GSA awards $70.6M for Columbus Land Port of Entry expansion and demolition, utilizing full and open competition

Contract Overview

Contract Amount: $70,637,339 ($70.6M)

Contractor: Hensel Phelps Construction CO.

Awarding Agency: General Services Administration

Start Date: 2016-12-22

End Date: 2019-09-10

Contract Duration: 992 days

Daily Burn Rate: $71.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF AWARD OF CONSTRUCTION SERVICES FOR THE EXPANSION OF THE NEW COLUMBUS UNITED STATES LAND PORT OF ENTRY TO BE LOCATED IN COLUMBUS NEW MEXICO AND THE DEMO OF THE EXISTING LAND PORT OF ENTRY LOCATED IN COLUMBUS NEW MEXICO.

Place of Performance

Location: COLUMBUS, LUNA County, NEW MEXICO, 88029

State: New Mexico Government Spending

Plain-Language Summary

General Services Administration obligated $70.6 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: IGF::OT::IGF AWARD OF CONSTRUCTION SERVICES FOR THE EXPANSION OF THE NEW COLUMBUS UNITED STATES LAND PORT OF ENTRY TO BE LOCATED IN COLUMBUS NEW MEXICO AND THE DEMO OF THE EXISTING LAND PORT OF ENTRY LOCATED IN COLUMBUS NEW MEXICO. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $70.6 million addresses significant infrastructure development. 3. The project involves both expansion and demolition, indicating a comprehensive approach to facility modernization. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The duration of 992 days highlights the scale and complexity of the construction project. 6. Awarded by the General Services Administration (GSA), a key agency for federal building management.

Value Assessment

Rating: good

The contract value of $70.6 million for the expansion and demolition of a land port of entry appears to be within a reasonable range for such a significant infrastructure project. Benchmarking against similar large-scale federal construction projects would provide a more precise assessment of value for money. The firm fixed-price structure suggests an effort to manage cost overruns, 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 all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this project. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions, but two bids still provide a basis for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or goods received.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs, as well as the public utilizing the port of entry. Services delivered include the construction of expanded facilities and the removal of outdated structures, enhancing operational efficiency and capacity. The geographic impact is concentrated in Columbus, New Mexico, improving a critical piece of national infrastructure. The project will likely have implications for the local construction workforce, creating jobs and economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring compliance with environmental regulations during demolition and construction phases.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an experienced contractor like Hensel Phelps suggests a higher likelihood of successful project completion.
Project addresses critical infrastructure needs for border operations.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The General Services Administration (GSA) is a major federal entity that procures a vast array of construction services for government facilities nationwide. The market for large-scale federal construction projects is competitive, with established firms often bidding on significant opportunities. The value of this contract is substantial, reflecting the complexity and scale of modernizing a land port of entry.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, there is no direct analysis of small business set-aside implications. However, large prime contractors like Hensel Phelps are often required to meet subcontracting goals, which can provide opportunities for small businesses to participate in the project.

Oversight & Accountability

The General Services Administration (GSA) has established oversight mechanisms for its construction projects, including project management teams and quality assurance processes. The Inspector General's office at GSA is responsible for auditing and investigating potential fraud, waste, and abuse within the agency's operations, including major construction contracts. Transparency is typically maintained through contract award databases and public reporting requirements.

Related Government Programs

Federal Land Port of Entry Modernization Projects
GSA Public Buildings Service Construction Contracts
Department of Homeland Security Infrastructure Projects
Border Infrastructure Improvement Programs

Risk Flags

Potential for unforeseen site conditions
Risk of construction delays
Environmental compliance during demolition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $70.6 million to HENSEL PHELPS CONSTRUCTION CO.. IGF::OT::IGF AWARD OF CONSTRUCTION SERVICES FOR THE EXPANSION OF THE NEW COLUMBUS UNITED STATES LAND PORT OF ENTRY TO BE LOCATED IN COLUMBUS NEW MEXICO AND THE DEMO OF THE EXISTING LAND PORT OF ENTRY LOCATED IN COLUMBUS NEW MEXICO.

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 $70.6 million.

What is the period of performance?

Start: 2016-12-22. End: 2019-09-10.

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 construction projects, including courthouses, federal buildings, and infrastructure. Their portfolio often includes projects with similar complexity and value to the Columbus Land Port of Entry. Reviewing their past performance on GSA contracts or Department of Defense projects would provide specific insights into their ability to deliver on time and within budget. Historically, they have demonstrated a strong capacity for managing complex logistical challenges and adhering to stringent federal requirements, suggesting a low risk associated with their selection for this project.

How does the awarded amount compare to similar land port of entry construction projects?

The $70.6 million award for the Columbus Land Port of Entry expansion and demolition is a significant investment. To benchmark this value, one would compare it to the cost per square foot or per lane of other recently constructed or modernized land ports of entry. Factors such as the scope of work (expansion vs. new build, demolition complexity), location, and specific security requirements heavily influence costs. Without direct comparable data readily available, it's challenging to definitively state if this is high or low. However, given the scale of modernization and expansion, the figure appears to be in the expected range for a project of this magnitude, especially considering potential inflation and material cost fluctuations over the project's duration.

What are the primary risks associated with this specific construction project?

The primary risks associated with this construction project include potential unforeseen site conditions during demolition and excavation, which could lead to delays and cost increases despite the firm fixed-price contract. Another significant risk is the potential for construction delays impacting the operational readiness of a critical border crossing. Ensuring strict adherence to environmental regulations during demolition and construction is also a risk area. Furthermore, managing the logistics of a large construction site adjacent to an active port of entry presents operational challenges that require careful planning and execution by the contractor and the GSA.

How effective is the GSA's oversight for large construction projects like this?

The GSA employs a multi-layered oversight approach for large construction projects. This typically involves dedicated project managers, construction quality assurance representatives, and adherence to established construction management best practices. The agency also relies on its Office of Inspector General (OIG) to conduct audits and investigations, providing an independent layer of accountability. While the GSA has a generally strong reputation for managing federal buildings, the effectiveness can vary depending on the specific project team, the complexity of the undertaking, and the contractor's performance. Transparency is usually maintained through contract databases and public reporting, allowing for some level of external scrutiny.

What is the historical spending trend for land port of entry infrastructure by the GSA?

Historical spending by the GSA on land port of entry infrastructure has fluctuated based on national priorities, funding appropriations, and the condition of existing facilities. Significant investments are often made during periods of increased focus on border security and trade facilitation. The GSA's Public Buildings Service manages a vast portfolio, and specific allocations for port of entry upgrades are part of broader capital investment plans. Analyzing GSA's annual reports and budget requests over the past decade would reveal trends in funding dedicated to border infrastructure modernization, highlighting periods of increased or decreased investment.

What are the implications of a firm fixed-price contract for this project?

A firm fixed-price (FFP) contract is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For this $70.6 million project, the FFP structure provides budget certainty for the GSA and taxpayers, minimizing the risk of cost overruns due to contractor inefficiencies or unexpected cost increases in labor or materials. However, contractors may build in a contingency premium into their bid price to account for potential risks, which could result in a slightly higher initial price compared to other contract types.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hensel Phelps Construction CO (UEI: 063322085)

Address: 8326 CROSS PARK DR, AUSTIN, TX, 78754

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

Financial Breakdown

Contract Ceiling: $70,637,339

Exercised Options: $70,637,339

Current Obligation: $70,637,339

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07P15HHD7027

IDV Type: IDC

Timeline