Hensel Phelps Construction awarded $19.8M for D/B UAS Maintenance Hangar at Hill Air Force Base
Contract Overview
Contract Amount: $19,773,583 ($19.8M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2011-09-29
End Date: 2014-09-30
Contract Duration: 1,097 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: D/B UAS MAINTENANCE HANGAR, HAFB
Place of Performance
Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330
Plain-Language Summary
Department of Defense obligated $19.8 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: D/B UAS MAINTENANCE HANGAR, HAFB Key points: 1. Contract value represents a significant investment in critical Air Force infrastructure. 2. The project was awarded using full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The duration of the contract (1097 days) indicates a substantial construction project. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded by the Department of the Army, supporting Air Force operations.
Value Assessment
Rating: good
The contract value of $19.8 million for a Design/Build UAS Maintenance Hangar appears reasonable given the scope of constructing specialized facilities for unmanned aerial systems. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the initial bid was considered competitive and that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. With 20 bids received, the level of competition was robust. This suggests that the government likely received competitive pricing due to the wide solicitation, and the selection process was based on the best value offered by the bidders.
Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and ensuring that the government secures services at a more favorable cost.
Public Impact
The primary beneficiaries are the U.S. Air Force units operating Unmanned Aerial Systems at Hill Air Force Base. The contract will deliver a specialized maintenance hangar designed to support the operational readiness of UAS. The geographic impact is concentrated at Hill Air Force Base, Utah, a key Air Force installation. The project will likely create jobs in the construction sector, including skilled trades and project management roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
- Delays in construction could impact the operational readiness of UAS units.
- Ensuring the specialized design meets all current and future UAS maintenance requirements.
Positive Signals
- Firm-fixed-price contract mitigates budget uncertainty for the government.
- Full and open competition suggests a competitive price was likely secured.
- The contractor, Hensel Phelps Construction Co., has a track record in large-scale construction projects.
Sector Analysis
The construction sector, particularly for specialized government facilities, is a significant market. This contract fits within the broader category of commercial and institutional building construction, with a specific focus on defense infrastructure. Comparable spending benchmarks for similar military hangar construction projects would indicate if this $19.8 million award is within the expected range for such specialized facilities.
Small Business Impact
The contract was awarded using full and open competition and does not indicate any specific small business set-aside. While Hensel Phelps Construction Co. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the project.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army and Air Force project management teams. Accountability measures would include adherence to the contract schedule, quality standards, and specifications. Transparency is generally maintained through contract award databases and reporting requirements, with potential oversight from the Inspector General for any significant issues.
Related Government Programs
- Air Force Base Infrastructure Projects
- Unmanned Aerial System Support Facilities
- Department of Defense Construction Contracts
- Design-Build Construction Contracts
Risk Flags
- Potential for scope creep during design phase
- Risk of construction delays impacting operational readiness
- Ensuring specialized design meets evolving UAS technology
Tags
construction, department-of-defense, hill-air-force-base, full-and-open-competition, definitive-contract, firm-fixed-price, design-build, uas-maintenance, commercial-and-institutional-building-construction, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to HENSEL PHELPS CONSTRUCTION CO.. D/B UAS MAINTENANCE HANGAR, HAFB
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 $19.8 million.
What is the period of performance?
Start: 2011-09-29. End: 2014-09-30.
What is Hensel Phelps Construction Co.'s track record with similar Department of Defense construction projects?
Hensel Phelps Construction Co. has a substantial history of executing large-scale construction projects for the Department of Defense and other federal agencies. Their portfolio includes numerous military installations, aviation facilities, and infrastructure developments. While specific data on UAS maintenance hangars is not detailed here, their experience with complex projects suggests a capability to manage the technical and logistical demands of this contract. Reviewing their past performance on similar-sized projects, particularly those involving aviation or specialized facilities, would provide further insight into their reliability and expertise in delivering projects on time and within budget.
How does the $19.8 million contract value compare to similar UAS maintenance hangar projects?
Benchmarking the $19.8 million contract value against similar UAS maintenance hangar projects is crucial for assessing value for money. Without specific comparable data points readily available, a general comparison can be made to large-scale institutional or industrial construction projects. The cost per square foot or per hangar bay would be key metrics. Factors such as specialized equipment integration, advanced climate control, security features, and the specific size and complexity of the UAS being supported will influence the overall cost. A detailed cost analysis would require access to data on similar projects awarded by the DoD or other aviation authorities.
What are the primary risks associated with this Design/Build contract for a UAS maintenance hangar?
The primary risks associated with this Design/Build contract include potential design deficiencies that may not meet the specific operational needs of UAS maintenance, leading to costly modifications. Schedule delays are a common risk in large construction projects, which could impact the operational readiness of the Air Force units. Furthermore, unforeseen site conditions at Hill Air Force Base could lead to scope changes and cost increases, even under a firm-fixed-price contract, if not adequately addressed during the design phase. Ensuring the contractor possesses the specialized knowledge for UAS maintenance requirements is also a critical risk factor.
How effective is the firm-fixed-price contract type in managing costs for this type of project?
The firm-fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined, as it shifts the majority of cost risk to the contractor. For a UAS maintenance hangar, the FFP structure incentivizes Hensel Phelps Construction Co. to control costs and manage their resources efficiently to maximize profit. However, the 'Design/Build' aspect introduces a layer of complexity. If the design phase does not fully capture all requirements or if unforeseen issues arise during construction, change orders could still impact the final cost, although the FFP aims to minimize this. The government's oversight during the design and construction phases remains critical to ensure the FFP terms are upheld.
What is the historical spending pattern for UAS maintenance facilities at Hill Air Force Base or similar installations?
Historical spending patterns for UAS maintenance facilities at installations like Hill Air Force Base are typically characterized by significant, project-specific investments rather than recurring operational costs. These facilities require specialized design and construction to accommodate advanced technology, security protocols, and maintenance equipment. Spending can fluctuate based on the introduction of new UAS platforms, upgrades to existing fleets, and the overall strategic priorities of the Air Force. Analyzing past contracts for similar infrastructure at Hill AFB or other major UAS operating bases would reveal the typical scale of investment and the types of contractors involved.
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: W912PP11R0031
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO (UEI: 063322085)
Address: 8326 CROSS PARK DR, AUSTIN, TX, 78754
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,773,583
Exercised Options: $19,773,583
Current Obligation: $19,773,583
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $14,506,161
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-29
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2021-04-28
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