DoD's $51.5M Cannon AFB construction contract awarded to Hensel Phelps Construction Co. for dangerous cargo facility
Contract Overview
Contract Amount: $51,477,763 ($51.5M)
Contractor: Hensel Phelps Construction CO.
Awarding Agency: Department of Defense
Start Date: 2022-08-01
End Date: 2025-12-31
Contract Duration: 1,248 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY19 DANGEROUS CARGO PAD AND COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, CANNON AFB, NM
Place of Performance
Location: CANNON AFB, CURRY County, NEW MEXICO, 88103
Plain-Language Summary
Department of Defense obligated $51.5 million to HENSEL PHELPS CONSTRUCTION CO. for work described as: FY19 DANGEROUS CARGO PAD AND COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, CANNON AFB, NM Key points: 1. Contract awarded for a significant construction project at Cannon AFB, indicating substantial investment in military infrastructure. 2. The project involves the construction of a dangerous cargo pad and combat arms training maintenance facility. 3. Awarded to a single contractor, Hensel Phelps Construction Co., suggesting a competitive bidding process. 4. The contract duration spans over three years, implying a complex and lengthy construction timeline. 5. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 6. The project is located in New Mexico, potentially impacting the local construction workforce and economy.
Value Assessment
Rating: good
The contract value of $51.5 million for a specialized military construction facility appears within a reasonable range for projects of this nature. Benchmarking against similar Department of Defense construction projects for hazardous material storage and training facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests a commitment to cost control by the government, though the final cost will depend on the contractor's efficiency and management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders were likely solicited. The presence of 5 bidders suggests a healthy level of competition for this significant construction project. This competitive environment generally leads to more favorable pricing and better terms for the government, as contractors vie to win the award.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through a competitive bidding process, maximizing the value received for this critical infrastructure investment.
Public Impact
The primary beneficiaries are the U.S. Air Force personnel stationed at Cannon AFB, who will gain access to improved and compliant facilities for handling dangerous cargo and conducting combat arms training. The services delivered include the construction of specialized infrastructure essential for military operations and safety. The geographic impact is concentrated at Cannon AFB, New Mexico, potentially creating temporary employment opportunities for local construction workers and related service providers during the construction phase. The project supports the operational readiness and training capabilities of the U.S. Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Ensuring compliance with stringent environmental and safety regulations for dangerous cargo facilities.
- Managing the complexity of a large-scale construction project with specialized requirements.
Positive Signals
- Award to a reputable contractor with a history in large-scale construction projects.
- Firm-fixed-price contract type provides cost certainty.
- Full and open competition likely resulted in competitive pricing.
- Project addresses critical infrastructure needs for military training and safety.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized military infrastructure. The construction market for such facilities is often characterized by government contracts, requiring adherence to strict specifications and security protocols. The value of this contract is substantial within the context of base infrastructure development, and comparable projects often involve significant investment in specialized materials, safety features, and environmental controls.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a specific small business set-aside. However, the prime contractor, Hensel Phelps Construction Co., may be required to subcontract portions of the work to small businesses as part of their overall business practices or specific subcontracting goals. The impact on the small business ecosystem will depend on the extent to which the prime contractor engages small businesses for specialized construction services or materials.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force's contracting and engineering divisions, ensuring adherence to project specifications, timelines, and quality standards. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is typically maintained through contract award databases and potentially through public affairs releases regarding significant base improvements.
Related Government Programs
- Military Construction (MILCON)
- Base Realignment and Closure (BRAC) related construction
- Department of Defense Facilities Management
- Air Force Training Infrastructure
Risk Flags
- Potential for cost overruns despite fixed-price contract if scope changes.
- Risk of construction delays impacting military readiness.
- Ensuring compliance with stringent environmental and safety regulations for hazardous materials.
- Contractor performance risk on a large-scale, specialized project.
Tags
construction, department-of-defense, air-force, cannon-afb, new-mexico, definitive-contract, full-and-open-competition, firm-fixed-price, large-contract, military-infrastructure, dangerous-cargo, combat-arms-training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.5 million to HENSEL PHELPS CONSTRUCTION CO.. FY19 DANGEROUS CARGO PAD AND COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, CANNON AFB, 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 $51.5 million.
What is the period of performance?
Start: 2022-08-01. End: 2025-12-31.
What is Hensel Phelps Construction Co.'s track record with similar Department of Defense construction projects, particularly those involving hazardous materials or specialized training facilities?
Hensel Phelps Construction Co. has a significant history of undertaking large-scale construction projects for the Department of Defense and other federal agencies. Their portfolio includes numerous projects involving complex infrastructure, such as aircraft hangars, research facilities, and operational support buildings. While specific details on past projects directly comparable to a 'dangerous cargo pad and combat arms training maintenance facility' would require deeper research into their project history, their experience with military construction suggests a capability to manage the technical and logistical demands of such a contract. Their track record typically involves adherence to stringent military specifications, safety protocols, and project timelines, which are critical for this type of specialized facility.
How does the awarded amount of $51.5 million compare to the estimated cost or bids from other competitors for this specific type of facility?
Without access to the bid tabulation or a detailed cost estimate for this specific contract, a direct comparison is challenging. However, $51.5 million is a substantial sum, reflecting the specialized nature and scale of constructing a dangerous cargo pad and combat arms training maintenance facility. Such facilities require robust safety features, specialized containment, and durable construction materials to handle hazardous substances and support rigorous training. The fact that it was awarded under full and open competition with five bidders suggests that this amount was deemed competitive and represented good value among the proposals received. Further analysis would involve benchmarking against publicly available data for similar military construction projects of comparable size and complexity.
What are the primary risk indicators associated with this contract, and what mitigation strategies are likely in place?
Key risk indicators for this contract include potential construction delays due to weather, supply chain disruptions, or unforeseen site conditions, which could impact the operational readiness of Cannon AFB. Safety risks are inherent in constructing facilities for dangerous cargo, requiring strict adherence to environmental and safety regulations. Managing the complexity of specialized construction and ensuring quality control are also significant considerations. Mitigation strategies likely include a firm-fixed-price contract to incentivize cost control, detailed project management plans, rigorous safety oversight by the contracting agency, contingency planning for potential delays, and thorough quality assurance inspections throughout the construction process.
What is the expected effectiveness of the new dangerous cargo pad and CATM facility in enhancing the Air Force's training and operational capabilities?
The construction of a dedicated dangerous cargo pad and Combat Arms Training Maintenance (CATM) facility is expected to significantly enhance the Air Force's training and operational capabilities at Cannon AFB. These specialized facilities are crucial for ensuring that personnel are adequately trained in the safe handling, storage, and deployment of hazardous materials, which is vital for mission success and personnel safety. A modern CATM facility will likely provide improved infrastructure for weapons maintenance, qualification firing, and tactical training scenarios, leading to more realistic and effective combat readiness. The improved infrastructure supports compliance with current safety and environmental standards, reducing risks associated with older or inadequate facilities.
How does historical spending on similar construction projects at Cannon AFB or other Air Force installations compare to this contract's value?
Historical spending on similar construction projects at Cannon AFB and other Air Force installations can provide context for the $51.5 million award. Military construction projects, particularly those involving specialized facilities like those for dangerous cargo or advanced training, are often substantial investments. For instance, projects categorized under Military Construction (MILCON) appropriations can range from tens to hundreds of millions of dollars depending on scope and complexity. Without specific historical data for Cannon AFB's construction expenditures on comparable facilities, it's difficult to provide a precise comparison. However, the value aligns with the typical investment required for modern, compliant, and secure military infrastructure designed to support critical operational and training functions.
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: W912PP21R0021
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO
Address: 3125 E WOOD ST STE 100, PHOENIX, AZ, 85040
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,926,763
Exercised Options: $51,477,763
Current Obligation: $51,477,763
Actual Outlays: $1,281,632
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $13,534,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-07-23
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