DoD awards $51M for Langley AFB construction, with 7 bids indicating competitive pricing

Contract Overview

Contract Amount: $51,053,010 ($51.1M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2021-05-21

End Date: 2025-08-15

Contract Duration: 1,547 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AIR FORCE TARGETING CENTER AT JOINT BASE LANGLEY-EUSTIS.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: CONSTRUCTION OF AIR FORCE TARGETING CENTER AT JOINT BASE LANGLEY-EUSTIS. Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. The contract was fully competed, suggesting a healthy market for this type of construction. 3. Risk indicators are moderate, typical for large-scale construction projects. 4. Performance context is a new targeting center, crucial for Air Force readiness. 5. This contract fits within the broader Defense construction sector spending.

Value Assessment

Rating: good

The $51 million award for the Air Force Targeting Center at Joint Base Langley-Eustis is a significant investment. While direct comparisons are difficult without specific project details, the presence of seven bids suggests a competitive environment that likely drove pricing towards market rates. The firm-fixed-price structure also shifts risk to the contractor, which can be beneficial for the government if managed effectively. Benchmarking against similar large-scale military construction projects would provide further insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive, indicating that multiple qualified contractors were interested and able to bid. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. The agency's ability to attract seven bids suggests the project was well-defined and the market was receptive.

Taxpayer Impact: The robust competition for this project is beneficial for taxpayers, as it likely resulted in a lower overall price than a sole-source or limited competition award. It ensures that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiary is the U.S. Air Force, which will gain a new, modern targeting center. The project will deliver critical infrastructure to support advanced training and operational planning. The geographic impact is concentrated at Joint Base Langley-Eustis in Virginia. The construction will likely create temporary jobs in the local Virginia workforce during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Cost overruns are a risk in large-scale fixed-price construction projects.
Ensuring compliance with environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract structure limits cost uncertainty for the government.
Full and open competition suggests a robust market and potentially competitive pricing.
Award to an experienced contractor like Whiting-Turner Contracting Company.

Sector Analysis

The defense construction sector is a substantial part of federal spending, encompassing a wide range of facilities and infrastructure projects for military branches. This contract for a targeting center falls under the broader category of institutional building construction, specifically for government and defense clients. Spending in this sector is often driven by modernization efforts, readiness requirements, and base infrastructure upgrades. Comparable benchmarks would include other large military construction projects awarded by the DoD.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award went to Whiting-Turner Contracting Company, a large prime contractor. Further analysis would be needed to determine if subcontracting opportunities for small businesses will arise during the execution of this project.

Oversight & Accountability

Oversight for this project will likely be managed by the Department of the Army, which awarded the contract on behalf of the Air Force. The firm-fixed-price contract type provides a degree of financial oversight by capping the government's liability. Transparency will depend on the agency's reporting practices and public availability of project milestones and expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Air Force
Department of Defense Facilities
Joint Base Infrastructure Projects
Advanced Training Facilities Construction

Risk Flags

Potential for cost overruns despite fixed-price contract.
Risk of construction delays impacting Air Force readiness.
Ensuring adequate quality control throughout the construction process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to WHITING-TURNER CONTRACTING COMPANY, THE. CONSTRUCTION OF AIR FORCE TARGETING CENTER AT JOINT BASE LANGLEY-EUSTIS.

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 Army).

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2021-05-21. End: 2025-08-15.

What is the track record of Whiting-Turner Contracting Company with the Department of Defense?

Whiting-Turner Contracting Company has a significant history of working with the Department of Defense on various construction projects. While specific details for this contract are not provided, their extensive experience in large-scale federal construction suggests a familiarity with DoD requirements, regulations, and project management expectations. Reviewing their past performance on similar military installations or facility types would offer further insight into their capabilities and reliability for this specific targeting center project. Their ability to secure this competitive bid further implies a strong past performance record that met DoD's evaluation criteria.

How does the $51 million cost compare to similar Air Force targeting center constructions?

Directly comparing the $51 million cost without detailed project specifications (e.g., square footage, technological integration, specific training capabilities) is challenging. However, the fact that this project attracted seven bids under full and open competition suggests that the pricing was likely competitive within the current market for specialized military facilities. To benchmark effectively, one would need to identify comparable projects awarded in recent years by the Air Force or other branches for similar training or operational centers, considering factors like location, scope, and complexity. The firm-fixed-price nature of this contract also implies that the government has a defined cost ceiling.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risks associated with this firm-fixed-price (FFP) contract, while generally favorable to the government by capping costs, still involve potential issues. For the contractor, risks include underestimating costs, encountering unforeseen site conditions, or material price escalations, which could lead to financial losses if not managed meticulously. For the government, risks can include the contractor cutting corners on quality to maintain profitability, or potential disputes arising from change orders if the scope definition was not entirely precise. Delays in project completion, even with an FFP contract, can impact the Air Force's operational readiness, representing a significant programmatic risk.

How effective is the 'full and open competition' strategy in ensuring value for this type of defense construction?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for defense construction projects like this one. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, fostering a competitive environment that drives down prices and encourages innovation. The receipt of seven bids in this case indicates strong market interest and suggests that the pricing achieved is likely close to the market rate. This approach enhances transparency and accountability, making it harder for inflated costs to go unnoticed and providing taxpayers with greater assurance that their funds are being used efficiently.

What is the historical spending trend for similar construction projects at Joint Base Langley-Eustis?

Analyzing historical spending trends for similar construction projects at Joint Base Langley-Eustis would require access to detailed contract databases and project histories specific to that installation. Without that granular data, it's difficult to provide a precise trend. However, large military bases like Langley typically undergo periodic infrastructure upgrades and new facility constructions driven by evolving mission requirements and aging infrastructure. Spending patterns would likely fluctuate based on congressional appropriations, specific military needs (like this targeting center), and the overall defense budget. A review of past DoD contract awards specifically for Langley AFB would reveal the frequency and scale of previous construction investments.

What are the potential long-term operational impacts of this new targeting center?

The long-term operational impacts of this new targeting center are expected to be significantly positive for the Air Force. A modern facility is likely to incorporate advanced technology, improved simulation capabilities, and better collaborative environments compared to older facilities. This can lead to more effective training, enhanced mission planning, and ultimately, improved combat readiness and effectiveness. The center could also potentially reduce reliance on external training ranges or simulations, leading to cost savings and increased flexibility in scheduling and execution of critical Air Force operations.

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: W9123621R2005

Offers Received: 7

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: $53,787,110

Exercised Options: $51,053,010

Current Obligation: $51,053,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline