DoD Awards $31.8M for Advanced Munitions Tech Complex at Eglin AFB, Construction by Hensel Phelps
Contract Overview
Contract Amount: $31,855,363 ($31.9M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2024-05-23
End Date: 2026-05-23
Contract Duration: 730 days
Daily Burn Rate: $43.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ADVANCED MUNITIONS TECHNOLOGY COMPLEX PHASE 3, EGLIN AFB, FL
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.9 million to HENSEL PHELPS CONSTRUCTION CO for work described as: ADVANCED MUNITIONS TECHNOLOGY COMPLEX PHASE 3, EGLIN AFB, FL Key points: 1. Significant investment in advanced munitions infrastructure. 2. Hensel Phelps Construction Co. is the prime contractor. 3. Risk of cost overruns in large construction projects. 4. Construction sector is subject to material and labor fluctuations.
Value Assessment
Rating: good
The award amount of $31.8M appears reasonable for a complex construction project of this nature. Benchmarking against similar DoD construction contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Enhances national defense capabilities through improved munitions technology. Supports local economy in Florida through construction jobs and related services. Potential for technological advancements in munitions manufacturing and testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting project timeline.
- Fluctuations in material costs could affect final project expense.
- Dependence on a single prime contractor for execution.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Strategic location at Eglin AFB for defense operations.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a critical area for government infrastructure development. Spending benchmarks for similar DoD facilities can vary widely based on complexity and location.
Small Business Impact
While the prime contractor is Hensel Phelps Construction Co., the data does not indicate specific subcontracting goals for small businesses on this particular award. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. Contract performance will be monitored to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Construction project complexity.
- Potential for material cost escalation.
- Labor availability and cost.
- Schedule adherence risks.
- Scope creep potential.
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 $31.9 million to HENSEL PHELPS CONSTRUCTION CO. ADVANCED MUNITIONS TECHNOLOGY COMPLEX PHASE 3, EGLIN AFB, FL
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 $31.9 million.
What is the period of performance?
Start: 2024-05-23. End: 2026-05-23.
What is the projected economic impact of this facility on the local Florida economy?
The construction phase is expected to generate numerous jobs in the local area, including skilled trades, project management, and support services. Once operational, the Advanced Munitions Technology Complex could lead to long-term employment opportunities and stimulate ancillary businesses, contributing to sustained economic growth in the Florida region.
What are the primary risks associated with the firm fixed price contract for this project?
While a firm fixed price contract offers cost certainty to the government, the primary risk lies with the contractor. If unforeseen issues arise during construction, such as material shortages or labor disputes, Hensel Phelps Construction Co. may incur losses if they cannot manage costs effectively within the agreed-upon price.
How will the effectiveness of the Advanced Munitions Technology Complex be measured post-completion?
Effectiveness will likely be measured by its ability to support the development, testing, and production of advanced munitions according to specified technological requirements and timelines. Key performance indicators may include operational readiness, technological advancement milestones achieved, and contribution to overall national defense readiness.
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: W9127823R0065
Offers Received: 2
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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,229,363
Exercised Options: $31,855,363
Current Obligation: $31,855,363
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-23
Current End Date: 2026-05-23
Potential End Date: 2026-05-23 00:00:00
Last Modified: 2025-10-08
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