GSA Awards $213.7M for Calexico Land Port Expansion to Hensel Phelps Construction Co

Contract Overview

Contract Amount: $213,712,194 ($213.7M)

Contractor: Hensel Phelps Construction CO.

Awarding Agency: General Services Administration

Start Date: 2024-07-19

End Date: 2028-12-19

Contract Duration: 1,614 days

Daily Burn Rate: $132.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD SERVICES MODERNIZATION AND EXPANSION OF THE CALEXICO LAND PORT OF ENTRY PHASE 2B LOCATED IN CALEXICO, CALIFORNIA

Place of Performance

Location: CALEXICO, IMPERIAL County, CALIFORNIA, 92231

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $213.7 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: DESIGN BUILD SERVICES MODERNIZATION AND EXPANSION OF THE CALEXICO LAND PORT OF ENTRY PHASE 2B LOCATED IN CALEXICO, CALIFORNIA Key points: 1. The contract is for design, build, modernization, and expansion services. 2. Hensel Phelps Construction Co. is the sole awardee. 3. The contract is firm-fixed-price, indicating clear cost expectations. 4. This project falls under commercial and institutional building construction.

Value Assessment

Rating: good

The firm-fixed-price contract type suggests a clear pricing structure. Benchmarking against similar large-scale federal construction projects is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. The definitive contract award mechanism suggests a single award after the competitive process.

Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure upgrade at a key border crossing, aiming for long-term efficiency and security.

Public Impact

Enhances border security and facilitates trade at the Calexico Land Port of Entry. Modernization aims to improve operational efficiency for customs and border protection. Supports economic activity by streamlining cross-border commerce. Creates construction jobs in the Calexico, California region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large-scale construction projects.
  • Dependence on a single contractor for the entire project lifecycle.

Positive Signals

  • Firm-fixed-price contract limits cost uncertainty.
  • Full and open competition should drive competitive pricing.
  • Project addresses critical infrastructure needs.

Sector Analysis

This project is within the commercial and institutional building construction sector, a significant area of federal spending. Benchmarks for similar port of entry or large federal building projects would provide further context.

Small Business Impact

The data indicates the prime contractor is Hensel Phelps Construction Co. and does not specify any small business subcontracting goals or participation. Further review would be needed to assess small business involvement.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for overseeing this project. Standard GSA oversight mechanisms for large construction contracts should be in place.

Related Government Programs

  • Commercial and Institutional Building Construction
  • General Services Administration Contracting
  • Public Buildings Service Programs

Risk Flags

  • Large contract value increases financial risk.
  • Long project duration (over 4 years) increases risk of scope creep or unforeseen issues.
  • Dependence on a single contractor for a critical infrastructure project.
  • Potential for construction delays impacting border operations.

Tags

commercial-and-institutional-building-co, general-services-administration, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $213.7 million to HENSEL PHELPS CONSTRUCTION CO.. DESIGN BUILD SERVICES MODERNIZATION AND EXPANSION OF THE CALEXICO LAND PORT OF ENTRY PHASE 2B LOCATED IN CALEXICO, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $213.7 million.

What is the period of performance?

Start: 2024-07-19. End: 2028-12-19.

What is the estimated cost per square foot for the modernization and expansion, and how does it compare to similar projects?

The total contract value is $213,712,194 for an unspecified scope of modernization and expansion. Without detailed project specifications (e.g., square footage, specific improvements), a precise per-square-foot cost cannot be calculated. However, for large-scale federal construction projects, costs can range significantly, often from $400 to $1000+ per square foot depending on complexity, location, and materials. A detailed cost breakdown would be needed for a meaningful comparison.

What are the key performance indicators (KPIs) for this project, and how will Hensel Phelps be held accountable for meeting them?

Key performance indicators for a project of this nature typically include adherence to schedule, quality of construction, safety compliance, and successful completion of design and build requirements. Accountability will likely be managed through contract clauses, regular progress reviews, milestone payments tied to deliverables, and potential penalties for delays or deficiencies. The GSA's oversight team will monitor these KPIs throughout the project lifecycle.

What is the projected impact of this modernization on the operational efficiency and throughput of the Calexico Land Port of Entry?

The modernization and expansion are intended to significantly improve operational efficiency and throughput by upgrading facilities, potentially incorporating new technologies, and optimizing traffic flow for both commercial and personal vehicles. While specific metrics are not provided, the goal is to reduce wait times, enhance security screening capabilities, and accommodate future increases in cross-border traffic, thereby supporting economic activity and border management.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PK0124R0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hensel Phelps Construction CO

Address: 3125 E WOOD ST, PHOENIX, AZ, 85040

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $215,939,194

Exercised Options: $213,712,194

Current Obligation: $213,712,194

Actual Outlays: $27,311,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-07-19

Current End Date: 2028-12-19

Potential End Date: 2029-02-19 00:00:00

Last Modified: 2026-02-11

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