DoD Awards $33.1M Cyberspace Facility Construction to Hensel Phelps via Full and Open Competition

Contract Overview

Contract Amount: $33,126,073 ($33.1M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2023-10-03

Contract Duration: 1,099 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT AWARD OF CYBERSPACE TEST GROUP FACILITY FTFA 163007, EGLIN AFB, FL (BASE + OPTIONS 2, 3, 5, 7, 8, 9,10&11

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to HENSEL PHELPS CONSTRUCTION CO for work described as: CONTRACT AWARD OF CYBERSPACE TEST GROUP FACILITY FTFA 163007, EGLIN AFB, FL (BASE + OPTIONS 2, 3, 5, 7, 8, 9,10&11 Key points: 1. Construction contract for a Cyberspace Test Group Facility at Eglin AFB. 2. Awarded to Hensel Phelps Construction Co. through full and open competition. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Sector is Commercial and Institutional Building Construction, with a PSC code of 236220.

Value Assessment

Rating: fair

The contract value is $33.1 million. Benchmarking against similar large-scale institutional building construction projects is necessary to fully assess value, but the firm fixed price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing. The firm fixed price contract type further aids in price discovery and cost control.

Taxpayer Impact: Competition likely resulted in a fair market price, minimizing unnecessary taxpayer expenditure for this critical facility.

Public Impact

Enhances U.S. Air Force cyberspace capabilities. Supports military readiness and technological advancement. Creates construction jobs in Florida. Potential for long-term operational cost savings through modern infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Construction project complexity and duration.
  • Potential for scope creep or change orders.
  • Economic factors impacting material and labor costs.

Positive Signals

  • Awarded via full and open competition.
  • Firm fixed price contract type.
  • Experienced contractor (Hensel Phelps).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar military construction projects would provide further context on the pricing and overall value.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While large prime contractors often utilize small business subcontractors, this award does not directly benefit small businesses at the prime level.

Oversight & Accountability

The award was made by the Department of Defense, which has established oversight mechanisms for large construction projects. Monitoring progress, costs, and adherence to specifications will be crucial for accountability.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to construction complexity.
  • Schedule delays impacting operational readiness.
  • Integration risks with advanced cyberspace technologies.
  • Dependence on a single prime contractor for execution.

Tags

commercial-and-institutional-building-co, department-of-defense, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to HENSEL PHELPS CONSTRUCTION CO. CONTRACT AWARD OF CYBERSPACE TEST GROUP FACILITY FTFA 163007, EGLIN AFB, FL (BASE + OPTIONS 2, 3, 5, 7, 8, 9,10&11

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 $33.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2023-10-03.

What is the estimated cost per square foot for this facility, and how does it compare to similar government or commercial projects?

The provided data does not include facility size (square footage). To assess the cost per square foot, this information would be required. Once available, it could be benchmarked against industry standards for similar institutional or specialized construction projects to determine if the pricing is competitive and represents good value for the taxpayer.

What are the primary risks associated with the construction of a specialized cyberspace facility, and how are they being mitigated?

Risks include technological obsolescence during construction, integration challenges with existing systems, and specialized security requirements. Mitigation strategies likely involve phased construction, close collaboration with end-users, robust cybersecurity protocols during the build, and contingency planning for unforeseen technical hurdles.

How will the effectiveness of this new facility be measured post-construction to ensure it meets its intended operational goals?

Effectiveness will be measured through operational readiness assessments, performance testing of cyberspace capabilities housed within the facility, user feedback, and achievement of mission objectives. Key Performance Indicators (KPIs) related to system uptime, data processing capacity, and security posture will likely be tracked.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127820R0057

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hensel Phelps - Shimizu JV

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

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,126,073

Exercised Options: $33,126,073

Current Obligation: $33,126,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-09-29

Current End Date: 2023-10-03

Potential End Date: 2023-10-03 00:00:00

Last Modified: 2023-10-24

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