Navy awards $210M construction contract to Whiting-Turner, highlighting significant investment in facilities

Contract Overview

Contract Amount: $209,943,552 ($209.9M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2020-09-28

End Date: 2025-12-11

Contract Duration: 1,900 days

Daily Burn Rate: $110.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HFRM PACKAGE 5

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $209.9 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: HFRM PACKAGE 5 Key points: 1. The contract value represents a substantial commitment to infrastructure development. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. The firm-fixed-price structure aims to control costs and manage financial risk. 4. Project duration suggests a long-term investment in facility enhancement or construction. 5. The geographic location in North Carolina may indicate regional economic benefits. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The $210.9 million award to Whiting-Turner Contracting Company for construction services appears to be a significant investment. Benchmarking against similar large-scale federal construction projects is necessary for a precise value-for-money assessment. However, the firm-fixed-price contract type suggests an effort to establish cost certainty upfront, which is generally a positive indicator for managing project expenses. The scale of the project implies a need for robust contractor capabilities and efficient execution to deliver value.

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. With 9 bidders participating, the level of competition appears robust for a project of this magnitude. A higher number of bidders generally contributes to more competitive pricing and a wider range of innovative solutions, which can benefit the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received the best possible value for its investment in construction services.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving enhanced or new facilities. The contract delivers essential construction and potentially related services for military infrastructure. The project's impact is geographically focused on North Carolina, potentially stimulating local economies. The construction activities will likely involve a significant workforce, creating employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business set-aside could limit direct participation of smaller firms.
The large contract value may present challenges for smaller businesses to compete for prime contracts.
Potential for limited subcontracting opportunities if not actively managed.

Positive Signals

Whiting-Turner Contracting Company has a strong track record in large-scale construction projects.
The firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that should yield fair pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area supports the maintenance, modernization, and expansion of government facilities. The market for large-scale federal construction is competitive, with established firms like Whiting-Turner often securing significant portions of the work. Benchmarks for similar projects would typically consider factors like square footage, complexity, and location.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation goals were met at the prime contract level. This suggests that larger, established firms were the primary focus for this prime contract. While the prime contractor may engage small businesses as subcontractors, the absence of a direct set-aside means opportunities for small businesses to lead such a large project are limited. Further review of subcontracting plans would be needed to assess the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and project managers. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Long contract duration may increase risk of cost escalation if not managed properly.
Potential for limited small business participation as prime contractor.
Need to verify contractor's capacity for a project of this scale and complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $209.9 million to WHITING-TURNER CONTRACTING COMPANY, THE. HFRM PACKAGE 5

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 $209.9 million.

What is the period of performance?

Start: 2020-09-28. End: 2025-12-11.

What is Whiting-Turner Contracting Company's track record with large federal construction projects, particularly with the Department of Defense?

Whiting-Turner Contracting Company has a well-established history of successfully executing large-scale construction projects for various federal agencies, including the Department of Defense. They have a reputation for managing complex projects across diverse sectors, such as healthcare, education, and government facilities. Their experience often includes projects with significant budgets and demanding timelines, similar to the HFRM PACKAGE 5 contract. Reviewing their past performance on similar Department of the Navy or DoD projects would provide further insight into their capabilities and reliability in delivering high-quality construction outcomes within budget and schedule constraints.

How does the $210.9 million contract value compare to similar Department of the Navy construction projects awarded over the past five years?

The $210.9 million award is a substantial sum, placing it among the larger construction contracts issued by the Department of the Navy. To benchmark its value, one would compare it to other definitive contracts for new building construction or major renovations awarded by the Naval Facilities Engineering Command (NAVFAC) or other Navy commands. Factors such as project scope (e.g., type of facility, square footage, complexity), location, and the specific year of award are critical for a meaningful comparison. Projects of this magnitude are typically for significant infrastructure development, such as barracks, research facilities, or large administrative buildings. A detailed analysis would involve examining the price per square foot or price per unit of work for comparable projects to assess if this award represents a fair market price.

What are the primary risk indicators associated with a firm-fixed-price contract of this size and duration?

For a firm-fixed-price (FFP) contract of this magnitude ($210.9 million) and duration (approx. 1900 days), the primary risks for the government often revolve around the contractor's ability to accurately estimate all costs upfront. If the contractor underestimated costs, they might face financial strain, potentially impacting project quality or completion. Conversely, if the price was set too high due to a lack of robust competition or inaccurate market data, the government might overpay. Other risks include potential scope creep if not managed tightly, contractor performance issues leading to delays or quality defects, and the contractor's financial stability over the long project lifecycle. The government's risk is generally lower in terms of cost overrun compared to cost-reimbursement contracts, but ensuring the contractor's capacity and the reasonableness of the initial price is paramount.

Given the 'full and open competition' and 9 bidders, what does this imply about the potential for cost savings or innovation for the Navy?

The fact that this contract was awarded under 'full and open competition' with nine bidders is a strong positive signal for the Navy. It suggests a healthy market response, where multiple capable contractors vied for the work. This level of competition typically drives prices down as contractors strive to offer the most competitive bids to win the contract. Furthermore, a larger pool of bidders increases the likelihood that the Navy will receive innovative approaches to construction methods, materials, or project management. The Navy can leverage this competitive environment to secure not only a fair price but also potentially superior solutions that enhance the long-term value and performance of the facility being constructed.

What is the historical spending pattern for 'Commercial and Institutional Building Construction' by the Department of the Navy, and how does this contract fit within it?

The Department of the Navy consistently allocates significant funds towards 'Commercial and Institutional Building Construction' to maintain and upgrade its vast network of facilities across the globe. Historical spending data reveals a steady demand for construction services, driven by modernization efforts, new infrastructure requirements, and repairs. This $210.9 million contract represents a substantial single award within this category, likely contributing to a major facility upgrade or new construction project. Analyzing past spending trends for similar projects (e.g., by NAVFAC) would show whether this award is in line with typical investment levels or represents a particularly large or strategic investment for the Navy in North Carolina.

What are the implications of the contract being a 'Definitive Contract' awarded in 2020 with an end date in 2025?

The classification as a 'Definitive Contract' indicates a standard, binding agreement with specific terms and conditions, as opposed to a contract vehicle like a task order contract. Awarded in September 2020 with an expected completion date in December 2025, this contract spans approximately five years. This extended duration suggests a large, complex project that requires significant planning, execution, and potentially multiple phases. For the contractor, it provides a stable, long-term revenue stream. For the Navy, it signifies a major, multi-year commitment to a specific construction objective. The long timeframe also necessitates robust project management and oversight to ensure progress, quality, and adherence to the fixed price throughout its lifecycle.

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: N4008519R9255

Offers Received: 9

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: $210,111,555

Exercised Options: $209,943,555

Current Obligation: $209,943,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline