.S. Coast Guard or Department of Homeland Security?

The provided data does not include specific details on Whiting-Turner Contracting Company's past performance with the U.S. Coast Guard or the Department of Homeland Security (DHS). To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous awards and performance evaluations. Whiting-Turner is a large, established construction firm with a broad portfolio of projects across various sectors, including government contracts. Their history with DHS/Coast Guard would likely involve assessing factors such as on-time delivery, adherence to budget, quality of work, and responsiveness to issues on prior projects. A positive track record would increase confidence in their ability to successfully execute this current contract.

What are the potential risks associated with a 1204-day (approx. 3.3 years) construction timeline?

A 1204-day construction timeline presents several potential risks. Firstly, there's an increased risk of cost escalation due to inflation in labor and material prices over the extended period, even with a firm-fixed-price contract, if contingencies aren't adequately managed. Secondly, longer project durations heighten the possibility of encountering unforeseen site conditions (e.g., soil issues, hazardous materials) that could lead to delays and change orders. Thirdly, extended timelines can impact the availability of key personnel and subcontractors. Finally, there's a greater chance of regulatory changes or evolving operational needs for the Coast Guard facility that might necessitate design modifications, potentially causing delays and impacting the final cost if not managed through the contract's change order process.

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: 70Z05022R731000002

Offers Received: 3

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: $15,268,922

Exercised Options: $15,268,922

Current Obligation: $15,268,922

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