Naval Base Coronado Bachelor Enlisted Quarters project awarded to Hensel Phelps Construction Co. for $64.7M

Contract Overview

Contract Amount: $64,735,873 ($64.7M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2012-04-18

Contract Duration: 931 days

Daily Burn Rate: $69.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::17 1206::TAS RECOVERYPROJECT#::P742::RP# BACHELOR ENLISTED QUARTERS AT NAVAL BASE CORONADO, CA ARRA::YES::ARRA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $64.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: TAS::17 1206::TAS RECOVERYPROJECT#::P742::RP# BACHELOR ENLISTED QUARTERS AT NAVAL BASE CORONADO, CA ARRA::YES::ARRA Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project was funded under the American Recovery and Reinvestment Act (ARRA), indicating a focus on economic stimulus. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of the contract was 931 days, spanning over two years. 5. The project is located in Coronado, California, a key naval installation. 6. The contractor, Hensel Phelps Construction Co., is a large, established construction firm.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for similar ARRA-funded construction projects at naval bases. The firm fixed price contract type suggests that the price was agreed upon upfront, but the final value realization depends on project execution and any change orders. The raw dollar amount of $64.7 million is substantial for a single construction project, but its value-for-money can only be assessed against the quality of the delivered facility and its long-term operational costs.

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 a bid. The presence of 16 bids suggests a robust competitive environment for this project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, which is beneficial for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging contractors to offer their best value proposals.

Public Impact

The primary beneficiaries are enlisted personnel at Naval Base Coronado, who will receive improved housing. The project delivered new construction of bachelor enlisted quarters, providing essential living facilities. The geographic impact is concentrated at Naval Base Coronado in California. The project likely involved a significant construction workforce, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly, despite the fixed-price nature.
Delays in construction could impact the availability of housing for service members.
Quality of construction needs to be monitored to ensure long-term durability and safety.

Positive Signals

Awarded under ARRA, potentially stimulating economic activity and job creation.
Firm fixed price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market for this type of construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The construction of military barracks is a specialized segment within this broader industry. The market for large-scale government construction projects is often characterized by a few large, established firms capable of handling complex projects and meeting stringent government requirements. Spending on military construction is a significant component of federal infrastructure investment.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (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 on this project. The extent of small business subcontracting would depend on the prime contractor's strategy and any specific requirements outlined in the contract.

Oversight & Accountability

Oversight for this project would typically be managed by the Department of the Navy's contracting and engineering divisions. Given the ARRA funding, there may have been additional reporting and oversight requirements from relevant federal agencies to ensure accountability and proper use of stimulus funds. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

ARRA Military Construction Projects
Naval Base Housing Projects
Department of Defense Facilities Construction
Bachelor Enlisted Quarters Construction

Risk Flags

ARRA Funding Oversight
Construction Project Schedule Risk
Quality Control in Large-Scale Construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.7 million to HENSEL PHELPS CONSTRUCTION CO. TAS::17 1206::TAS RECOVERYPROJECT#::P742::RP# BACHELOR ENLISTED QUARTERS AT NAVAL BASE CORONADO, CA ARRA::YES::ARRA

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 $64.7 million.

What is the period of performance?

Start: 2009-09-30. End: 2012-04-18.

What was the track record of Hensel Phelps Construction Co. on similar federal construction projects prior to this award?

Hensel Phelps Construction Co. is a well-established, large-scale construction firm with a significant history of undertaking complex projects, including those for federal agencies and military installations. Prior to this award, the company had likely completed numerous similar projects, demonstrating experience in managing large budgets, complex schedules, and stringent quality control requirements typical of government contracts. Their track record would have been a key factor in the Department of the Navy's decision-making process during the full and open competition. A review of their past performance, including any past performance questionnaires or debriefings from other federal contracts, would provide further insight into their reliability and capability.

How does the final cost compare to the initial award amount, and were there significant change orders?

The provided data shows an award amount ('a') of $64,735,873. Without data on the final expenditure or details of any contract modifications (change orders), it is impossible to determine if the final cost deviated significantly from the initial award. Firm Fixed Price contracts aim to cap costs, but change orders can arise due to unforeseen site conditions, design modifications, or scope adjustments. A thorough analysis would require access to the contract's modification history and final payment records to assess cost growth and the reasons behind it.

What were the primary risks identified for this project, and how were they mitigated?

For a large construction project like bachelor enlisted quarters, primary risks often include unforeseen site conditions (e.g., soil issues, hazardous materials), weather delays impacting the schedule, labor shortages or disputes, material cost fluctuations (though mitigated by fixed price), and potential design errors or omissions. Mitigation strategies would typically involve thorough site investigations prior to award, detailed scheduling with built-in contingencies for weather, robust project management and communication protocols, strong subcontractor oversight, and a comprehensive quality assurance/quality control plan. The firm fixed price nature also mitigates financial risk for the government regarding cost overruns, shifting that burden to the contractor.

How effective was the ARRA funding in stimulating economic activity related to this contract?

The American Recovery and Reinvestment Act (ARRA) aimed to stimulate economic activity through infrastructure spending, including construction projects. This $64.7 million contract for Naval Base Coronado would have directly contributed to economic stimulus by creating jobs for construction workers, material suppliers, and related service providers in the San Diego region. The firm fixed price nature and the scale of the project suggest a significant injection of capital into the local economy. Quantifying the precise multiplier effect would require detailed economic analysis, but large federal construction projects are generally considered effective tools for short-term economic stimulus and job creation.

What is the typical cost per square foot or per unit for similar Bachelor Enlisted Quarters construction?

Determining a precise 'per unit' or 'per square foot' cost benchmark for Bachelor Enlisted Quarters (BEQ) is complex due to variations in building design, amenities, location, and construction methods. However, for context, large-scale barracks construction can range significantly. Historically, costs could fall anywhere from $200 to $500+ per square foot, depending on finishes, structural requirements, and site preparation. Without specific details on the square footage or the number of units/beds delivered by this $64.7 million contract, a direct comparison is difficult. Factors like LEED certification requirements, specialized security features, or high-cost-of-living areas (like Southern California) can drive costs higher than national averages.

How does the contract duration of 931 days compare to industry standards for similar projects?

A contract duration of 931 days (approximately 2.5 years) for a project of this magnitude ($64.7 million) is generally within the expected range for large-scale institutional or military construction. Complex projects involving new building construction, especially on active military bases with security and logistical constraints, often require extended timelines for planning, procurement, construction, and commissioning. Factors such as site preparation, foundation work, structural erection, interior fit-out, and landscaping all contribute to the overall duration. While shorter durations might be achievable for simpler projects or in less constrained environments, 931 days suggests a comprehensive build-out.

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: N6247309R1821

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18850 VON KARMAN AVE STE 100, IRVINE, CA, 47

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

Financial Breakdown

Contract Ceiling: $64,735,873

Exercised Options: $64,735,873

Current Obligation: $64,735,873

Contract Characteristics

Cost or Pricing Data: NO

Timeline