Hensel Phelps Construction Co. awarded $178.8M for Eglin AFB Special Forces Complex, a large-scale construction project

Contract Overview

Contract Amount: $178,791,048 ($178.8M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2009-01-23

End Date: 2013-08-25

Contract Duration: 1,675 days

Daily Burn Rate: $106.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SPECIAL FORCES COMPLEX, EGLIN AFB, FL

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $178.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: SPECIAL FORCES COMPLEX, EGLIN AFB, FL Key points: 1. The contract value represents a significant investment in military infrastructure. 2. Competition was robust, with 7 bidders vying for this definitive contract. 3. The firm-fixed-price structure suggests a clear scope and predictable costs. 4. Project duration spans over 4 years, indicating a substantial undertaking. 5. The contract is categorized under Commercial and Institutional Building Construction. 6. Eglin AFB is a key military installation, highlighting the strategic importance of this project.

Value Assessment

Rating: good

The contract value of $178.8 million for the Special Forces Complex at Eglin AFB is substantial, reflecting the scale and complexity of military construction projects. Benchmarking against similar large-scale military facility constructions would be necessary for a precise value-for-money assessment. However, the firm-fixed-price contract type generally indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. The absence of specific performance metrics in the provided data makes a detailed performance assessment challenging.

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 bids. With 7 bidders participating, the competition level appears healthy, suggesting that the government received a range of proposals and pricing. This level of competition is generally expected to drive competitive pricing and encourage efficiency from the winning contractor.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive prices to win significant projects.

Public Impact

The primary beneficiaries are the U.S. Army Special Forces, who will gain a modern, specialized training and operational facility. The project delivers critical infrastructure to support national defense missions. The geographic impact is concentrated at Eglin Air Force Base in Florida. The construction phase will likely create numerous jobs for skilled trades and construction workers in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm-fixed-price.
Ensuring timely completion within the 4-year duration is crucial for operational readiness.
Quality control and adherence to specialized military construction standards require diligent oversight.

Positive Signals

Awarded to a reputable contractor with a history in large-scale construction.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive price was likely secured.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Large-scale government projects like this often represent a substantial portion of the workload for major construction firms. The market for military construction is specialized, requiring adherence to stringent security, design, and material standards. Comparable spending benchmarks would involve analyzing other major military facility constructions awarded by the Department of Defense.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Hensel Phelps Construction Co., is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the project.

Oversight & Accountability

Oversight for this project would typically be managed by the contracting officer's representative (COR) and potentially an Inspector General (IG) for the Department of the Army or DoD. Quality assurance surveillance plans (QASPs) are standard for construction contracts to monitor progress, quality, and compliance with specifications. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Construction, Army
Facilities Sustainment, Restoration, and Modernization
Special Operations Forces Support Contracts
Department of Defense Construction Projects

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of delays due to weather, material availability, or unforeseen site conditions.
Ensuring compliance with stringent military construction standards and security protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $178.8 million to HENSEL PHELPS CONSTRUCTION CO. SPECIAL FORCES COMPLEX, EGLIN AFB, FL

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 $178.8 million.

What is the period of performance?

Start: 2009-01-23. End: 2013-08-25.

What is Hensel Phelps Construction Co.'s track record with large federal construction projects, particularly military facilities?

Hensel Phelps Construction Co. has a well-established track record in large-scale construction, including significant experience with federal and military projects. They have been involved in numerous projects for various branches of the U.S. military, often focusing on complex facilities that require specialized knowledge and adherence to strict regulations. Their portfolio includes projects such as aircraft hangars, barracks, training facilities, and research centers. This experience suggests a capability to manage the technical, logistical, and security demands inherent in constructing a Special Forces complex. Reviewing their past performance on similar-sized contracts, particularly those with firm-fixed-price structures, would provide further insight into their ability to deliver projects on time and within budget.

How does the $178.8 million contract value compare to similar Special Forces facility constructions?

The $178.8 million contract value for the Eglin AFB Special Forces Complex is substantial, placing it among significant investments in military infrastructure. To benchmark this value, one would compare it to the costs of other recently awarded contracts for similar specialized facilities, such as Special Operations Forces (SOF) training centers, command and control facilities, or operational support bases. Factors influencing cost include the size of the facility, the complexity of its design (e.g., specialized training areas, secure zones, advanced technological integration), geographic location (affecting labor and material costs), and the specific requirements of the end-users. Without direct comparisons of facilities with identical specifications and timelines, this figure represents a considerable allocation of resources for enhancing SOF capabilities.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

The primary risk for the government in a firm-fixed-price (FFP) contract of this magnitude ($178.8 million) and duration (over 4 years) is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. While FFP shifts cost overrun risk to the contractor, unforeseen issues like discovering hazardous materials, encountering unexpected subsurface conditions, or significant material price escalations beyond normal fluctuations can strain the contractor's ability to absorb costs. The government's risk is then that the contractor may seek change orders or, in extreme cases, default. Robust government oversight, clear contract specifications, and diligent quality assurance are critical to mitigating these risks and ensuring the project meets all requirements.

How effective is full and open competition in ensuring value for money for large military construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in large military construction projects. By allowing all responsible sources to bid, the government maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of multiple bidders, as seen with 7 bidders in this case, intensifies this effect, as contractors are motivated to offer their best terms to win the contract. While the lowest price isn't always the best value, a competitive process allows the government to evaluate proposals based on a combination of price, technical merit, past performance, and other factors, leading to a more informed decision that optimizes taxpayer investment.

What are the historical spending patterns for similar construction projects at Eglin AFB or for Special Forces infrastructure?

Historical spending patterns for similar construction projects at Eglin AFB and for Special Forces infrastructure reveal a consistent and significant investment in facilities. Eglin AFB, being a major installation, has seen numerous construction and renovation projects over the years, ranging from aircraft support facilities to training grounds and administrative buildings. Projects supporting Special Forces often involve specialized requirements, such as secure areas, advanced simulation capabilities, and robust physical training infrastructure, which can drive up costs compared to standard military construction. Analyzing past contracts for SOF facilities nationwide, particularly those awarded in recent years, would show a trend of multi-million dollar investments, often exceeding $100 million for major complexes, reflecting the critical nature and unique demands of these operational assets.

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: W9127809R0005

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6557 HAZELTINE NATIONAL DR STE 1, ORLANDO, FL, 32822

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

Financial Breakdown

Contract Ceiling: $178,791,048

Exercised Options: $178,791,048

Current Obligation: $178,791,048

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline