DoD Awards $91.6M Andersen AFB Earth Covered Magazines Project to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $91,596,169 ($91.6M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2026-01-15
Contract Duration: 1,444 days
Daily Burn Rate: $63.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY19 MCON PROJECT P-290 EARTH COVERED MAGAZINES, ANDERSEN AIR FORCE BASE, GUAM
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $91.6 million to HENSEL PHELPS CONSTRUCTION CO for work described as: FY19 MCON PROJECT P-290 EARTH COVERED MAGAZINES, ANDERSEN AIR FORCE BASE, GUAM Key points: 1. Significant investment in critical infrastructure at Andersen AFB. 2. Hensel Phelps Construction Co. is a major player in large-scale construction. 3. Project duration of 1444 days indicates a complex undertaking. 4. Fixed-price contract aims to control costs, but potential for overruns exists.
Value Assessment
Rating: good
The contract value of $91.6M for construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The project was awarded under full and open competition, suggesting a competitive bidding process that should drive price discovery. The use of a delivery order under a larger contract vehicle is noted.
Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure, with competition expected to ensure value for money.
Public Impact
Enhances operational readiness and storage capabilities for the Air Force. Supports military personnel and operations in the Pacific region. Potential for local economic impact through job creation and subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Long project duration may lead to cost escalation if not managed tightly.
- Geographic location in Guam could present logistical challenges and increased costs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Project addresses critical infrastructure needs.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure is substantial, driven by modernization and global presence requirements.
Small Business Impact
Analysis of small business participation was not explicitly provided in the data. Larger construction projects often involve subcontracting opportunities for small businesses, but direct awards are typically to large prime contractors.
Oversight & Accountability
The Department of the Navy awarded this contract, indicating oversight from a major defense agency. Further oversight would involve monitoring project progress, budget adherence, and quality control throughout the construction lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule delays due to remote location and logistical challenges.
- Risk of cost overruns despite fixed-price contract if scope creep or unforeseen issues arise.
- Dependency on a single prime contractor for overall project execution.
- Long duration increases exposure to changing economic conditions and material costs.
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 $91.6 million to HENSEL PHELPS CONSTRUCTION CO. FY19 MCON PROJECT P-290 EARTH COVERED MAGAZINES, 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 $91.6 million.
What is the period of performance?
Start: 2022-02-01. End: 2026-01-15.
What is the specific breakdown of the $91.6M contract value across different construction phases and materials?
The provided data does not detail the specific breakdown of the contract value. A comprehensive analysis would require access to the contract's detailed cost breakdown, including estimates for labor, materials, equipment, and overhead for each phase of the earth-covered magazine construction.
What are the key performance indicators (KPIs) being used to track the project's progress and ensure it stays within budget and schedule?
Specific KPIs are not detailed in the provided summary. Typically, for a project of this scale and duration, KPIs would include schedule variance, cost variance, quality control metrics, safety incident rates, and milestone completion percentages, monitored through regular progress reports.
How does the cost per square foot or per cubic foot of this project compare to similar underground or hardened construction projects in other military installations?
Without detailed project specifications (e.g., size, depth, materials, specific hardening requirements), a precise per-unit cost comparison is difficult. However, the benchmark of $634,320 (total award / 144 days duration, a rough estimate) suggests a significant investment, typical for specialized hardened structures in remote locations.
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: N6274218R1305
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: $91,596,169
Exercised Options: $91,596,169
Current Obligation: $91,596,169
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $26,169,142
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: 2022-02-01
Current End Date: 2026-01-15
Potential End Date: 2026-01-15 00:00:00
Last Modified: 2025-09-29
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