GSA Awards $19.8M Firm Fixed Price Contract for Mount Weather Operations Center Construction to Hensel Phelps

Contract Overview

Contract Amount: $19,838,431 ($19.8M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2004-05-14

End Date: 2005-08-03

Contract Duration: 446 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD SERVICES FOR THE CONSTRUCTION OF BUILDINGS 127, 407 AND 752 AT THE MOUNT WEATHER EMERGENCY OPERATIONS CENTER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $19.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: DESIGN BUILD SERVICES FOR THE CONSTRUCTION OF BUILDINGS 127, 407 AND 752 AT THE MOUNT WEATHER EMERGENCY OPERATIONS CENTER. Key points: 1. Contract awarded to a single, established firm, raising questions about competition. 2. Project scope includes construction of multiple buildings at a critical emergency operations center. 3. The $19.8M award represents a significant investment in federal infrastructure. 4. Firm Fixed Price contract type aims to control costs, but initial pricing needs scrutiny.

Value Assessment

Rating: fair

The award of $19.8M for building construction appears within a reasonable range for specialized federal facilities. However, without specific details on the scope and complexity of buildings 127, 407, and 752, a precise comparison to similar contracts is difficult. Benchmarking against other GSA construction projects of similar scale and purpose would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent. The rationale for not competing the contract needs further investigation.

Taxpayer Impact: The lack of competition for this $19.8M contract may result in a higher cost to taxpayers than if multiple bids had been solicited.

Public Impact

Ensures operational readiness of the Mount Weather Emergency Operations Center. Supports federal continuity of government and emergency response capabilities. Investment in secure, specialized federal infrastructure. Potential for job creation within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Firm Fixed Price contract
Supports critical federal operations

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Federal spending in this area is substantial, often involving complex projects with stringent security and operational requirements. Benchmarks for similar federal construction projects vary widely based on location, size, and specialized needs.

Small Business Impact

The contract was awarded to Hensel Phelps Construction Co., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for this contract. Oversight should focus on the justification for the sole-source award and ensuring the project meets all federal building standards and security requirements.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing due to lack of competition
Limited transparency on award justification
No apparent small business participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.8 million to HENSEL PHELPS CONSTRUCTION CO. DESIGN BUILD SERVICES FOR THE CONSTRUCTION OF BUILDINGS 127, 407 AND 752 AT THE MOUNT WEATHER EMERGENCY OPERATIONS CENTER.

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 $19.8 million.

What is the period of performance?

Start: 2004-05-14. End: 2005-08-03.

What was the specific justification provided by GSA for awarding this contract on a sole-source basis, and were any exceptions to full and open competition properly documented?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review would require access to GSA's contract file to ascertain the specific justification, such as urgent and compelling needs, unique capabilities of the contractor, or other exceptions to the Competition in Contracting Act. Proper documentation is crucial for ensuring accountability and preventing potential waste.

How does the awarded price of $19.8 million compare to independent cost estimates or benchmarks for similar specialized federal building construction projects, considering the firm-fixed-price nature

Without access to detailed project specifications and independent cost estimates, a direct comparison is challenging. However, the firm-fixed-price structure implies the contractor assumed the risk for cost overruns. GSA's internal cost analysis and historical data for similar secure federal facilities would be the primary benchmarks. The absence of competition makes external validation of the price's fairness more critical.

What measures are in place to ensure the effectiveness and long-term operational viability of the constructed buildings at the Mount Weather Emergency Operations Center, given its critical national se

Effectiveness and long-term viability are typically ensured through rigorous design reviews, adherence to stringent federal building codes and security standards, and comprehensive quality assurance during construction. Post-occupancy evaluations and ongoing maintenance plans are also key. GSA's oversight, coupled with the end-user agency's (likely FEMA or another national security entity) requirements, should guarantee these aspects.

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: NOT COMPETED

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,064,431

Exercised Options: $19,838,431

Current Obligation: $19,838,431

Timeline