Hensel Phelps Construction Co. awarded $82.8M for barracks construction at Fort Bliss, Texas
Contract Overview
Contract Amount: $82,767,863 ($82.8M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2007-05-31
End Date: 2010-01-15
Contract Duration: 960 days
Daily Burn Rate: $86.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF BCT BARRACKS, BLISS, TX
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79906
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $82.8 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: DESIGN AND CONSTRUCTION OF BCT BARRACKS, BLISS, TX Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor. 3. The duration of 960 days indicates a significant construction project. 4. The award was a delivery order, implying it's part of a larger contract vehicle. 5. The project falls under Commercial and Institutional Building Construction. 6. The contractor, Hensel Phelps, is a large, established construction firm.
Value Assessment
Rating: good
The contract value of $82.8 million for barracks construction appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control costs for the government, assuming the initial bid was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders (implied by 'no': 4) suggests a healthy level of competition for this significant construction project. This competitive environment is generally expected to drive down prices and improve the quality of proposals.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
Service members at Fort Bliss, Texas, will benefit from new barracks facilities. The project delivers essential infrastructure for military housing. The geographic impact is concentrated in El Paso, Texas. The construction work will likely involve a significant local workforce, including skilled trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting service member move-in dates.
- Risk of unforeseen site conditions requiring change orders, despite fixed-price contract.
- Ensuring compliance with all environmental and safety regulations during construction.
Positive Signals
- Award to an experienced contractor with a track record in large-scale projects.
- Firm fixed-price contract structure provides cost certainty for the government.
- Competitive bidding process likely secured a fair market price.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Military construction projects, such as barracks, represent a substantial portion of federal spending in this sector. Comparable projects often involve large general contractors managing complex logistics and multiple subcontractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the primary awardee is a large corporation. There is no explicit information on subcontracting goals for small businesses within this award. Further review of the contract details would be needed to assess potential subcontracting opportunities for the small business ecosystem.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and project management team within the Department of the Army. Transparency is generally maintained through contract award databases like FPDS. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.
Related Government Programs
- Military Construction, Army
- Barracks Construction
- Fort Bliss Infrastructure Projects
- Department of Defense Facilities
Risk Flags
- Potential for schedule delays impacting military readiness.
- Risk of unforeseen site conditions leading to change orders.
- Ensuring quality and adherence to military specifications.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, barracks, fort-bliss, texas, commercial-and-institutional-building-construction, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.8 million to HENSEL PHELPS CONSTRUCTION CO.. DESIGN AND CONSTRUCTION OF BCT BARRACKS, BLISS, TX
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 Army).
What is the total obligated amount?
The obligated amount is $82.8 million.
What is the period of performance?
Start: 2007-05-31. End: 2010-01-15.
What is Hensel Phelps Construction Co.'s track record with the Department of Defense?
Hensel Phelps Construction Co. has a substantial history of contracting with the Department of Defense across various military branches and installations. They have been awarded numerous contracts for construction projects, including barracks, training facilities, and administrative buildings. Their experience often includes large-scale, complex projects requiring adherence to strict military specifications and security protocols. Reviewing their past performance ratings and any documented issues on previous DoD contracts would provide further insight into their reliability and capability for projects like the Fort Bliss barracks.
How does the $82.8 million award compare to similar barracks construction projects?
Benchmarking this $82.8 million award requires comparing it to barracks construction projects of similar size, scope, and location, ideally within the last few years. Factors such as square footage per service member, amenities included, and specific site challenges (e.g., soil conditions, environmental regulations) significantly influence cost. Without detailed project specifications for comparison, it's difficult to definitively state if this represents superior or inferior value. However, given the firm fixed-price nature and full and open competition, it suggests an effort to secure competitive pricing for the required facilities.
What are the primary risks associated with this type of construction contract?
The primary risks for this firm fixed-price contract include potential cost overruns if the contractor underestimates expenses or encounters unforeseen site conditions, although the risk is largely borne by Hensel Phelps. Schedule delays are another significant risk, which could impact military readiness and personnel housing. Quality control and ensuring the final product meets all military specifications are also critical. Furthermore, managing the construction site safely and in compliance with environmental regulations presents ongoing risks that require diligent oversight.
How effective is the firm fixed-price contract type in managing costs for military construction?
The firm fixed-price (FFP) contract type is generally considered effective for managing costs in military construction when the scope of work is well-defined and risks are understood. It shifts the financial risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. For the government, it provides a high degree of cost certainty, as the final price is fixed unless changes are formally negotiated. However, if the initial scope is poorly defined or unforeseen issues arise, contractors may be less willing to absorb unexpected costs, potentially leading to disputes or requests for equitable adjustments.
What is the historical spending trend for barracks construction at Fort Bliss?
Analyzing historical spending trends for barracks construction specifically at Fort Bliss would require accessing detailed historical contract data for that installation. This would involve looking at previous awards for similar facilities, noting contract values, durations, and the number of bidders over time. Trends might reveal patterns of increasing or decreasing costs, changes in competition levels, or shifts in the types of contractors awarded work. Such analysis could help contextualize the current $82.8 million award within the installation's long-term infrastructure development and spending patterns.
What oversight mechanisms are in place for this delivery order?
Oversight for this delivery order would typically involve a combination of government personnel, including contracting officers' representatives (CORs) responsible for day-to-day monitoring of performance, quality, and compliance. The contracting officer (CO) retains overall responsibility for the contract. Regular progress meetings, site inspections, and review of contractor submittals are standard oversight practices. The Department of the Army's internal audit and Inspector General functions also provide a layer of oversight to ensure accountability and identify potential issues.
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: TWO STEP
Solicitation ID: W9126G06R0002
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO (UEI: 063322085)
Address: 8322 CROSS PARK DR, AUSTIN, TX, 78754
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $82,767,864
Exercised Options: $82,767,864
Current Obligation: $82,767,863
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G06D0039
IDV Type: IDC
Timeline
Start Date: 2007-05-31
Current End Date: 2010-01-15
Potential End Date: 2010-01-15 00:00:00
Last Modified: 2021-02-26
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