Hensel Phelps Construction Co. awarded $144M contract by GSA for construction services in Maryland

Contract Overview

Contract Amount: $144,197,588 ($144.2M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2006-03-29

End Date: 2006-10-30

Contract Duration: 215 days

Daily Burn Rate: $670.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: GWYNN OAK, BALTIMORE County, MARYLAND, 21207

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $144.2 million to HENSEL PHELPS CONSTRUCTION CO for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type may offer cost certainty for the government. 3. The contract duration of 215 days indicates a focused, short-term project. 4. The award amount of $144M places this contract in the large-dollar category. 5. The awarding agency, GSA, is responsible for managing federal buildings and infrastructure. 6. The specific location in Maryland (MD) provides geographic context for the services.

Value Assessment

Rating: fair

Benchmarking the value of this $144 million construction contract is challenging without specific project details or comparable project data. However, the firm fixed-price nature suggests an attempt to control costs. The number of bids received (6) indicates some level of competition, which can influence pricing. Further analysis would require understanding the scope of work, the specific construction services rendered, and prevailing market rates for similar projects in Maryland during 2006.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Six bids were received, indicating a moderate level of competition for this project. While six bidders suggest a degree of market interest, it's important to assess if this number was sufficient to drive optimal pricing and value for the government, especially considering the substantial contract value.

Taxpayer Impact: A competitive bidding process like full and open competition generally benefits taxpayers by encouraging lower prices and better quality services as contractors vie for the award.

Public Impact

The primary beneficiaries are likely federal agencies requiring the constructed or renovated facilities. The services delivered involve significant construction activities, contributing to federal infrastructure. The geographic impact is concentrated in Maryland (MD). The contract supports the construction workforce, including laborers, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project contingencies.
Risk of delays if the 215-day schedule proves overly optimistic for the scope of work.
Quality control challenges inherent in large-scale construction projects.

Positive Signals

Award to a single, established contractor (Hensel Phelps) may indicate a track record of successful project completion.
Firm fixed-price contract provides budget certainty.
Full and open competition suggests a fair and transparent procurement process.

Sector Analysis

Construction contracts of this magnitude are common within the federal sector, particularly for agencies like the General Services Administration (GSA) responsible for maintaining and developing federal facilities. The market for large-scale construction is competitive, with established firms like Hensel Phelps often bidding on significant government projects. This contract fits within the broader category of federal infrastructure spending, which aims to support government operations and economic activity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Hensel Phelps, may engage small businesses as subcontractors as part of its overall project execution strategy, which would be detailed in their subcontracting plan if required.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms would include contract administration, site inspections, and performance reviews to ensure compliance with the firm fixed-price agreement and project specifications. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not always publicly accessible.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Contracts
Infrastructure Projects
Maryland Construction Projects

Risk Flags

Potential for cost overruns if fixed price was not adequately estimated.
Schedule adherence risk given the project duration.
Quality assurance during construction.
Adequacy of competition for optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $144.2 million to HENSEL PHELPS CONSTRUCTION CO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $144.2 million.

What is the period of performance?

Start: 2006-03-29. End: 2006-10-30.

What specific construction services were performed under this contract?

The provided data does not specify the exact nature of the construction services. However, given the awarding agency (GSA) and the contract value, it likely involved significant building construction, renovation, or major repair work on a federal facility in Maryland. The Public Buildings Service division of GSA typically oversees projects related to courthouses, federal office buildings, and other government-owned or leased properties. Without more detailed contract documentation, the precise scope of work remains undefined.

How does the $144 million award compare to typical GSA construction projects in Maryland?

The $144 million award is a substantial sum, placing it among larger federal construction projects. GSA manages a diverse portfolio, and project costs can vary widely based on scope, complexity, and location. While specific benchmarks for Maryland in 2006 are not readily available in this dataset, projects of this size often involve new construction of significant facilities or major renovations of existing ones. It suggests a project of considerable scale and importance within the federal real estate portfolio in the region.

What is Hensel Phelps Construction Co.'s track record with the federal government?

Hensel Phelps Construction Co. is a well-established and large general contractor with a significant history of working with the federal government across various agencies and project types. Their extensive experience typically includes large-scale, complex construction projects, including federal buildings, military installations, and infrastructure. While this specific contract award is noted, their broader federal contracting history would likely show numerous other awards and successful project completions, indicating a strong presence and capability in the federal construction market.

What were the potential risks associated with a firm fixed-price contract for this project?

Firm fixed-price (FFP) contracts place the majority of the risk on the contractor. For a large construction project like this, potential risks for Hensel Phelps could include underestimating material costs, labor expenses, or unforeseen site conditions. If the actual costs exceed the fixed price, the contractor absorbs the loss. Conversely, if costs are lower than anticipated, the contractor realizes a higher profit. The government benefits from cost certainty, but there's a risk that contractors may build in higher contingencies to cover potential risks, potentially leading to a higher initial price than a cost-reimbursement contract might have offered if managed efficiently.

How does the number of bidders (6) influence the perceived value for taxpayers?

Receiving six bids under a full and open competition generally suggests a healthy level of market interest and competition for the contract. More bidders typically increase the likelihood of receiving competitive pricing, as contractors strive to offer the best value to win the award. While six bidders is a positive indicator, the ultimate value for taxpayers also depends on the quality of the bids received and the government's evaluation process. A robust competition can lead to significant cost savings compared to a sole-source or limited-source procurement, ensuring taxpayer funds are used more efficiently.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 420 6TH AVENUE, GREELEY, CO, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $133,300,369

Exercised Options: $133,300,369

Current Obligation: $144,197,588

Timeline