DoD's $27.9M Guam Construction Contract Awarded to Hensel Phelps via Full and Open Competition
Contract Overview
Contract Amount: $27,952,192 ($28.0M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2021-05-12
End Date: 2025-02-06
Contract Duration: 1,366 days
Daily Burn Rate: $20.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY21 MCON P-317 COMBINED EOD COMPOUND, US NAVSUPPACT MARINE CORPS BASE GUAM, FINEGAYAN, GUAM
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $28.0 million to HENSEL PHELPS CONSTRUCTION CO for work described as: FY21 MCON P-317 COMBINED EOD COMPOUND, US NAVSUPPACT MARINE CORPS BASE GUAM, FINEGAYAN, GUAM Key points: 1. The contract is for combined Explosive Ordnance Disposal (EOD) compound construction in Guam. 2. Hensel Phelps Construction Co. secured the award, indicating strong performance or competitive bidding. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. The firm-fixed-price contract type suggests predictable costs for the government.
Value Assessment
Rating: good
The contract value of $27.9M for a large construction project appears reasonable, especially considering the remote location in Guam. Benchmarking against similar DoD construction projects in Pacific territories would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust bidding process. This method generally leads to competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition maximizes taxpayer value by encouraging multiple bids and driving down costs for this essential military infrastructure.
Public Impact
Enhances EOD capabilities at Marine Corps Base Guam, improving operational readiness. Supports military infrastructure development in a strategic Pacific location. Creates construction jobs and economic activity in Guam. Ensures compliance with safety and environmental standards for military facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to remote location and logistics.
- Long project duration (1366 days) increases exposure to market fluctuations.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract provides cost certainty.
- Strategic investment in critical Pacific infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing various non-residential structures. DoD construction spending in this sector is substantial, driven by global infrastructure needs and modernization efforts.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting were specified for this contract. This suggests the prime contractor is likely a large business, and opportunities for small businesses may be limited unless pursued independently by the prime.
Oversight & Accountability
Standard DoD oversight mechanisms for construction projects will apply, including contract administration by NAVSUPPACT and potential site inspections. The long duration necessitates consistent monitoring to ensure timely completion and adherence to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration increases risk exposure.
- Remote location may lead to logistical challenges and higher costs.
- Firm-fixed-price contract offers limited flexibility for unforeseen issues.
- Potential for scope creep if requirements evolve during the long construction period.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to HENSEL PHELPS CONSTRUCTION CO. FY21 MCON P-317 COMBINED EOD COMPOUND, US NAVSUPPACT MARINE CORPS BASE GUAM, FINEGAYAN, 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 $28.0 million.
What is the period of performance?
Start: 2021-05-12. End: 2025-02-06.
What is the specific breakdown of costs within the $27.9M contract, and how do they compare to industry benchmarks for similar EOD compound construction?
The provided data does not detail the cost breakdown. A thorough analysis would require access to the contract's detailed cost elements, including labor, materials, overhead, and profit. Comparing these to industry standards for specialized facilities like EOD compounds, adjusted for Guam's unique logistical costs, is crucial for validating value for money.
What are the key performance indicators (KPIs) being tracked for this project, and what are the contingency plans for potential delays or cost increases?
Specific KPIs are not detailed in the award notice. Typical construction KPIs include schedule adherence, quality control metrics, safety incident rates, and budget variance. Contingency plans would likely involve contractual clauses for liquidated damages for delays, change order management processes, and potentially escalation clauses for material costs, though the firm-fixed-price nature aims to mitigate this.
How does the successful completion of this EOD compound contribute to the overall strategic objectives of the US Marine Corps in the Indo-Pacific region?
The new EOD compound directly enhances the operational readiness and capabilities of forces stationed at Marine Corps Base Guam. This supports broader US strategic goals in the Indo-Pacific by strengthening critical infrastructure, improving force projection, and ensuring the ability to respond effectively to threats in a key geopolitical theater.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6274220R1317
Offers Received: 4
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: $27,952,192
Exercised Options: $27,952,192
Current Obligation: $27,952,192
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274219D1332
IDV Type: IDC
Timeline
Start Date: 2021-05-12
Current End Date: 2025-02-06
Potential End Date: 2025-02-06 00:00:00
Last Modified: 2025-04-17
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