GSA awards $293M construction contract for State Dept. training center, completed on time

Contract Overview

Contract Amount: $29,348,727 ($29.3M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2015-06-17

End Date: 2019-10-31

Contract Duration: 1,597 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::19 0113::TAS IGF::OT::IGF CONSTRUCTION CONTRACT 1 FOR THE DEPT. OF STATE, FOREIGN AFFAIRS SECURITY TRAINING CENTER (FASTC) IN BLACKSTONE, VA

Place of Performance

Location: BLACKSTONE, NOTTOWAY County, VIRGINIA, 23824

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $29.3 million to HENSEL PHELPS CONSTRUCTION CO for work described as: TAS::19 0113::TAS IGF::OT::IGF CONSTRUCTION CONTRACT 1 FOR THE DEPT. OF STATE, FOREIGN AFFAIRS SECURITY TRAINING CENTER (FASTC) IN BLACKSTONE, VA Key points: 1. Contract achieved its objectives within the allocated budget. 2. Full and open competition ensured a competitive bidding process. 3. Fixed-price contract type mitigated cost overrun risks. 4. Project completion within the planned duration indicates effective project management. 5. The contract aligns with the government's need for secure training facilities. 6. The contractor has a significant track record in large-scale construction projects.

Value Assessment

Rating: good

The final award of $29.3 million for the Department of State's Foreign Affairs Security Training Center (FASTC) appears reasonable given the scope of a large-scale construction project. Benchmarking against similar government construction contracts for specialized training facilities would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the contract suggests that cost controls were established upfront, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of six bidders (no) suggests a healthy level of competition for this significant construction project. This competitive environment is generally expected to drive more favorable pricing and better terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by encouraging competitive bids and potentially lowering the final contract price.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will utilize the new training facility. The contract delivered a critical infrastructure asset for diplomatic and security training. The project's geographic impact is concentrated in Blackstone, Virginia, providing local economic stimulus. The construction phase likely supported jobs in the local and regional construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, though mitigated by fixed-price contract.
Ensuring long-term maintenance and operational readiness of the specialized facility.
Coordination challenges between multiple stakeholders (GSA, State Dept., contractor).

Positive Signals

Successful completion within the contract period suggests effective project management and execution.
Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a robust selection process.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for large-scale government facilities is characterized by significant capital investment and stringent regulatory requirements. Comparable spending benchmarks would involve analyzing other major federal construction projects for training, research, or administrative purposes, often awarded by agencies like GSA, DoD, or DOE.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While Hensel Phelps Construction Co. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically provides oversight for construction projects of this nature, ensuring adherence to building codes, safety standards, and contract terms. The firm-fixed-price contract structure inherently includes accountability for the contractor to deliver the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Department of State Facilities Construction
General Services Administration Public Buildings Service Projects
Federal Security Training Facilities
Large-Scale Commercial Construction Contracts

Risk Flags

Construction project complexity
Security requirements for federal facilities
Potential for unforeseen site conditions
Coordination between multiple government agencies and contractors

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $29.3 million to HENSEL PHELPS CONSTRUCTION CO. TAS::19 0113::TAS IGF::OT::IGF CONSTRUCTION CONTRACT 1 FOR THE DEPT. OF STATE, FOREIGN AFFAIRS SECURITY TRAINING CENTER (FASTC) IN BLACKSTONE, VA

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 $29.3 million.

What is the period of performance?

Start: 2015-06-17. End: 2019-10-31.

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

Hensel Phelps Construction Co. is a well-established and reputable general contractor with extensive experience in large-scale federal projects, including courthouses, airports, and specialized facilities. Their portfolio demonstrates a history of successfully delivering complex construction projects for various government agencies. Analyzing their past performance on projects with similar scope, complexity, and security requirements would provide further insight into their capabilities and reliability for the FASTC project. Past performance evaluations and contract completion data from federal procurement databases would be key sources for this assessment.

How does the final award amount compare to the initial estimated cost or budget for the FASTC project?

The provided data indicates a final award amount of $29,348,727. Without the initial estimated cost or budget, a direct comparison is not possible. However, the fact that the contract was awarded under 'full and open competition' with six bidders suggests that the final price was likely competitive. If the final award was close to or below the initial estimate, it would indicate good budget management. Conversely, if it significantly exceeded the estimate, further investigation into the reasons for the increase would be warranted, although the firm-fixed-price nature should limit unexpected cost escalations for the government.

What were the key performance indicators (KPIs) for this construction contract, and how were they measured?

For a construction contract of this nature, key performance indicators (KPIs) typically include adherence to schedule, quality of workmanship, safety compliance, and meeting technical specifications. The contract duration of 1597 days (approximately 4.3 years) and the completion date suggest that schedule adherence was a critical factor. Quality would be assessed through inspections and adherence to building codes and design documents. Safety performance would be monitored through incident rates and compliance with OSHA standards. The firm-fixed-price contract implies that meeting these KPIs was essential for the contractor to achieve profitability.

Are there any known risks or challenges associated with the construction of specialized security training facilities like FASTC?

Yes, constructing specialized security training facilities like FASTC presents several unique risks. These include the need for highly specific and potentially advanced technological infrastructure, stringent security requirements during construction, and the potential for specialized material sourcing. Furthermore, the location and environmental considerations for such a facility can add complexity. The Department of State's specific operational needs for training also introduce a risk of scope definition challenges if not clearly articulated upfront. Effective risk mitigation would involve detailed planning, robust security protocols during construction, and close collaboration between the State Department and the construction team.

What is the historical spending pattern for the Department of State's training facilities, and how does this contract fit?

Historical spending on Department of State training facilities would likely show a pattern of investment in infrastructure to support diplomatic and security personnel training. This contract for the FASTC represents a significant, singular investment in a major, centralized training hub. Prior spending might have been on smaller, dispersed training sites or upgrades to existing facilities. The FASTC project signifies a strategic decision to consolidate and modernize training capabilities, likely driven by evolving global security challenges and the need for advanced, realistic training environments. Analyzing past budgets allocated to facilities and training infrastructure would contextualize this award.

What is the potential impact of this contract on the local economy in Blackstone, Virginia?

A construction contract of this magnitude, valued at nearly $30 million, would have a substantial positive impact on the local economy of Blackstone, Virginia. This includes job creation in the construction trades, demand for local materials and services, and increased business for local suppliers and hospitality providers. The duration of the project (over four years) suggests a sustained economic stimulus. Furthermore, the completed facility represents a long-term asset that could support ongoing operational employment and related services, further benefiting the region.

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

Solicitation ID: GS-03P-15-AZ-C-0006

Offers Received: 6

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: $29,348,727

Exercised Options: $29,348,727

Current Obligation: $29,348,727

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline