A $120M Federal Contract Just Landed. Here's the Safety Bar That Comes With It

Chris Fredette
Jul 22
3 min read

The U.S. Army Corps of Engineers awarded Hensel Phelps a $120.2 million contract on July 16 to sustain, restore, and modernize facilities at the U.S. Air Force Academy in Colorado. It's a big number, but the more useful detail for contractors chasing federal work is who's holding the contract: USACE. That means a different safety rulebook than most commercial GCs are used to.

By the Numbers

$120,209,500: the firm-fixed-price value of the Hensel Phelps contract, running through July 31, 2028
3%: projected growth in total nonresidential construction spending for 2026, a modest number compared to prior years
17% to 20%: projected 2026 growth in data center construction, one of the few standout sectors while the broader market stays flat
Federal funding is still flowing into transportation, water, utilities, and defense infrastructure even as private nonresidential spending stays sluggish

The Contract

Hensel Phelps, based in Greeley, Colorado, was awarded a firm-fixed-price contract for facilities sustainment, restoration, and modernization work at the Air Force Academy. Four bids were received before the award. The work is funded through fiscal 2026 operations and maintenance dollars and runs through July 2028. The contracting activity is the USACE Omaha District, not the Air Force directly, which is the detail that actually matters for how the job gets run.

Why Federal Work Plays by Different Safety Rules

USACE projects fall under EM 385-1-1, the Army Corps' Safety and Health Requirements Manual. It covers a lot of the same ground as OSHA, but in several areas it's stricter, and it adds requirements OSHA doesn't have at all. The biggest one: every prime contractor has to submit a site-specific Accident Prevention Plan, and a government-designated representative has to approve it before work can start. OSHA doesn't require government pre-approval of your safety plan. USACE does.

EM 385 also expects activity hazard analyses broken out by phase of work, not one blanket document covering the whole job. Excavation, scaffolding, electrical, PPE, fire prevention: each gets its own analysis tied to the actual sequence of work. Contractors used to a single project safety plan for a commercial job often underestimate how much more detail this takes, and how much lead time it needs before mobilization.

What This Means If You're Chasing Federal or DoD Work

Start the Accident Prevention Plan the day you're awarded, not the week before notice to proceed. Government approval takes time, and work can't start without it. Build activity hazard analyses phase by phase as the schedule firms up, rather than trying to write one document that covers everything up front.

Budget for the added documentation and, on larger contracts, a dedicated site safety and health officer, since EM 385 often requires one above certain size or risk thresholds. And remember EM 385 doesn't replace OSHA, it sits on top of it. You're meeting both, not choosing one.

Key Takeaways

Federal construction, especially through USACE, is one of the few segments still expanding while private nonresidential work stays flat
USACE projects run under EM 385-1-1, which is generally stricter than OSHA and requires government approval of your safety plan before mobilization
Activity hazard analyses need to be broken out by phase of work, not written as one blanket document
Contractors new to federal work should budget time and staff for the added documentation before they bid, not after they win

If your company is bidding federal or DoD work for the first time, get your Accident Prevention Plan and EM 385 program built before the bid goes in, not after you win. It's the difference between mobilizing on schedule and sitting on a job you can't start.