Hensel Phelps Construction Co. awarded $38.7M for Triton Forward Operating Base Hangar construction in Florida

Contract Overview

Contract Amount: $38,714,448 ($38.7M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2017-06-29

End Date: 2019-12-27

Contract Duration: 911 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF X002 CON: TRITON FORWARD OPERATING BASE HANGAR

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF X002 CON: TRITON FORWARD OPERATING BASE HANGAR Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type aims to control costs for the government. 3. The project duration of 911 days indicates a significant construction undertaking. 4. The contract was awarded to a single vendor, Hensel Phelps Construction Co. 5. The project is located in Florida, potentially impacting local construction workforce and material suppliers. 6. The contract value of $38.7 million represents a substantial investment in military infrastructure.

Value Assessment

Rating: good

The contract value of $38.7 million for a forward operating base hangar appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the initial indication is positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government obtains services at a fair market value.

Public Impact

The primary beneficiaries are the U.S. Department of the Navy and its personnel, who will utilize the new hangar facility. The project delivers essential infrastructure for military aviation operations. The geographic impact is concentrated in Florida, supporting the local economy through construction jobs and material procurement. The construction activities will likely involve a significant number of skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost increases if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a single contractor for project completion.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty.
Contractor has a track record in large-scale construction projects.
Project aims to enhance critical military infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. The market for large-scale government construction projects is competitive, with established firms like Hensel Phelps often securing significant contracts. Spending on military base construction is a consistent part of the defense budget, reflecting ongoing needs for modernization and operational support.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but are not detailed in this summary. The lack of a set-aside means larger firms were likely the primary focus for bidding.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified facility within budget. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details are not provided.

Related Government Programs

Military Base Construction
Naval Facilities Engineering Command Contracts
Hangar Construction Projects
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of construction delays impacting military operations.
Ensuring quality of construction meets military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF X002 CON: TRITON FORWARD OPERATING BASE HANGAR

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 $38.7 million.

What is the period of performance?

Start: 2017-06-29. End: 2019-12-27.

What is Hensel Phelps Construction Co.'s track record with similar military construction projects?

Hensel Phelps Construction Co. has a significant history of undertaking large-scale construction projects, including numerous military facilities for various branches of the U.S. armed forces. They have experience in building hangars, barracks, training facilities, and other critical infrastructure. Their portfolio often includes projects with complex requirements and stringent security protocols, common in defense contracting. While specific details on past hangar projects are not provided here, their general experience suggests a capability to manage projects of this scale and complexity. Reviewing their past performance on similar Department of Defense contracts would offer further insight into their reliability and quality of work.

How does the $38.7 million contract value compare to similar forward operating base hangar constructions?

Benchmarking the $38.7 million contract value requires comparison with similar projects in terms of size, complexity, location, and specific features of the hangar. Forward operating base hangars can vary significantly in cost based on factors like aircraft type they are designed to accommodate, climate control requirements, security enhancements, and the remoteness of the location. Without specific details on the square footage, materials, and specialized equipment included in this contract, a direct comparison is difficult. However, for a large-scale military hangar, $38.7 million is within a plausible range, especially considering construction costs in Florida and the specialized nature of military infrastructure. Further analysis would involve comparing cost per square foot or cost per unit of capacity against publicly available data for comparable military construction projects.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the operational readiness of the base. Although it's a firm fixed-price contract, there's a residual risk of cost increases if significant scope changes are mandated by the government or if the contractor encounters extraordinary issues not covered by contingencies. Another risk is the contractor's performance; if Hensel Phelps Construction Co. underperforms, it could lead to quality issues or project completion delays. Finally, security risks related to the construction site and the sensitive nature of a forward operating base must be managed.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined, as is typical for construction. It shifts the risk of cost overruns to the contractor, Hensel Phelps Construction Co., who is obligated to complete the work for the agreed-upon price. This provides the Department of the Navy with significant cost certainty. However, the effectiveness can be diminished if the initial scope definition is incomplete or if significant changes are required during execution, potentially leading to change orders that could increase the overall cost. For this hangar project, the FFP structure incentivizes the contractor to control costs efficiently.

What is the historical spending pattern for similar hangar construction by the Department of the Navy?

Historical spending patterns for similar hangar construction by the Department of the Navy reveal a consistent investment in aviation infrastructure. Costs for such projects can range widely, from tens of millions to over a hundred million dollars, depending on the size, technological requirements, and location. Factors like the type of aircraft to be housed (e.g., fighter jets vs. transport planes), climate control needs, and specific security features significantly influence the final price. The Navy often utilizes competitive bidding processes, including full and open competition, to secure these contracts. Analyzing past awards for similar facilities can provide benchmarks for cost-effectiveness and identify trends in construction methods and materials.

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: TWO STEP

Solicitation ID: N6945012R1260

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6557 HAZELTINE NATIONAL DR STE 1, ORLANDO, FL, 32822

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,714,448

Exercised Options: $38,714,448

Current Obligation: $38,714,448

Actual Outlays: $47,338

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945014D1269

IDV Type: IDC

Timeline