Mountainview Construction awarded $132.8M contract for building construction by the Department of the Army

Contract Overview

Contract Amount: $132,762,030 ($132.8M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-09-26

End Date: 2019-06-07

Contract Duration: 2,445 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOUNTAINVIEW CONSTRUCTION

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80011

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $132.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: MOUNTAINVIEW CONSTRUCTION Key points: 1. The contract value of $132.8M represents a significant investment in infrastructure. 2. Competition dynamics suggest a robust bidding process for this project. 3. The firm fixed-price contract type indicates a defined cost structure. 4. The contract duration of 2445 days points to a long-term project. 5. The project is located in Colorado, potentially impacting the local economy. 6. The absence of small business set-asides may limit opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of $132.8M for building construction appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction projects awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost risks for the government, assuming the initial bid accurately reflected project requirements.

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. The presence of 10 bidders suggests a healthy level of competition for this significant construction project. This broad competition is generally favorable for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers by driving down bids. It also suggests that the government obtained a wide range of options and expertise.

Public Impact

The Department of the Army benefits from the construction of new facilities or upgrades to existing ones. The project delivers essential building construction services, likely for military or related personnel. The geographic impact is concentrated in Colorado, potentially creating local jobs and economic activity. The construction workforce in Colorado will likely see implications, with job creation and demand for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long project duration.
Dependence on a single large contractor could pose risks if performance falters.
The lack of specific small business participation may limit broader economic impact.
The firm fixed-price contract could lead to disputes if scope changes significantly.

Positive Signals

The full and open competition suggests a strong initial vetting of potential contractors.
The firm fixed-price contract provides cost certainty for the government.
The long duration allows for thorough project execution and quality control.
The award to a reputable contractor like Hensel Phelps indicates a focus on reliability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, factories, and public facilities. The Department of Defense is a significant client within this sector, frequently awarding large contracts for military bases, housing, and support infrastructure. Comparable spending benchmarks would involve analyzing other large-scale government construction projects, particularly those managed by military branches.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business subcontracting requirements were mandated. This means that opportunities for small businesses to participate in this project are likely limited to those that can secure subcontracts directly from the prime contractor, Hensel Phelps Construction Co. The absence of set-asides may reduce the direct flow of federal dollars into the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Long contract duration increases risk of market fluctuations.
Firm fixed-price contract places cost overrun risk on contractor.
Lack of explicit small business set-aside may limit SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $132.8 million to HENSEL PHELPS CONSTRUCTION CO. MOUNTAINVIEW CONSTRUCTION

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 $132.8 million.

What is the period of performance?

Start: 2012-09-26. End: 2019-06-07.

What is the track record of Hensel Phelps Construction Co. with the Department of Defense?

Hensel Phelps Construction Co. has a substantial track record with the Department of Defense, having been awarded numerous contracts over the years for various construction projects. Their experience spans a wide range of military facilities, including barracks, administrative buildings, and specialized infrastructure. Analyzing their past performance on similar firm-fixed-price contracts with the DoD can provide insights into their ability to manage large-scale projects within budget and schedule. Historical data suggests they are a major player in federal construction, often competing successfully for high-value awards. Their consistent engagement with the DoD indicates a level of trust and proven capability in meeting the specific requirements and security protocols of military construction.

How does the $132.8M contract value compare to similar building construction projects by the Army?

The $132.8M contract value for building construction by the Department of the Army is substantial, placing it among larger infrastructure investments. To benchmark effectively, one would compare this figure against other definitive contracts for similar types of buildings (e.g., barracks, administrative centers, training facilities) awarded by the Army or other branches of the DoD within the last 3-5 years. Factors such as project scope, complexity, location, and duration significantly influence cost. If similar projects of comparable scale and complexity have been awarded in the range of $100M-$150M, then this contract appears to be in a reasonable range. However, if comparable projects were significantly less expensive, it might warrant further investigation into the specific requirements and market conditions that led to this award value.

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

The primary risks associated with a firm fixed-price (FFP) contract of this magnitude ($132.8M) and long duration (2445 days) primarily fall on the contractor. The contractor assumes the risk of cost overruns if actual costs exceed the fixed price. For the government, the main risk is that the contractor may cut corners on quality or scope to protect their profit margin if unforeseen issues arise, especially given the long timeline. Scope creep, if not managed meticulously through formal change order processes, can also lead to disputes and potential cost increases, even under an FFP contract. Additionally, the long duration increases the risk of market fluctuations in material costs or labor availability, which the contractor must absorb. Ensuring robust oversight and clear contract specifications are crucial to mitigate these risks.

What is the expected effectiveness of this contract in meeting the Army's facility needs?

The effectiveness of this contract in meeting the Army's facility needs hinges on several factors. Firstly, the full and open competition suggests a strong likelihood that the selected contractor, Hensel Phelps Construction Co., possesses the necessary expertise and capacity to deliver the required construction. The firm fixed-price nature, while shifting risk to the contractor, also incentivizes timely and cost-effective completion, provided the initial bid was realistic. The long duration allows for meticulous execution. However, effectiveness will ultimately be measured by the delivered facility's quality, functionality, adherence to specifications, and its ability to support the Army's operational requirements throughout its lifecycle. Post-occupancy evaluations and user feedback will be key indicators.

How has federal spending on commercial and institutional building construction evolved, and where does this contract fit?

Federal spending on commercial and institutional building construction is a significant component of the overall federal procurement landscape, particularly driven by agencies like the Department of Defense, GSA, and the Department of Veterans Affairs. Spending in this category can fluctuate based on infrastructure needs, modernization efforts, and national security priorities. This $132.8M contract represents a substantial single award within this category. Historically, federal spending on construction has seen periods of increase during times of military expansion or major infrastructure initiatives. This contract fits within the ongoing need for the Department of the Army to maintain, upgrade, or expand its physical footprint, ensuring facilities are modern, secure, and capable of supporting its mission. Its size suggests it's likely a major project, such as a new headquarters, training facility, or significant barracks complex.

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: W912DR12R0002

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 SIXTH AVE, GREELEY, CO, 80631

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

Financial Breakdown

Contract Ceiling: $132,762,030

Exercised Options: $132,762,030

Current Obligation: $132,762,030

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $50,130,106

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline