DoD's $346.7M Commercial Building Contract Awarded to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $346,698,385 ($346.7M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2017-09-28
End Date: 2023-02-20
Contract Duration: 1,971 days
Daily Burn Rate: $175.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: C2F PHASE 3 IGF::OT::IGF
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $346.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: C2F PHASE 3 IGF::OT::IGF Key points: 1. Significant investment in commercial and institutional building construction. 2. Hensel Phelps Construction Co. secured a large definitive contract. 3. The contract spans nearly 2000 days, indicating a long-term project. 4. No small business participation was reported.
Value Assessment
Rating: fair
The contract value of $346.7 million is substantial. Benchmarking against similar large-scale construction projects is difficult without more specific details on the scope and location, but the duration suggests a significant undertaking.
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. However, the lack of small business participation is noted.
Taxpayer Impact: Taxpayer funds are being utilized for a large construction project, with the expectation of value derived from the completed facility.
Public Impact
Impacts local economy in Hawaii through job creation and material sourcing. Potential for improved infrastructure or facilities for the Department of Defense. Long-term contract duration may lead to sustained economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could present scope creep risks.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector by the DoD can fluctuate based on infrastructure needs and modernization efforts.
Small Business Impact
The contract explicitly states no small business participation. This could be due to the specialized nature of the project or the size of the contract, which may be beyond the capacity of many small businesses.
Oversight & Accountability
Oversight would focus on project milestones, quality control, and adherence to the firm fixed price, ensuring the DoD receives the contracted facility within budget and on schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business involvement.
- Potential for cost overruns if scope is not tightly managed.
- Long duration increases exposure to market fluctuations.
- Geographic concentration in Hawaii may limit future competition.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $346.7 million to HENSEL PHELPS CONSTRUCTION CO. C2F PHASE 3 IGF::OT::IGF
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 $346.7 million.
What is the period of performance?
Start: 2017-09-28. End: 2023-02-20.
What specific type of commercial or institutional building is being constructed, and what is its intended use for the Department of Defense?
The provided data does not specify the exact nature of the building. It is described broadly as 'Commercial and Institutional Building Construction.' Understanding the specific use (e.g., barracks, administrative offices, training facilities) is crucial for assessing the true value and necessity of this significant expenditure.
Given the full and open competition, were there any notable bids or was Hensel Phelps the sole highly competitive bidder?
The data indicates 'FULL AND OPEN COMPETITION' but does not detail the number of bids received or the competitiveness among them. Further analysis would require access to bid data to understand if multiple strong proposals were evaluated or if one bidder significantly outperformed others.
What are the key performance indicators and quality assurance measures in place for this long-duration construction contract?
Specific KPIs and QA measures are not detailed in the provided data. For a contract of this magnitude and duration, robust oversight mechanisms, including regular inspections, adherence to building codes, and performance metrics tied to project completion phases, would be essential to ensure effectiveness and taxpayer value.
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: W9128A17R0001
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 841 BISHOP ST STE 2001, HONOLULU, HI, 96813
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $524,585,628
Exercised Options: $524,585,628
Current Obligation: $346,698,385
Actual Outlays: $10,117,348
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-28
Current End Date: 2023-02-20
Potential End Date: 2023-02-20 00:00:00
Last Modified: 2023-01-31
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