Navy awards $32.4M for subsea warfare RDT&E facility, with construction expected to take nearly three years

Contract Overview

Contract Amount: $32,433,268 ($32.4M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2024-09-16

End Date: 2027-08-06

Contract Duration: 1,054 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P408 SUBSEA AND SEABED WARFARE RDT&E FACILITY

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32401

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: P408 SUBSEA AND SEABED WARFARE RDT&E FACILITY Key points: 1. The contract value represents a significant investment in advanced naval research and development capabilities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring cost-effectiveness. 3. The duration of the project suggests potential for schedule-related risks and cost overruns. 4. This facility is positioned to support critical advancements in undersea warfare technology. 5. Performance will be closely monitored given the specialized nature of the required construction.

Value Assessment

Rating: good

Benchmarking construction costs for specialized R&D facilities is challenging due to unique requirements. However, the price appears within a reasonable range for a project of this scale and complexity, considering the firm-fixed-price nature which shifts some risk to the contractor. Further analysis would require detailed cost breakdowns and comparisons to similar, albeit potentially less specialized, government construction projects.

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 contractors had the opportunity to bid. With three bids received, the level of competition appears moderate for a project of this magnitude. This suggests a reasonable degree of price discovery, though a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and allows the government to select the best value offer.

Public Impact

The Department of the Navy will benefit from enhanced facilities for subsea and seabed warfare research. The project will deliver a specialized RDT&E facility, crucial for developing next-generation naval technologies. The geographic impact is concentrated in Florida, potentially creating local construction jobs and economic activity. The construction workforce will be directly impacted, with opportunities for skilled trades and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's multi-year duration and complexity.
Risk of scope creep if R&D requirements evolve significantly during construction.
Ensuring specialized materials and construction techniques meet stringent naval standards.

Positive Signals

Firm-fixed-price contract structure helps control costs and manage budget predictability.
Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, Whiting-Turner, has a significant track record in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized government facilities. The market for constructing advanced research and development centers is competitive, driven by government and private sector investments in technology and defense. Comparable spending benchmarks are difficult to establish precisely due to the unique RDT&E requirements, but large-scale construction projects for similar institutional purposes can range from tens to hundreds of millions of dollars.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized trades or material supply. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and engineering divisions, ensuring adherence to specifications and timelines. Accountability measures will be embedded in the firm-fixed-price contract terms, with performance milestones and quality control checks. Transparency is expected through contract award data and potential public reporting on project progress, though detailed R&D specifics may remain classified.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Projects
Department of Defense Research and Development Facilities
Subsea Warfare Technology Development Programs
Advanced Materials Research Facilities

Risk Flags

Potential for schedule delays
Risk of cost overruns
Specialized construction requirements
Long project duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to WHITING-TURNER CONTRACTING COMPANY, THE. P408 SUBSEA AND SEABED WARFARE RDT&E FACILITY

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 $32.4 million.

What is the period of performance?

Start: 2024-09-16. End: 2027-08-06.

What is Whiting-Turner Contracting Company's track record with large-scale Department of Defense construction projects?

Whiting-Turner Contracting Company has a substantial history of undertaking large-scale construction projects, including those for government and defense clients. While specific details on their past DoD RDT&E facility projects would require deeper data mining, their portfolio generally includes complex institutional, industrial, and research facilities. Their experience suggests a capability to manage the logistical, technical, and security requirements inherent in such contracts. A review of their past performance ratings on similar federal contracts would provide further insight into their reliability and execution quality for projects of this nature.

How does the awarded price of $32.4 million compare to similar RDT&E facility construction projects?

Directly comparing the $32.4 million award for this specific subsea and seabed warfare RDT&E facility is challenging due to the highly specialized nature of its intended use. Construction costs for RDT&E facilities are heavily influenced by unique requirements such as advanced laboratory equipment integration, specialized environmental controls, security features, and specific structural demands for testing. While general benchmarks for institutional building construction exist, they may not accurately reflect the premium associated with cutting-edge defense research infrastructure. The firm-fixed-price nature of this contract suggests that the contractor has factored in these complexities into their bid, aiming for a defined cost outcome.

What are the primary risks associated with a nearly three-year construction timeline for a specialized facility?

A construction timeline of approximately three years for a specialized RDT&E facility presents several key risks. Schedule delays are a primary concern, potentially stemming from unforeseen site conditions, supply chain disruptions for specialized materials, labor shortages, or evolving design requirements. Cost overruns can occur if delays necessitate extended overhead, or if inflation impacts material and labor costs over the project's duration, despite the firm-fixed-price structure. Furthermore, the extended timeline increases the risk of technological obsolescence if the R&D focus shifts significantly during the construction period, potentially requiring costly modifications or rendering parts of the facility less relevant upon completion.

What is the expected impact of this facility on the Navy's subsea warfare capabilities?

The establishment of this dedicated Subsea and Seabed Warfare Research, Development, Test, and Evaluation (RDT&E) facility is expected to significantly enhance the Navy's capabilities in this critical domain. It will provide a centralized, state-of-the-art environment for developing and testing advanced technologies related to undersea operations, including autonomous underwater vehicles (AUVs), unmanned underwater vehicles (UUVs), sonar systems, and seabed mapping technologies. This focused investment aims to accelerate innovation, improve the performance and reliability of subsea systems, and ultimately bolster the Navy's strategic advantage in understanding and operating within the underwater battlespace.

How does the number of bids (3) influence the taxpayer's value for money in this full and open competition?

Receiving three bids in a full and open competition for a contract of this magnitude ($32.4 million) suggests a moderate level of competition. While three bidders indicate that the opportunity was known and accessible to multiple firms, a higher number of bids (e.g., five or more) typically leads to more aggressive pricing and a greater likelihood of securing the best possible value for taxpayers. With three bids, there is a reasonable chance that competitive pressures influenced the pricing, but it is less certain than with a more robust bidding pool. The government's evaluation process, focusing on both price and technical factors, will be crucial in ensuring optimal value is achieved.

What are the potential long-term implications of this investment on naval technology development?

This investment in a dedicated subsea and seabed warfare RDT&E facility signals a strategic commitment by the Navy to prioritize advancements in undersea technologies. The long-term implications include the potential for accelerated development cycles, fostering greater innovation in areas like autonomous systems, underwater sensing, and counter-mine warfare. Such a facility can attract top scientific and engineering talent, creating a hub for expertise. Furthermore, it could lead to the development of more effective and cost-efficient platforms and systems, ultimately enhancing the Navy's operational effectiveness and maintaining a technological edge in a strategically vital domain.

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: N6945020R0097

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: $32,433,268

Exercised Options: $32,433,268

Current Obligation: $32,433,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0013

IDV Type: IDC

Timeline