DoD Awards $276.7M Firm Fixed Price Contract for DISA Headquarters Facility to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $276,710,950 ($276.7M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2008-02-29
End Date: 2011-04-01
Contract Duration: 1,127 days
Daily Burn Rate: $245.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT DISA HEADQUARTERS FACILITY (SA NOTE: THIS IS A FFP ACTION ORIGINALLY(EC))
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $276.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: CONSTRUCT DISA HEADQUARTERS FACILITY (SA NOTE: THIS IS A FFP ACTION ORIGINALLY(EC)) Key points: 1. The contract value of $276.7 million for a headquarters facility represents a significant investment in infrastructure. 2. Hensel Phelps Construction Co., a large, established firm, secured this award, indicating strong competition in the sector. 3. The firm-fixed-price (FFP) contract type shifts cost risk to the contractor, potentially benefiting the government. 4. This project falls under the Commercial and Institutional Building Construction sector, a key area for government infrastructure development.
Value Assessment
Rating: good
The contract value of $276.7 million appears reasonable for a large-scale headquarters facility construction project. Benchmarking against similar government construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust bidding process. This method generally leads to competitive pricing and ensures the best value is obtained for the government.
Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing taxpayer value for this significant infrastructure project.
Public Impact
Construction of a new headquarters facility will impact military personnel and support staff stationed at the location. The project signifies a long-term investment in the Department of Defense's operational capabilities and infrastructure. Job creation is likely during the construction phase, benefiting the local economy in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite FFP contract.
- Long project duration (1127 days) increases exposure to market fluctuations and potential delays.
Positive Signals
- Firm Fixed Price contract type limits government cost exposure.
- Award to established contractor with proven track record.
- Full and open competition ensures competitive pricing.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector is critical for maintaining and upgrading government facilities, with significant annual outlays across various agencies.
Small Business Impact
The contract was awarded to Hensel Phelps Construction Co., a large business. There is no indication of specific subcontracting goals for small businesses in the provided data, which could be an area for further review.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating established procurement processes. Oversight would typically involve contract management teams monitoring progress, quality, and adherence to specifications throughout the construction period.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (1127 days) increases risk of delays and cost escalation.
- Firm Fixed Price contract shifts significant cost risk to the contractor.
- Potential for unforeseen site conditions or construction challenges.
- Dependence on a single large contractor for a critical facility.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $276.7 million to HENSEL PHELPS CONSTRUCTION CO. CONSTRUCT DISA HEADQUARTERS FACILITY (SA NOTE: THIS IS A FFP ACTION ORIGINALLY(EC))
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 $276.7 million.
What is the period of performance?
Start: 2008-02-29. End: 2011-04-01.
What is the estimated cost per square foot for this facility, and how does it compare to industry benchmarks for similar government buildings?
Without specific square footage data, a precise cost per square foot cannot be calculated. However, the total contract value of $276.7 million for a headquarters facility suggests a substantial investment. A detailed analysis would require facility size and scope to compare against benchmarks for commercial and institutional construction, considering factors like location and complexity.
What are the specific performance metrics and penalties included in the contract to mitigate risks associated with the long duration and potential construction challenges?
The provided data does not detail specific performance metrics or penalties. However, for a project of this magnitude and duration, contracts typically include clauses for timely completion, quality standards, and liquidated damages for delays. The firm-fixed-price nature inherently places cost risk on the contractor, incentivizing efficient project management.
How will the successful completion of this facility contribute to the operational effectiveness and mission readiness of DISA?
The new headquarters facility is expected to consolidate operations, improve collaboration, and provide a modern, secure environment for DISA personnel. This enhanced infrastructure can lead to greater efficiency in managing and executing critical communication and information technology services for the Department of Defense, thereby bolstering mission 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: TWO STEP
Solicitation ID: W912DR07R0047
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4437 BROOKFIELD CORP DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $392,492,330
Exercised Options: $392,492,330
Current Obligation: $276,710,950
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-29
Current End Date: 2011-04-01
Potential End Date: 2011-04-01 00:00:00
Last Modified: 2021-04-28
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