Naval Facilities Engineering Command awarded $28.6M for construction services, with a fixed-price contract to Hensel Phelps Construction Co

Contract Overview

Contract Amount: $28,559,321 ($28.6M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2003-10-23

End Date: 2005-10-06

Contract Duration: 714 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200412!004483!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247001D1142 !A!N! !N!0002 ! !20031023!20050506!791702194!791702194!063322085!N!HENSEL PHELPS CONSTRUCTION CO !4437 BROOKFIELD CORPORATE !CHANTILLY !VA!20151!65120!153!51!QUANTICO !PRINCE WILLIAM !VIRGINIA !+000027340000!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!A!B!5!B!S! ! !C!20060704!B! ! !A! !A!U!J!2!006!B! !D!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! ! !M00264!0001! !

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to HENSEL PHELPS CONSTRUCTION CO for work described as: 200412!004483!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247001D1142 !A!N! !N!0002 ! !20031023!20050506!791702194!791702194!063322085!N!HENSEL PHELPS CONSTRUCTION CO !4437 BROOKFIELD CORPORATE !CHANTILLY !VA!20151!65120!153!51!QUANTICO !PRIN… Key points: 1. The contract value of $28.6 million represents a significant investment in infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar construction projects. 5. The sector positioning highlights the role of construction in supporting naval operations. 6. The contract's fixed-price nature suggests a defined scope and cost control measures. 7. The duration of 714 days indicates a substantial construction undertaking.

Value Assessment

Rating: good

The total award amount of $28.6 million for construction services appears reasonable given the contract duration of 714 days and the fixed-price nature. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. However, the absence of significant modifications or overruns, if applicable, would suggest effective cost management by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bids suggests a healthy level of competition, which typically drives more competitive pricing and encourages contractors to offer their best value. This process aims to ensure that the government receives the most advantageous offer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on public funds.

Public Impact

The primary beneficiaries of this contract are the Department of the Navy and its personnel, who will utilize the constructed facilities. The services delivered include the construction of administrative and service buildings, crucial for operational support. The geographic impact is localized to Quantico, Virginia, specifically within Prince William County. Workforce implications include job creation 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 arise during construction.
Risk of schedule delays due to weather, material availability, or labor issues.
Ensuring compliance with all environmental and safety regulations throughout the project lifecycle.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition likely resulted in a competitive bid and fair pricing.
The contractor, Hensel Phelps Construction Co., has a track record in large-scale construction projects.
The contract is for administrative and service buildings, indicating a clear functional purpose.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector supports the development and maintenance of essential government facilities. Comparable spending benchmarks would involve analyzing the average cost per square foot or per project for similar federal building construction across different agencies and geographic locations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Hensel Phelps Construction Co., may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on the subcontracting plan submitted by the prime contractor and the nature of the construction work required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which is responsible for awarding and administering construction contracts for the Navy. Accountability measures are embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and public reporting requirements.

Related Government Programs

Naval Facilities Engineering Command Construction Contracts
Department of Defense Building Construction
Federal Fixed-Price Construction Awards
Quantico Base Infrastructure Projects

Risk Flags

Potential for scope creep if project requirements are not clearly defined.
Risk of contractor default or performance issues on a large-value contract.
Ensuring compliance with all federal procurement regulations and construction standards.
Vulnerability to economic fluctuations impacting material costs and labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to HENSEL PHELPS CONSTRUCTION CO. 200412!004483!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247001D1142 !A!N! !N!0002 ! !20031023!20050506!791702194!791702194!063322085!N!HENSEL PHELPS CONSTRUCTION CO !4437 BROOKFIELD CORPORATE !CHANTILLY !VA!20151!65120!153!51!QUANTICO !PRINCE WILLIAM !VIRGINIA !+000027340000!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!A!B!5!B!S! ! !C!200

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2003-10-23. End: 2005-10-06.

What is the track record of Hensel Phelps Construction Co. on similar federal construction projects?

Hensel Phelps Construction Co. is a well-established construction firm with extensive experience in large-scale projects, including many for federal agencies. They have a history of successfully completing complex building projects, often involving significant infrastructure development. Analyzing their past performance on similar Department of Defense or Navy contracts, specifically focusing on project delivery timelines, budget adherence, and client satisfaction, would provide further insight into their capabilities and reliability for this specific award. Their portfolio often includes a range of building types, from administrative facilities to specialized operational structures, suggesting they are well-equipped for the scope outlined in this contract.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data indicates a total award amount of $28,559,321. Without access to the initial estimated cost or the government's budget for this specific project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with 6 bids suggests that the final award price was likely competitive and potentially within the government's budgetary expectations. Further analysis would require access to pre-award estimates or budget documents to determine if the award represented a significant deviation, either higher or lower, than anticipated.

What are the primary risk indicators associated with this type of fixed-price construction contract?

Fixed-price contracts, while offering cost certainty, carry inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns due to unforeseen issues like material price increases, labor shortages, or site conditions not accounted for in the bid. For this specific contract, potential risks include delays due to weather in Virginia, availability of specialized construction materials, and ensuring compliance with stringent federal building codes and environmental regulations. Effective project management and oversight are crucial to mitigate these risks.

What is the historical spending pattern for similar construction services by the Department of the Navy in Virginia?

Historical spending by the Department of the Navy in Virginia for construction services is substantial, given the significant naval presence in the state. The Navy frequently awards contracts for the construction, renovation, and maintenance of various facilities, including administrative buildings, barracks, training centers, and port infrastructure. Spending patterns can fluctuate based on modernization initiatives, infrastructure upgrades, and new construction requirements. Analyzing past contract awards for similar building types (e.g., administrative and service buildings) and contract values within Virginia would provide context for the $28.6 million award to Hensel Phelps. This comparison helps assess whether this award is in line with typical spending levels or represents an outlier.

How does the contract duration of 714 days align with typical construction timelines for similar federal projects?

A contract duration of 714 days, approximately 23-24 months, is a substantial period and is generally aligned with the timelines for large-scale federal construction projects. The complexity of the project, the size of the facility being built, site preparation requirements, and potential weather delays in the region all influence the duration. For administrative and service buildings of significant size, this duration suggests a comprehensive construction effort. Benchmarking against other similar federal building projects awarded by the Navy or other DoD components in similar geographic areas would confirm whether this timeline is standard, aggressive, or conservative for the scope of work.

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

Offers Received: 6

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 4437 BROOKFIELD CORPORATE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247001D1142

IDV Type: IDC

Timeline