Navy awards $46.3M for Twentynine Palms Operations Center, highlighting construction sector activity

Contract Overview

Contract Amount: $46,335,933 ($46.3M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2010-08-25

Contract Duration: 699 days

Daily Burn Rate: $66.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-915 & P-916 TWO MULTI-BATTALION OPS CENTER AT TWENTYNINE PALMS, CA.

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P-915 & P-916 TWO MULTI-BATTALION OPS CENTER AT TWENTYNINE PALMS, CA. Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Competition dynamics suggest a healthy market for construction services in the region. 3. Project duration of 699 days indicates a substantial construction undertaking. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Geographic focus on Twentynine Palms, CA, points to specific regional defense needs. 6. The award falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $46.3 million for two multi-battalion operations centers appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of predictable costs, but actual value depends on the final quality and adherence to schedule.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With seven bidders participating, the competition level appears robust, suggesting that the Navy received a range of proposals and pricing. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive bidding process for this construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Navy and the Marines stationed at Twentynine Palms, who will gain enhanced operational facilities. The contract delivers the construction of two multi-battalion operations centers, crucial for command and control functions. The geographic impact is concentrated in Twentynine Palms, California, supporting the Marine Corps Air Ground Combat Center. The project will likely create numerous jobs in the construction sector within California, benefiting skilled trades and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Schedule delays could impact operational readiness if construction timelines are not met.
Quality control during a large-scale construction project requires diligent oversight.

Positive Signals

Full and open competition suggests a competitive market and potentially better pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Award to an established construction company with experience in government contracts.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the U.S. economy. Federal spending in this area often supports critical infrastructure for defense, education, and public services. The market for large-scale construction is competitive, with numerous firms capable of undertaking projects of this magnitude. Benchmarks for similar military construction projects would indicate if this award aligns with typical spending patterns.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Harper Construction Company, Inc. is a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses within the ecosystem.

Oversight & Accountability

Oversight for this construction contract would typically involve the Department of the Navy's contracting officers and potentially the Naval Facilities Engineering Command (NAVFAC). Quality assurance representatives would monitor construction progress and adherence to specifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Infrastructure Projects
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Need for stringent quality assurance during construction.
Contractor financial stability during a long-term project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to HARPER CONSTRUCTION COMPANY, INC.. P-915 & P-916 TWO MULTI-BATTALION OPS CENTER AT TWENTYNINE PALMS, CA.

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 $46.3 million.

What is the period of performance?

Start: 2008-09-25. End: 2010-08-25.

What is Harper Construction Company, Inc.'s track record with similar Department of Defense contracts?

Harper Construction Company, Inc. has a history of performing construction work for the Department of Defense. A review of their contract history would reveal the types and scale of projects they have completed, their performance ratings on past contracts, and any instances of disputes or contract modifications. This information is crucial for assessing their capability and reliability in executing the Twentynine Palms Operations Center project. Their experience with firm fixed-price contracts and projects of similar complexity would be particularly relevant.

How does the awarded amount compare to the average cost of similar military construction projects?

The $46.3 million award for two multi-battalion operations centers needs to be benchmarked against comparable projects. Factors such as square footage, complexity of systems (e.g., IT, security), site conditions, and geographic location significantly influence construction costs. Without specific details on the size and features of these operations centers, a direct comparison is difficult. However, the number of bidders (seven) suggests a competitive environment that likely drove the price towards market rates for similar facilities.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risk with a firm fixed-price contract lies with the contractor, Harper Construction Company, Inc. They bear the responsibility for cost overruns if their estimates prove inaccurate or if unforeseen issues arise during construction. However, risks to the government include potential compromises in quality or schedule if the contractor struggles financially or operationally to meet the fixed price. Diligent oversight by the Navy is essential to mitigate these risks and ensure the project is completed to specification and on time.

How effective is the full and open competition process in ensuring value for this type of construction contract?

The full and open competition process is generally considered highly effective in ensuring value for construction contracts. By allowing all qualified sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of seven bidders in this case indicates a healthy market response. This process increases the likelihood that the government secures the best possible price and quality for the required services, thereby maximizing taxpayer value.

What is the historical spending trend for similar construction projects at the Twentynine Palms base?

Analyzing historical spending for similar construction projects at the Twentynine Palms base would provide context for the $46.3 million award. This would involve examining past contracts for barracks, training facilities, or administrative buildings awarded over several years. Trends in contract values, competition levels, and contractor performance could reveal patterns related to construction costs in that specific geographic region and for military-specific infrastructure. Such analysis helps in assessing whether current spending is consistent with historical norms or indicates significant price changes.

What are the implications of the 699-day duration for project management and operational impact?

A duration of 699 days (approximately 23 months) for constructing two multi-battalion operations centers signifies a large-scale, complex project. This extended timeline requires robust project management from both the contractor and the Navy to ensure adherence to schedule and budget. For the Navy, the extended duration means that the operational benefits of these new facilities will be realized over a longer period. It also necessitates careful planning to manage the transition and ensure continuity of operations during the construction phase.

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: N6247308R2201

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 90

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: $46,335,933

Exercised Options: $46,335,933

Current Obligation: $46,335,933

Contract Characteristics

Cost or Pricing Data: NO

Timeline