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IMMEDIATE RELEASE

Release No: 431-01
September 15, 2001

CONTRACT AWARDED TO REBUILD PENTAGON

The Department of Defense announced today that a contract has been awarded to Hensel Phelps Construction Co., Chantilly, Va., to initiate immediate action to rebuild portions of the Pentagon damaged in the Sept. 11 terrorist attack and to continue other renovation activities in the Pentagon. The initial contract is $145 million.

In addition to the still-to-be-determined total costs of repairing the damage from the terrorist attack, the contract has a potential value of up to $758 million total for renovation of the undamaged portions of the Pentagon, plus adjustments for inflation costs over the estimated 11-year renovation effort. The contract will result in renovation of approximately four million square feet of building space inside the Pentagon, if all options are ultimately exercised.

"With the award of this contract we can begin immediate repairs to the Pentagon and make the necessary improvements that will keep it operational for the next 50 years," said Lee Evey, Pentagon renovation program manager. "The design-build approach has already demonstrated that it can succeed within this environment."

Following an intense evaluation of three design-build teams that competed for the job, the Pentagon Renovation Program selected Hensel Phelps Construction Co. based on the company's superior technical management approach, past performance, and price.

In addition to Hensel Phelps, the design-build team includes Shalom Baranes Associates, HDR Architecture, MC Dean, Studio Architecture, and Southland Industries. The team will have the task of keeping fully operational the world's largest office building and headquarters for the U.S. military establishment. Working around 20,000 Pentagon employees, the contractor will remove approximately 350 million pounds of debris, demolish Pentagon sections down to the concrete columns and floor slabs, and then rebuild space equivalent to more than two Empire State Buildings as part of the renovation activities.

In addition, the contractor, along with AMEC, the contractor currently accomplishing renovation of areas in Wedge 1, will undertake associated tasks now made necessary by the terrorist attack. For instance, rebuilding floor slabs, rebuilding columns, replicating the historical limestone faade, and rebuilding the roof in the damaged area.

The contractor is expected to begin design work at the end of this month. Overall completion of the entire renovation project is expected in December 2012.

For additional information about the contract or the Pentagon Renovation Program, visit http://renovation.pentagon.mil .