DoD Awards $37.9M for Fort Sam Houston Dormitory Construction to Hensel Phelps

Contract Overview

Contract Amount: $37,921,845 ($37.9M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-03-30

End Date: 2014-04-07

Contract Duration: 738 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FORT SAM HOUSTON CONSTRUCT PHASE II AIT DORMITORY

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.9 million to HENSEL PHELPS CONSTRUCTION CO for work described as: FORT SAM HOUSTON CONSTRUCT PHASE II AIT DORMITORY Key points: 1. Contract awarded to a large, established construction firm. 2. Project falls within the Commercial and Institutional Building Construction sector. 3. Potential for cost overruns or schedule delays exists in large construction projects. 4. Spending aligns with typical infrastructure development for military bases.

Value Assessment

Rating: good

The award amount of $37.9 million for a dormitory construction project appears reasonable given the scale and complexity. Benchmarking against similar military construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is expected to yield fair pricing, maximizing taxpayer value for this infrastructure investment.

Public Impact

Improved living conditions for service members at Fort Sam Houston. Supports military readiness and personnel retention. Economic stimulus through construction jobs and material procurement in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for construction delays impacting operational readiness.
  • Risk of scope creep leading to budget increases.
  • Weather or site-specific issues could affect timeline.
  • Contractor performance variability.

Positive Signals

  • Clear contract type (Firm Fixed Price) limits cost escalation.
  • Experienced contractor selected through competitive bidding.
  • Project addresses a clear need for improved infrastructure.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a significant area of federal spending for infrastructure development. Spending benchmarks for similar military construction projects vary widely based on location and scope.

Small Business Impact

While the primary award went to a large firm, opportunities for small businesses may exist through subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Army's oversight is crucial for ensuring timely completion and quality construction. Regular progress reports and site inspections are standard oversight mechanisms.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Construction project complexity
  • Potential for schedule delays
  • Weather-related impacts
  • Contractor performance risk
  • Scope creep potential

Tags

commercial-and-institutional-building-co, department-of-defense, tx, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 million to HENSEL PHELPS CONSTRUCTION CO. FORT SAM HOUSTON CONSTRUCT PHASE II AIT DORMITORY

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 $37.9 million.

What is the period of performance?

Start: 2012-03-30. End: 2014-04-07.

What is the projected impact of this dormitory construction on soldier morale and retention?

Improved, modern dormitory facilities are expected to significantly boost soldier morale by providing comfortable and safe living quarters. This enhancement can contribute positively to retention rates, as quality of life is a key factor for service members when considering reenlistment.

What are the primary risks associated with the construction timeline and potential delays?

Key risks include unforeseen site conditions, adverse weather impacting work schedules, and potential supply chain disruptions for materials. Delays could impact the availability of housing for incoming personnel, potentially affecting unit readiness and training schedules.

How does the firm-fixed-price contract structure mitigate cost risks for taxpayers?

A firm-fixed-price contract establishes a set price for the defined scope of work, transferring most of the cost risk to the contractor. This structure protects taxpayers from unexpected cost increases unless there are significant, approved contract modifications or scope changes.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9126G07R0074

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 6TH AVE, GREELEY, CO, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,921,845

Exercised Options: $37,921,845

Current Obligation: $37,921,845

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9126G08D0016

IDV Type: IDC

Timeline

Start Date: 2012-03-30

Current End Date: 2014-04-07

Potential End Date: 2014-04-07 00:00:00

Last Modified: 2014-04-16

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