Navy's $51M Wesley Brown Field House construction contract awarded to Hensel Phelps Construction Co

Contract Overview

Contract Amount: $50,998,995 ($51.0M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2008-06-18

Contract Duration: 992 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: WESLEY BROWN FIELD HOUSE, USNA

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $51.0 million to HENSEL PHELPS CONSTRUCTION CO for work described as: WESLEY BROWN FIELD HOUSE, USNA Key points: 1. Contract value represents a significant investment in naval facilities infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Project duration of nearly 1000 days indicates a substantial construction undertaking. 5. Geographic location in Maryland places the facility within a key naval hub.

Value Assessment

Rating: fair

The contract value of $50,998,995 for the construction of the Wesley Brown Field House appears to be within a reasonable range for a large-scale institutional building project. Benchmarking against similar military construction projects of comparable size and complexity would be necessary for a definitive value assessment. The fixed-price nature of the contract suggests that the initial bid was expected to cover all costs, but potential for cost overruns exists if unforeseen issues arise during the extended construction period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bids received, the competition level appears moderate. This suggests that while multiple companies were interested, the market may not be exceptionally crowded for this specific type of large-scale construction project. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Naval personnel and midshipmen at the U.S. Naval Academy will benefit from the new field house facilities. The project delivers essential infrastructure for training, recreation, and support services. The geographic impact is concentrated in Annapolis, Maryland, a critical naval installation. The construction project likely created numerous jobs for skilled trades and labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the fixed-price contract and long duration.
Scope creep could impact the final cost and timeline if not managed effectively.
Ensuring quality of construction over a nearly three-year period requires diligent oversight.

Positive Signals

Full and open competition suggests a fair and transparent procurement process.
Fixed-price contract provides a degree of cost certainty for the government.
Award to an established contractor like Hensel Phelps may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for large-scale government construction projects is often characterized by a mix of large, established firms and specialized subcontractors. Spending on military construction is a significant component of federal outlays, driven by the need to maintain and modernize defense infrastructure. Comparable projects might include other barracks, training facilities, or administrative buildings for military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large prime contractor. The impact on the small business ecosystem would depend on whether Hensel Phelps Construction Co. actively seeks out and utilizes small business subcontractors for specialized trades or services during the project's execution.

Oversight & Accountability

Oversight for this project would typically be managed by the Department of the Navy's facilities engineering command or a designated contracting officer's representative. Accountability measures would include adherence to the contract's terms, specifications, and schedule. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command Projects
Military Construction Projects
Department of Defense Facilities
Institutional Building Construction

Risk Flags

Long project duration increases risk of cost escalation and schedule delays.
Fixed-price contract may not accommodate unforeseen construction challenges.
Lack of explicit small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.0 million to HENSEL PHELPS CONSTRUCTION CO. WESLEY BROWN FIELD HOUSE, USNA

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $51.0 million.

What is the period of performance?

Start: 2005-09-30. End: 2008-06-18.

What is the historical spending pattern for Hensel Phelps Construction Co. with the Department of Defense?

Hensel Phelps Construction Co. has a significant history of securing contracts with the Department of Defense across various branches and agencies. Their portfolio includes a wide range of construction projects, from military housing and training facilities to administrative buildings and infrastructure upgrades. Analyzing their past performance, including contract values, types, and successful completion rates, provides context for their ability to manage large-scale projects like the Wesley Brown Field House. A review of historical data would reveal if this contract aligns with their typical project size and scope, and whether they have a consistent record of delivering projects on time and within budget for the DoD.

How does the final cost of the Wesley Brown Field House compare to its initial estimated cost, if available?

The provided data does not include the initial estimated cost for the Wesley Brown Field House project, making a direct comparison to the final awarded value of $50,998,995 impossible. Typically, federal contracts are awarded based on bids that are expected to meet or come in under an agency's independent cost estimate. If the awarded amount significantly exceeded the initial estimate, it could indicate issues with the bidding process, market conditions, or the accuracy of the initial estimate itself. Conversely, if the award was well below the estimate, it might suggest strong competition or favorable market conditions at the time of bidding.

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

Key performance indicators for a construction contract like the Wesley Brown Field House typically include adherence to the project schedule, meeting quality standards and specifications, staying within the awarded budget (especially critical for fixed-price contracts), and ensuring safety compliance throughout the construction period. For the government, successful completion means delivering a facility that meets the operational needs of the U.S. Naval Academy. For the contractor, it involves profitable execution and maintaining a good working relationship with the client. Post-occupancy evaluations might also assess the long-term performance and durability of the facility.

Were there any significant change orders or contract modifications issued during the execution of this contract?

The provided data does not detail any change orders or contract modifications that may have occurred during the execution of the Wesley Brown Field House contract. Large construction projects, especially those spanning nearly three years, often involve modifications due to unforeseen site conditions, design adjustments, or evolving requirements. The number and value of change orders can significantly impact the final cost and timeline. A thorough analysis would require access to contract modification records to understand if the project deviated from its original scope or budget due to such changes.

What is the typical cost per square foot for similar institutional building construction projects in Maryland?

Determining a precise per-square-foot cost benchmark for the Wesley Brown Field House requires knowing the facility's total square footage, which is not provided in the data. However, for large institutional and commercial buildings in the Maryland region, costs can vary widely based on complexity, materials, and specific features. General estimates for such construction in the Mid-Atlantic region might range from $300 to $600 per square foot or more, depending on the level of finish and specialized requirements. Without the square footage, a direct comparison is speculative, but the total contract value suggests a substantial facility.

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: N4008005R0160

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DR, STE 2, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,998,995

Exercised Options: $50,998,995

Current Obligation: $50,998,995

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline