GSA Awards $300M for San Diego Courthouse Construction to Hensel Phelps Under Full and Open Competition
Contract Overview
Contract Amount: $299,739,780 ($299.7M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: General Services Administration
Start Date: 2008-10-01
End Date: 2013-12-31
Contract Duration: 1,917 days
Daily Burn Rate: $156.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Construction
Official Description: PRE-CONSTRUCTION SERVICES NEW SAN DIEGO U.S. COURTHOUSE
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101
Plain-Language Summary
General Services Administration obligated $299.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: PRE-CONSTRUCTION SERVICES NEW SAN DIEGO U.S. COURTHOUSE Key points: 1. Significant investment in public infrastructure for the San Diego region. 2. Hensel Phelps, a major construction firm, secured the contract. 3. Full and open competition suggests a potentially competitive bidding process. 4. Fixed Price Incentive contract type aims to balance cost and performance. 5. Project duration of nearly 5 years indicates a large-scale undertaking.
Value Assessment
Rating: fair
The award amount of $299.7M for pre-construction services is substantial. Benchmarking against similar large-scale federal courthouse projects would be necessary to fully assess value, but the scale suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows for a wider pool of qualified contractors to participate.
Taxpayer Impact: Taxpayer funds are being utilized for a major federal building project. The competitive nature of the award is intended to ensure efficient use of these funds.
Public Impact
Enhances federal judicial infrastructure in San Diego. Creates construction jobs and stimulates local economic activity. Provides a new, modern facility for court operations. Represents a long-term investment in government facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Fixed Price Incentive contracts.
- Long project duration increases exposure to market fluctuations.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Significant investment in critical public infrastructure.
- Experienced contractor selected.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is often driven by infrastructure needs, courthouse modernizations, and agency facility upgrades, with significant budget allocations.
Small Business Impact
The data indicates that small businesses were not directly involved as the primary awardee. Further analysis would be needed to determine if small businesses were included as subcontractors on this project.
Oversight & Accountability
The General Services Administration (GSA) is responsible for managing federal building projects. Oversight would involve monitoring project progress, costs, and adherence to contract terms to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Lack of small business participation.
- Potential for cost overruns inherent in FPI contracts.
- Long project duration (1917 days).
- Significant contract value ($299.7M).
Tags
commercial-and-institutional-building-co, general-services-administration, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $299.7 million to HENSEL PHELPS CONSTRUCTION CO. PRE-CONSTRUCTION SERVICES NEW SAN DIEGO U.S. COURTHOUSE
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 $299.7 million.
What is the period of performance?
Start: 2008-10-01. End: 2013-12-31.
What is the breakdown of the $299.7M award for pre-construction services, and how does it compare to industry benchmarks for similar projects?
The provided data does not detail the specific allocation of the $299.7M for pre-construction services. A comprehensive analysis would require access to the contract's detailed cost breakdown and comparison with established industry benchmarks for large-scale federal courthouse projects to ascertain if the pricing is competitive and justified.
What are the key performance metrics and incentive structures within the Fixed Price Incentive contract, and how do they mitigate risks for the government?
The Fixed Price Incentive (FPI) contract type typically includes target cost, target profit, and ceiling price. Incentives are designed to motivate the contractor to control costs and meet performance goals. The government's risk is mitigated by the ceiling price, but potential for shared cost savings or overruns exists depending on performance.
How will the effectiveness of the new San Diego courthouse be measured post-construction, considering factors like operational efficiency and user satisfaction?
Effectiveness post-construction is typically measured through post-occupancy evaluations, focusing on operational efficiency, space utilization, and user satisfaction surveys involving court staff and the public. Performance against initial project objectives, such as security, accessibility, and technological integration, would also be assessed.
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: GS-09P-08-KT-C-0089
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 18850 VON KARMAN AVE STE 100, IRVINE, CA, 47
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $299,740,320
Exercised Options: $299,739,780
Current Obligation: $299,739,780
Timeline
Start Date: 2008-10-01
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2014-05-22
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