DoD's $230M Western Currency Facility Expansion Awarded to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $229,992,867 ($230.0M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2018-09-21
End Date: 2023-02-19
Contract Duration: 1,612 days
Daily Burn Rate: $142.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BUREAU OF ENGRAVING AND PRINTING WESTERN CURRENCY FACILITY EXPANSION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76131
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $230.0 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: BUREAU OF ENGRAVING AND PRINTING WESTERN CURRENCY FACILITY EXPANSION Key points: 1. The contract value of $229.99M for industrial building construction is significant. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 1612 days indicates a large-scale, long-term undertaking. 4. The award was made by the Department of the Army, a component of the DoD.
Value Assessment
Rating: fair
The contract value of $229.99M is substantial for industrial building construction. Benchmarking against similar large-scale construction projects would be necessary to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to better price discovery and potentially lower costs for the government. The use of a definitive contract suggests a clear scope of work.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value for the significant investment.
Public Impact
Expansion of a critical federal facility for currency production. Potential impact on the supply chain for U.S. currency. Job creation in the construction sector in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration may lead to cost overruns.
- Potential for scope creep in large construction projects.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
This contract falls under industrial building construction, a sector often characterized by large capital investments and significant project management requirements. Benchmarks for similar federal facility expansions would provide further context.
Small Business Impact
The data indicates that the prime contractor is Hensel Phelps Construction Co. There is no specific information provided regarding small business participation in this contract.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from within the Department of Defense. Further details on specific oversight mechanisms and accountability measures would be beneficial.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (1612 days).
- Large contract value ($229.99M).
- Potential for scope creep in construction projects.
- Lack of specific small business participation data.
Tags
industrial-building-construction, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $230.0 million to HENSEL PHELPS CONSTRUCTION CO.. BUREAU OF ENGRAVING AND PRINTING WESTERN CURRENCY FACILITY EXPANSION
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 Army).
What is the total obligated amount?
The obligated amount is $230.0 million.
What is the period of performance?
Start: 2018-09-21. End: 2023-02-19.
What specific construction activities are included in the $230M expansion, and how do these align with the Bureau of Engraving and Printing's operational needs?
The expansion of the Western Currency Facility likely includes new construction, upgrades to existing infrastructure, and potentially specialized equipment installation to enhance currency production capabilities. The specific activities would be detailed in the contract's statement of work, aiming to increase efficiency, security, or capacity for printing U.S. currency.
Given the 1612-day duration, what are the primary risk mitigation strategies in place to manage potential delays and cost overruns for this large-scale construction project?
Risk mitigation for such a long-duration project typically involves robust project management, including detailed scheduling, regular progress reviews, contingency planning for unforeseen issues (like material shortages or weather delays), and clear communication protocols between the government and the contractor. Performance bonds and liquidated damages clauses may also be included.
How will the expanded facility contribute to the long-term effectiveness and security of U.S. currency production and distribution?
An expanded facility can enhance effectiveness by increasing production capacity, potentially reducing lead times for currency orders and improving operational efficiency. Enhanced security features in new construction can also bolster the integrity of the currency printing process, contributing to the overall reliability and trustworthiness of the U.S. dollar.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: W9126G18R0066
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO
Address: 8326 CROSS PARK DR, AUSTIN, TX, 78754
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $229,992,867
Exercised Options: $229,992,867
Current Obligation: $229,992,867
Actual Outlays: $12,882,347
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $105,987,766
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-21
Current End Date: 2023-02-19
Potential End Date: 2023-02-19 00:00:00
Last Modified: 2024-11-19
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