DOJ's FBI awards $198.6M for administrative building and utility plant construction in Alabama

Contract Overview

Contract Amount: $198,562,205 ($198.6M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Justice

Start Date: 2019-05-01

End Date: 2022-03-11

Contract Duration: 1,045 days

Daily Burn Rate: $190.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 300,000SF ADMINISTRATIVE BUILDING AND CENTRAL UTILITY PLANT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $198.6 million to HENSEL PHELPS CONSTRUCTION CO for work described as: 300,000SF ADMINISTRATIVE BUILDING AND CENTRAL UTILITY PLANT Key points: 1. The contract value represents a significant investment in federal infrastructure. 2. Construction services are critical for agency operational capacity and modernization. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract suggests a large-scale, complex project. 5. The project's location in Alabama may have local economic and workforce impacts.

Value Assessment

Rating: fair

The contract value of $198.6 million for a 300,000 SF administrative building and central utility plant appears substantial. Benchmarking this against similar large-scale federal construction projects is difficult without more specific details on scope, materials, and location-specific labor costs. However, the firm fixed-price nature suggests an attempt to lock in costs, which can be beneficial if the contractor accurately estimated expenses. Without comparative data on per-square-foot construction costs for similar federal facilities, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to eligible vendors. With 3 bidders participating, there was a degree of competition, which is generally positive for price discovery. However, the specific number of bidders and the nature of the SAP competition (e.g., number of proposals received, evaluation criteria) would provide a clearer picture of the competitive intensity and its impact on the final price.

Taxpayer Impact: A competitive bidding process, even under SAP, helps ensure that taxpayer funds are used efficiently by encouraging multiple contractors to offer their best pricing.

Public Impact

The Federal Bureau of Investigation (FBI) benefits from new or improved facilities to support its operations. Construction services are delivered, creating jobs and economic activity within the local Alabama economy. The project's geographic impact is concentrated in Alabama, potentially boosting local businesses and suppliers. The construction workforce, including skilled trades, will be directly impacted by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates were inaccurate, despite fixed-price contract.
Delays in construction could impact FBI operational readiness.
Quality control during a large-scale construction project requires diligent oversight.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Competition among bidders suggests potential for competitive pricing.
Project completion will enhance FBI's physical infrastructure and operational capabilities.

Sector Analysis

The construction sector is a significant part of the US economy, with federal agencies being major clients for large-scale infrastructure projects. This contract falls under Commercial and Institutional Building Construction. Federal spending in this area is often driven by the need to modernize aging facilities, expand capacity, or build new installations to meet evolving agency requirements. Comparable benchmarks would involve analyzing per-square-foot costs for similar government buildings, factoring in regional economic conditions and specific construction complexities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. If this contract did not include specific small business participation goals, it may represent a missed opportunity to engage smaller firms in federal construction projects. Analysis of subcontracting would be necessary to determine the extent to which small businesses benefited from this award.

Oversight & Accountability

Oversight for this contract would typically involve the contracting officer's representative (COR) and potentially an Inspector General's office, especially for projects of this magnitude. The firm fixed-price contract structure provides a degree of accountability by capping the government's financial exposure. Transparency would be enhanced by public contract data, but detailed project progress reports and quality assurance documentation are usually internal.

Related Government Programs

Federal Building Construction
FBI Infrastructure Projects
Department of Justice Facilities
Large-Scale Construction Contracts

Risk Flags

Potential for cost overruns if estimates were inaccurate.
Risk of construction delays impacting agency operations.
Quality assurance requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $198.6 million to HENSEL PHELPS CONSTRUCTION CO. 300,000SF ADMINISTRATIVE BUILDING AND CENTRAL UTILITY PLANT

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 $198.6 million.

What is the period of performance?

Start: 2019-05-01. End: 2022-03-11.

What is the historical spending trend for similar FBI construction projects over the last five years?

Analyzing historical spending for similar FBI construction projects requires access to a comprehensive database of federal contracts. Without specific data points on past projects (e.g., size, scope, location, cost), it's challenging to establish a precise trend. However, federal agencies like the FBI often undertake multi-year infrastructure modernization efforts. Spending can fluctuate based on budget appropriations, agency priorities, and the lifecycle of existing facilities. A general trend might show consistent investment in facilities, with peaks and troughs corresponding to major new construction initiatives or significant upgrades.

How does the awarded price per square foot compare to industry benchmarks for similar commercial and institutional buildings?

To compare the awarded price per square foot, we first need to calculate it: $198,562,205 / 300,000 SF = approximately $661.87 per square foot. This figure needs to be benchmarked against current industry standards for commercial and institutional building construction, considering the specific region (Alabama) and the type of facility (administrative building and utility plant). National averages for commercial construction can range widely, from $200 to over $600 per square foot, heavily influenced by materials, complexity, and labor costs. Given the inclusion of a central utility plant, which is often a more complex and costly component, this price might be within a reasonable range, but a detailed regional cost analysis would be necessary for a definitive assessment.

What are the key performance indicators (KPIs) used to measure the success of this construction contract?

Key performance indicators for a construction contract of this nature typically include adherence to schedule (on-time completion), budget (staying within the firm fixed price), quality of workmanship (meeting specifications and building codes), safety (minimizing accidents on site), and compliance with contract terms. For the FBI, successful delivery would also mean the facility meets all operational requirements and security standards. Performance would likely be monitored through regular site inspections, progress reports, milestone reviews, and final acceptance testing of the building and utility systems.

Were there any significant challenges or risks identified during the bidding or execution phases of this contract?

Without access to the full contract file or post-award reviews, identifying specific challenges or risks is speculative. However, large-scale construction projects inherently carry risks such as unforeseen site conditions (e.g., soil issues, hazardous materials), material price volatility, labor shortages, weather delays, and design changes. During the bidding phase, risks might include an insufficient number of qualified bidders or disputes over contract terms. The firm fixed-price nature suggests the contractor assumed significant cost risk. Successful project management would involve proactive risk mitigation strategies.

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

Hensel Phelps Construction Co. is a well-established and reputable general contractor with extensive experience in large-scale federal and commercial construction projects. They have a history of successfully delivering complex projects, including courthouses, federal office buildings, and infrastructure. Their track record generally indicates strong project management capabilities, a commitment to safety, and a capacity to handle significant budgets and timelines. Reviewing their past performance on similar government contracts, particularly those involving administrative facilities or utility plants, would provide further confidence in their ability to execute this project successfully.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 800, TYSONS CORNER, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $198,562,205

Exercised Options: $198,562,205

Current Obligation: $198,562,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline