Naval Station Norfolk construction contract awarded to Whiting-Turner Contracting Company for over $33.8 million

Contract Overview

Contract Amount: $33,818,371 ($33.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2023-11-30

Contract Duration: 1,889 days

Daily Burn Rate: $17.9K/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-495 DB CHAMBERS FIELD MAGAZINE RECAP, NAVAL STATION NORFOLK, VIRGINIA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF P-495 DB CHAMBERS FIELD MAGAZINE RECAP, NAVAL STATION NORFOLK, VIRGINIA Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of nearly five years indicates a complex and lengthy undertaking. 4. Fixed-price contract type shifts risk to the contractor, which can be beneficial for the government. 5. The project's focus on facility upgrades at a major naval installation highlights its strategic importance. 6. No small business set-aside was utilized, suggesting the primary contractor is a large entity.

Value Assessment

Rating: good

The contract value of approximately $33.8 million for a definitive contract over nearly five years at a major naval installation appears to be within a reasonable range for large-scale construction and renovation projects. Benchmarking against similar large-scale institutional building construction contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract is a positive indicator for cost control, as it caps the government's expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. While the number of bidders is not explicitly stated in the provided data, this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage the submission of innovative solutions from multiple contractors, leading to better overall value for the government.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential bidders and is most likely to result in the lowest possible price for the services rendered.

Public Impact

Naval Station Norfolk personnel and operations benefit from improved facilities. The contract supports the modernization and maintenance of critical military infrastructure. The project's geographic impact is concentrated in Norfolk, Virginia. The construction activities likely involved a significant workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended project duration, despite the fixed-price contract.
Dependence on a single large contractor may limit flexibility for scope adjustments.
The long duration could lead to challenges in maintaining consistent quality control over the entire project lifecycle.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a robust bidding process.
The project addresses the needs of a critical military installation, ensuring operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for government operations, including military bases, research facilities, and public buildings. The market for large-scale government construction is typically dominated by established firms with proven track records and the capacity to handle complex, long-term projects. Benchmarks for similar projects would typically consider factors like square footage, complexity of systems, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business entity, Whiting-Turner Contracting Company. While there is no direct information on subcontracting plans, large federal construction contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor.

Oversight & Accountability

The contract is managed by the Department of the Navy, which has established oversight mechanisms for construction projects. Oversight would typically involve project managers, quality assurance personnel, and potentially contracting officers' representatives to monitor progress, adherence to specifications, and budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Long project duration increases exposure to market volatility.
Potential for scope creep if not managed tightly.
Reliance on a single large contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF P-495 DB CHAMBERS FIELD MAGAZINE RECAP, NAVAL STATION NORFOLK, VIRGINIA

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 $33.8 million.

What is the period of performance?

Start: 2018-09-28. End: 2023-11-30.

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

Whiting-Turner Contracting Company has a significant history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio includes numerous projects at military installations across the United States, encompassing a wide range of construction types from barracks and training facilities to research laboratories and operational support buildings. Their extensive experience suggests a strong capability to manage complex projects, adhere to stringent government requirements, and deliver projects on time and within budget. Reviewing specific past performance evaluations and contract histories would provide a more detailed understanding of their performance on similar DoD contracts.

How does the awarded amount compare to similar construction projects at naval installations?

The awarded amount of approximately $33.8 million for a definitive contract spanning nearly five years at Naval Station Norfolk is substantial, reflecting the scale and complexity typical of major infrastructure projects at large military bases. To provide a precise comparison, data on similar projects (e.g., new construction, major renovations of institutional or operational buildings) at comparable naval installations, considering factors like square footage, specific system requirements (HVAC, electrical, plumbing), and regional construction cost indices, would be necessary. However, for a project of this duration and scope at a major installation, the value appears to be within a plausible range, especially given the fixed-price contract structure which aims for cost certainty.

What are the primary risks associated with a fixed-price contract of this duration?

While fixed-price contracts are generally favorable for the government by capping costs, a primary risk associated with a contract of this duration (nearly five years) is the potential for unforeseen site conditions or material price escalation that could significantly impact the contractor's profitability and, in extreme cases, lead to disputes or project delays. The contractor bears the risk of cost overruns, but the government could face delays if the contractor struggles financially or encounters significant, unresolvable issues. Effective risk management by the contractor, including thorough site investigations and robust contingency planning, is crucial. The government's oversight role is also critical in ensuring the contractor is managing these risks appropriately.

What is the expected impact of this contract on the local workforce in Norfolk, Virginia?

This contract is expected to have a positive impact on the local workforce in Norfolk, Virginia, and the surrounding Hampton Roads region. Large-scale construction projects like this require a substantial number of skilled laborers, tradespeople (electricians, plumbers, carpenters, etc.), project managers, engineers, and support staff. The duration of the project suggests sustained employment opportunities over several years. Furthermore, the economic activity generated by the project extends beyond direct employment, benefiting local suppliers, equipment rental companies, and service providers, contributing to the overall economic health of the area.

How does the contract's completion date (November 2023) align with its start date (September 2018)?

The contract's duration is approximately 1889 days, which translates to roughly 5.17 years. With a start date of September 28, 2018, the projected completion date would fall around late 2023. The provided end date of November 30, 2023, aligns precisely with this calculated duration. This indicates that the project was executed over the planned timeframe, suggesting effective project management and adherence to the schedule by the contractor, Whiting-Turner Contracting Company, and oversight by the Department of the Navy.

What specific types of construction or improvements does this contract cover at Naval Station Norfolk?

The provided data classifies this contract under 'Commercial and Institutional Building Construction' (nd: 'Commercial and Institutional Building Construction') and references 'IGF::OT::IGF P-495 DB CHAMBERS FIELD MAGAZINE RECAP'. While 'Chambers Field Magazine Recap' might suggest a specific facility or area within Naval Station Norfolk, the general classification indicates the project likely involved the construction, renovation, or modernization of buildings intended for institutional or commercial use. This could encompass a wide range of facilities such as administrative buildings, barracks, training centers, maintenance facilities, or support structures, aimed at improving the operational capabilities and living/working conditions at the base.

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: N4008517R0332

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: $33,818,371

Exercised Options: $33,818,371

Current Obligation: $33,818,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline