GSA's $23.3M Mariposa Land Port of Entry Recovery Project awarded to Hensel Phelps Construction Co. for site and utilities

Contract Overview

Contract Amount: $23,343,026 ($23.3M)

Contractor: Hensel Phelps Construction CO.

Awarding Agency: General Services Administration

Start Date: 2009-09-11

End Date: 2010-11-15

Contract Duration: 430 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY EXPANSION AND MODERNIZATION PROJECT MARIPOSA LAND OF PORT OF ENTRY - "RECOVERY PROJECT" CONSTRUCTION WORK FOR SITE AND UTILITIES FOR THE ARRA PHASE 1 PACKAGE. PHASE 1 INCLUDES EARTHWORK/UTILITIES BROKEN OUT AS A SEPARATE PACKAGE FOR "RECOVERY."

Place of Performance

Location: NOGALES, SANTA CRUZ County, ARIZONA, 85621

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $23.3 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: TAS::47 4543::TAS RECOVERY EXPANSION AND MODERNIZATION PROJECT MARIPOSA LAND OF PORT OF ENTRY - "RECOVERY PROJECT" CONSTRUCTION WORK FOR SITE AND UTILITIES FOR THE ARRA PHASE 1 PACKAGE. PHASE 1 INCLUDES EARTHWORK/UTILITIES BROKEN OUT AS A SEPARATE PACKAGE FOR "RECOVERY." Key points: 1. The contract focused on essential site and utility work for the ARRA Phase 1 package, indicating a foundational investment. 2. Awarded under Full and Open Competition after Exclusion of Sources, suggesting a competitive process with specific justifications. 3. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The project duration of 430 days highlights the scale and complexity of the construction undertaking. 5. The contract was awarded to a single entity, Hensel Phelps Construction Co., indicating their selection as the most suitable bidder. 6. The project falls under Commercial and Institutional Building Construction, a broad category encompassing significant infrastructure development.

Value Assessment

Rating: fair

The contract value of $23.3 million for construction work on a port of entry's site and utilities appears within a reasonable range for such infrastructure projects. Benchmarking against similar large-scale federal construction contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage costs upfront, but the final value could be influenced by change orders or unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This designation implies that while the competition was intended to be open, there were specific reasons for excluding certain sources, which were likely documented. The presence of six bidders indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by driving down prices and encouraging efficient project execution from the selected contractor.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and trade facilitation, as the improved infrastructure supports their operations. The services delivered include essential construction work for site preparation and utility installation, crucial for the port of entry's functionality. The geographic impact is localized to the Mariposa Land Port of Entry in Arizona, enhancing its capacity and efficiency. Workforce implications include job creation for construction workers and related trades during the project's execution phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
The 'Exclusion of Sources' clause warrants scrutiny to ensure it was justified and did not unduly limit competition.
Dependence on a single contractor for a critical infrastructure project carries inherent performance risks.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The award to Hensel Phelps Construction Co., a known entity in large-scale construction, suggests a level of confidence in their capabilities.
The competitive bidding process, even with exclusions, likely resulted in a qualified contractor being selected.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that includes public infrastructure. The market for federal construction projects is substantial, with agencies like the General Services Administration (GSA) regularly procuring services for facilities and ports of entry. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per linear foot of utility installation for similar border infrastructure projects.

Small Business Impact

There is no indication of a small business set-aside for this contract, as the award was made to Hensel Phelps Construction Co., a large firm. The contract does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through federal contract databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

ARRA Phase 1 Projects
Port of Entry Modernization
Federal Infrastructure Construction
GSA Public Buildings Service Contracts

Risk Flags

Potential for cost overruns
Schedule delay risk
Performance quality concerns
Justification for source exclusion requires review
Limited competition impact assessment needed

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.3 million to HENSEL PHELPS CONSTRUCTION CO.. TAS::47 4543::TAS RECOVERY EXPANSION AND MODERNIZATION PROJECT MARIPOSA LAND OF PORT OF ENTRY - "RECOVERY PROJECT" CONSTRUCTION WORK FOR SITE AND UTILITIES FOR THE ARRA PHASE 1 PACKAGE. PHASE 1 INCLUDES EARTHWORK/UTILITIES BROKEN OUT AS A SEPARATE PACKAGE FOR "RECOVERY."

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 $23.3 million.

What is the period of performance?

Start: 2009-09-11. End: 2010-11-15.

What is the track record of Hensel Phelps Construction Co. on similar federal infrastructure projects?

Hensel Phelps Construction Co. is a well-established general contractor with extensive experience in large-scale public and private sector projects, including significant federal infrastructure. They have a history of completing complex construction, such as airports, courthouses, and transportation facilities. Their past performance on similar projects, particularly those involving site work, utilities, and government facilities, would be a key factor in their selection for the Mariposa Land Port of Entry project. Federal procurement systems often include past performance evaluations as a critical component of the source selection process, allowing agencies to assess a contractor's reliability, quality of work, and adherence to schedule and budget on previous contracts.

How does the $23.3 million cost compare to similar port of entry construction projects?

Directly comparing the $23.3 million cost without detailed project scope, location-specific labor and material costs, and the specific nature of the site and utility work is challenging. However, large-scale infrastructure projects at international ports of entry can range from tens of millions to hundreds of millions of dollars, depending on their size, complexity, and the scope of modernization or expansion. This contract, focused on 'site and utilities' for a specific phase, suggests it represents a foundational component of a larger port of entry development. To benchmark effectively, one would need to identify contracts for similar site preparation and utility installation at other ports of entry, adjusting for inflation and regional economic differences.

What are the primary risks associated with this specific construction contract?

The primary risks associated with this construction contract include potential cost overruns due to unforeseen subsurface conditions (e.g., unexpected soil issues, underground obstructions) which can be common in site development. Schedule delays are another significant risk, stemming from weather, labor availability, or supply chain disruptions, especially given the 430-day duration. Performance risk also exists, relating to the quality of the construction work and adherence to specifications. Furthermore, the 'Exclusion of Sources' aspect, while potentially justified, could introduce a risk if it inadvertently limited the pool of highly qualified bidders or led to perceptions of reduced competition. The firm-fixed-price nature, while beneficial for cost control, can shift some of the financial risk of unforeseen costs to the contractor.

How effective was the 'Full and Open Competition after Exclusion of Sources' in achieving value for taxpayers?

The effectiveness of 'Full and Open Competition after Exclusion of Sources' in achieving value for taxpayers hinges on the justification for the exclusions and the level of competition that remained. If the exclusions were narrowly defined and based on essential qualifications or specific capabilities, and if multiple capable bidders still participated (as indicated by six bidders), then the process likely yielded competitive pricing and a qualified contractor. However, if the exclusions were overly broad or poorly justified, they could have artificially limited competition, potentially leading to higher prices than might have been achieved in a truly open market. Taxpayer value is maximized when competition drives efficiency and cost-effectiveness, which requires a robust, yet appropriately scoped, competitive process.

What is the historical spending pattern for Mariposa Land Port of Entry construction or modernization?

Analyzing historical spending patterns for the Mariposa Land Port of Entry would require examining previous contracts awarded for its construction, expansion, or modernization efforts. This specific contract, valued at $23.3 million and awarded in 2009, was part of the 'Recovery Project' and ARRA Phase 1, indicating a period of significant federal investment in infrastructure. Understanding the total investment over time, including prior phases and subsequent upgrades, would provide context for the scale of government commitment to this port. Examining the frequency and value of past contracts can reveal trends in infrastructure development and maintenance spending at this critical border crossing.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-09P-09-KT-C-0087

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hensel Phelps Construction CO

Address: 444 N 44TH ST STE 105, PHOENIX, AZ, 85008

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

Financial Breakdown

Contract Ceiling: $23,343,026

Exercised Options: $23,343,026

Current Obligation: $23,343,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline