DoD's $69.2M Aircraft Maintenance Hangar Contract Awarded to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $69,221,376 ($69.2M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2018-05-16
End Date: 2022-03-15
Contract Duration: 1,399 days
Daily Burn Rate: $49.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY18 MCON P-601, AIRCRAFT MAINTANENCE HANGAR AT JOINT REGION MARIANAS, ANDERSEN AIR FORCE BASE, GUAM
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $69.2 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF FY18 MCON P-601, AIRCRAFT MAINTANENCE HANGAR AT JOINT REGION MARIANAS, ANDERSEN AIR FORCE BASE, GUAM Key points: 1. The contract is for an aircraft maintenance hangar at Andersen Air Force Base, Guam. 2. Hensel Phelps Construction Co. was awarded the contract under full and open competition. 3. The project has a firm-fixed-price contract type. 4. The contract duration is 1399 days, with an award date in May 2018 and an estimated completion in March 2022.
Value Assessment
Rating: good
The contract value of $69.2 million for a large-scale construction project like an aircraft maintenance hangar appears reasonable given the scope and location. Benchmarking against similar large 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 using full and open competition, which generally promotes competitive pricing and allows for a wide range of qualified contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages competitive bidding and potentially lower prices.
Public Impact
Enhances aircraft maintenance capabilities at Joint Region Marianas. Supports military operations and readiness in the Pacific region. Provides significant economic activity and employment opportunities in Guam. Represents a substantial investment in military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to extended duration and remote location.
- Risk of delays impacting operational readiness.
- Limited small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type limits cost uncertainty.
- Strategic investment in critical military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large-scale military construction projects often involve significant investment and can be subject to unique logistical challenges and regulatory requirements, especially in overseas locations like Guam.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the project's scale inherently limited their involvement.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to specifications, timelines, and budget, with potential for IG reviews.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Extended contract duration (1399 days).
- Remote location (Guam) may increase logistical costs and risks.
- No noted small business participation.
- Potential for scope creep or change orders over a long project lifecycle.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.2 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF FY18 MCON P-601, AIRCRAFT MAINTANENCE HANGAR AT JOINT REGION MARIANAS, ANDERSEN AIR FORCE BASE, GUAM
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 $69.2 million.
What is the period of performance?
Start: 2018-05-16. End: 2022-03-15.
What was the basis for the $69.2 million contract value, and how does it compare to similar construction projects?
The contract value of $69.2 million is for the construction of an aircraft maintenance hangar. Without specific cost breakdowns or comparable project data, it's difficult to definitively assess its value. However, large-scale military infrastructure projects in remote locations often incur higher costs due to logistics, specialized requirements, and labor. Benchmarking against similar Department of Defense construction contracts for hangars or large institutional buildings would be necessary for a thorough evaluation.
What are the primary risks associated with a 1399-day construction project in Guam, and how were they mitigated?
Key risks for a long-duration construction project in Guam include logistical challenges for materials and personnel, potential for weather-related delays (typhoons), and labor availability. Mitigation strategies likely involved detailed project planning, robust supply chain management, contingency planning for weather, and potentially incentives for timely completion. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, but schedule risks remain.
How effectively did the full and open competition process ensure optimal pricing and contractor selection for this critical infrastructure?
Full and open competition is designed to maximize the pool of potential bidders, fostering a competitive environment that typically leads to better pricing and selection of the most capable contractor. For this $69.2 million project, this process likely resulted in a fair market price and identified a contractor, Hensel Phelps Construction Co., deemed best suited for the complex requirements of building a military aircraft maintenance hangar. The success of the competition is reflected in the award itself.
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: N6274217R1322
Offers Received: 3
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: $69,221,376
Exercised Options: $69,221,376
Current Obligation: $69,221,376
Actual Outlays: $602,471
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-05-16
Current End Date: 2022-03-15
Potential End Date: 2022-03-15 00:00:00
Last Modified: 2022-06-14
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