Hensel Phelps Construction Co. awarded $49.3M for SOF Special Forces Complex, a significant investment in specialized infrastructure

Contract Overview

Contract Amount: $49,305,252 ($49.3M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2010-01-29

End Date: 2013-07-31

Contract Duration: 1,279 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOF SPECIAL FORCES COMPLEX

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $49.3 million to HENSEL PHELPS CONSTRUCTION CO for work described as: SOF SPECIAL FORCES COMPLEX Key points: 1. The contract value of $49.3 million represents a substantial commitment to developing specialized facilities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. The firm-fixed-price contract type suggests a defined cost structure, potentially mitigating cost overrun risks. 4. Performance context is key, as the successful delivery of such a complex facility impacts operational readiness. 5. This project falls within the 'Other Heavy and Civil Engineering Construction' NAICS code, indicating specialized construction expertise. 6. The contract duration of 1279 days highlights the complexity and scale of the undertaking.

Value Assessment

Rating: good

The contract value of $49.3 million for the SOF Special Forces Complex appears to be within a reasonable range for specialized construction projects of this magnitude. Benchmarking against similar Department of Defense construction contracts for specialized facilities would provide a more precise assessment of value for money. The firm-fixed-price nature of the contract is a positive indicator for cost control, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 16 bids suggests a healthy level of interest and competition for this significant construction project. A competitive bidding process generally leads to more favorable pricing and better terms for the government.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely drove down costs through competitive pressure, ensuring a more efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Special Operations Forces (SOF) who will utilize the new complex for training and operational support. The project delivers critical infrastructure designed to meet the unique and demanding requirements of special operations personnel. The geographic impact is concentrated in Florida, where the facility is located, potentially creating local construction jobs and economic activity. Workforce implications include employment opportunities for skilled construction labor, engineers, and project managers during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex construction projects if not meticulously managed.
Ensuring adherence to specialized security and operational requirements for SOF facilities.
Managing the long-term maintenance and operational costs of a highly specialized complex.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type helps control costs.
Significant investment in critical infrastructure for national security assets.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on specialized facilities. The market for such projects is characterized by a limited number of highly qualified contractors capable of meeting stringent government requirements. Spending in this sector is often driven by national security needs and infrastructure upgrades, with large contracts like this being typical for major defense installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large-scale construction project, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Hensel Phelps Construction Co., depending on the subcontracting plan. Further investigation into subcontracting awards would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, likely through contracting officers and project managers. Accountability measures would include adherence to the contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Special Operations Forces Support
Defense Infrastructure Projects
Heavy Civil Engineering Construction

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of schedule delays due to complexity.
Ensuring specialized operational requirements are met.
Long-term maintenance and operational cost considerations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.3 million to HENSEL PHELPS CONSTRUCTION CO. SOF SPECIAL FORCES COMPLEX

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 $49.3 million.

What is the period of performance?

Start: 2010-01-29. End: 2013-07-31.

What is the track record of Hensel Phelps Construction Co. on similar large-scale government construction projects?

Hensel Phelps Construction Co. has a significant track record in large-scale construction, including numerous projects for government and defense clients. They have experience with complex facilities, military bases, and infrastructure development. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving specialized requirements or high security, would provide insight into their capability to deliver this SOF Special Forces Complex successfully. Reviewing past project completion times, budget adherence, and client satisfaction would be crucial for a comprehensive assessment of their contractor performance.

How does the awarded value compare to similar SOF facility construction projects?

The $49.3 million award for the SOF Special Forces Complex needs to be benchmarked against comparable projects to assess its value. Factors such as facility size (square footage), specific functional requirements (e.g., training areas, specialized labs, security features), location, and the year of award significantly influence costs. Without specific data on similar SOF facilities, a direct comparison is challenging. However, large-scale, specialized military construction projects often range from tens to hundreds of millions of dollars. The number of bids (16) suggests competitive pricing, which is a positive indicator for value.

What are the primary risks associated with the construction of specialized military facilities like this?

Key risks in constructing specialized military facilities include scope definition and management, as requirements for SOF can be highly unique and evolve. Technical challenges related to specialized equipment integration, security protocols, and site-specific conditions are also significant. Delays due to unforeseen site issues, material availability, or regulatory approvals can impact schedule and cost. Furthermore, ensuring the facility meets stringent operational readiness standards post-construction is a critical risk to manage. The firm-fixed-price contract aims to mitigate cost risks, but effective project management is essential to address schedule and performance risks.

How effective is the firm-fixed-price contract type in managing costs for complex construction?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for complex construction projects when the scope of work is well-defined and stable. It shifts the risk of cost overruns to the contractor, providing budget certainty for the government. However, for highly complex or novel projects, an FFP contract can incentivize contractors to cut corners on quality if not rigorously overseen, or lead to disputes if scope changes are necessary. In this case, with 16 bids, it suggests the scope was sufficiently clear for contractors to price competitively, making FFP a suitable choice for cost control.

What is the historical spending trend for SOF-related infrastructure development by the Department of the Army?

Historical spending on SOF-related infrastructure by the Department of the Army has generally been substantial, driven by the evolving nature of special operations and the need for advanced training and operational facilities. While specific figures for SOF infrastructure alone can be difficult to isolate from broader military construction budgets, trends indicate consistent investment. Factors such as geopolitical events, technological advancements, and evolving mission requirements influence these spending patterns. Analyzing multi-year budget allocations and specific construction program awards would reveal trends in the scale and type of infrastructure prioritized for SOF.

What are the implications of the 'Other Heavy and Civil Engineering Construction' NAICS code for this contract?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' indicates that this contract involves the construction of projects that are not elsewhere classified but are typically large-scale, complex engineering endeavors. This can include infrastructure like dams, tunnels, bridges, and specialized facilities that require significant engineering expertise and heavy equipment. For this SOF Special Forces Complex, it suggests the project involves substantial civil engineering components beyond typical building construction, potentially including site preparation, specialized foundations, or integrated utility systems, requiring contractors with specific capabilities in this domain.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127809R0092

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6557 HAZELTINE NATIONAL DR STE 1, ORLANDO, FL, 90

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

Financial Breakdown

Contract Ceiling: $49,305,252

Exercised Options: $49,305,252

Current Obligation: $49,305,252

Contract Characteristics

Cost or Pricing Data: NO

Timeline