DoD Awards $36.7M for Gravity Axis Warehouse Construction to Hensel Phelps Construction Co
Contract Overview
Contract Amount: $36,683,848 ($36.7M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2020-01-30
End Date: 2023-06-28
Contract Duration: 1,245 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GRAVITY AXIS WAREHOUSE
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $36.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: GRAVITY AXIS WAREHOUSE Key points: 1. Significant contract value for a single construction project. 2. Hensel Phelps is a major player in large-scale construction. 3. Potential for cost overruns in large infrastructure projects. 4. Construction sector is subject to material and labor cost fluctuations.
Value Assessment
Rating: good
The contract value of $36.7 million appears reasonable for a large commercial and institutional building construction project of this scale and duration. Benchmarking against similar large-scale warehouse or facility construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified contractors can bid.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by fostering a competitive bidding environment.
Public Impact
Supports military readiness and logistics through improved infrastructure. Creates jobs in the construction sector and related industries. Potential for local economic impact through material sourcing and labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of unforeseen site conditions affecting cost and schedule.
- Fluctuations in material costs could impact final project expense.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor has a strong track record in large construction projects.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the DoD can vary significantly based on infrastructure needs and modernization efforts. Benchmarks for similar large-scale warehouse construction projects are essential for detailed analysis.
Small Business Impact
While this contract was awarded under full and open competition, there is no specific indication of small business participation or subcontracting goals in the provided data. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award through full and open competition suggests a standard procurement process. Oversight would typically involve contract management by the Department of the Army to ensure adherence to specifications, schedule, and budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if initial estimates are inaccurate.
- Risk of construction delays impacting operational timelines.
- Dependence on contractor's ability to manage complex supply chains.
- Vulnerability to fluctuations in construction material prices.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to HENSEL PHELPS CONSTRUCTION CO. GRAVITY AXIS WAREHOUSE
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 $36.7 million.
What is the period of performance?
Start: 2020-01-30. End: 2023-06-28.
What is the estimated cost per square foot for this warehouse construction compared to industry averages?
Without the total square footage, a precise cost per square foot cannot be calculated. However, for large commercial and institutional buildings, costs can range widely based on location, materials, and complexity. A typical benchmark might be $200-$500 per square foot, but specialized facilities or those in high-cost areas could exceed this significantly. Further data is needed for a valid comparison.
What are the primary risks associated with the firm fixed price contract for this large construction project?
The primary risk with a firm fixed price contract for a large construction project lies with the contractor. If costs escalate beyond projections due to unforeseen issues (e.g., material price spikes, labor shortages, site conditions), the contractor absorbs the loss. Conversely, the government benefits from cost certainty, but the initial price might be higher to account for contractor risk.
How effectively does this contract contribute to the Department of the Army's long-term logistical capabilities?
The effectiveness hinges on the warehouse's strategic location, capacity, and technological integration. A well-executed project meeting specifications will enhance storage, distribution, and operational readiness. However, if the facility becomes obsolete quickly or is underutilized, its long-term contribution could be diminished. Post-award performance monitoring is key.
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: W912DR19R0012
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps - Shimizu JV
Address: 1600 TYSONS BLVD STE 800, TYSONS CORNER, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,683,848
Exercised Options: $36,683,848
Current Obligation: $36,683,848
Actual Outlays: $1,281,792
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-01-30
Current End Date: 2023-06-28
Potential End Date: 2023-06-28 00:00:00
Last Modified: 2023-10-24
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