DOD Awards $39.8M for Cannon AFB Hangars, Competition Achieved, Firm Fixed Price
Contract Overview
Contract Amount: $39,778,382 ($39.8M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2010-04-05
End Date: 2014-09-30
Contract Duration: 1,639 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOF FUEL CELL AND CORROSION HANGARS, CANNON AIR FORCE BASE, NM
Place of Performance
Location: CANNON AFB, CURRY County, NEW MEXICO, 88103
Plain-Language Summary
Department of Defense obligated $39.8 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: SOF FUEL CELL AND CORROSION HANGARS, CANNON AIR FORCE BASE, NM Key points: 1. Contract awarded to Hensel Phelps Construction Co. for $39.8M. 2. Project involves construction of SOF Fuel Cell and Corrosion Hangars. 3. Full and open competition was utilized. 4. Firm Fixed Price contract type suggests cost certainty. 5. Project duration was 1639 days.
Value Assessment
Rating: good
The contract value of $39.8M for hangar construction appears reasonable given the project scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to have resulted in a fair price for taxpayers, maximizing value through market forces.
Public Impact
Enhances operational capabilities for Special Operations Forces at Cannon AFB. Supports critical infrastructure maintenance and readiness. Contributes to the local economy through construction jobs and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Schedule delays are common in complex builds.
- Long project duration may indicate complexity or scope changes.
Positive Signals
- Full and open competition ensures a competitive bidding process.
- Firm Fixed Price contract provides cost predictability.
- Project addresses a specific military operational need.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. DoD construction spending is a major component.
Small Business Impact
While the prime contractor is Hensel Phelps Construction Co., the contract details do not specify the extent of small business subcontracting. Further review would be needed to assess SMB participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating established oversight mechanisms. The duration and value suggest a significant project requiring diligent monitoring.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Construction project complexity.
- Potential for schedule delays.
- Long project duration.
- Firm Fixed Price risk for contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.8 million to HENSEL PHELPS CONSTRUCTION CO.. SOF FUEL CELL AND CORROSION HANGARS, CANNON AIR FORCE BASE, NM
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 $39.8 million.
What is the period of performance?
Start: 2010-04-05. End: 2014-09-30.
What was the final cost compared to the initial bid, and were there any significant change orders?
The provided data shows the awarded amount ($39.8M) but not the initial bid or final cost. Analyzing change orders and their financial impact is crucial to understanding the project's cost performance and identifying potential areas for improved contract management in future projects.
How did the firm fixed price structure impact the contractor's risk and the government's cost certainty?
A firm fixed price contract places the cost risk primarily on the contractor. This incentivizes efficiency and cost control by the contractor, offering high cost certainty to the government. However, it can also lead to higher initial bids to account for contractor risk.
What specific operational improvements are expected from these new hangars for SOF units?
The hangars are designed to house SOF aircraft and provide specialized facilities, likely including maintenance areas for fuel cells and corrosion control. This is expected to improve aircraft readiness, reduce downtime, and enhance the overall operational effectiveness and safety of SOF aviation assets.
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: W912PP10R0009
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO (UEI: 063322085)
Address: 444 N 44TH ST STE 105, PHOENIX, AZ, 85008
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,778,382
Exercised Options: $39,778,382
Current Obligation: $39,778,382
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-05
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2021-04-28
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