Hensel Phelps Construction Co. awarded $60.7M for Texas facility construction under full and open competition
Contract Overview
Contract Amount: $60,683,230 ($60.7M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2007-06-08
End Date: 2010-09-29
Contract Duration: 1,209 days
Daily Burn Rate: $50.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COMPANY OPERATIONS FACILITY
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79906
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $60.7 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: COMPANY OPERATIONS FACILITY Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and the scale of the project. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. The project falls within the broad category of commercial and institutional building construction. 5. This contract represents a significant investment in infrastructure within the Texas region. 6. The duration of the contract (1209 days) indicates a substantial construction undertaking.
Value Assessment
Rating: good
The contract's firm-fixed-price nature provides cost certainty for the government. Benchmarking against similar large-scale construction projects for the Department of Defense in Texas would be necessary for a precise value assessment. However, the award amount of $60.7 million for a significant facility suggests a competitive pricing environment, especially given the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 12 bids suggests a robust level of competition for this project, which typically leads to more favorable pricing for the government.
Taxpayer Impact: A high number of bidders in a full and open competition generally translates to better price discovery and potentially lower costs for taxpayers compared to less competitive solicitations.
Public Impact
The primary beneficiaries are the Department of the Army, which will receive a new or improved facility. The services delivered involve the construction of a commercial or institutional building. The geographic impact is concentrated in Texas (ST: TX, SN: TEXAS). The project will likely create numerous jobs in the construction sector within the local Texas economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
- Delays in construction schedule could impact operational readiness for the Department of the Army.
- Quality control during construction is critical to ensure the facility meets all specifications and safety standards.
Positive Signals
- Firm-fixed-price contract provides budget certainty.
- Full and open competition with 12 bidders suggests a competitive market and potentially good pricing.
- Award to an established construction company (Hensel Phelps) indicates experience in large-scale projects.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The Department of Defense is a major client for construction services, often requiring specialized facilities. Comparable spending benchmarks would involve analyzing other large-scale construction awards by federal agencies for similar types of buildings, considering regional labor and material costs.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (SS: false, SB: false). While Hensel Phelps is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting would depend on the prime contractor's strategy and federal requirements.
Oversight & Accountability
Oversight would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring compliance with contract terms, specifications, and schedule. The Inspector General's office may also conduct audits or investigations if concerns arise regarding fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Department of Defense Construction Contracts
- Army Corps of Engineers Projects
- Federal Building Construction
- Infrastructure Development
Risk Flags
- Potential for schedule delays
- Risk of unforeseen site conditions
- Material cost volatility
- Labor availability and cost fluctuations
Tags
construction, department-of-defense, department-of-the-army, texas, firm-fixed-price, full-and-open-competition, large-contract, commercial-building, institutional-building, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.7 million to HENSEL PHELPS CONSTRUCTION CO.. COMPANY OPERATIONS FACILITY
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 $60.7 million.
What is the period of performance?
Start: 2007-06-08. End: 2010-09-29.
What is the historical spending pattern of the Department of the Army on facility construction in Texas?
Analyzing historical spending by the Department of the Army on facility construction in Texas requires access to detailed federal procurement databases. Generally, the Army undertakes significant infrastructure projects to support its operations, with spending levels fluctuating based on military readiness needs, base realignments, and congressional appropriations. Texas, with its substantial military presence, often sees considerable investment in construction. This specific $60.7 million contract for a facility represents one component of that broader spending. To provide a precise historical pattern, one would need to aggregate data for similar construction contracts awarded by the Army in Texas over several fiscal years, looking at total dollar amounts, types of facilities, and contract vehicles used.
How does the per-square-foot cost of this facility compare to similar government-built structures?
Determining the per-square-foot cost requires knowing the total square footage of the facility constructed under this contract, which is not provided in the summary data. Assuming this information were available, it could be compared to industry benchmarks and other government construction projects. Factors influencing per-square-foot costs include the type of facility (e.g., office, barracks, maintenance), complexity of systems (HVAC, IT, security), material choices, and regional labor rates. A firm-fixed-price contract like this one aims to control costs, but the ultimate value is assessed by comparing the final cost per square foot against comparable projects, adjusted for specific project requirements and location.
What is Hensel Phelps Construction Co.'s track record with the Department of Defense?
Hensel Phelps Construction Co. is a well-established and large general contractor with a significant history of working on major projects, including those for federal agencies like the Department of Defense. Their track record typically involves large-scale, complex construction endeavors across various sectors. For DoD projects, this would include military bases, administrative facilities, and specialized structures. A review of their past performance with the DoD would likely reveal numerous successfully completed contracts, demonstrating their capacity and reliability. However, specific performance metrics, past issues, or client feedback would require a deeper dive into contract performance reports and agency evaluations.
What are the primary risks associated with a large-scale construction contract of this nature?
Large-scale construction contracts, such as this $60.7 million facility project, carry several inherent risks. Key risks include potential cost overruns due to unforeseen site conditions (e.g., soil issues, hazardous materials), material price volatility, and labor shortages or disputes. Schedule delays are also a significant risk, stemming from weather, supply chain disruptions, or subcontractor performance issues. Furthermore, ensuring the final construction meets all quality standards and specifications is critical. While the firm-fixed-price contract helps mitigate cost escalation for the government, the contractor bears more risk for cost overruns. Robust project management, contingency planning, and diligent oversight are essential to manage these risks effectively.
How does the competition level (12 bidders) impact the final price and taxpayer value?
A high number of bidders, such as the 12 received for this contract, generally indicates a healthy and competitive market for the services required. In a full and open competition, multiple bids allow the procuring agency to compare proposals and select the most advantageous offer, often based on a combination of price and technical factors. Increased competition typically drives down prices as contractors vie for the award, leading to better value for taxpayers. It also provides greater assurance that the awarded price is reflective of fair market value. Conversely, a low number of bidders might suggest market limitations or potential issues with the solicitation, potentially leading to higher prices.
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: W912PP06R0001
Offers Received: 12
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $60,683,230
Exercised Options: $60,683,230
Current Obligation: $60,683,230
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912PP06D0020
IDV Type: IDC
Timeline
Start Date: 2007-06-08
Current End Date: 2010-09-29
Potential End Date: 2010-09-29 00:00:00
Last Modified: 2021-02-26
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