DoD Awards $110M for GBSD Integrated Command Center Construction at F.E. Warren AFB
Contract Overview
Contract Amount: $110,461,848 ($110.5M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2024-01-25
End Date: 2026-09-22
Contract Duration: 971 days
Daily Burn Rate: $113.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONSTRUCTION OF GBSD INTEGRATED COMMAND CENTER, F. E. WARREN AFB
Place of Performance
Location: CHEYENNE, LARAMIE County, WYOMING, 82001
State: Wyoming Government Spending
Plain-Language Summary
Department of Defense obligated $110.5 million to HENSEL PHELPS CONSTRUCTION CO for work described as: CONSTRUCTION OF GBSD INTEGRATED COMMAND CENTER, F. E. WARREN AFB Key points: 1. The contract is for the construction of a critical command center for the Ground Based Strategic Deterrent (GBSD) program. 2. Hensel Phelps Construction Co. secured the award, indicating significant experience in large-scale federal projects. 3. The project's fixed-price nature aims to control costs, but construction timelines can introduce risks. 4. This falls within the broader Defense sector, specifically related to infrastructure supporting strategic assets.
Value Assessment
Rating: good
The award amount of $110.5 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar military construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, ensuring taxpayer funds are used efficiently for this essential defense infrastructure.
Public Impact
Enhances national security infrastructure by providing a dedicated command center for the GBSD program. Supports economic activity in Wyoming through construction jobs and related services. Represents a significant investment in modernizing strategic deterrent capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting project completion and operational readiness.
- Scope creep could lead to cost overruns despite the firm fixed-price contract.
- Reliance on a single prime contractor for complex construction management.
Positive Signals
- Awarded through full and open competition, maximizing potential for cost savings.
- Firm fixed-price contract provides cost certainty for the government.
- Project supports a critical national security initiative (GBSD).
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, a common area for federal spending, particularly within the Department of Defense. Benchmarks for similar military construction projects would be relevant for detailed cost analysis.
Small Business Impact
While the prime contractor is Hensel Phelps Construction Co., the data does not specify the extent of small business participation in subcontracting. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The Department of the Army, under the DoD, is responsible for oversight. The firm fixed-price contract and defined duration provide a framework for accountability, though monitoring progress and managing potential changes will be crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Construction timeline risks
- Potential for scope creep
- Dependency on GBSD program schedule
- Contractor performance risk
Tags
commercial-and-institutional-building-co, department-of-defense, wy, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.5 million to HENSEL PHELPS CONSTRUCTION CO. CONSTRUCTION OF GBSD INTEGRATED COMMAND CENTER, F. E. WARREN AFB
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 $110.5 million.
What is the period of performance?
Start: 2024-01-25. End: 2026-09-22.
What is the projected impact of the GBSD program's overall timeline on the operational readiness of this command center?
The operational readiness of the GBSD Integrated Command Center is directly tied to the GBSD program's overall deployment schedule. Delays in the GBSD program could potentially postpone the full utilization of the command center, even if construction is completed on time. Conversely, if construction faces delays, it could impact the GBSD program's milestones. Effective coordination between construction timelines and program milestones is essential.
How does the firm fixed-price contract mitigate risks associated with potential material cost fluctuations during the construction period?
A firm fixed-price contract shifts the risk of material cost fluctuations primarily to the contractor, Hensel Phelps Construction Co. The contractor is obligated to complete the work for the agreed-upon price, regardless of changes in material costs. However, significant unforeseen cost increases could incentivize the contractor to seek change orders or potentially impact the quality of work if not managed carefully.
What are the key performance indicators (KPIs) being used to measure the effectiveness of this construction project?
Effectiveness is likely measured by adherence to the construction schedule, meeting quality standards and specifications outlined in the contract, and staying within the firm fixed-price budget. Post-construction, effectiveness will also be judged by the command center's functionality and its ability to support the GBSD mission requirements. Regular progress reports and inspections will be key monitoring tools.
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: W9128F23R0022
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 420 6TH AVE, GREELEY, CO, 80631
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,462,230
Exercised Options: $110,461,848
Current Obligation: $110,461,848
Actual Outlays: $-15,685,416
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-25
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2025-11-17
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