DoD Awards $56M for Redstone Arsenal Physics Lab Construction to Hensel Phelps
Contract Overview
Contract Amount: $56,075,016 ($56.1M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2025-08-05
End Date: 2029-07-17
Contract Duration: 1,442 days
Daily Burn Rate: $38.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PHYSICS LAB (MSETS ELECTRONICS LABORATORY) AT REDSTONE ARSENAL, ALABAMA
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $56.1 million to HENSEL PHELPS CONSTRUCTION CO for work described as: PHYSICS LAB (MSETS ELECTRONICS LABORATORY) AT REDSTONE ARSENAL, ALABAMA Key points: 1. Significant investment in advanced research infrastructure. 2. Hensel Phelps is a major player in large-scale construction. 3. Potential for cost overruns in complex, long-term projects. 4. Construction sector is experiencing material cost volatility.
Value Assessment
Rating: fair
The contract value of $56M for a physics laboratory is within a reasonable range for specialized construction projects of this scale. However, without specific details on the scope and complexity of the laboratory's requirements, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. The use of Firm Fixed Price contract type aims to mitigate cost risks for the government.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which theoretically leads to better pricing. However, the ultimate impact depends on the contractor's ability to manage costs effectively throughout the project lifecycle.
Public Impact
Supports advanced scientific research and development capabilities. Creates construction jobs in Alabama. Potential for long-term economic benefits through innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays due to complex construction.
- Risk of material cost escalation impacting final price.
- Scope creep could increase project costs beyond initial estimates.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Experienced contractor selected.
Sector Analysis
This project falls within the commercial and institutional building construction sector, specifically for a research facility. Spending benchmarks for such specialized construction can vary widely based on technological requirements and location, but $56M is a substantial investment.
Small Business Impact
The data indicates that this contract was awarded to Hensel Phelps Construction Co., a large prime contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific project.
Oversight & Accountability
The Department of the Army, through the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, would be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Specialized nature of a physics lab implies complex requirements.
- Potential for unforeseen site conditions.
- Dependence on skilled labor availability.
Tags
commercial-and-institutional-building-co, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.1 million to HENSEL PHELPS CONSTRUCTION CO. PHYSICS LAB (MSETS ELECTRONICS LABORATORY) AT REDSTONE ARSENAL, ALABAMA
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 $56.1 million.
What is the period of performance?
Start: 2025-08-05. End: 2029-07-17.
What specific technological or scientific requirements drive the $56M cost for the physics laboratory?
The high cost is likely driven by specialized requirements for a physics laboratory, such as advanced HVAC systems for precise environmental control, vibration isolation for sensitive equipment, specialized electrical and data infrastructure, secure containment areas, and potentially cleanroom facilities. These elements significantly increase complexity and material costs compared to standard commercial construction.
What are the primary risks associated with the 1442-day duration of this construction project?
The extended duration of nearly four years presents risks of material price escalation, labor shortages, and potential changes in regulatory requirements. Furthermore, unforeseen site conditions or design modifications during construction could lead to delays and cost overruns, impacting the overall value and timeline.
How effectively will the Firm Fixed Price contract mitigate cost overruns given the project's complexity and duration?
The Firm Fixed Price contract provides a strong incentive for the contractor to manage costs efficiently and absorb unforeseen expenses. However, its effectiveness can be challenged by significant scope changes initiated by the government or exceptionally volatile market conditions for specialized materials and labor, which might necessitate contract modifications.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
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: $56,075,016
Exercised Options: $56,075,016
Current Obligation: $56,075,016
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9127825D0036
IDV Type: IDC
Timeline
Start Date: 2025-08-05
Current End Date: 2029-07-17
Potential End Date: 2029-07-17 00:00:00
Last Modified: 2025-09-16
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