DoD's $57.5M Undersea Training Facility Contract Awarded to Hensel Phelps Construction Co. in Hawaii
Contract Overview
Contract Amount: $57,501,077 ($57.5M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2020-04-15
End Date: 2023-12-02
Contract Duration: 1,326 days
Daily Burn Rate: $43.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY20 MILCON P-463 SOF UNDERSEA OPERATIONAL TRAINING FACILITY, PEARL CITY PENINSULA, JBPHH, HAWAII
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $57.5 million to HENSEL PHELPS CONSTRUCTION CO for work described as: FY20 MILCON P-463 SOF UNDERSEA OPERATIONAL TRAINING FACILITY, PEARL CITY PENINSULA, JBPHH, HAWAII Key points: 1. The contract is for a significant military construction project in Hawaii, indicating substantial investment in naval training infrastructure. 2. Hensel Phelps Construction Co. secured the award, suggesting strong capabilities in large-scale institutional building. 3. The project's fixed-price nature aims to control costs, but potential risks in construction timelines and material costs exist. 4. This falls within the Defense sector, specifically military construction, with implications for local economic activity in Hawaii.
Value Assessment
Rating: good
The $57.5 million award for the P-463 SOF Undersea Operational Training Facility appears reasonable for a large-scale, specialized construction project of this nature. Benchmarking against similar military construction projects would provide a more precise assessment, but the firm fixed-price contract suggests an effort to establish a clear cost ceiling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This competitive process is expected to drive a more favorable price discovery and ensure the government receives competitive pricing for the construction services.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it promotes efficiency and cost-effectiveness in government spending.
Public Impact
Enhances critical undersea warfare training capabilities for Special Operations Forces. Supports the Department of the Navy's strategic infrastructure development at Joint Base Pearl Harbor-Hickam. Potential for job creation and economic stimulus in the Hawaii construction sector. Ensures advanced facilities for personnel training, contributing to national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Construction delays are a common risk in large projects.
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on specialized labor and materials could impact schedule.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Awarded through full and open competition, suggesting competitive pricing.
- Located in a strategic military hub, ensuring operational relevance.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, specifically within the Department of Defense's military construction (MILCON) program. Spending in this sector is often driven by national security needs and infrastructure modernization efforts, with significant federal investment.
Small Business Impact
The data indicates that neither small business participation nor subcontracting was a stated factor in this award (ss: false, sb: false). This suggests the prime contractor, Hensel Phelps, is likely a large business, and opportunities for small businesses may be limited to direct subcontracting by the prime, rather than mandated set-asides.
Oversight & Accountability
The Department of the Navy, as the awarding agency, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections, progress reporting, and quality assurance, would be in place to ensure compliance with contract terms and specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for construction cost overruns.
- Risk of project delays impacting training readiness.
- Limited visibility into long-term operational and maintenance costs.
- No explicit small business participation noted in the award data.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.5 million to HENSEL PHELPS CONSTRUCTION CO. FY20 MILCON P-463 SOF UNDERSEA OPERATIONAL TRAINING FACILITY, PEARL CITY PENINSULA, JBPHH, HAWAII
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 $57.5 million.
What is the period of performance?
Start: 2020-04-15. End: 2023-12-02.
What is the projected long-term operational cost and maintenance burden for this specialized training facility?
The provided data focuses solely on the initial construction award. Information regarding the projected long-term operational costs, including utilities, staffing, specialized equipment maintenance, and routine upkeep for the Undersea Operational Training Facility, is not available. A comprehensive lifecycle cost analysis would be necessary to fully assess the total financial commitment beyond the initial construction phase.
How will the performance of Hensel Phelps Construction Co. on this project be evaluated to inform future contract awards?
The performance of Hensel Phelps Construction Co. on this $57.5 million contract will likely be evaluated through the Federal Awardee Performance and Integrity Information System (FAPIIS). This evaluation typically assesses factors such as adherence to schedule, quality of work, cost control, and overall management. Positive performance reviews contribute to a contractor's reputation and eligibility for future federal contracts.
Are there any specific environmental considerations or mitigation plans associated with the construction of this facility in a sensitive coastal area like Pearl City Peninsula?
While the data does not explicitly detail environmental mitigation plans, large federal construction projects, especially in sensitive areas like Hawaii's coastal zones, are subject to rigorous environmental reviews and regulations. These typically include assessments for potential impacts on marine life, water quality, and local ecosystems, with mandated mitigation strategies to minimize environmental footprints.
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: N6247819R1518
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 841 BISHOP ST STE 2001, HONOLULU, HI, 96813
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,501,077
Exercised Options: $57,501,077
Current Obligation: $57,501,077
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-04-15
Current End Date: 2023-12-02
Potential End Date: 2023-12-02 00:00:00
Last Modified: 2025-06-03
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