DoD's $43.5M Whiting-Turner contract for JEB Little Creek facilities shows strong competition and fair pricing

Contract Overview

Contract Amount: $43,488,332 ($43.5M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2021-01-29

End Date: 2024-07-19

Contract Duration: 1,267 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P224 & P999 JEB LITTLE CREEK

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.5 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: P224 & P999 JEB LITTLE CREEK Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar construction projects. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. The project duration of 1267 days suggests a significant scope of work. 5. The Department of the Navy is the primary beneficiary of these construction services. 6. This contract aligns with broader Department of Defense infrastructure modernization efforts.

Value Assessment

Rating: good

The contract's value of approximately $43.5 million for commercial and institutional building construction at JEB Little Creek appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects within the Department of Defense suggests that the pricing is within an acceptable range. The firm-fixed-price contract type further supports value by shifting cost risk to the contractor, incentivizing efficient project completion.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, with five bids received. The presence of multiple bidders suggests a healthy competitive environment, which typically drives down prices and encourages innovation. The number of bids indicates that the market for this type of construction service is sufficiently robust to support competitive procurement.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that the government is receiving services at a price that reflects market conditions.

Public Impact

Military personnel and their families stationed at JEB Little Creek will benefit from improved facilities. The contract delivers essential construction and renovation services for institutional buildings. The geographic impact is concentrated at Joint Expeditionary Base Little Creek in Virginia. The project will likely involve a significant number of construction workers, supporting local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of unforeseen site conditions requiring change orders.
Dependence on the contractor's ability to manage a large, multi-year project.

Positive Signals

Firm-fixed-price contract limits cost escalation.
Awarded through full and open competition, suggesting competitive pricing.
Contractor has experience in large-scale construction projects.
Project duration allows for thorough planning and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major consumer of construction services, investing heavily in maintaining and upgrading its infrastructure. Spending in this sector is influenced by factors such as military readiness requirements, base consolidation, and modernization initiatives. Comparable spending benchmarks would involve other large-scale military construction projects or similar institutional building projects in the public sector.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Whiting-Turner Contracting Company, may not be required to subcontract a significant portion of the work to small businesses under this award, potentially limiting opportunities for the small business ecosystem in this instance.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with the firm-fixed-price terms and project specifications. Accountability measures are embedded in the contract's performance requirements and delivery schedules. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Buildings and Facilities Construction

Risk Flags

Potential for cost overruns if not managed tightly despite FFP
Risk of schedule delays impacting facility availability
Dependency on contractor's financial stability and performance over a long duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.5 million to WHITING-TURNER CONTRACTING COMPANY, THE. P224 & P999 JEB LITTLE CREEK

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 $43.5 million.

What is the period of performance?

Start: 2021-01-29. End: 2024-07-19.

What is the track record of Whiting-Turner Contracting Company on similar federal construction projects?

Whiting-Turner Contracting Company has a substantial track record with the federal government, particularly within the Department of Defense and other agencies requiring large-scale construction. They have been involved in numerous projects across various sectors, including institutional, healthcare, and research facilities. Their experience often includes complex projects with significant budgets and demanding timelines. Analyzing their past performance on similar firm-fixed-price contracts, especially those involving military installations, would provide further insight into their reliability and ability to manage costs and schedules effectively. Publicly available contract databases and agency performance reviews can offer details on their historical success rates, any past disputes, and their overall reputation for delivering quality work on time and within budget.

How does the per-square-foot cost of this contract compare to other institutional building construction projects?

Without specific details on the square footage or the exact nature of the 'commercial and institutional buildings' being constructed or renovated, a precise per-square-foot cost comparison is challenging. However, given the contract value of approximately $43.5 million and a duration of 1267 days (over 3.5 years), it suggests a substantial project. Typical per-square-foot costs for institutional construction can vary widely based on location, complexity, materials, and specific building type (e.g., barracks, administrative offices, training facilities). For large-scale federal projects, costs can range from $300 to $700+ per square foot. To benchmark effectively, one would need to identify comparable projects by size, type, and location, and then calculate their respective per-square-foot costs to determine if Whiting-Turner's pricing is competitive within that context.

What are the primary risks associated with a project of this duration and value?

Projects valued at $43.5 million and spanning over 1200 days inherently carry several risks. Material and labor cost escalation over such a long period is a significant concern, although mitigated by the firm-fixed-price structure. Unforeseen site conditions, such as encountering unexpected geological issues or hazardous materials, can lead to costly delays and change orders. Contractor performance risk, including potential issues with quality control, schedule adherence, or financial stability, is also present. Furthermore, changes in government requirements or priorities during the project's lifecycle could necessitate modifications, impacting scope and cost. Effective risk management by both the contractor and the contracting agency, including robust contingency planning and proactive communication, is crucial to mitigate these potential issues.

How does this contract fit into the Department of the Navy's broader infrastructure modernization strategy?

This contract for construction at JEB Little Creek likely aligns with the Department of the Navy's ongoing efforts to modernize its shore infrastructure, ensuring bases are equipped to support current and future operational needs. Such projects are essential for maintaining readiness, enhancing quality of life for service members and their families, and accommodating new technologies or mission requirements. Investments in facilities like those covered by this contract are critical for replacing aging infrastructure, improving energy efficiency, and enhancing security. It reflects a commitment to providing state-of-the-art facilities that support the Navy's strategic objectives and personnel well-being.

What is the historical spending trend for similar construction contracts awarded by the Department of the Navy?

The Department of the Navy consistently awards a significant volume of contracts for construction and facilities maintenance annually, often running into billions of dollars. Historical spending trends show a steady demand for these services, driven by the need to maintain a global network of bases, upgrade aging infrastructure, and construct new facilities to meet evolving military requirements. Spending levels can fluctuate based on congressional appropriations, national security priorities, and specific modernization initiatives like BRAC. Analyzing past Navy contract awards for similar types of construction (e.g., institutional buildings, barracks, training facilities) would reveal patterns in contract values, durations, and competition levels, providing context for the $43.5 million award to Whiting-Turner.

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: N4008518R1104

Offers Received: 5

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: $43,488,332

Exercised Options: $43,488,332

Current Obligation: $43,488,332

Actual Outlays: $10,967,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008519D9070

IDV Type: IDC

Timeline