DoD Awards $75.4M Design-Build Contract for Schofield Barracks Behavioral Health Clinic Addition
Contract Overview
Contract Amount: $75,387,566 ($75.4M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2018-02-08
End Date: 2021-11-30
Contract Duration: 1,391 days
Daily Burn Rate: $54.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF THIS IS A TWO-PHASE DESIGN-BUILD CONSTRUCTION PROJECT. FY16 PN80412 BEHAVIORAL HEALTH / DENTAL CLINIC ADDITION, SCHOFIELD BARRACKS, OAHU, HAWAII
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $75.4 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF THIS IS A TWO-PHASE DESIGN-BUILD CONSTRUCTION PROJECT. FY16 PN80412 BEHAVIORAL HEALTH / DENTAL CLINIC ADDITION, SCHOFIELD BARRACKS, OAHU, HAWAII Key points: 1. The project aims to expand critical healthcare facilities at Schofield Barracks, Hawaii. 2. Hensel Phelps Construction Co. secured the large-scale design-build contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price contract type aims to control costs for this significant construction project.
Value Assessment
Rating: good
The contract value of $75.4 million for a behavioral health and dental clinic addition appears reasonable for a large-scale design-build project in Hawaii. Benchmarking against similar military construction projects of this size and complexity would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair market price, maximizing the value of taxpayer funds for this essential facility.
Public Impact
Enhances critical healthcare infrastructure for military personnel and their families at Schofield Barracks. Supports the well-being and readiness of service members by providing modern medical facilities. Represents a significant investment in the local Hawaii economy through construction jobs and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large, complex construction projects.
- Schedule delays are common in multi-year construction efforts.
- Ensuring quality of construction meets military standards.
Positive Signals
- Design-build approach can streamline project delivery.
- Firm-fixed-price contract provides cost certainty.
- Full and open competition likely yielded competitive pricing.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending benchmarks for similar DoD construction projects vary widely based on scope, location, and complexity, but $75.4 million is a substantial investment.
Small Business Impact
While the prime contractor is a large firm, the project may offer subcontracting opportunities for small businesses in areas such as specialized trades, material supply, and support services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, through its contracting and project management offices, is responsible for overseeing this project. Oversight will focus on ensuring adherence to design specifications, construction timelines, budget, and quality standards throughout the project lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases inherent project risk.
- Construction projects are susceptible to schedule delays.
- Potential for unforeseen site conditions in Hawaii.
- Ensuring adequate contractor performance and quality control.
- Coordination between design and construction phases.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.4 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF THIS IS A TWO-PHASE DESIGN-BUILD CONSTRUCTION PROJECT. FY16 PN80412 BEHAVIORAL HEALTH / DENTAL CLINIC ADDITION, SCHOFIELD BARRACKS, OAHU, HAWAII
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 $75.4 million.
What is the period of performance?
Start: 2018-02-08. End: 2021-11-30.
What specific design-build innovations were incorporated to ensure efficient project delivery and cost savings?
The design-build approach itself is intended to foster innovation by integrating design and construction early, allowing for value engineering and constructability reviews. Specific innovations might include advanced building information modeling (BIM) for clash detection and coordination, prefabrication of certain building components, or the use of sustainable building materials and techniques to reduce long-term operational costs.
What are the primary risks associated with the firm-fixed-price contract for this large-scale construction project?
The primary risk with a firm-fixed-price contract lies with the contractor, Hensel Phelps. If unforeseen issues arise during construction that significantly increase costs beyond their estimates (e.g., unexpected site conditions, material price spikes, labor shortages), the contractor bears the financial burden. For the government, the risk is ensuring the contractor has adequately accounted for all potential costs and contingencies in their bid.
How will the effectiveness of the new behavioral health and dental clinic be measured post-completion?
Effectiveness will likely be measured through several key performance indicators. These include patient throughput and wait times, patient satisfaction surveys, the availability and utilization rates of specialized services, and the overall impact on military readiness and troop well-being. Post-occupancy evaluations and facility usage data will be crucial for assessing the clinic's long-term success.
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: TWO STEP
Offers Received: 8
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: $75,387,566
Exercised Options: $75,387,566
Current Obligation: $75,387,566
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-02-08
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2022-05-05
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