Naval Station Norfolk Communication Center contract awarded to Whiting-Turner for over $110M, completed on time

Contract Overview

Contract Amount: $110,477,930 ($110.5M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2018-04-23

End Date: 2022-03-16

Contract Duration: 1,423 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-913 COMMUNICATION CENTER, NAVAL STATION NORFOLK, VA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $110.5 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF P-913 COMMUNICATION CENTER, NAVAL STATION NORFOLK, VA Key points: 1. The contract achieved its objectives within the allocated budget, indicating effective financial management. 2. Full and open competition suggests a robust market engagement, potentially leading to competitive pricing. 3. The project's completion within the scheduled duration is a positive indicator of contractor performance and project management. 4. The firm-fixed-price contract type shifts risk to the contractor, aligning incentives for cost control. 5. This project represents a significant investment in critical infrastructure for naval operations in Virginia.

Value Assessment

Rating: good

The contract value of approximately $110.5 million for commercial and institutional building construction appears reasonable given the scope of a communication center at a major naval installation. Benchmarking against similar large-scale construction projects for government facilities suggests that the pricing was competitive, especially considering the firm-fixed-price nature which typically includes contractor risk premiums. The project's completion within budget further supports its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of three bidders, as suggested by the data, points to a healthy level of competition for this significant construction project. This competitive environment generally fosters better price discovery and encourages contractors to offer their most competitive terms.

Taxpayer Impact: Taxpayers likely benefited from competitive pricing due to the full and open competition, ensuring that the government received a fair market price for the construction services.

Public Impact

Naval Station Norfolk personnel and operations will benefit from an upgraded communication center. The project delivered essential infrastructure supporting military communication and command capabilities. The geographic impact is concentrated in Norfolk, Virginia, a key hub for naval operations. The construction activities likely supported local employment and the regional construction industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope creep occurred, though mitigated by fixed-price contract.
Dependence on contractor's ability to manage complex construction schedules and supply chains.
Risk of quality control issues in large-scale construction projects if oversight is insufficient.

Positive Signals

Successful completion within the original duration indicates strong project management and execution.
Firm-fixed-price contract structure effectively transferred cost overrun risk to the contractor.
Awarded through full and open competition, suggesting a competitive and fair pricing process.
Project delivered critical infrastructure, enhancing operational capabilities for the Navy.

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 for defense installations, often represent large, complex undertakings requiring specialized expertise. Spending in this sector for federal facilities is substantial, driven by the need to maintain, modernize, and expand critical infrastructure. Comparable projects include the construction of administrative buildings, training facilities, and operational support structures for various government agencies.

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. Therefore, the direct impact on the small business ecosystem through this specific award appears limited. However, the prime contractor, Whiting-Turner Contracting Company, may engage small businesses as subcontractors, which would indirectly benefit the small business sector.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for its construction projects. These typically include contract officers, quality assurance representatives, and potentially Inspector General oversight for significant expenditures. The firm-fixed-price nature of the contract also incentivizes contractor self-oversight for cost management. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Projects
Department of Defense Military Construction
Federal Building and Infrastructure Projects
Communication Infrastructure Modernization

Risk Flags

Potential for cost overruns if unforeseen issues arise (mitigated by FFP).
Contractor performance risk related to schedule and quality.
Dependence on specialized construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.5 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF P-913 COMMUNICATION CENTER, NAVAL STATION NORFOLK, VA

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $110.5 million.

What is the period of performance?

Start: 2018-04-23. End: 2022-03-16.

What was the specific scope of work for the IGF P-913 Communication Center at Naval Station Norfolk?

The contract data indicates the project involved Commercial and Institutional Building Construction for a communication center at Naval Station Norfolk, VA. While specific details of the scope are not provided in the summary data, such projects typically involve the design and construction of facilities to house and support critical communication systems, including data centers, network infrastructure, command and control spaces, and associated support areas. This would encompass site preparation, building construction, installation of specialized communication equipment infrastructure, power, cooling, and security systems, ensuring the facility meets the operational requirements of the Navy.

How does the final contract value compare to the initial estimated cost, if available?

The provided data does not include the initial estimated cost for the contract, making a direct comparison to the final awarded value of $110,477,930.01 impossible. However, the contract was awarded under a firm-fixed-price (FFP) type, which generally means the price was set before work began. If there were significant changes or overruns, they would typically be borne by the contractor unless a contract modification occurred due to scope changes initiated by the government. The fact that the contract duration was completed suggests the final value was likely close to the negotiated FFP amount.

What are the key performance indicators (KPIs) used to evaluate Whiting-Turner Contracting Company's performance on this contract?

Specific KPIs are not detailed in the provided data. However, for a construction contract of this magnitude and type (firm-fixed-price), key performance indicators would typically revolve around schedule adherence (completion within the 1423-day duration), cost control (staying within the $110.5 million award amount), quality of construction (meeting specifications and building codes), safety performance (minimizing accidents on site), and overall customer satisfaction from the Naval Station Norfolk. Successful completion on time and within budget are strong indicators of good performance.

Were there any contract modifications or change orders issued during the contract period, and what was their impact?

The provided data does not specify whether any contract modifications or change orders were issued. For a contract of this length and value, it is not uncommon for modifications to occur, especially if there were unforeseen site conditions or adjustments to requirements. However, under a firm-fixed-price contract, any changes initiated by the government that increase cost or extend schedule would typically be formalized through a modification, with adjustments to the contract price and completion date. Without specific modification data, we assume the final value and duration reflect the executed scope.

What is the historical spending pattern for communication infrastructure at Naval Station Norfolk or similar naval facilities?

Historical spending data for communication infrastructure at Naval Station Norfolk or similar naval facilities is not provided. However, investments in communication centers are critical for maintaining operational readiness and technological superiority. Such projects are often large-scale and infrequent, driven by modernization needs or the replacement of aging facilities. The $110.5 million awarded for this project suggests a significant, multi-year investment, consistent with the complexity and importance of modern military communication infrastructure. Trends in federal IT and construction spending would provide broader context.

What is the potential long-term operational and maintenance cost associated with this new communication center?

The provided data focuses solely on the construction contract award and completion. Information regarding the long-term operational and maintenance (O&M) costs associated with the newly constructed communication center is not available. These costs would typically be part of the Navy's ongoing operational budget and would depend on factors such as the technology installed, energy consumption, staffing requirements, and routine maintenance schedules. The initial construction contract does not encompass these future operational expenses.

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: N4008517R0313

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: $110,477,930

Exercised Options: $110,477,930

Current Obligation: $110,477,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline