The U.S. Army Corps of Engineers (USACE), Omaha District, has awarded Hensel Phelps Construction Co., of Greeley, Colorado, a $120.21 million firm-fixed-price contract to execute facilities sustainment, restoration, and modernization (FSRM) projects across the U.S. Air Force Academy (USAFA) in Colorado Springs.
According to the Department of Defense contract announcement, the project will improve critical infrastructure supporting the Academy’s academic, operational, and military training missions. The work is scheduled for completion by July 31, 2028, with funding provided through Fiscal Year 2026 Operations and Maintenance, Defense-Wide appropriations. The contract was awarded following a competitive solicitation that received four bids through an online procurement process.
- Hensel Phelps secured a $120.21 million firm-fixed-price contract to modernize facilities at the U.S. Air Force Academy.
- The contract covers facilities sustainment, restoration, and modernization work through July 2028.
- The U.S. Army Corps of Engineers, Omaha District, awarded the project following a competitive four-bid procurement.
- Funding comes from FY2026 Defense-Wide Operations and Maintenance appropriations obligated at contract award.
- The modernization effort supports long-term readiness of one of the U.S. Air Force’s premier officer commissioning institutions.
Deep Technical & Strategic Context Analysis
The award falls under the Department of Defense’s Facilities Sustainment, Restoration, and Modernization (FSRM) program, one of the Pentagon’s primary mechanisms for maintaining operational military infrastructure. Unlike military construction (MILCON) projects that often deliver entirely new facilities, FSRM funding focuses on extending the service life of existing buildings and infrastructure through structural repairs, utility upgrades, energy improvements, safety enhancements, and modernization of mission-critical facilities.
A firm-fixed-price contract places the majority of cost risk on the contractor. The government agrees to pay a predetermined amount regardless of actual project costs, incentivizing efficient execution while providing predictable budgeting for the Department of Defense. This contract type is commonly used for mature construction requirements where project scope is well defined.
For the U.S. Air Force Academy, infrastructure modernization has strategic implications beyond campus maintenance. USAFA educates and commissions hundreds of Air Force and Space Force officers annually while supporting advanced research, cyber education, engineering laboratories, flight training, and military leadership development. As the Department of the Air Force continues to emphasize great power competition, resilient infrastructure has become an increasingly important component of military readiness, ensuring uninterrupted education, training, and research activities that directly support future operational capability.
Contract Breakdown & Details
Contract Overview
- Contractor: Hensel Phelps Construction Co.
- Headquarters: Greeley, Colorado
- Contract Value: $120,209,500
- Contract Type: Firm-Fixed-Price
- Program: Facilities Sustainment, Restoration and Modernization (FSRM)
- Awarding Agency: U.S. Army Corps of Engineers, Omaha District
- Contract Number: W9128F-26-C-A044
Scope of Work
The contract supports modernization activities across the U.S. Air Force Academy, including:
- Facility sustainment to preserve operational infrastructure.
- Restoration projects addressing aging or degraded facilities.
- Modernization efforts improving mission effectiveness and building performance.
- Infrastructure upgrades supporting long-term operational readiness.
While the Department of Defense did not identify specific buildings included in the award, FSRM contracts typically encompass administrative facilities, academic buildings, utilities, training infrastructure, mechanical systems, and other installation support assets.
Funding
- Funding Source: FY2026 Operations and Maintenance, Defense-Wide
- Funds Obligated at Award: $120,209,500
- Funding Agency: Department of Defense
Procurement Details
- Solicitation Method: Internet-based competitive procurement
- Number of Bids Received: Four
- Awarding Contracting Activity: U.S. Army Corps of Engineers, Omaha District
Work Location
- Primary Performance Location: U.S. Air Force Academy, Colorado Springs, Colorado
- Estimated Completion Date: July 31, 2028
Geographic Work Breakdown
The Department of Defense announcement identifies 100 percent of contract performance at the U.S. Air Force Academy, Colorado Springs, Colorado.
| Location | Share of Work |
|---|---|
| U.S. Air Force Academy, Colorado | 100% |
Multi-Agency Funding Breakdown
| Funding Source | Amount |
|---|---|
| FY2026 Operations & Maintenance, Defense-Wide | $120,209,500 |
Strategic Significance
The award reflects the Pentagon’s continued emphasis on modernizing military infrastructure alongside investments in next-generation aircraft, weapons, and digital capabilities. Aging facilities can directly affect training throughput, research capacity, and installation resilience. By investing more than $120 million in infrastructure at the Air Force Academy, the Department of Defense is strengthening the physical foundation that supports future Air Force and Space Force leadership while ensuring the Academy remains capable of supporting evolving operational and educational requirements through the coming decades.
