DoD Awards $58.9M for Walter Reed Vivarium Renovation to Turner Construction
Contract Overview
Contract Amount: $58,921,145 ($58.9M)
Contractor: Turner Construction Company
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2024-09-27
Contract Duration: 3,285 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DESIGN AND RENOVATION OF BUILDING 511, VIVARIUM, AT WALTER REED ARMY INSTITUTE OF RESEARCH.
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $58.9 million to TURNER CONSTRUCTION COMPANY for work described as: IGF::OT::IGF DESIGN AND RENOVATION OF BUILDING 511, VIVARIUM, AT WALTER REED ARMY INSTITUTE OF RESEARCH. Key points: 1. Significant investment in critical research infrastructure at Walter Reed. 2. Turner Construction, a major player, secured the contract. 3. Potential for cost overruns given the long duration and fixed-price nature. 4. Construction sector spending benchmark analysis needed for context.
Value Assessment
Rating: fair
The contract value of $58.9M for a multi-year renovation project appears substantial. Benchmarking against similar large-scale institutional building construction projects would be necessary to definitively assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for a critical research facility upgrade, with the expectation of value derived from improved research capabilities.
Public Impact
Enhances vital medical research capabilities at a key military health facility. Supports construction jobs and the broader commercial building sector. Long-term project duration may impact immediate local economic benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (9 years) increases risk of scope creep and cost escalation.
- Fixed-price contract with a long duration can strain contractor margins if unforeseen issues arise.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Investment in critical research infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector can fluctuate based on infrastructure needs and modernization efforts, with large renovation projects like this representing significant investments.
Small Business Impact
While Turner Construction is a large entity, the subcontracting opportunities for small businesses within this large-scale project should be monitored to ensure compliance with small business utilization goals.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Department of the Army to manage progress, control costs, and ensure adherence to specifications and timelines.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (9 years)
- Fixed-price contract
- Potential for unforeseen site conditions
- Dependency on specialized research equipment integration
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.9 million to TURNER CONSTRUCTION COMPANY. IGF::OT::IGF DESIGN AND RENOVATION OF BUILDING 511, VIVARIUM, AT WALTER REED ARMY INSTITUTE OF RESEARCH.
Who is the contractor on this award?
The obligated recipient is TURNER CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $58.9 million.
What is the period of performance?
Start: 2015-09-30. End: 2024-09-27.
What is the projected return on investment for the enhanced research capabilities enabled by this renovation?
Quantifying the ROI for research infrastructure is complex. It hinges on the success of future research, potential breakthroughs, and the development of new treatments or technologies stemming from the improved vivarium facilities. The primary return is expected in the form of accelerated and more effective scientific discovery.
What specific risks were identified during the full and open competition that could impact the final cost?
During full and open competition, potential risks identified might include unforeseen site conditions, material cost fluctuations over the long project timeline, specialized equipment integration challenges, and the need for specialized labor. The contract structure aims to mitigate these, but thorough pre-bid assessments are crucial.
How will the effectiveness of the renovated vivarium be measured post-completion?
Effectiveness will likely be measured through several metrics: adherence to the original design specifications, successful integration of new equipment, compliance with all relevant animal welfare and biosafety regulations, and ultimately, the ability of researchers to conduct their work efficiently and without facility-related impediments.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9127S15R6008
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ACS, Actividades DE Construccion Y Servicios, SA
Address: 375 HUDSON ST, NEW YORK, NY, 10014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,688,543
Exercised Options: $58,921,145
Current Obligation: $58,921,145
Actual Outlays: $3,424,579
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,714,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-30
Current End Date: 2024-09-27
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-09-27
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