Department of Defense awarded Harper Construction $75M for courthouse construction at Camp Lejeune

Contract Overview

Contract Amount: $74,983,034 ($75.0M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-31

End Date: 2014-06-24

Contract Duration: 1,028 days

Daily Burn Rate: $72.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-1251&P-1254 BEQ'S COURT HOUSE BAY, MCB, CAMP LEJEUNE, NC. DESIGN BUILD PROJECTS.

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P-1251&P-1254 BEQ'S COURT HOUSE BAY, MCB, CAMP LEJEUNE, NC. DESIGN BUILD PROJECTS. Key points: 1. The contract value of $75 million represents a significant investment in military infrastructure. 2. Harper Construction Company, Inc. secured this award through full and open competition. 3. The firm fixed-price contract type suggests a defined scope and cost control measures. 4. The project duration of approximately 3 years indicates a substantial construction undertaking. 5. The contract was awarded by the Department of the Navy, a key component of the DoD. 6. The North Carolina location places the project within a region with active military installations.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on construction costs for similar courthouse facilities. The base contract value of $75 million is substantial, but without specific cost breakdowns for labor, materials, and overhead, a precise value-for-money assessment is difficult. The award amount of $72,941,000 is close to the initial estimate, suggesting reasonable pricing, but further analysis of the final cost against industry benchmarks for courthouse construction would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 33 bids suggests a robust competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process for this significant construction project likely resulted in a lower price for taxpayers compared to a sole-source award.

Public Impact

Military personnel and civilian staff at Camp Lejeune will benefit from improved courthouse facilities. The project delivers essential design and build services for a critical government function. The geographic impact is concentrated at Marine Corps Base Camp Lejeune in North Carolina. The construction project will likely create numerous jobs in the local and regional workforce during its duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of schedule delays impacting the operational readiness of the courthouse.
Ensuring compliance with all environmental and building codes throughout the construction process.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
Harper Construction Company, Inc. has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The Department of Defense is a significant client for construction services, with substantial annual spending on infrastructure projects globally. Comparable spending benchmarks for military construction projects of this scale can vary widely based on location, complexity, and specific requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Harper Construction Company, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, which places the financial risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be publicly available.

Related Government Programs

Military Construction
Courthouse Construction
Department of Defense Facilities
Design-Build Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Need for robust oversight to manage scope changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to HARPER CONSTRUCTION COMPANY, INC.. P-1251&P-1254 BEQ'S COURT HOUSE BAY, MCB, CAMP LEJEUNE, NC. DESIGN BUILD PROJECTS.

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 $75.0 million.

What is the period of performance?

Start: 2011-08-31. End: 2014-06-24.

What is Harper Construction Company, Inc.'s track record with similar large-scale government construction projects?

Harper Construction Company, Inc. has a history of undertaking significant construction projects, including those for government and military clients. While specific details on past courthouse projects are not provided in this data snippet, their involvement in large-scale design-build endeavors suggests they possess the capacity and experience required for a project of this magnitude. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous projects, would offer a more comprehensive understanding of their reliability and expertise in delivering complex federal construction contracts.

How does the awarded amount compare to the initial estimated cost for this courthouse construction?

The provided data indicates an award amount of $72,941,000 against a base contract value of $74,983,033.61. This suggests that the final awarded price was slightly lower than the initial estimated value, which could be attributed to competitive bidding or negotiations. Without knowing the initial estimate or the breakdown of the base contract value, it's difficult to definitively assess the efficiency of the pricing. However, the award being close to the stated contract value implies a well-defined scope and successful negotiation.

What are the primary risk indicators associated with this type of firm fixed-price construction contract?

Firm fixed-price contracts, while offering cost certainty, carry inherent risks, primarily related to scope creep and unforeseen conditions. If the project scope expands beyond the initial agreement without proper change order management, the contractor may incur significant losses, potentially leading to disputes or quality compromises. Unforeseen site conditions (e.g., soil issues, hazardous materials) can also dramatically increase costs and timelines, placing financial strain on the contractor. Effective risk mitigation relies on thorough initial site investigations, robust contract language, and diligent oversight to manage changes and address any emergent issues promptly.

What is the expected effectiveness of the new courthouse facilities at Camp Lejeune?

The effectiveness of the new courthouse facilities at Camp Lejeune is expected to be high, primarily by providing a modern, secure, and functional space for judicial proceedings and administrative operations within the military base. Improved infrastructure can lead to increased efficiency for legal staff, better accessibility for service members and their families involved in legal matters, and enhanced security protocols. The design-build nature of the contract suggests that the facility will be tailored to the specific operational needs of the base, maximizing its utility and long-term effectiveness.

How has federal spending on courthouse construction at military installations trended over the past decade?

Federal spending on courthouse construction at military installations has likely seen fluctuations over the past decade, influenced by factors such as military readiness needs, base realignment and closure initiatives, and overall defense budgets. While specific aggregate data for courthouse construction is not readily available, the Department of Defense consistently invests billions annually in infrastructure projects, including facilities that support legal and administrative functions. Trends may show increased investment during periods of heightened security concerns or significant military force posture changes, and potentially decreased spending during budget austerity periods. This specific contract represents a notable investment in a critical facility type.

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: N4008511R4009

Offers Received: 33

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,983,034

Exercised Options: $74,983,034

Current Obligation: $74,983,034

Subaward Activity

Number of Subawards: 931

Total Subaward Amount: $1,581,707,062

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline