SSA National Support Center Construction Contract Awarded to Hensel Phelps for $209M

Contract Overview

Contract Amount: $209,025,584 ($209.0M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2012-01-13

End Date: 2015-10-01

Contract Duration: 1,357 days

Daily Burn Rate: $154.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOCIAL SECURITY ADMINISTRATION NATIONAL SUPPORT CENTER (DESIGN/BUILD), URBANA, MD

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $209.0 million to HENSEL PHELPS CONSTRUCTION CO for work described as: SOCIAL SECURITY ADMINISTRATION NATIONAL SUPPORT CENTER (DESIGN/BUILD), URBANA, MD Key points: 1. The contract awarded to Hensel Phelps Construction Co. for $209 million covers the design and build of the SSA National Support Center. 2. This project falls under the Commercial and Institutional Building Construction sector. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $209 million for a large-scale government building project appears reasonable given the scope. Benchmarking against similar large federal construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives value.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for this significant infrastructure investment.

Public Impact

Construction of a new national support center for the Social Security Administration. Potential job creation during the design and construction phases. Long-term operational benefits for the SSA through a modern facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1357 days (approx. 3.7 years) is substantial.
No small business participation noted.

Positive Signals

Firm fixed price contract type.
Full and open competition awarded.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project size, complexity, and location. Federal construction projects of this magnitude often involve extensive planning and oversight.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is a large entity, and subcontracting opportunities for small businesses were not explicitly detailed or mandated in the award.

Oversight & Accountability

The General Services Administration (GSA), specifically the Public Buildings Service, oversaw this contract. GSA is responsible for managing federal buildings, and their oversight aims to ensure projects are completed on time, within budget, and to required specifications.

Related Government Programs

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

Risk Flags

No small business participation noted.
Long contract duration (1357 days).
Potential for cost overruns despite FFP contract.
Complexity of design/build projects.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $209.0 million to HENSEL PHELPS CONSTRUCTION CO. SOCIAL SECURITY ADMINISTRATION NATIONAL SUPPORT CENTER (DESIGN/BUILD), URBANA, MD

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 $209.0 million.

What is the period of performance?

Start: 2012-01-13. End: 2015-10-01.

What was the initial estimated cost versus the final awarded cost, and how did the competitive bidding process influence this?

The provided data shows the awarded amount is $209,025,584. Without the initial estimate, it's difficult to assess the impact of competition on price reduction. However, full and open competition typically drives awarded prices down from initial estimates by fostering a competitive environment among bidders, encouraging them to offer their most competitive pricing to secure the contract.

What are the potential risks associated with a large, multi-year construction project like this, and how were they mitigated?

Risks include cost overruns, schedule delays, unforeseen site conditions, and contractor performance issues. Mitigation strategies typically involve robust contract terms (like firm-fixed-price), detailed specifications, performance bonds, regular progress reviews by the contracting agency (GSA), and contingency planning within the budget. The long duration (1357 days) necessitates strong project management and oversight.

How does the firm-fixed-price contract type ensure value for taxpayers on this large construction project?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed. This shifts the risk of cost overruns to the contractor, providing cost certainty for the government and taxpayers. While it may lead to a slightly higher initial bid price compared to cost-reimbursement contracts, it protects against unexpected cost increases during the project's lifecycle.

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: TWO STEP

Solicitation ID: GS-03P-11-CD-C-0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $209,025,585

Exercised Options: $209,025,585

Current Obligation: $209,025,584

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $124,080,042

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline