Hurlburt Field hangar construction awarded to Hensel Phelps for $70.4M under full and open competition

Contract Overview

Contract Amount: $70,420,153 ($70.4M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2021-02-26

End Date: 2025-02-24

Contract Duration: 1,459 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS CONTRACT IS TO AWARD THE BASE BID FOR SOF AMU & WEAPONS HANGAR, HURLBURT FIELD, FL.

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $70.4 million to HENSEL PHELPS CONSTRUCTION CO for work described as: THE PURPOSE OF THIS CONTRACT IS TO AWARD THE BASE BID FOR SOF AMU & WEAPONS HANGAR, HURLBURT FIELD, FL. Key points: 1. Contract awarded for a significant construction project at Hurlburt Field, Florida. 2. The project involves the construction of a weapons hangar, indicating a focus on aviation support infrastructure. 3. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 4. The contract type is a definitive contract with a firm fixed price, providing cost certainty. 5. The duration of the contract is substantial, spanning over 1400 days, implying a complex and lengthy construction phase. 6. The award value is significant, reflecting the scale and importance of the facility being built.

Value Assessment

Rating: good

The contract value of $70.4 million for a commercial and institutional building construction project, specifically a weapons hangar, appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale military construction projects would provide a more precise assessment, but the firm fixed-price nature suggests that the contractor has assumed significant cost risk. The number of bids received (5) also indicates a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a healthy level of interest from the construction market for this project. The presence of multiple bidders generally supports price discovery and can lead to more competitive offers, as contractors vie for the award.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it maximizes the potential for obtaining the best value by encouraging a wide range of qualified contractors to compete, driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force units stationed at Hurlburt Field, Florida, who will gain a new, modern weapons hangar. The project will deliver essential infrastructure for the maintenance, storage, and readiness of aircraft weapons systems. The geographic impact is localized to Hurlburt Field, Florida, supporting military operations in the region. The construction phase will likely create temporary jobs for skilled trades and laborers in the local Florida area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the firm fixed-price structure.
Delays in construction could impact operational readiness if the hangar is critical for current aircraft maintenance schedules.
Ensuring the long-term durability and functionality of the hangar to meet evolving weapons system requirements.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The contractor, Hensel Phelps Construction Co., is a well-established entity in the construction industry, implying experience with large projects.
The project addresses a clear need for upgraded aviation support infrastructure at a key military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The market for large-scale military construction is characterized by significant project values, stringent requirements, and often involves specialized contractors. Comparable spending benchmarks would typically be assessed against other military hangar or large facility construction projects, considering factors like square footage, complexity, and location. The overall defense construction market is substantial, with significant annual federal investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Hensel Phelps Construction Co., may engage small businesses as subcontractors for various construction trades and services, contributing to the small business ecosystem indirectly. The extent of this subcontracting would depend on the prime contractor's procurement policies and the availability of qualified small business subcontractors in the region.

Oversight & Accountability

Oversight for this contract will likely be managed by the relevant contracting office within the Department of the Air Force, potentially with support from the Army Corps of Engineers or other designated construction oversight bodies. Accountability measures are embedded in the firm fixed-price contract terms, performance standards, and payment schedules. Transparency is typically facilitated through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Military Construction, Air Force
Air Force Facilities Sustainment, Restoration, and Modernization
Defense Infrastructure Projects
Hangar Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting operational readiness.
Ensuring long-term durability and compliance with evolving military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.4 million to HENSEL PHELPS CONSTRUCTION CO. THE PURPOSE OF THIS CONTRACT IS TO AWARD THE BASE BID FOR SOF AMU & WEAPONS HANGAR, HURLBURT FIELD, 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 $70.4 million.

What is the period of performance?

Start: 2021-02-26. End: 2025-02-24.

What is the track record of Hensel Phelps Construction Co. on similar Department of Defense construction projects?

Hensel Phelps Construction Co. has a significant track record with the Department of Defense, having been awarded numerous contracts for various construction projects, including military facilities, hangars, and infrastructure. Their experience often includes large-scale, complex endeavors requiring adherence to strict military specifications and security protocols. A review of their past performance on similar projects, particularly those involving aviation support facilities, would indicate their capability to deliver on this Hurlburt Field contract. Publicly available contract databases and performance reviews can provide insights into their on-time and on-budget delivery history, as well as any past performance issues or commendations. Their established presence suggests a capacity to manage the scope and duration of this $70.4 million definitive contract.

How does the per-square-foot cost of this hangar compare to other recently awarded military hangar construction projects?

To accurately compare the per-square-foot cost, the total square footage of the Hurlburt Field hangar would need to be known. Assuming this information were available, it could be divided into the total contract value of $70.4 million to derive a per-square-foot metric. This metric would then be benchmarked against similar military hangar construction projects awarded by the Department of Defense or other federal agencies over the past 2-3 years. Factors such as geographic location (labor and material costs vary significantly), specific design requirements (e.g., specialized environmental controls, security features), and the complexity of the site preparation can influence per-square-foot costs. A higher per-square-foot cost might be justified by unique design features or challenging site conditions, while a lower cost could indicate efficient design or competitive bidding.

What are the primary risks associated with the firm fixed-price contract type for this project?

The primary risk associated with a firm fixed-price (FFP) contract for a large construction project like the Hurlburt Field hangar lies with the contractor. Hensel Phelps Construction Co. assumes the risk of cost overruns. If material prices increase unexpectedly, labor costs escalate, or unforeseen site conditions require additional work, the contractor must absorb these additional expenses, potentially impacting their profit margin or even leading to losses. For the government, the main risk is that the contractor might cut corners on quality or scope to protect their profit if costs rise significantly, although contract specifications and oversight are designed to mitigate this. The government benefits from cost certainty with an FFP contract, but the contractor's financial stability and project management capabilities become critical risk factors.

What is the historical spending pattern for similar hangar construction projects at Hurlburt Field or within the Air Force?

Analyzing historical spending patterns for similar hangar construction projects at Hurlburt Field or within the broader Air Force inventory would provide valuable context for the $70.4 million award. This involves examining past contract awards for hangar construction, including their size, scope, duration, and final cost. Trends in average contract values, the number of bids received, and the prevalence of different contract types (e.g., FFP vs. cost-plus) can reveal market dynamics and cost inflation over time. Understanding historical spending can help identify whether this award is an outlier, consistent with previous investments, or indicative of rising costs in defense construction. It also helps in assessing the value proposition of the current contract against past expenditures.

How will the performance of Hensel Phelps Construction Co. be monitored throughout the contract duration?

Performance monitoring for this contract will involve a multi-faceted approach. The government will assign a Contracting Officer's Representative (COR) or a similar technical point of contact who will oversee the day-to-day progress of the construction. This involves regular site visits, progress meetings, and reviews of project documentation, including schedules, material submittals, and quality control reports. Performance will be measured against the contract's specifications, statement of work, and established milestones. Key performance indicators might include adherence to schedule, quality of workmanship, safety compliance, and budget management (though the budget is fixed). Any deviations or deficiencies would be formally documented, and corrective actions would be required from the contractor. Ultimately, performance evaluations may be recorded in the Contractor Performance Assessment Reporting System (CPARS).

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: W9127820R0104

Offers Received: 5

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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,410,153

Exercised Options: $70,420,153

Current Obligation: $70,420,153

Actual Outlays: $1,070,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline