Army Depot Renovation Awarded for $9.87M to HSU Development, Inc. in Pennsylvania
Contract Overview
Contract Amount: $9,872,846 ($9.9M)
Contractor: HSU Development, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-24
End Date: 2027-03-05
Contract Duration: 589 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LETTERKENNY ARMY DEPOT BUILDING 370 RENOVATION TASK 2, CHAMBERSBURG, PA
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $9.9 million to HSU DEVELOPMENT, INC. for work described as: LETTERKENNY ARMY DEPOT BUILDING 370 RENOVATION TASK 2, CHAMBERSBURG, PA Key points: 1. The contract is for building renovation at Letterkenny Army Depot. 2. HSU Development, Inc. secured the award. 3. The project falls under Commercial and Institutional Building Construction. 4. The award value is $9,872,846. 5. The duration is 589 days.
Value Assessment
Rating: fair
The award amount of $9.87M for a 589-day renovation project appears within a reasonable range for similar construction contracts. However, without specific details on the scope of work, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the renovation services.
Public Impact
Military infrastructure upgrades enhance operational readiness. Local construction jobs may be created or supported by this project. The renovation aims to improve facilities at a key Army depot. Taxpayer funds are being utilized for essential facility maintenance and modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work for precise value assessment.
- No indication of small business participation.
- Potential for cost overruns in large construction projects.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract type can limit cost uncertainty.
- Project duration is clearly defined.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining government facilities and infrastructure, with benchmarks varying significantly based on project scope and location.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if small business set-aside goals were considered or if the prime contractor intends to subcontract to small businesses.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to scope, schedule, and budget, with reporting mechanisms in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation noted.
- Long project duration increases risk of delays.
- Specific scope of work not detailed in summary data.
- Potential for unforeseen site conditions impacting schedule/cost.
Tags
commercial-and-institutional-building-co, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to HSU DEVELOPMENT, INC.. LETTERKENNY ARMY DEPOT BUILDING 370 RENOVATION TASK 2, CHAMBERSBURG, PA
Who is the contractor on this award?
The obligated recipient is HSU DEVELOPMENT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2025-07-24. End: 2027-03-05.
What specific renovation tasks are included in Building 370, and how do they align with the $9.87M budget?
The provided data lacks specific details on the renovation tasks for Building 370. A comprehensive review of the contract's Statement of Work (SOW) is necessary to understand the scope, materials, and labor involved. This would allow for a more accurate assessment of whether the $9.87M budget is justified and if it represents good value for the required improvements.
What are the potential risks associated with the 589-day project duration and the firm-fixed-price contract type?
A 589-day duration presents risks of schedule delays due to unforeseen site conditions, weather, or supply chain issues. A firm-fixed-price contract shifts the risk of cost overruns to the contractor; however, if delays occur, the government might face indirect costs or pressure to modify the contract if the contractor cannot absorb extended overhead.
How does the competitive bidding process for this contract ensure effectiveness and prevent potential price gouging?
The 'full and open competition' method is designed to ensure effectiveness by soliciting bids from all qualified contractors. This broad competition increases the likelihood of receiving multiple proposals, allowing the agency to compare pricing and technical approaches. The lowest priced, technically acceptable offer, or best value determination, typically guides the award, thereby mitigating the risk of price gouging.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 N FREDERICK AVE, GAITHERSBURG, MD, 20877
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,872,846
Exercised Options: $9,872,846
Current Obligation: $9,872,846
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DR23D0027
IDV Type: IDC
Timeline
Start Date: 2025-07-24
Current End Date: 2027-03-05
Potential End Date: 2027-03-05 00:00:00
Last Modified: 2025-12-05
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