Naval Air Weapons Station China Lake awards $210.8M for facility construction, with 3 bidders competing

Contract Overview

Contract Amount: $210,833,038 ($210.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2021-09-16

End Date: 2026-06-25

Contract Duration: 1,743 days

Daily Burn Rate: $121.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD PROJECTS P-1917 CAST PROPELLANT MIX FACILITY, P-1920 WARHEAD CASING OPERATIONS FACILITY, P-1921 MOTOR ASSEMBLY COMPOUND, NAVAL AIR WEAPONS STATION (NAWS) CHINA LAKE, RIDGECREST, CA

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $210.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: DESIGN-BUILD PROJECTS P-1917 CAST PROPELLANT MIX FACILITY, P-1920 WARHEAD CASING OPERATIONS FACILITY, P-1921 MOTOR ASSEMBLY COMPOUND, NAVAL AIR WEAPONS STATION (NAWS) CHINA LAKE, RIDGECREST, CA Key points: 1. The contract focuses on constructing critical facilities for propellant and warhead operations, indicating a strategic investment in defense infrastructure. 2. A firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor, potentially leading to more predictable project expenses. 3. The project duration of approximately 4.8 years highlights the scale and complexity of the construction effort. 4. Competition among three bidders indicates a moderate level of market interest for this specialized construction project. 5. The award to Whiting-Turner Contracting Company, a large business, suggests a focus on established contractors for significant infrastructure projects.

Value Assessment

Rating: good

Benchmarking the $210.8 million cost for these specialized facilities is challenging without detailed scope and market data. However, the firm-fixed-price structure generally promotes cost control. The number of bidders (3) suggests a competitive environment that likely influenced pricing, though a more robust competition (e.g., 5+ bidders) could potentially yield even better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is adequate for a project of this magnitude, suggesting that multiple capable firms were interested and able to bid. The presence of three bidders indicates that the market is not overly concentrated, and the government likely received a range of pricing and technical proposals.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Navy and Department of Defense, gaining enhanced capabilities at Naval Air Weapons Station China Lake. Services delivered include the construction of specialized facilities for propellant mix, warhead casing operations, and motor assembly. The geographic impact is concentrated in Ridgecrest, California, supporting local economic activity through construction jobs and related services. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical multi-year infrastructure project introduces schedule and performance risks.
Limited visibility into the specific value-for-money achieved without detailed cost breakdowns and market comparisons.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor, promoting budget predictability.
Full and open competition with three bidders suggests a reasonable level of market engagement and potential for competitive pricing.
Award to an experienced large business contractor may increase the likelihood of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The construction of specialized facilities like those for ordnance handling requires significant expertise and adherence to stringent safety and environmental regulations. Comparable spending benchmarks for similar defense-related construction projects can vary widely based on location, scale, and specific technological requirements.

Small Business Impact

The contract was awarded to a large business and there is no indication of small business set-asides or subcontracting requirements in the provided data. This suggests that small businesses may not be directly benefiting from this specific prime contract award, though they could potentially be involved as subcontractors to the prime if opportunities arise.

Oversight & Accountability

Oversight for this project will likely be managed by the Department of the Navy's contracting and engineering divisions, with potential involvement from Naval Air Weapons Station China Lake personnel. Accountability measures are inherent in the firm-fixed-price contract, which penalizes the contractor for cost overruns. Transparency may be limited due to the nature of defense-related construction, but contract award details are publicly available.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Projects
Department of Defense Military Construction
Ordnance Facility Modernization Programs

Risk Flags

Potential for schedule delays due to specialized construction requirements.
Risk of cost escalation if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a single contractor for critical infrastructure development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $210.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. DESIGN-BUILD PROJECTS P-1917 CAST PROPELLANT MIX FACILITY, P-1920 WARHEAD CASING OPERATIONS FACILITY, P-1921 MOTOR ASSEMBLY COMPOUND, NAVAL AIR WEAPONS STATION (NAWS) CHINA LAKE, RIDGECREST, CA

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 $210.8 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-06-25.

What is the historical spending pattern for construction projects at Naval Air Weapons Station China Lake?

Analyzing historical spending at NAWS China Lake requires access to detailed contract databases and budget allocations over several fiscal years. Generally, military installations undergo periodic upgrades and expansions, leading to fluctuating construction expenditures based on modernization needs, infrastructure aging, and specific mission requirements. Without specific historical data for China Lake, it's difficult to provide precise figures. However, large-scale projects like this often follow significant planning and budgeting cycles, and may be part of broader military construction initiatives. Trends could include investments in upgrading aging facilities, expanding capacity for new technologies, or addressing environmental compliance needs.

How does the number of bidders (3) compare to typical competition levels for similar large-scale defense construction contracts?

For large-scale defense construction contracts, three bidders can be considered a moderate level of competition. While more bidders (e.g., 5 or more) generally indicate a more robustly competitive market and potentially better price discovery, three bidders suggest that the opportunity was sufficiently attractive and accessible to multiple qualified firms. The specific nature of the facilities (propellant, warhead) may limit the pool of contractors with the necessary expertise and security clearances, thus influencing the number of bids. A thorough analysis would compare this to similar projects within the Department of the Navy or DoD to determine if this is typical or an outlier.

What are the potential risks associated with constructing specialized ordnance facilities?

Constructing specialized ordnance facilities presents unique risks beyond standard construction projects. These include stringent safety protocols for handling hazardous materials, complex environmental compliance requirements, and the need for highly specialized engineering and construction expertise. Security considerations are paramount, requiring robust measures to protect sensitive operations and materials. Furthermore, the potential for unforeseen geological or site conditions can be higher in areas designated for such activities. The firm-fixed-price contract helps mitigate cost risks for the government, but schedule delays due to safety incidents, regulatory hurdles, or specialized equipment procurement remain significant concerns.

What is the track record of Whiting-Turner Contracting Company on similar government contracts?

Whiting-Turner Contracting Company has a substantial track record of performing large-scale construction projects, including many for government and defense clients. They are known for their expertise in various sectors, including institutional, industrial, and infrastructure development. While specific details on their performance for similar ordnance-related facilities at DoD installations would require a deeper dive into contract performance databases (e.g., CPARS), their consistent presence as a prime contractor on major projects suggests a generally positive performance history. Their size and experience indicate a capacity to manage complex projects with significant regulatory and safety requirements.

How does the $210.8 million cost compare to the estimated value of the services delivered?

Assessing the value-for-money of the $210.8 million contract requires a detailed breakdown of the scope of work, including the specific square footage, complexity of systems, and specialized requirements for each facility (propellant mix, warhead casing, motor assembly). Without this granular information, a direct comparison to 'estimated value' is difficult. However, the firm-fixed-price nature of the contract implies that the contractor has proposed a price deemed acceptable by the government for the defined scope. The competitive bidding process, with three bidders, suggests that the price reflects market conditions for such specialized construction. Benchmarking against similar, recently completed defense ordnance facilities would provide a more concrete comparison.

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: N6247319R1237

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: $210,833,038

Exercised Options: $210,833,038

Current Obligation: $210,833,038

Actual Outlays: $58,869,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1215

IDV Type: IDC

Timeline