Hensel Phelps Construction Co. awarded $80.4M task order for METC Dorm #3 construction in Texas

Contract Overview

Contract Amount: $80,403,225 ($80.4M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2008-11-21

End Date: 2011-07-22

Contract Duration: 973 days

Daily Burn Rate: $82.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION TASK ORDER METC DORM #3

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $80.4 million to HENSEL PHELPS CONSTRUCTION CO for work described as: CONSTRUCTION TASK ORDER METC DORM #3 Key points: 1. The contract value of $80.4 million represents a significant investment in military construction. 2. The firm-fixed-price contract type suggests a defined scope and cost control. 3. The duration of 973 days indicates a substantial construction project. 4. The award was made under full and open competition, implying a competitive bidding process. 5. The project is located in Texas, potentially impacting the local construction workforce and economy. 6. The absence of small business set-aside flags suggests a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $80.4 million for a dormitory construction task order appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for military housing or institutional buildings would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government, assuming the initial scope was well-defined.

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 bids suggests a healthy level of competition for this significant construction project. This competitive environment is generally favorable for price discovery and achieving a fair market price for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid, potentially saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

Service members will benefit from new dormitory facilities, improving living conditions. The construction services delivered will result in a completed dormitory building. The geographic impact is concentrated in Texas, where the construction will take place. The project will likely create jobs for construction workers and related trades in the local Texas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, impacting final costs and timelines.
Ensuring quality of construction meets military standards and long-term durability.
Managing the complexity of coordinating multiple subcontractors and suppliers.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bid process, likely leading to better pricing.
Award to an established contractor like Hensel Phelps may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The value of $80.4 million places it as a substantial project within this category. Comparable spending benchmarks for military barracks or dormitory construction can be found across various Department of Defense branches and other federal agencies undertaking similar infrastructure development.

Small Business Impact

The contract data indicates that this was not a small business set-aside. While the prime contractor is Hensel Phelps Construction Co., a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and any specific subcontracting goals set by the agency.

Oversight & Accountability

Oversight for this construction task order would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of the specified construction. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

Military Construction (MILCON)
Dormitory Construction
Federal Building Projects
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of delays due to unforeseen site conditions or contractor performance issues.
Ensuring adequate quality control throughout the construction process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.4 million to HENSEL PHELPS CONSTRUCTION CO. CONSTRUCTION TASK ORDER METC DORM #3

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 $80.4 million.

What is the period of performance?

Start: 2008-11-21. End: 2011-07-22.

What is Hensel Phelps Construction Co.'s track record with similar federal construction projects?

Hensel Phelps Construction Co. is a well-established construction firm with a significant history of undertaking large-scale federal projects, including those for the Department of Defense. They have a documented track record in military construction, including barracks, training facilities, and other infrastructure. Reviewing their past performance on similar firm-fixed-price contracts, particularly those involving dormitory or housing construction, would provide insight into their ability to manage scope, budget, and schedule effectively. Their extensive experience suggests a capacity to handle complex projects and meet government requirements, though specific project outcomes and any past performance issues would require deeper investigation into federal procurement databases and agency reports.

How does the $80.4 million value compare to similar military dormitory construction projects?

The $80.4 million award for METC Dorm #3 is a substantial figure, indicative of a large-scale construction project. To benchmark its value, one would compare it to other military dormitory or barracks construction contracts awarded by the Department of Defense or other federal agencies over the past several years. Factors such as square footage, number of occupants, specific amenities, and geographic location (which influences labor and material costs) are critical for a fair comparison. Without these specific details, it's challenging to definitively state if $80.4 million is high or low. However, given the duration of 973 days, it suggests a complex build, and the value appears to be within the expected range for such a significant undertaking in the current construction market.

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

The primary risks associated with this firm-fixed-price (FFP) contract, despite its cost control benefits, revolve around potential scope creep and unforeseen site conditions. If the initial scope definition is incomplete or if unexpected geological or environmental issues arise during construction, the contractor may seek change orders, potentially increasing the total cost and extending the timeline, even under an FFP. Another risk is the contractor's ability to maintain quality while adhering strictly to the fixed price, potentially leading to shortcuts if not adequately overseen. Furthermore, the financial stability and management capacity of the prime contractor and its subcontractors are crucial; any issues in these areas could jeopardize project completion. Robust government oversight and clear contract administration are essential to mitigate these risks.

How effective is full and open competition in ensuring value for taxpayer money in large construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large construction contracts. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The requirement for multiple bidders, as seen with the 4 bids on this contract, increases the likelihood that the government receives a fair market price. This process also promotes transparency and reduces the potential for favoritism or collusion. While it requires more administrative effort upfront to solicit and evaluate bids, the long-term benefits in terms of cost savings and quality are typically substantial. The key is ensuring the solicitation is well-defined to attract relevant bidders and that the evaluation criteria are objective.

What are the historical spending patterns for dormitory construction within the Department of Defense?

Historical spending patterns for dormitory construction within the Department of Defense (DoD) show a consistent and significant investment in military housing infrastructure. The DoD's Military Construction (MILCON) program annually allocates substantial funds towards building and renovating barracks, dormitories, and family housing to support service members. Spending fluctuates based on modernization needs, troop levels, and aging infrastructure replacement cycles. Contracts for dormitories can range from tens of millions to hundreds of millions of dollars, depending on the scale, location, and complexity. The trend has been towards more modern, energy-efficient, and higher-quality living spaces to improve recruitment and retention. Analyzing past DoD spending data reveals a sustained commitment to housing, with specific project values like the $80.4 million METC Dorm #3 task order fitting within the typical range for major dormitory projects.

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: W9126G07R0074

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 6TH AVE, GREELEY, CO, 80631

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $80,403,225

Exercised Options: $80,403,225

Current Obligation: $80,403,225

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0016

IDV Type: IDC

Timeline