DOJ awards $72.8M contract for FBI parking lot construction in Alabama

Contract Overview

Contract Amount: $72,833,350 ($72.8M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Justice

Start Date: 2019-09-18

End Date: 2022-03-14

Contract Duration: 908 days

Daily Burn Rate: $80.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADDITION OF PARKING LOT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $72.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: ADDITION OF PARKING LOT Key points: 1. Contract value represents a significant investment in facility infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Contract duration of 908 days indicates a substantial construction project. 4. Fixed-price contract type aims to control costs for the government. 5. Project location in Alabama may have implications for local economic impact. 6. The nature of the work falls under commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $72.8 million for a parking lot project appears substantial. Benchmarking against similar large-scale construction projects would be necessary to definitively assess value for money. The firm fixed-price structure provides cost certainty, but the final value proposition depends on the quality of execution and adherence to the scope of work. Without specific details on the scope (e.g., size, features, materials), a precise comparison to market rates is challenging.

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. This approach generally fosters a competitive environment, potentially leading to better pricing and terms for the government. The number of bidders is not specified, but the 'full and open' designation suggests a robust process was intended.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of contractors to participate.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, gaining necessary parking infrastructure. The project delivers construction services for a significant facility upgrade. The geographic impact is concentrated in Alabama, potentially benefiting the local construction workforce and economy. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Construction delays could impact FBI operational readiness.
Quality control during construction is critical to ensure long-term durability.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially competitive bid process.
Award to an established construction company like Hensel Phelps implies experience.

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 infrastructure development across various agencies. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by federal agencies for similar types of facilities, considering factors like square footage, complexity, and location.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor, Hensel Phelps, actively seeks to engage small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the FBI. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities Construction
Department of Justice Construction Contracts
FBI Infrastructure Projects
General Services Administration (GSA) Construction

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Construction delays could impact project timelines.
Adequacy of competition level for optimal pricing needs further review.
Long project duration may increase risk of cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $72.8 million to HENSEL PHELPS CONSTRUCTION CO. ADDITION OF PARKING LOT

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $72.8 million.

What is the period of performance?

Start: 2019-09-18. End: 2022-03-14.

What is the specific scope of work for the "ADDITION OF PARKING LOT" and what features are included?

The provided data indicates the contract is for the 'ADDITION OF PARKING LOT' with a value of $72,833,505. However, the specific scope of work, including the number of parking spaces, materials to be used, any associated lighting, drainage, or landscaping, and the exact location within the FBI facility, is not detailed in the summary data. This level of detail is typically found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Understanding these specifics is crucial for a comprehensive value assessment and for comparing this project to other parking facility constructions.

How does the contract duration of 908 days compare to typical construction timelines for similar projects?

A contract duration of 908 days, approximately 2.5 years, is substantial for a parking lot project. Typical timelines for constructing large parking facilities can range from several months to over a year, depending on size, complexity, site conditions, and weather. A 908-day duration might suggest a very large-scale project, significant site preparation challenges, phased construction, or potentially includes extended planning or environmental review periods. Without knowing the project's scale and specific requirements, it's difficult to definitively benchmark this duration against industry standards, but it appears on the longer side for a standard parking lot addition.

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

Hensel Phelps Construction Co. is a well-established and large federal contractor with a significant history of performing large-scale construction projects for various government agencies, including the Department of Defense and others. Their track record typically includes complex building construction, infrastructure, and aviation facilities. While specific data on their past performance on federal parking lot projects isn't detailed here, their general experience suggests they possess the capacity and expertise to handle a contract of this magnitude. Performance evaluations and past performance questionnaires (PPQs) submitted during the bidding process would provide more granular insights into their specific success rates and client satisfaction on comparable projects.

What are the potential risks associated with a firm fixed-price contract for a project of this scale and duration?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, risks can still emerge, especially for long-duration projects. For this $72.8 million parking lot project, potential risks include: 1) Contractor underestimation of costs leading to potential quality compromises or requests for change orders if profitability is threatened. 2) Unforeseen site conditions (e.g., soil issues, underground utilities) that could lead to significant cost increases if not adequately addressed in the contract's contingency planning or change order process. 3) Escalation of material and labor costs over the 908-day duration, which the contractor must absorb under an FFP contract, potentially impacting their profit margin and motivation. 4) Scope creep, where the government requests additional features not originally defined, necessitating formal change orders that could increase the price.

How does this $72.8 million expenditure compare to historical federal spending on similar infrastructure projects?

The $72.8 million expenditure for an FBI parking lot addition is a significant sum. To compare it historically, one would need to analyze federal spending databases (like FPDS) for similar 'Commercial and Institutional Building Construction' contracts awarded by agencies like the Department of Justice or others for parking facilities, access roads, or related site infrastructure. Factors such as the number of parking spaces, square footage, and geographic location heavily influence cost. Without these specifics, a direct comparison is difficult, but this figure suggests a large-scale, potentially complex, or high-security parking infrastructure project rather than a simple surface lot.

What are the implications of this contract being awarded to Hensel Phelps Construction Co. for the local Alabama economy?

Awarding a $72.8 million contract to Hensel Phelps Construction Co. for a project in Alabama is likely to have a positive impact on the local economy. As a large construction firm, Hensel Phelps is expected to utilize local labor, subcontractors, and material suppliers to the extent possible, thereby creating jobs and stimulating economic activity within the state. The duration of the project (908 days) suggests sustained employment opportunities. Furthermore, the completed parking facility will serve the operational needs of the FBI, potentially supporting its presence and functions within Alabama.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,203,582,245

Exercised Options: $146,279,235

Current Obligation: $72,833,350

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJF141200V00012391

IDV Type: IDC

Timeline