Navy awards $90.6M for student housing construction, with Harper Construction as prime

Contract Overview

Contract Amount: $90,614,258 ($90.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-11-30

End Date: 2018-09-21

Contract Duration: 2,121 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TBS STUDENT QUARTERS P566

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $90.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: TBS STUDENT QUARTERS P566 Key points: 1. Contract value of $90.6M for student housing construction. 2. Harper Construction Company, Inc. is the prime contractor. 3. Contract awarded under full and open competition. 4. Firm Fixed Price contract type indicates price certainty. 5. Long duration of 2121 days suggests a complex project. 6. Project located in Virginia, impacting local workforce and economy.

Value Assessment

Rating: fair

The contract value of $90.6M for student housing construction appears within a reasonable range for a large-scale project of this nature, though specific benchmarks are difficult without detailed scope. The firm fixed price structure suggests the government sought cost certainty. However, the extended duration of over five years (2121 days) could indicate potential for cost overruns if not managed effectively, or simply a very long construction timeline. Benchmarking against similar dormitory or barracks construction projects would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 28 bids received, the competition level was robust, suggesting a healthy market for this type of construction service. A high number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing favorable terms.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received proposals from a wide array of qualified contractors, maximizing the potential for cost savings.

Public Impact

Benefits Navy personnel by providing student housing facilities. Supports the construction industry and associated workforce in Virginia. Enhances the quality of life and training environment for students. Contributes to the infrastructure development of military installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (2121 days) may pose management challenges and risks of schedule delays or cost creep if not closely monitored.
Reliance on a single prime contractor for such a long project requires robust oversight to ensure performance and quality.
Potential for unforeseen site conditions or material cost fluctuations over the multi-year construction period.

Positive Signals

Awarded under full and open competition with 28 bids, indicating strong market interest and likely competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Harper Construction Company, Inc., has experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of the Navy's investment in student housing reflects ongoing needs for military infrastructure. Comparable spending benchmarks would involve analyzing other large-scale construction projects for educational or dormitory facilities, both within the federal government and in the private sector, to assess cost-effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the subcontracting process and their overall participation in this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed price contract type, with penalties or incentives potentially tied to performance and schedule adherence. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Military Construction
Dormitory Construction
Federal Building Projects
Department of Defense Contracts

Risk Flags

Long contract duration may increase risk of cost overruns or delays.
Firm Fixed Price contracts can be less flexible for scope changes.
Need for detailed analysis of contractor's past performance on similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.6 million to HARPER CONSTRUCTION COMPANY, INC.. TBS STUDENT QUARTERS P566

Who is the contractor on this award?

The obligated recipient is HARPER CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $90.6 million.

What is the period of performance?

Start: 2012-11-30. End: 2018-09-21.

What is the track record of Harper Construction Company, Inc. on similar federal contracts?

Harper Construction Company, Inc. has a history of performing federal contracts, primarily within the construction sector. While specific details on past performance for similar student housing or large institutional building projects would require a deeper dive into federal procurement databases like SAM.gov or FPDS, their selection for this significant $90.6M contract suggests they possess the necessary experience and capability. Analyzing their past performance ratings, any past performance issues, and the types of projects they have successfully completed would provide a clearer picture of their reliability and expertise in executing large-scale federal construction endeavors.

How does the per-square-foot cost of this student housing project compare to industry benchmarks?

Determining the precise per-square-foot cost requires detailed project specifications, including the total square footage constructed, the quality of materials used, and the specific amenities included. Without this granular data, a direct comparison to industry benchmarks is challenging. However, the overall contract value of $90.6M for student housing suggests a substantial facility. Typical benchmarks for institutional or dormitory construction can range widely, from $200 to $500+ per square foot depending on location, finishes, and complexity. A thorough analysis would involve obtaining the project's final square footage and comparing it against regional and national averages for similar construction types.

What are the primary risks associated with a firm fixed price contract of this duration?

The primary risks associated with a firm fixed price (FFP) contract of this extended duration (2121 days) revolve around potential cost escalation for the contractor and scope creep management for the government. For the contractor, unforeseen increases in material costs, labor shortages, or regulatory changes over a multi-year period can significantly erode profit margins if not adequately hedged. For the government, the risk lies in managing potential scope changes or modifications, which can become costly under an FFP structure. Effective risk mitigation requires robust contract administration, clear change order processes, and proactive monitoring of market conditions by both parties.

What is the historical spending pattern for student housing construction by the Department of the Navy?

Historical spending patterns for student housing construction by the Department of the Navy would reveal trends in investment in military family housing, barracks, and educational facilities. Analyzing past contracts awarded for similar purposes would indicate the frequency and average value of such projects. This data can help contextualize the $90.6M award, showing whether it represents a typical investment level or a significant increase/decrease in spending for this category. Understanding these patterns can inform future budget allocations and strategic planning for infrastructure development within the Navy.

How effective are the oversight mechanisms for long-term construction projects like this one?

The effectiveness of oversight mechanisms for long-term construction projects hinges on several factors, including the clarity of contract requirements, the diligence of government project managers and inspectors, and the contractor's commitment to quality and schedule. For a project of this magnitude and duration, robust oversight typically involves regular site inspections, progress meetings, review of submittals, and strict adherence to change management protocols. The Department of the Navy would likely employ a dedicated project management team, potentially supplemented by third-party inspectors, to ensure compliance with specifications and identify potential issues early. The success of these mechanisms is often reflected in the project's adherence to budget, schedule, and quality standards.

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: TWO STEP

Solicitation ID: N4008011R0004

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 92101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,614,258

Exercised Options: $90,614,258

Current Obligation: $90,614,258

Subaward Activity

Number of Subawards: 1682

Total Subaward Amount: $3,382,198,994

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline