DoD's $40.6M contract for Building 847 renovation awarded to Whiting-Turner Contracting Company

Contract Overview

Contract Amount: $40,586,319 ($40.6M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-12-04

Contract Duration: 798 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM15-0466 B847 RENOVATE BEQ, BUILDING 847, NBK BREMERTON, WA

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: RM15-0466 B847 RENOVATE BEQ, BUILDING 847, NBK BREMERTON, WA Key points: 1. This contract represents a significant investment in facility modernization within the Navy's infrastructure. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially encouraging efficiency. 3. Competition dynamics for this project will be a key indicator of market responsiveness to large-scale construction needs. 4. Performance history of Whiting-Turner Contracting Company will be crucial in assessing project execution risk. 5. The project's success is tied to the operational readiness and modernization goals of the Navy at NBK Bremerton. 6. Geographic concentration in Washington state highlights regional infrastructure development priorities.

Value Assessment

Rating: good

Benchmarking the $40.6 million price tag for the renovation of Building 847 requires detailed cost breakdowns and comparison to similar-sized institutional building projects. Given the firm-fixed-price nature, the contractor assumes cost overruns, which can be a positive indicator of value if managed effectively. However, without specific cost-per-square-foot data or detailed scope of work, a precise value-for-money assessment is challenging. The award to a single entity suggests a competitive bidding process that resulted in a preferred offer, but the ultimate value will be realized through efficient project execution and adherence to the contracted scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. With three bidders identified, the level of competition appears moderate for a project of this scale. This suggests that the government received a range of pricing and technical approaches, allowing for selection of the best value. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages a wider pool of contractors to bid, potentially driving down costs through competitive pressure and ensuring the government secures services at a fair market price.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel stationed at NBK Bremerton, who will gain access to modernized facilities. The contract will deliver essential renovation services for Building 847, likely improving its functionality, safety, and energy efficiency. The geographic impact is concentrated in Bremerton, Washington, supporting the local economy through construction-related employment and services. Workforce implications include job creation for skilled trades and construction professionals in the Bremerton area during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Schedule delays could impact the Navy's operational timelines and facility availability.
Ensuring the quality of renovation meets long-term durability and functional requirements.
Coordination challenges with ongoing base operations during construction.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Award to an established contractor like Whiting-Turner suggests a degree of confidence in their execution capabilities.
Full and open competition provides a baseline for fair pricing and broad market engagement.
Modernization of critical infrastructure supports long-term operational readiness.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a vital segment of the broader construction industry. The market for federal construction projects is substantial, driven by the need to maintain, modernize, and expand government facilities. Comparable spending benchmarks would involve analyzing recent large-scale renovation or new construction contracts for federal buildings, particularly those managed by the Department of Defense or Navy, to assess cost-effectiveness and pricing trends within this specialized market.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated for small businesses within this specific award. The primary contractor, Whiting-Turner Contracting Company, will likely manage the majority of the work, though they may engage subcontractors based on their own business practices and project needs. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this contract are limited unless they are selected as subcontractors by the prime.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, which hold the contractor responsible for delivering the specified scope within the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DoD IG typically has oversight over defense spending and contract execution to identify fraud, waste, and abuse.

Related Government Programs

Department of Defense Facilities Modernization Programs
Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Military Construction Projects
Government Building Renovation and Repair

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of schedule delays affecting base operations.
Ensuring long-term quality and durability of renovated systems.
Contractor performance risk on a large-scale project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to WHITING-TURNER CONTRACTING COMPANY, THE. RM15-0466 B847 RENOVATE BEQ, BUILDING 847, NBK BREMERTON, WA

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 $40.6 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-12-04.

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

Whiting-Turner Contracting Company is a well-established construction firm with a significant history of undertaking large-scale projects, including many for federal agencies. Their portfolio often includes complex renovations, new construction, and infrastructure development across various sectors. Analyzing their past performance on similar Department of Defense or Navy projects, specifically those involving building renovations of comparable size and complexity, would provide insight into their ability to manage costs, adhere to schedules, and meet quality standards. Past performance evaluations and contract award histories available through federal procurement databases can offer data points on their reliability and success rates in delivering government contracts.

How does the awarded price compare to similar renovation projects for institutional buildings?

A precise comparison of the $40.6 million award to similar projects requires access to detailed cost breakdowns and project scopes. However, general benchmarks for institutional building renovations can be established by examining recent federal or large-scale commercial projects. Factors such as square footage, age and condition of the existing structure, complexity of systems being upgraded (e.g., HVAC, electrical, plumbing), and specific architectural requirements significantly influence cost. The firm-fixed-price nature of this contract suggests the contractor has factored in anticipated costs and risks. Benchmarking would involve calculating cost per square foot or cost per functional unit and comparing it against industry averages for similar renovation types and locations, adjusted for inflation and regional cost differences.

What are the primary risks associated with renovating an existing building like Building 847?

Renovating an existing building, especially a facility like Building 847 which may have historical or operational significance, presents several inherent risks. These include the discovery of unforeseen structural issues, hazardous materials (like asbestos or lead paint), outdated or incompatible existing systems, and potential environmental concerns that were not apparent during the initial inspection phase. Schedule risks are also significant, as unexpected site conditions can lead to delays. Furthermore, ensuring minimal disruption to ongoing base operations during construction requires careful planning and coordination. The firm-fixed-price contract shifts some financial risk to the contractor, but schedule and operational risks may still impact the government.

How will the success of this renovation impact the operational effectiveness of NBK Bremerton?

The successful renovation of Building 847 is expected to enhance the operational effectiveness of NBK Bremerton by providing modernized, safe, and efficient facilities. Depending on the building's function, upgrades could improve workspace conditions for personnel, enhance technological capabilities, increase energy efficiency, and ensure compliance with current building codes and safety standards. A well-executed renovation can lead to reduced maintenance costs, improved morale, and better support for the base's mission-critical activities. Conversely, delays or subpar execution could negatively impact operations, requiring temporary relocations or continued reliance on outdated infrastructure.

What is the historical spending trend for building renovations within the Department of the Navy?

Historical spending on building renovations within the Department of the Navy is substantial, reflecting the vast inventory of aging infrastructure across numerous installations. The Navy consistently allocates significant portions of its budget towards facilities sustainment, restoration, and modernization (FSRM) to maintain operational readiness and modernize its shore infrastructure. Trends often show increasing investment in energy efficiency upgrades, seismic retrofitting, and technology integration. Analyzing multi-year spending data for similar renovation projects can reveal patterns in contract values, types of work prioritized, and the average duration and cost of such endeavors, providing context for the current $40.6 million award.

What are the potential long-term cost savings anticipated from this renovation?

Long-term cost savings from this renovation are likely to stem from several areas. Improved energy efficiency through updated HVAC, lighting, and insulation systems can significantly reduce utility expenditures over the building's lifespan. Modernized systems are generally more reliable, leading to lower maintenance and repair costs compared to aging infrastructure. Enhanced functionality and safety may also reduce operational disruptions and associated indirect costs. Furthermore, bringing the building up to current standards can prevent future compliance-related expenses and potential liabilities. The exact savings will depend on the specific upgrades implemented and the building's prior condition and usage.

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: N4425521R4000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, TOWSON, 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: $40,586,319

Exercised Options: $40,586,319

Current Obligation: $40,586,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4425524D1708

IDV Type: IDC

Timeline