Harper Construction awarded $140.8M for MCB Pendleton building construction, a significant investment in military infrastructure

Contract Overview

Contract Amount: $140,756,065 ($140.8M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-22

End Date: 2012-03-05

Contract Duration: 895 days

Daily Burn Rate: $157.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BEQ PACKAGE 5, P043, P242, P1112, AND P160 MCB CAMP PENDLETON

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $140.8 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: BEQ PACKAGE 5, P043, P242, P1112, AND P160 MCB CAMP PENDLETON Key points: 1. The contract value represents a substantial commitment to facility upgrades at a key Marine Corps base. 2. Analysis of the contract's performance context is crucial to understanding its overall value. 3. Competition dynamics for this large-scale construction project warrant examination to ensure optimal pricing. 4. Risk indicators associated with large construction projects should be monitored throughout the contract lifecycle. 5. The sector positioning of this award reflects ongoing investment in defense-related infrastructure. 6. The firm fixed-price contract type suggests a defined cost structure, though potential for change orders exists.

Value Assessment

Rating: fair

The contract value of approximately $140.8 million for building construction at MCB Pendleton is substantial. Benchmarking this against similar large-scale military construction projects would provide better context for value for money. Without specific details on the scope of work and the number of bids received, a precise assessment of pricing efficiency is challenging. However, the duration of the contract (895 days) suggests a significant undertaking, and the final award amount relative to initial estimates would be a key indicator of cost control.

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. The fact that 21 bids were received suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, which is beneficial for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is obtaining services at a price driven by market forces.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel stationed at Marine Corps Base Pendleton, who will utilize the newly constructed or improved facilities. The services delivered include commercial and institutional building construction, enhancing the operational and living conditions on base. The geographic impact is concentrated at MCB Pendleton in California, a major training and operational hub. The contract supports the construction workforce, including skilled trades and labor, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope changes arise, despite the firm fixed-price structure.
Ensuring timely completion within the 895-day duration is critical to avoid impacting base operations.
Quality control and adherence to construction standards are paramount for the longevity and safety of the facilities.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely secured a fair price.
The firm fixed-price contract type provides cost certainty for the government, assuming effective management of any change orders.
The contractor, Harper Construction Company, Inc., has experience in large-scale construction projects, potentially indicating a lower risk of execution issues.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional buildings, which are essential for military installations. The defense construction sub-sector is characterized by large contract values, stringent security requirements, and often involves complex logistical challenges. Spending in this area is driven by military readiness needs, infrastructure modernization programs, and troop housing requirements. Comparable benchmarks would involve other large military construction awards for barracks, training facilities, or administrative buildings.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors. The prime contractor, Harper Construction Company, Inc., will be responsible for managing any subcontracting opportunities, and the extent to which small businesses are engaged in the supply chain will depend on their specific subcontracting plan and capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with contract terms, specifications, and quality standards. Accountability measures are embedded in the contract clauses, including performance metrics and payment schedules tied to milestones. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Defense Base Realignment and Closure (BRAC) Projects
Naval Facilities Engineering Command (NAVFAC) Contracts
General Services Administration (GSA) Public Buildings Service Contracts

Risk Flags

Potential for cost growth if scope creep occurs.
Risk of schedule delays impacting base operations.
Quality control challenges in large-scale construction.
Contractor performance history requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.8 million to HARPER CONSTRUCTION COMPANY, INC.. BEQ PACKAGE 5, P043, P242, P1112, AND P160 MCB CAMP PENDLETON

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 $140.8 million.

What is the period of performance?

Start: 2009-09-22. End: 2012-03-05.

What is the track record of Harper Construction Company, Inc. on similar large-scale federal construction projects?

Harper Construction Company, Inc. has a history of securing and executing significant federal construction contracts, particularly within the Department of Defense. Their portfolio includes projects such as barracks, training facilities, and administrative buildings for various military branches. Analyzing their past performance on contracts of similar size and complexity, including on-time delivery, budget adherence, and quality of work, would provide insight into their capabilities and reliability for this MCB Pendleton project. Reviewing past performance evaluations and any documented disputes or claims associated with their previous federal awards is essential for a comprehensive assessment of their track record.

How does the awarded amount of $140.8 million compare to the initial estimated cost for this project?

The provided data does not include the initial estimated cost for the BEQ PACKAGE 5, P043, P242, P1112, AND P160 project at MCB Pendleton. To assess value for money, a comparison between the final awarded amount ($140,756,064.76) and the government's independent cost estimate is crucial. If the awarded amount is significantly lower than the estimate, it suggests effective competition and potentially good negotiation. Conversely, if it is close to or exceeds the estimate, further investigation into the scope, market conditions, and bidding environment would be warranted. Without the estimate, it's difficult to definitively gauge the cost-effectiveness of this award.

What are the key performance indicators (KPIs) and quality assurance measures stipulated in the contract?

The contract details provided do not specify the key performance indicators (KPIs) or quality assurance measures. However, for a construction contract of this magnitude, typical KPIs would include adherence to project schedules, budget management, safety compliance, and the quality of workmanship. Quality assurance would likely involve regular inspections by government representatives, material testing, and adherence to detailed architectural and engineering specifications. The firm fixed-price nature of the contract implies that the contractor is responsible for delivering the completed facilities according to these standards, with penalties or withholding of payment for non-compliance.

What is the historical spending trend for similar building construction projects at Marine Corps Base Pendleton?

Historical spending data for building construction at MCB Pendleton is not directly available in the provided data snippet. However, understanding the base's long-term infrastructure development plan and previous capital investment cycles would offer context. Trends in military construction spending are often influenced by congressional appropriations, military readiness requirements, and modernization initiatives. Analyzing aggregate spending on construction at similar large Marine Corps installations over the past decade could provide a broader benchmark for the scale and frequency of such projects.

Were there any significant change orders or contract modifications issued during the performance period?

The provided data does not detail any contract modifications or change orders that may have occurred during the performance period of this contract (September 22, 2009, to March 5, 2012). For a project of this duration and scale, it is common for some modifications to be issued due to unforeseen site conditions, design clarifications, or minor scope adjustments. A review of the contract's official modification history would be necessary to determine if any significant changes impacted the final cost or schedule.

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: N6247309R1208

Offers Received: 21

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

Financial Breakdown

Contract Ceiling: $140,756,065

Exercised Options: $140,756,065

Current Obligation: $140,756,065

Contract Characteristics

Cost or Pricing Data: NO

Timeline