Hensel Phelps Construction Co. awarded $53.8M for MacDill AFB facility, highlighting robust competition and fixed-price certainty

Contract Overview

Contract Amount: $53,857,275 ($53.9M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2017-09-27

End Date: 2020-12-16

Contract Duration: 1,176 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION OF ARMY RESERVE CENTER/AVIATION SUPPORT FACILITY AT MACDILL AFB, FL

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF CONSTRUCTION OF ARMY RESERVE CENTER/AVIATION SUPPORT FACILITY AT MACDILL AFB, FL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type provides cost certainty for the government. 3. Project duration of 1176 days indicates a significant, long-term construction undertaking. 4. The contract value falls within a typical range for large-scale federal construction projects. 5. No small business set-aside was utilized, indicating a focus on prime contractor capabilities. 6. The project is located in Florida, a state with substantial federal construction activity.

Value Assessment

Rating: good

The contract value of $53.8 million for the construction of an Army Reserve Center and Aviation Support Facility at MacDill AFB appears reasonable given the scope and duration. Benchmarking against similar large-scale federal construction projects of this nature suggests that the price is within expected parameters. The firm-fixed-price structure further enhances value by locking in costs, mitigating the risk of cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This indicates a healthy level of market interest and a competitive environment for this project. The presence of multiple bidders generally leads to more favorable pricing and better terms for the government, as contractors strive to offer their most competitive proposals.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as contractors were incentivized to offer competitive pricing to win the bid. This process helps prevent inflated costs that might arise from a less competitive procurement.

Public Impact

The primary beneficiaries are the U.S. Army Reserve personnel who will utilize the new facilities. The project delivers essential infrastructure for aviation support and reserve operations. The geographic impact is concentrated at MacDill Air Force Base in Florida. The construction phase will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Ensuring compliance with environmental regulations during construction.
Managing the complexity of a large-scale, multi-year construction project.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially better pricing.
Experienced contractor (Hensel Phelps) likely brings proven project management capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending in this area is driven by the need for modern facilities to support military readiness, training, and operations. Comparable projects include the construction of barracks, training centers, and support facilities at various military installations nationwide. The market for large federal construction contracts is often characterized by a few large, established firms capable of handling complex projects.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses in the provided data. This suggests that the prime contractor, Hensel Phelps Construction Co., is expected to manage the majority of the work or subcontract based on their own business strategy. The absence of a set-aside may limit direct opportunities for small businesses as prime contractors on this specific project, though they could still participate as subcontractors.

Oversight & Accountability

Oversight for this project would typically be managed by the U.S. Army Corps of Engineers or a designated contracting officer within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which penalizes cost overruns by the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific day-to-day oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Reserve Facilities Construction
Military Construction Projects
Aviation Support Facilities
Department of Defense Construction Contracts
Large-Scale Building Construction

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of schedule delays impacting operational readiness.
Ensuring contractor performance meets quality standards over the project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF CONSTRUCTION OF ARMY RESERVE CENTER/AVIATION SUPPORT FACILITY AT MACDILL AFB, 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 $53.9 million.

What is the period of performance?

Start: 2017-09-27. End: 2020-12-16.

What is Hensel Phelps Construction Co.'s track record with similar federal construction projects?

Hensel Phelps Construction Co. is a well-established and reputable general contractor with extensive experience in large-scale federal construction projects, including military facilities. They have a history of successfully completing complex projects for various government agencies, often involving significant dollar values and challenging timelines. Their portfolio includes numerous projects for the Department of Defense, demonstrating a strong understanding of military construction requirements, security protocols, and operational needs. Past performance data, often available through federal procurement databases, would provide specific details on their on-time and on-budget delivery rates for similar endeavors, which is crucial for assessing their capability to execute this particular contract effectively.

How does the $53.8 million award compare to the average cost of similar federal construction projects?

The $53.8 million award for the Army Reserve Center and Aviation Support Facility at MacDill AFB is substantial, reflecting the complexity and scale of constructing specialized military infrastructure. To benchmark this value, one would typically compare it to recently awarded contracts for similar facilities (e.g., training centers, hangars, support buildings) at other military installations. Factors such as geographic location (labor and material costs), specific facility requirements (e.g., specialized aviation support systems), and project duration (1176 days) significantly influence costs. While precise comparisons require detailed project specifications, this figure appears consistent with the upper range for major military construction projects, especially those involving unique operational needs like aviation support.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risks associated with this firm-fixed-price (FFP) contract, while generally favorable to the government for cost control, lie in potential contractor performance issues. If the contractor, Hensel Phelps Construction Co., underestimated costs or encountered unforeseen site conditions or labor shortages, they might face financial strain, potentially impacting project quality or schedule. Scope creep, if not managed tightly through change orders, could also lead to disputes. Furthermore, the FFP structure places the burden of cost overruns on the contractor, which could incentivize them to cut corners on quality or safety if facing significant financial pressure, although their reputation and contract clauses aim to mitigate this. Ensuring robust oversight and clear communication channels is vital.

How effective is full and open competition in ensuring value for money in federal construction?

Full and open competition is widely considered the most effective method for ensuring value for money in federal construction procurement. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most efficient solutions to win the contract. The receipt of six bids in this case suggests a robust competition, which typically drives down prices and improves the quality of proposals. This process allows the government to select the offer that represents the best overall value, considering not just price but also technical approach, past performance, and other evaluation factors, thereby maximizing the return on taxpayer investment.

What is the historical spending trend for similar Army Reserve construction projects?

Historical spending on Army Reserve construction projects has generally trended upwards, influenced by factors such as aging infrastructure needing replacement, evolving military operational requirements, and overall defense budgets. Projects like the one at MacDill AFB are part of a continuous cycle of modernization and facility upgrades. Analyzing past spending data for similar facilities (e.g., reserve centers, training facilities, maintenance depots) would reveal patterns in contract values, project durations, and the types of contractors most frequently awarded work. This historical context helps in evaluating the current award's reasonableness and forecasting future budgetary needs for similar infrastructure investments.

What are the implications of the 1176-day duration for project management and oversight?

The 1176-day duration (approximately 3.2 years) for this construction project signifies a major undertaking requiring sustained project management and oversight. This extended timeline necessitates robust planning for resource allocation, scheduling, and risk management throughout the project lifecycle. For oversight, it means continuous monitoring of progress, quality control, and adherence to the contract terms over several years. Potential challenges include maintaining consistent communication, managing contract modifications effectively, and ensuring the contractor's sustained performance and financial stability over the long haul. Regular progress reviews and milestone tracking are critical to keeping such a large project on track.

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: W912QR17R0042

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: $56,500,275

Exercised Options: $53,857,275

Current Obligation: $53,857,275

Actual Outlays: $797,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline