DoD awards $29.4M Hangar Maintenance Contract to Hensel Phelps Construction Co. at Cannon AFB
Contract Overview
Contract Amount: $29,398,390 ($29.4M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2012-08-31
End Date: 2014-10-02
Contract Duration: 762 days
Daily Burn Rate: $38.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY 12 SOF HANGAR/AIRCRAFT MAINTENANCE UNIT, CANNON AIR FORCE BASE, CURRY COUNTY, NEW MEXICO
Place of Performance
Location: CANNON AFB, CURRY County, NEW MEXICO, 88103
Plain-Language Summary
Department of Defense obligated $29.4 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: FY 12 SOF HANGAR/AIRCRAFT MAINTENANCE UNIT, CANNON AIR FORCE BASE, CURRY COUNTY, NEW MEXICO Key points: 1. Contract awarded to a large, established construction firm. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. The project duration is over two years, indicating a significant scope of work.
Value Assessment
Rating: good
The contract value of $29.4 million for hangar and aircraft maintenance appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in maintaining critical Air Force infrastructure.
Public Impact
Ensures operational readiness of SOF aircraft by maintaining essential facilities. Supports local economy through construction jobs and related services in Curry County, NM. Provides a secure and functional environment for specialized military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during construction.
- Dependence on a single large contractor for a critical facility.
Positive Signals
- Firm-fixed-price contract limits cost uncertainty.
- Full and open competition promotes competitive pricing.
- Long-term contract ensures sustained maintenance capability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending in this sector can vary significantly based on defense budgets and modernization needs.
Small Business Impact
The contract was awarded to Hensel Phelps Construction Co., a large business. There is no indication of specific provisions or set-asides for small businesses in this award, which is common for large-scale construction projects.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. Contract performance would be monitored to ensure adherence to specifications, timelines, and budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration exceeds one year.
- Awarded to a large business.
- No specific small business participation noted.
- Potential for scope creep or change orders.
- Dependence on a single contractor for critical infrastructure.
Tags
commercial-and-institutional-building-co, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to HENSEL PHELPS CONSTRUCTION CO.. FY 12 SOF HANGAR/AIRCRAFT MAINTENANCE UNIT, CANNON AIR FORCE BASE, CURRY COUNTY, NEW MEXICO
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 $29.4 million.
What is the period of performance?
Start: 2012-08-31. End: 2014-10-02.
What was the competitive landscape like for this full and open solicitation, and did the number of bids received suggest adequate competition?
While the data indicates 'full and open competition,' it does not specify the number of bids received. A robust competition typically involves multiple qualified bidders submitting proposals. Analyzing the number of bids would further validate the effectiveness of the procurement strategy in achieving optimal pricing and contractor selection.
Are there any performance metrics or quality assurance measures documented for this hangar maintenance contract to ensure effectiveness?
The provided data does not detail specific performance metrics or quality assurance measures. However, standard government contracting practices usually include clauses for inspection, acceptance, and performance monitoring. Further review of the contract's statement of work and associated clauses would be necessary to ascertain the specific quality controls in place.
What is the projected long-term cost-effectiveness of this contract, considering potential future maintenance needs and the firm-fixed-price structure?
The firm-fixed-price structure provides cost certainty for the initial contract period, limiting immediate risk of overruns. However, long-term cost-effectiveness depends on the quality of the initial construction and the potential need for subsequent, potentially higher-cost, repairs or upgrades. The durability and maintainability of the constructed facility will be key factors.
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: W912PP12R0016
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO (UEI: 063322085)
Address: 444 N 44TH ST STE 105, PHOENIX, AZ, 85008
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,398,390
Exercised Options: $29,398,390
Current Obligation: $29,398,390
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-31
Current End Date: 2014-10-02
Potential End Date: 2014-10-02 00:00:00
Last Modified: 2021-06-04
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