Army awards $32.6M contract for Fort Rucker aviation hangar construction to Hensel Phelps Construction Co

Contract Overview

Contract Amount: $32,590,593 ($32.6M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2011-05-20

End Date: 2014-06-17

Contract Duration: 1,124 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::21 2050::TAS FY-11 AVIM HANGER FORT RUCKER, AL

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to HENSEL PHELPS CONSTRUCTION CO for work described as: TAS::21 2050::TAS FY-11 AVIM HANGER FORT RUCKER, AL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $32.6 million falls within a typical range for large-scale construction projects of this nature. 3. Fixed-price contract type may limit cost overruns for the government, but requires careful initial pricing. 4. The project duration of approximately three years indicates a significant construction undertaking. 5. The award to a single contractor, Hensel Phelps Construction Co., highlights their capacity for large federal projects. 6. Geographic focus on Alabama suggests potential for local economic impact and workforce utilization.

Value Assessment

Rating: good

The contract value of $32.6 million for an aviation hangar at Fort Rucker appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government sought cost certainty, which is generally a positive indicator for price control, assuming the initial bid was competitive.

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 bids. The presence of 18 bids suggests a robust level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The extensive competition for this construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Army, which will receive a new aviation hangar facility at Fort Rucker. The project delivers essential infrastructure for aviation operations and maintenance. The geographic impact is concentrated in Alabama, specifically at Fort Rucker. The construction phase will likely create numerous jobs for skilled and unskilled labor in the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness if not managed effectively.
Risk of unforeseen site conditions requiring change orders, potentially increasing final cost despite fixed-price structure.

Positive Signals

Awarded through full and open competition with a significant number of bidders, indicating strong market interest and competitive pricing.
Firm fixed-price contract type provides cost certainty for the government.
Contractor, Hensel Phelps Construction Co., is a well-established entity with experience in large federal projects.
Project located at a key military installation, suggesting strategic importance and likely robust oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports military readiness, government operations, and infrastructure development. The market for large federal construction projects is often characterized by a few large, experienced contractors capable of handling complex, high-value undertakings. Comparable spending benchmarks for military construction projects of similar scale and complexity would be necessary for a full assessment.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is a large firm, there may be opportunities for small businesses to participate as subcontractors, depending on the contractor's subcontracting plan and the nature of the work packages. Further analysis of subcontracting awards would be needed to determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the contracting officer and project management personnel within the Army Corps of Engineers or the relevant installation command. Accountability measures are inherent in the firm fixed-price contract, with penalties or incentives potentially tied to performance and schedule adherence. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be fully public.

Related Government Programs

Military Construction Projects
Aviation Infrastructure
Federal Building Construction
Department of Defense Facilities

Risk Flags

Potential for schedule delays impacting military readiness.
Risk of unforeseen site conditions requiring costly change orders.
Ensuring compliance with stringent military construction standards and security protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to HENSEL PHELPS CONSTRUCTION CO. TAS::21 2050::TAS FY-11 AVIM HANGER FORT RUCKER, AL

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 $32.6 million.

What is the period of performance?

Start: 2011-05-20. End: 2014-06-17.

What is Hensel Phelps Construction Co.'s track record with similar federal construction contracts, particularly within the Department of Defense?

Hensel Phelps Construction Co. has a substantial track record of executing large-scale federal construction projects, including numerous contracts with the Department of Defense. They have experience in building facilities for various military branches across different installations. Their portfolio often includes complex projects such as aircraft hangars, training facilities, and administrative buildings. Analyzing their past performance on similar firm-fixed-price contracts, their on-time and on-budget delivery rates, and any past performance issues or commendations would provide critical context for assessing their suitability and reliability for the Fort Rucker aviation hangar project. This historical data is crucial for understanding their capacity to manage the technical requirements and logistical challenges inherent in military construction.

How does the awarded price of $32.6 million compare to the estimated cost or bids from other competitors?

The awarded price of $32.6 million represents the government's final negotiated cost with Hensel Phelps Construction Co. Since the contract was awarded under full and open competition with 18 bids, this price is presumed to be competitive. To fully assess value, this figure should be compared against the independent government cost estimate (if available) and the range of bids submitted by the other 17 competitors. A narrow spread between the winning bid and other bids might suggest a highly competitive market, while a wide spread could indicate outliers or differing interpretations of the scope. Without access to the bid data, it's difficult to definitively state if $32.6 million represents optimal value, but the competitive nature of the award is a positive indicator.

What are the primary risks associated with constructing an aviation hangar at a military installation like Fort Rucker?

Key risks associated with constructing an aviation hangar at Fort Rucker include potential delays due to weather, unforeseen subsurface conditions (e.g., soil stability, underground utilities), and the stringent security and operational requirements of a military base. Aviation hangars often have specialized needs, such as large clear spans, specific ventilation systems, and robust electrical and fuel infrastructure, which can introduce technical complexities. Furthermore, compliance with military construction standards and environmental regulations adds layers of complexity. The firm fixed-price nature of the contract shifts much of the cost overrun risk to the contractor, but delays can still impact the government's operational readiness and potentially lead to claims or disputes if not managed proactively.

What is the expected impact of this contract on Fort Rucker's aviation operational capabilities?

This contract is expected to significantly enhance Fort Rucker's aviation operational capabilities by providing a modern, purpose-built facility for housing, maintaining, and potentially servicing aircraft. The new hangar will likely improve efficiency, reduce wear and tear on aircraft by offering climate-controlled and secure storage, and potentially accommodate new or upgraded aviation assets. Depending on the hangar's specific design and equipment, it could support a wider range of aircraft types or specialized maintenance procedures. Ultimately, the facility is intended to support the training and operational readiness missions conducted at Fort Rucker, ensuring that aviation assets are well-maintained and readily available.

How has federal spending on similar construction projects at military installations trended over the past five years?

Federal spending on construction projects at military installations has generally remained robust, driven by modernization efforts, infrastructure upgrades, and evolving operational needs across the Department of Defense. While specific figures fluctuate annually based on budget allocations and strategic priorities, there has been a consistent demand for new barracks, training facilities, maintenance depots, and aviation-related infrastructure. Factors influencing spending include geopolitical conditions, readiness requirements, and the lifecycle of existing facilities. Analyzing historical spending data for military construction, particularly for aviation-related facilities, would reveal trends in project scale, types of construction, and average contract values, providing context for the $32.6 million award.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127811R0008

Offers Received: 18

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: $32,590,593

Exercised Options: $32,590,593

Current Obligation: $32,590,593

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $25,932,836

Contract Characteristics

Cost or Pricing Data: NO

Timeline