DoD's $25.8M P-777 Project awarded to Whiting-Turner Contracting Company for construction services

Contract Overview

Contract Amount: $25,787,703 ($25.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2018-07-16

End Date: 2021-10-01

Contract Duration: 1,173 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-777 PROJECT PRICE (BASE BID)

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23459

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: P-777 PROJECT PRICE (BASE BID) Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The project duration of 1173 days points to a significant and complex construction undertaking. 4. The base bid of $25.8 million provides a clear initial cost benchmark for the project. 5. The award was made by the Department of the Navy, a major component of the DoD. 6. The contract falls under the Commercial and Institutional Building Construction category.

Value Assessment

Rating: good

The base bid of $25.8 million for the P-777 Project appears to be a substantial investment. Without specific details on the scope of work, it's challenging to benchmark against similar contracts directly. However, the firm-fixed-price nature of the award suggests that the contractor has committed to delivering the project within this budget, which is a positive indicator for cost control. The number of bids received (16) also suggests a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. A total of 16 bids were received, which suggests a robust competitive environment for this construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured that the government received a competitive offer for the construction services.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and the Department of the Navy, who will receive the completed construction project. The project involves commercial and institutional building construction, likely resulting in new or improved facilities. The contract is located in Virginia (VA), indicating a direct impact on the local economy and workforce in that state. The construction services will likely create jobs for skilled tradespeople and laborers in the Virginia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all project complexities.
Risk of delays impacting the operational readiness of the facility if construction timelines are not met.
Ensuring the quality of construction meets the stringent standards required by the Department of Defense.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition with 16 bids suggests a competitive market and potentially good value.
Long-term contract duration allows for thorough project execution and quality assurance.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the broader construction industry. This contract represents a substantial investment within this sector, likely for a government facility. Comparable spending benchmarks would typically involve other large-scale government or private sector construction projects of similar scope and complexity, such as military base facilities, research centers, or large public buildings.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Whiting-Turner Contracting Company is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the project, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be limited due to security or proprietary concerns.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Projects
Department of Defense Construction Contracts
Federal Building Construction

Risk Flags

Potential for cost escalation in long-term fixed-price contracts.
Ensuring quality control over extended construction periods.
Dependency on contractor's financial stability over the project's life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. P-777 PROJECT PRICE (BASE BID)

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 $25.8 million.

What is the period of performance?

Start: 2018-07-16. End: 2021-10-01.

What is the specific scope of work for the P-777 Project?

The provided data identifies the P-777 Project under the NAICS code 236220, which corresponds to Commercial and Institutional Building Construction. However, the specific scope of work, such as whether it involves new construction, renovation, or specific types of facilities (e.g., administrative buildings, barracks, research labs), is not detailed in the provided information. Further investigation into the contract's statement of work or associated documentation would be necessary to understand the precise nature of the construction services required by the Department of the Navy.

How does the base bid of $25.8 million compare to similar construction projects by the Department of the Navy?

Benchmarking the $25.8 million base bid requires comparing it to similar construction projects undertaken by the Department of the Navy in terms of scale, complexity, and location. Without specific details on the project's scope (e.g., square footage, type of facility, specific construction elements), a direct comparison is difficult. However, given the firm-fixed-price nature and the receipt of 16 bids, it suggests a competitive process. To provide a more accurate comparison, one would need to analyze historical data for similar naval construction projects, considering factors like cost per square foot, specialized construction requirements, and prevailing market rates in Virginia during the contract award period (2018).

What are the potential risks associated with a firm-fixed-price contract for a project of this duration?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a project with a duration of 1173 days (over 3 years), potential risks include unforeseen material cost escalations, labor shortages, or unexpected site conditions that were not fully anticipated during the bidding phase. If the contractor's initial cost estimates were inaccurate or if market conditions change significantly, they may incur losses. Conversely, the government benefits from cost certainty, but there's a risk that the contractor might cut corners on quality to protect their profit margin if unforeseen issues arise, necessitating robust government oversight to ensure quality standards are met.

What is the track record of Whiting-Turner Contracting Company with the Department of Defense?

Whiting-Turner Contracting Company has a significant history of performing work for various government agencies, including the Department of Defense. While specific details of their past performance on DoD contracts are not provided in this data snippet, their selection for a project of this magnitude suggests a demonstrated capability and a positive performance history. A comprehensive assessment would involve reviewing their past performance evaluations, any past performance issues or awards, and the types and values of previous contracts they have held with the DoD and other federal entities.

How does the number of bids (16) influence the value for money achieved in this contract?

Receiving 16 bids for the P-777 Project is a strong indicator of robust competition, which generally leads to better value for money. A larger pool of bidders increases the likelihood that the government will receive competitive pricing as companies vie for the contract. It also provides a broader range of technical approaches and potentially innovative solutions. The Department of the Navy likely benefited from this competitive pressure, securing a price that reflects market conditions and the contractor's efficiency, rather than a price determined by a limited or non-existent competitive field.

What are the implications of this contract for the Virginia economy and workforce?

As the contract is located in Virginia (VA), its execution will likely have a positive economic impact on the state. This includes the creation of jobs for construction workers, project managers, engineers, and support staff. Local businesses supplying materials, equipment, and services to the prime contractor will also benefit. The duration of the project suggests a sustained economic contribution over several years. The specific nature of the facility being built could also have long-term implications for the region's infrastructure and potentially attract further investment or development.

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: TWO STEP

Solicitation ID: N4008517R0301

Offers Received: 16

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: $26,012,703

Exercised Options: $25,787,703

Current Obligation: $25,787,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline