DoD's $161.5M Patrick AFB Design-Build Contract Awarded to Hensel Phelps

Contract Overview

Contract Amount: $161,471,576 ($161.5M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2011-06-03

End Date: 2016-07-01

Contract Duration: 1,855 days

Daily Burn Rate: $87.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::57 3300::TAS TWO PHASE DESIGN BUILD AFTAC PATRICK AFB

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $161.5 million to HENSEL PHELPS CONSTRUCTION CO for work described as: TAS::57 3300::TAS TWO PHASE DESIGN BUILD AFTAC PATRICK AFB Key points: 1. The contract awarded to Hensel Phelps Construction Co. for $161.5 million represents a significant investment in infrastructure at Patrick AFB. 2. Full and open competition was utilized, suggesting a robust market for such services and potential for competitive pricing. 3. The project's duration of 1855 days indicates a complex, long-term undertaking with potential for cost escalation and schedule risks. 4. The Commercial and Institutional Building Construction sector is vital for military base development and modernization.

Value Assessment

Rating: good

The contract value of $161.5 million for a definitive contract awarded in 2011 appears reasonable given the project's scope and duration. Benchmarking against similar large-scale design-build projects for federal facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down costs and improves value for the government.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on this critical infrastructure project.

Public Impact

Enhances critical military infrastructure at Patrick AFB, supporting operational readiness. Supports the construction industry and associated supply chains. Provides long-term facilities for military personnel and operations. Potential for job creation in the Florida region during the project's lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 87 / 10

Warning Flags

  • Long project duration (1855 days) increases risk of cost overruns and scope creep.
  • Firm Fixed Price contract may not fully account for unforeseen design complexities.
  • Reliance on a single definitive contract for a large project.

Positive Signals

  • Full and open competition ensures market-based pricing.
  • Awarded to a reputable contractor (Hensel Phelps).
  • Supports critical defense infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a key area for federal infrastructure development. Spending in this sector is often driven by modernization needs, capacity expansion, and facility upgrades for government agencies.

Small Business Impact

While the contract was awarded to Hensel Phelps Construction Co., the data does not indicate specific subcontracting goals or achievements for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The definitive contract structure implies a level of oversight during its execution. However, the effectiveness of oversight in managing risks associated with the long duration and fixed-price nature of the contract is not detailed in the provided data.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long project duration increases risk.
  • Firm Fixed Price contract may not cover all contingencies.
  • Potential for scope creep over the project's lifecycle.
  • Lack of specific small business participation data.
  • Oversight effectiveness for long-term projects can be challenging.

Tags

commercial-and-institutional-building-co, department-of-defense, fl, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $161.5 million to HENSEL PHELPS CONSTRUCTION CO. TAS::57 3300::TAS TWO PHASE DESIGN BUILD AFTAC PATRICK AFB

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 $161.5 million.

What is the period of performance?

Start: 2011-06-03. End: 2016-07-01.

What was the specific scope of work for the 'TAS TWO PHASE DESIGN BUILD AFTAC PATRICK AFB' project, and how did it align with the $161.5 million award?

The project involved a two-phase design-build approach for the Air Force Technical Applications Center (AFTAC) at Patrick AFB. Phase one likely focused on detailed design, while phase two encompassed construction. The $161.5 million award covered both aspects, aiming to deliver a complete, functional facility. The exact scope would detail specific building requirements, technological integrations, and site preparation.

Given the 1855-day duration and Firm Fixed Price (FFP) contract type, what mechanisms were in place to mitigate risks associated with potential design changes or unforeseen site conditions?

FFP contracts typically place more risk on the contractor. Mitigation for long-duration projects often involves robust change order clauses, clear definitions of scope, and potentially escalation clauses for specific materials. The government would likely have oversight to ensure the contractor adhered to the design and managed risks effectively, with defined processes for addressing any necessary modifications.

How did the 'full and open competition' process ensure the best value was achieved for this significant $161.5 million construction project?

Full and open competition allowed any responsible source to submit a bid, maximizing the number of potential offerors. This competitive pressure incentivizes contractors to offer their best pricing and technical solutions. The evaluation process would then assess bids not just on price but also on technical merit, past performance, and other factors to ensure the government received the best overall value for its investment.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9127810R0090

Offers Received: 4

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: $161,471,576

Exercised Options: $161,471,576

Current Obligation: $161,471,576

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $129,397,851

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2011-06-03

Current End Date: 2016-07-01

Potential End Date: 2016-07-01 00:00:00

Last Modified: 2016-04-16

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