DoD's $71M NMIC Expansion & Renovation Contract Awarded to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $71,282,136 ($71.3M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2007-10-05
End Date: 2010-08-08
Contract Duration: 1,038 days
Daily Burn Rate: $68.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NMIC EXPANSION&RENOVATION
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $71.3 million to HENSEL PHELPS CONSTRUCTION CO for work described as: NMIC EXPANSION&RENOVATION Key points: 1. Significant investment in facility expansion and renovation. 2. Hensel Phelps Construction Co. secured a large contract. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector spending is substantial and cyclical.
Value Assessment
Rating: good
The contract value of $71.3M for a 1038-day duration appears reasonable for a large-scale construction project. Benchmarking against similar DoD facility projects would provide a more precise assessment.
Cost Per Unit: $68,673
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers, as it aims to secure the best value and price.
Public Impact
Impacts military readiness and personnel by improving facilities. Supports local economy through construction jobs and material sourcing. Potential disruption to ongoing operations during renovation phases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Construction project complexity
- Potential for scope creep
- Weather and site conditions
- Material price volatility
Positive Signals
- Experienced contractor
- Firm fixed price contract
- Full and open competition
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. DoD facility spending is a major component, often influenced by geopolitical factors and modernization needs.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Large construction projects can sometimes subcontract portions to smaller businesses, but this is not guaranteed.
Oversight & Accountability
The definitive contract award suggests a structured procurement process. Oversight would typically involve project managers from the Department of the Navy ensuring adherence to contract terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value
- Long project duration
- Potential for unforeseen construction issues
- Reliance on contractor's management capabilities
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.3 million to HENSEL PHELPS CONSTRUCTION CO. NMIC EXPANSION&RENOVATION
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $71.3 million.
What is the period of performance?
Start: 2007-10-05. End: 2010-08-08.
What is the projected return on investment for this facility expansion and renovation in terms of improved operational efficiency or extended facility lifespan?
The return on investment is primarily measured by the enhanced operational capabilities and extended lifespan of the facility, contributing to long-term military readiness. Quantifying this in direct financial terms is challenging, but improved efficiency and reduced future maintenance costs are key benefits.
What are the primary risks associated with the firm fixed price contract for this large-scale construction project?
The primary risk with a firm fixed price contract for a large construction project lies in potential unforeseen cost increases for the contractor due to scope creep, material price fluctuations, or unexpected site conditions. If these occur, the contractor may seek change orders, potentially increasing the overall cost to the government.
How effectively will the completed facility support the evolving mission requirements of the Department of the Navy?
The effectiveness hinges on the accuracy of the initial requirements gathering and design process. If the expansion and renovation align with current and projected mission needs, it will significantly enhance operational capabilities. Regular reviews and potential adjustments during the project lifecycle are crucial for ensuring long-term mission support.
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: N4008006R0002
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4437 BROOKFIELD CORP DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,282,136
Exercised Options: $71,282,136
Current Obligation: $71,282,136
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-10-05
Current End Date: 2010-08-08
Potential End Date: 2010-08-08 00:00:00
Last Modified: 2021-07-29
More Contracts from Hensel Phelps Construction CO
- 200112!000146!9700!ZD47 !pentagon Renovation Management !mda94701c2001 !A!N!*!N! !20010918!20121129!791702194!791702194!063322085!n!hensel Phelps Construction CO !4437 Brookfield Corporate !chantilly !va!20151!61672!013!51!pentagon !arlington !virginia !+000145000000!n!n!000000000000!y300!restoration Activities !C2 !construction !1000!NOT Discernable or Classified !233320!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!L!2!003!B! !D!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $1.6B (Department of Defense)
- C103157: Surgery, Radiology, and Laboratory Medicine (srlm) Building Construction — $756.4M (Department of Health and Human Services)
- ECB3 Base BID — $711.3M (Department of Defense)
- Zone 1 Tyndall AFB, FL — $650.0M (Department of Defense)
- Award Construction Contract for Repair of Administrative Spaces, Various Locations, Oahu, Hawaii — $378.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)