DoD's $131M North Campus Electrical Utility Plant Construction Contract Awarded to Hensel Phelps
Contract Overview
Contract Amount: $131,089,217 ($131.1M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2011-09-16
End Date: 2016-03-23
Contract Duration: 1,650 days
Daily Burn Rate: $79.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NORTH CAMPUS ELECTRICAL UTILITY PLANT CONSTRUCTION. CORRECTION TO SUBCONTRACTING PLAN/SA-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 $131.1 million to HENSEL PHELPS CONSTRUCTION CO for work described as: NORTH CAMPUS ELECTRICAL UTILITY PLANT CONSTRUCTION. CORRECTION TO SUBCONTRACTING PLAN/SA-EC Key points: 1. The contract awarded to Hensel Phelps Construction Co. for $131M covers the construction of an electrical utility plant. 2. The project falls under the Commercial and Institutional Building Construction sector, a common area for large federal infrastructure projects. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The project duration was 1650 days, indicating a significant construction undertaking.
Value Assessment
Rating: good
The contract value of $131M for a large utility plant construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional building projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing all responsible sources to submit bids. 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 taxpayer value for this significant infrastructure investment.
Public Impact
Construction of critical utility infrastructure enhances operational capabilities for the Department of Defense. The project supports economic activity through construction jobs and material procurement. Long-term energy security and reliability are improved by the new utility plant. The project's scale suggests a substantial investment in federal facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
- Long project duration could lead to schedule delays impacting operational readiness.
- Reliance on a single prime contractor for a project of this magnitude.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm Fixed Price contract type transfers significant cost risk to the contractor.
- Project addresses critical infrastructure needs for the Department of Defense.
- Significant investment in federal facilities.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector often involves large-scale infrastructure projects for government facilities, with costs varying widely based on project complexity, location, and specific requirements.
Small Business Impact
The provided data does not specify subcontracting plans or awards to small businesses. Further analysis would be needed to determine the extent of small business participation in this large construction project.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would typically involve contract management by the Department of the Army to ensure compliance with terms and specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Firm Fixed Price contract.
- Commercial and Institutional Building Construction sector.
- Department of Defense agency.
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 $131.1 million to HENSEL PHELPS CONSTRUCTION CO. NORTH CAMPUS ELECTRICAL UTILITY PLANT CONSTRUCTION. CORRECTION TO SUBCONTRACTING PLAN/SA-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 $131.1 million.
What is the period of performance?
Start: 2011-09-16. End: 2016-03-23.
What was the specific scope of work for the North Campus Electrical Utility Plant?
The contract was for the construction of the North Campus Electrical Utility Plant. While the exact specifications are not detailed here, such projects typically involve building new power generation facilities, substations, and associated distribution infrastructure to support campus operations. This includes civil, structural, mechanical, and electrical engineering work, ensuring reliable and efficient power supply.
What are the primary risks associated with a large fixed-price construction contract like this?
The primary risks for the government with a fixed-price contract are limited, as the contractor assumes most cost overruns. However, risks include potential for contractor default, quality issues if the contractor cuts corners to maintain profit, and disputes over scope changes. For the contractor, the risk is significant if unforeseen site conditions or material cost increases erode profit margins.
How does the duration of this project impact its effectiveness for the Department of Defense?
A 1650-day (approximately 4.5 years) duration for a utility plant construction project is substantial. While it ensures thoroughness, it also means the Department of Defense must manage operations with existing infrastructure for an extended period. Delays could impact readiness, but a well-executed long-term project ensures a robust and reliable utility system for decades.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DR11R0033
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4437 BROOKFIELD CORPORATE DR STE 207, 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: $131,089,217
Exercised Options: $131,089,217
Current Obligation: $131,089,217
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $109,701,898
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-16
Current End Date: 2016-03-23
Potential End Date: 2016-03-23 00:00:00
Last Modified: 2021-06-04
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