GSA Awards $134.5M Design-Build Contract for San Ysidro Port of Entry Expansion to Hensel Phelps

Contract Overview

Contract Amount: $157,041,071 ($157.0M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2015-09-03

End Date: 2020-08-31

Contract Duration: 1,824 days

Daily Burn Rate: $86.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CL::IGF THIS DESIGN-BUILD SERVICES CONTRACT IS AWARDED TO PROVIDE ALL OF THE REQUIRED LABOR, MATERIAL, AND EQUIPMENT NECESSARY TO DESIGN AND CONSTRUCT PHASE 2 OF THE EXPANSION&RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY IN SAN DIEGO, CALIFORNIA. BY THE SIGNING OF THIS DOCUMENT THE GSA ACCEPTS THE NON-PROJECT LABOR AGREEMENT (PLA) BEST AND FINAL OFFER (BAFO) SUBMITTED BY HENSEL PHELPS AND AWARDS THE TOTAL BASE BID WITH ALL OPTIONS IN THE AMOUNT OF $134,555,000.00. AT THIS TIME THE GSA OBLIGATES ONLY THE TOTAL BASE BID IN THE AMOUNT $126,950,000.00. HENSEL PHELPS IS NOT TO PROCEED WITH ANY WORK ASSOCIATED WITH THE CONTRACT OPTIONS UNTIL EXERCISED BY THE GSA AND OFFICIAL NOTIFICATION IS PROVIDED. THE GSA AT ITS SOLE DISCRETION MAINTAINS ITS ABILITY TO EXERCISE ANY OF THE IDENTIFIED CONTRACT OPTIONS IF REQUIRED AT A LATER DATE. THE GSA ALSO INCORPORATES THE FOLLOWING DOCUMENTS INTO THE AWARDED CONTRACT NO. GS-09-P-15-KT-C-7007: THE AGREEMENT AND ALL THE ASSOCIATED DOCUMENTS INCORPORATED BY REFERENCE (ATTACHMENT 01). ALL AMENDMENTS (01-07) ISSUED BY THE GSA REGARDING SOLICITATION NO. GS-09-P-15-KT-C-7001 FOR BOTH THE STAGE ONE REQUEST FOR QUALIFICATION (RFQ) AND STAGE TWO REQUEST FOR PROPOSAL (RFP). SMALL BUSINESS SUBCONTRACTING PLAN WITHOUT PROJECT LABOR AGREEMENT DATED JULY 23, 1015 (ATTACHMENT 02).

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $157.0 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::CL::IGF THIS DESIGN-BUILD SERVICES CONTRACT IS AWARDED TO PROVIDE ALL OF THE REQUIRED LABOR, MATERIAL, AND EQUIPMENT NECESSARY TO DESIGN AND CONSTRUCT PHASE 2 OF THE EXPANSION&RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY IN SAN DIEGO, CALIFORNIA. BY THE SIG… Key points: 1. The contract is for Phase 2 of the San Ysidro Land Port of Entry expansion and reconfiguration. 2. Hensel Phelps Construction Co. was awarded the contract under full and open competition. 3. The total value is $134,555,000.00, with an initial obligation of $126,950,000.00. 4. The project involves design and construction services, indicating a significant infrastructure investment. 5. The contract type is Firm Fixed Price, which transfers risk to the contractor.

Value Assessment

Rating: good

The contract value of $134.5 million for a large-scale port of entry expansion 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 contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. The use of Best and Final Offers (BAFO) further indicates efforts to achieve optimal pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this significant infrastructure project.

Public Impact

Enhances border security and facilitates trade at a major US-Mexico crossing. Improves infrastructure for federal agencies operating at the port. Creates construction jobs and stimulates economic activity in the San Diego region. Modernizes a critical piece of national infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns if options are exercised without careful management.
Scope creep risk in large design-build projects.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost risk to the government.
Significant investment in critical infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector often involves large-scale infrastructure projects, with costs varying significantly based on project complexity, location, and scale.

Small Business Impact

The data indicates this contract was awarded to Hensel Phelps Construction Co. and does not specify any subcontracting goals or participation from small businesses. Further analysis would be needed to determine small business involvement.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this project. The contract structure with defined phases and option exercise protocols suggests a degree of oversight, but ongoing monitoring is crucial.

Related Government Programs

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

Risk Flags

Large contract value requires diligent oversight.
Potential for scope creep with contract options.
Design-build complexity requires strong project management.
Dependency on timely GSA option exercise notifications.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $157.0 million to HENSEL PHELPS CONSTRUCTION CO. IGF::CL::IGF THIS DESIGN-BUILD SERVICES CONTRACT IS AWARDED TO PROVIDE ALL OF THE REQUIRED LABOR, MATERIAL, AND EQUIPMENT NECESSARY TO DESIGN AND CONSTRUCT PHASE 2 OF THE EXPANSION&RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY IN SAN DIEGO, CALIFORNIA. BY THE SIGNING OF THIS DOCUMENT THE GSA ACCEPTS THE NON-PROJECT LABOR AGREEMENT (PLA) BEST AND FINAL OFFER (BAFO) SUBMITTED BY HENSEL PHELPS AND AWARDS THE TOTAL BASE BID WITH ALL OPTIONS IN THE AMOUNT OF $134,555,000.00. AT THIS

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 $157.0 million.

What is the period of performance?

Start: 2015-09-03. End: 2020-08-31.

What is the projected economic impact of this port expansion on trade volume and efficiency?

The expansion and reconfiguration of the San Ysidro Land Port of Entry is designed to significantly enhance operational efficiency, reduce wait times for commercial vehicles and travelers, and ultimately facilitate increased trade volume between the U.S. and Mexico. While specific projections are not detailed in this award notice, such infrastructure improvements typically lead to substantial economic benefits by streamlining logistics and supporting cross-border commerce.

What are the specific risks associated with the 'options' mentioned in the contract, and how will GSA manage them?

The primary risk with contract options is that they may be exercised without adequate justification or lead to scope creep and increased costs beyond the initial budget. GSA manages these risks by retaining sole discretion over their exercise and requiring official notification before any work associated with options can commence. This allows for phased funding and ensures that options align with evolving project needs and available appropriations.

How does the firm fixed price structure impact the government's ability to control costs during unforeseen circumstances?

A firm fixed price (FFP) contract shifts the majority of cost risk to the contractor, Hensel Phelps. While this provides cost certainty for the government, it means that unforeseen circumstances or contractor inefficiencies could lead to disputes or claims if not managed proactively. GSA's oversight and clear contract terms are crucial for mitigating potential cost impacts from unforeseen issues.

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-09-P-15-KT-C-7001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 SIXTH AVE, GREELEY, CO, 80631

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

Financial Breakdown

Contract Ceiling: $157,041,071

Exercised Options: $157,041,071

Current Obligation: $157,041,071

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline