DLA Aviation Operations Center Construction Awarded to Hensel Phelps for $86.2M Under Full and Open Competition
Contract Overview
Contract Amount: $86,193,179 ($86.2M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2015-06-12
End Date: 2019-01-26
Contract Duration: 1,324 days
Daily Burn Rate: $65.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF, BID-BUILD CONSTRUCTION OF DLA AVIATION OPERATIONS CENTER, RICHMOND, VA
Place of Performance
Location: RICHMOND, CHESTERFIELD County, VIRGINIA, 23297
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $86.2 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF, BID-BUILD CONSTRUCTION OF DLA AVIATION OPERATIONS CENTER, RICHMOND, VA Key points: 1. The contract was awarded for a significant construction project valued at $86.2 million. 2. Full and open competition was utilized, suggesting a robust market for the services. 3. The project involves commercial and institutional building construction, a common sector for federal spending. 4. The fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $86.2 million for a large-scale construction project appears reasonable given the scope. Benchmarking against similar large institutional building projects would provide a more precise assessment, but the award under full and open competition suggests competitive pricing was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple qualified contractors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on this essential facility.
Public Impact
Construction of a new DLA Aviation Operations Center will enhance operational capabilities. The project supports infrastructure development within the Department of Defense. Job creation is expected during the construction phase in Richmond, VA. The facility will house critical aviation operations, impacting military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- No small business participation noted.
- Long contract duration (1324 days) could present management challenges.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type for cost certainty.
- Awarded to a reputable contractor (Hensel Phelps).
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, a significant area of federal procurement. Spending in this sector is often driven by infrastructure needs and facility upgrades across various government agencies.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). This suggests the prime contractor is likely a large business, and there may be missed opportunities for subcontracting to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating oversight from a major military branch. The firm fixed-price nature of the contract provides a degree of cost control, but ongoing monitoring of performance and adherence to schedule is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Long contract duration.
- Potential for scope creep in large construction projects.
- Dependence on a single prime contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.2 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF, BID-BUILD CONSTRUCTION OF DLA AVIATION OPERATIONS CENTER, RICHMOND, VA
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 Army).
What is the total obligated amount?
The obligated amount is $86.2 million.
What is the period of performance?
Start: 2015-06-12. End: 2019-01-26.
What was the estimated cost before the competitive bidding process, and how did the final award price compare?
The provided data does not include the original estimated cost. However, the final award price was $86,193,179. Comparing this to the initial estimate would reveal the effectiveness of the competitive bidding in driving down costs or if the initial estimate was accurate.
Were there any performance issues or cost overruns during the contract's execution, given its long duration?
The data indicates the contract was completed within the specified duration (1324 days) and does not explicitly mention performance issues or cost overruns. However, a comprehensive review of contract performance reports would be necessary to confirm the absence of any significant problems.
How effectively did the full and open competition process ensure value for money compared to other procurement methods?
The use of full and open competition is generally considered the most effective method for ensuring value for money due to the broad participation it allows. The fact that the contract was awarded suggests that competitive bids were received and evaluated, likely resulting in a fair market price.
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: W9123615R0007
Offers Received: 7
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: $86,280,179
Exercised Options: $86,193,179
Current Obligation: $86,193,179
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-06-12
Current End Date: 2019-01-26
Potential End Date: 2019-01-26 00:00:00
Last Modified: 2021-02-25
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