DoD's $85.8M MV-22 Hangar Contract Awarded to Hensel Phelps Construction Co. Under Full and Open Competition
Contract Overview
Contract Amount: $85,816,304 ($85.8M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2015-04-14
End Date: 2022-01-17
Contract Duration: 2,470 days
Daily Burn Rate: $34.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY14 P-904/905, MV-22 APRON AND INFRASTRUCTURE AND HANGAR, MCBH, HI
Place of Performance
Location: M C B H KANEOHE BAY, HONOLULU County, HAWAII, 96863
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $85.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF FY14 P-904/905, MV-22 APRON AND INFRASTRUCTURE AND HANGAR, MCBH, HI Key points: 1. The contract awarded to Hensel Phelps Construction Co. for the MV-22 apron and infrastructure at MCBH, Hawaii, is valued at $85.8 million. 2. The project falls under the Commercial and Institutional Building Construction sector, with a significant investment in military infrastructure. 3. Awarded under full and open competition, this suggests a competitive bidding process aimed at securing the best value. 4. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, potentially benefiting the government.
Value Assessment
Rating: good
The contract value of $85.8 million for a large-scale construction project like an MV-22 hangar appears reasonable given the scope and location. Benchmarking against similar military construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the most advantageous offer.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price for taxpayers, avoiding potential overpayment associated with less competitive procurement methods.
Public Impact
Enhances operational readiness for the MV-22 Osprey fleet at Marine Corps Base Hawaii. Supports critical infrastructure development for military aviation assets. Represents a significant investment in the local Hawaii economy through construction jobs and related services. Ensures specialized facilities are available for maintenance and deployment of advanced aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 2470 days (approx. 6.7 years) is lengthy for a construction project, potentially increasing risk of cost escalation or scope creep.
- No small business participation noted, which could be a missed opportunity for economic inclusion.
Positive Signals
- Firm-fixed-price contract type shifts cost risk to the contractor.
- Awarded under full and open competition, suggesting a robust price discovery process.
- Significant investment in critical military aviation infrastructure.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending in this sector can vary widely based on defense needs and geopolitical factors, but large-scale hangar construction represents a substantial capital investment.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor, Hensel Phelps Construction Co., is a large entity, and opportunities for small businesses may have been limited or not pursued for this specific prime contract.
Oversight & Accountability
The award under full and open competition suggests a standard procurement process was followed. Oversight would focus on project execution, adherence to schedule, quality control, and final delivery within the firm-fixed-price parameters to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (2470 days).
- No noted small business participation.
- Potential for material cost escalation impacting contractor profitability.
- Dependence on a single large prime contractor.
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 $85.8 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF FY14 P-904/905, MV-22 APRON AND INFRASTRUCTURE AND HANGAR, MCBH, HI
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 $85.8 million.
What is the period of performance?
Start: 2015-04-14. End: 2022-01-17.
What is the total value of the contract, and how does it compare to similar infrastructure projects for military aviation?
The contract is valued at $85.8 million. A precise comparison requires detailed analysis of similar projects, considering factors like location, specific aircraft supported, and construction complexity. However, the value appears substantial and in line with major military construction endeavors.
What are the primary risks associated with this contract, given its duration and firm-fixed-price nature?
The primary risks include potential cost overruns for the contractor due to the firm-fixed-price structure, especially given the long duration (2470 days). Unforeseen site conditions, material price volatility, or labor shortages could impact the contractor's profitability and project timeline, potentially leading to disputes or delays.
How effectively does this investment support the operational needs of the MV-22 fleet and the Marine Corps at MCBH?
The construction of a dedicated apron, infrastructure, and hangar directly addresses the operational and maintenance needs of the MV-22 Osprey fleet. This specialized facility is crucial for ensuring the readiness, efficiency, and longevity of these critical aircraft, thereby enhancing the Marine Corps' capabilities at the base.
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: N6274215R1301
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps - Shimizu JV
Address: 841 BISHOP ST STE 2001, HONOLULU, HI, 96813
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $85,816,304
Exercised Options: $85,816,304
Current Obligation: $85,816,304
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-14
Current End Date: 2022-01-17
Potential End Date: 2022-01-17 00:00:00
Last Modified: 2023-10-12
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