GSA's $147M Mariposa Land Port of Entry contract awarded to Hensel Phelps Construction Co. for pre-construction services

Contract Overview

Contract Amount: $146,794,289 ($146.8M)

Contractor: Hensel Phelps Construction CO.

Awarding Agency: General Services Administration

Start Date: 2010-03-18

End Date: 2014-11-20

Contract Duration: 1,708 days

Daily Burn Rate: $85.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: *RECOVERY* PRE-CONSTRUCTION PHASE SERVICES FOR MARIPOSA LAND PORT OF ENTRY, NOGALES, AZ.

Place of Performance

Location: NOGALES, SANTA CRUZ County, ARIZONA, 85621

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $146.8 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: *RECOVERY* PRE-CONSTRUCTION PHASE SERVICES FOR MARIPOSA LAND PORT OF ENTRY, NOGALES, AZ. Key points: 1. The contract value represents a significant investment in border infrastructure. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. Performance risks are inherent in large construction projects, requiring robust oversight. 4. This contract falls within the broader context of federal efforts to modernize border facilities. 5. The construction sector is a major recipient of federal infrastructure spending.

Value Assessment

Rating: fair

Benchmarking the value of pre-construction services for a project of this magnitude is challenging without detailed cost breakdowns. The awarded amount of $146,794,289 suggests a substantial scope. Comparing this to similar land port of entry projects is difficult due to unique site-specific requirements and varying service inclusions. However, the firm-fixed-price nature of the definitive contract aims to control costs, but the ultimate value will depend on the successful completion of the pre-construction phase and its impact on the overall project budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bids suggests a healthy level of interest and competition for this significant federal construction project. This competitive process is intended to drive down costs and ensure the government receives the best value for its investment in pre-construction services.

Taxpayer Impact: A competitive bidding process for large federal contracts like this helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their most competitive terms.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and trade facilitation, as the project aims to improve infrastructure at the Mariposa Land Port of Entry. The services delivered include pre-construction activities essential for the planning and design of a major infrastructure upgrade. The geographic impact is concentrated in Nogales, Arizona, a key border crossing point. Workforce implications include potential job creation in the construction and related professional services sectors during the pre-construction and subsequent construction phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if pre-construction estimates are not rigorously managed.
Delays in the pre-construction phase could impact the overall project timeline and subsequent construction.
Ensuring adequate oversight of the contractor's performance throughout the pre-construction activities is critical.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type helps to establish cost certainty for the pre-construction phase.
The project addresses critical infrastructure needs at a major port of entry.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to large-scale public infrastructure projects. The federal government, through agencies like GSA, is a significant investor in such construction, particularly for border facilities, transportation hubs, and government buildings. The market for these types of large federal construction contracts is competitive, with established firms bidding for opportunities. Benchmarks for pre-construction services can vary widely based on project complexity and scope.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large federal construction projects often have subcontracting requirements. It is probable that Hensel Phelps Construction Co. will engage small businesses for various specialized services during the pre-construction and subsequent construction phases, contributing to the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would typically include regular progress reports, site inspections, and performance reviews. Accountability measures are built into the contract terms, with potential penalties for non-performance or delays. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are often internal.

Related Government Programs

Border Infrastructure Modernization Programs
Federal Building and Construction Projects
Customs and Border Protection Facilities
General Services Administration Capital Investments

Risk Flags

Potential for scope creep in large construction projects.
Reliance on accurate cost estimations for future phases.
Importance of timely permitting and environmental reviews.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $146.8 million to HENSEL PHELPS CONSTRUCTION CO.. *RECOVERY* PRE-CONSTRUCTION PHASE SERVICES FOR MARIPOSA LAND PORT OF ENTRY, NOGALES, AZ.

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 $146.8 million.

What is the period of performance?

Start: 2010-03-18. End: 2014-11-20.

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

Hensel Phelps Construction Co. is a well-established general contractor with a significant history of undertaking large-scale federal projects, including infrastructure and institutional buildings. They have a documented track record with various federal agencies, such as the Department of Defense and the GSA, on projects ranging from airport terminals to courthouses and research facilities. Their experience often includes complex construction management and delivery methods. A review of their past performance on similar projects would indicate their capacity to manage the scope, schedule, and budget requirements of the Mariposa Land Port of Entry pre-construction phase. Specific details on past project performance, including any disputes or challenges, would be available through federal contract databases and performance evaluation reports.

How does the awarded amount compare to the estimated cost for pre-construction services for similar land port projects?

Directly comparing the awarded amount of $146,794,289 for pre-construction services to similar land port projects is difficult due to the unique nature of each project and the varying definitions of 'pre-construction services.' Land port projects involve complex site-specific requirements, security considerations, and integration with existing infrastructure. The awarded amount likely encompasses a broad range of activities, including detailed design development, environmental reviews, permitting, and extensive planning. Without access to the specific scope of work and the competitive bids received, a precise value-for-money assessment against market benchmarks is challenging. However, the firm-fixed-price contract suggests that the government sought to establish cost certainty for these services.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this large-scale construction pre-construction contract include potential cost overruns if initial estimates are inaccurate or scope creep occurs, schedule delays due to unforeseen site conditions or permitting issues, and performance risks related to the quality of the pre-construction deliverables. Mitigation strategies typically involve rigorous contract management by the GSA, including detailed review of contractor submittals, regular progress meetings, and independent cost estimations. The firm-fixed-price contract structure itself acts as a risk mitigation tool by placing a ceiling on costs for the defined scope. Furthermore, the selection of an experienced contractor like Hensel Phelps, with a proven track record, is intended to reduce performance-related risks.

What is the expected effectiveness of this contract in achieving the modernization goals for the Mariposa Land Port of Entry?

The effectiveness of this contract is primarily measured by its ability to successfully deliver comprehensive and accurate pre-construction services that lay a solid foundation for the subsequent construction phases. If the pre-construction phase is executed efficiently and produces well-defined plans, specifications, and cost estimates, it significantly increases the likelihood of the overall Mariposa Land Port of Entry modernization project meeting its goals. These goals typically include improving operational efficiency, enhancing security, increasing capacity for trade and travel, and modernizing aging infrastructure. The success of this pre-construction contract is a critical precursor to the successful completion of the entire modernization effort.

How has federal spending on border infrastructure projects evolved over time, and where does this contract fit in?

Federal spending on border infrastructure projects has generally seen fluctuations driven by national security priorities, trade agreements, and political administrations. There has been a sustained focus on modernizing ports of entry to improve efficiency, security, and capacity. This contract for the Mariposa Land Port of Entry represents a significant investment within this ongoing trend of infrastructure upgrades. It aligns with broader federal initiatives to enhance border management and facilitate legitimate trade. Historical spending data would show periods of increased investment, particularly following major legislative pushes for border security or economic stimulus packages that include infrastructure components.

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-09P-10-KT-C-0005

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hensel Phelps Construction CO

Address: 4129 E VAN BUREN SU 100, PHOENIX, AZ, 85008

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

Financial Breakdown

Contract Ceiling: $146,794,289

Exercised Options: $146,794,289

Current Obligation: $146,794,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline