Harper Construction awarded $72.2M for Camp Pendleton facilities, highlighting significant defense infrastructure investment

Contract Overview

Contract Amount: $72,198,920 ($72.2M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-29

End Date: 2014-10-17

Contract Duration: 1,114 days

Daily Burn Rate: $64.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY11 BEQS P1109 AND P1113 MCB CAMP PENDLETON.

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $72.2 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: FY11 BEQS P1109 AND P1113 MCB CAMP PENDLETON. Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for large-scale construction projects. 3. Risk indicators include project duration and fixed-price nature, requiring careful cost management. 4. Performance context is within a critical military base, demanding high standards. 5. Sector positioning places this contract within the broader defense construction market.

Value Assessment

Rating: good

The contract value of $72.2 million for building construction at Camp Pendleton appears reasonable given the scale and scope of military infrastructure projects. Benchmarking against similar large-scale construction contracts for military bases suggests that the pricing is competitive, especially considering it was awarded under full and open competition. The firm fixed-price contract type also indicates a degree of cost certainty for the government, although it places the cost risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, with 15 bids received. The high number of bidders suggests a healthy and competitive market for this type of construction work. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a wide range of qualified contractors, potentially leading to better pricing and quality.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and encouraged contractors to offer their best value propositions.

Public Impact

Military personnel and their families stationed at Camp Pendleton will benefit from improved facilities. The project delivers essential building construction services, enhancing operational readiness and quality of life. Geographic impact is concentrated at Camp Pendleton, California, supporting regional economic activity. Workforce implications include job creation for construction workers and related trades in the local area.

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 military readiness and operational continuity.
Quality control is critical to ensure long-term durability of constructed facilities.

Positive Signals

Awarded under full and open competition, indicating strong market interest and potential for value.
Firm fixed-price contract provides cost certainty for the government.
Contractor has experience in large-scale construction projects.

Sector Analysis

The defense construction sector is characterized by large, complex projects often awarded through competitive bidding. This contract fits within the broader market for commercial and institutional building construction, specifically tailored to the unique requirements of military installations. Spending in this sector is driven by modernization efforts, infrastructure upgrades, and operational needs of the armed forces. Comparable benchmarks would include other large-scale construction projects at military bases across the country.

Small Business Impact

While this contract was not specifically set aside for small businesses, the competitive nature of the award may have allowed small businesses to participate as subcontractors to the prime contractor, Harper Construction Company, Inc. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements outlined in the contract. Further analysis would be needed to determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with specifications and timelines. Accountability measures are embedded in the firm fixed-price contract, with penalties for delays or non-performance. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Military Construction Program
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Modernization

Risk Flags

Potential for cost overruns due to fixed-price nature.
Risk of schedule delays impacting military operations.
Quality assurance is critical for long-term facility performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.2 million to HARPER CONSTRUCTION COMPANY, INC.. FY11 BEQS P1109 AND P1113 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 $72.2 million.

What is the period of performance?

Start: 2011-09-29. End: 2014-10-17.

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

Harper Construction Company, Inc. has a history of performing large-scale construction projects for the federal government, including significant work for the Department of Defense. Their portfolio often includes barracks, training facilities, and other infrastructure critical to military operations. Reviewing their past performance on similar firm fixed-price contracts, particularly those with durations exceeding one year, would provide insight into their ability to manage complex projects, control costs, and meet delivery schedules. Analyzing award data and past performance evaluations can help assess their reliability and effectiveness as a contractor for projects of this magnitude.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data does not include the initial estimated cost or budget for this project, making a direct comparison impossible. However, the fact that 15 bids were received under full and open competition suggests that the awarded amount of $72.2 million was likely competitive within the market's expectations. In future analyses, obtaining pre-solicitation estimates or budget ceilings would allow for a more thorough assessment of whether the contract was awarded at a favorable price relative to the government's anticipated expenditure. This comparison is crucial for determining the overall value for money achieved.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project?

The primary risk associated with a firm fixed-price (FFP) contract for a multi-year construction project is the transfer of cost overrun risk to the contractor. While this offers cost certainty to the government, it means the contractor must absorb any unexpected increases in labor, materials, or unforeseen site conditions. For the government, the risk shifts to potential contractor default or subpar quality if the contractor struggles to manage costs. Effective risk mitigation involves thorough pre-award site investigations, detailed scope definition, and robust contractor pre-qualification to ensure the chosen firm has the capacity and expertise to manage the inherent risks of an FFP contract over an extended period.

What is the typical duration and complexity of construction projects at major military installations like Camp Pendleton?

Construction projects at major military installations like Camp Pendleton are often complex due to security requirements, site logistics, and the need to minimize disruption to ongoing operations. Durations can vary significantly based on project scope, but large-scale facility construction, such as that implied by a $72.2 million award, typically spans multiple years. Factors contributing to complexity include environmental regulations, coordination with multiple stakeholders (e.g., base command, end-users), and the integration of specialized military-specific systems. The 1114-day duration (approximately 3 years) for this contract is consistent with the scale and complexity expected for such endeavors.

How has federal spending on military construction evolved over the years, and where does this contract fit in?

Federal spending on military construction has historically fluctuated based on geopolitical events, defense strategies, and infrastructure modernization needs. Following periods of significant deployment or base consolidation, there is often an increase in construction spending to upgrade or replace aging facilities. This $72.2 million contract awarded in FY11 falls within a period where the Department of Defense continued to invest in maintaining and improving its global infrastructure. Its size is substantial, indicative of a significant project, and aligns with broader trends of investing in readiness and quality of life for service members.

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: N6247311R0406

Offers Received: 15

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: $72,198,920

Exercised Options: $72,198,920

Current Obligation: $72,198,920

Subaward Activity

Number of Subawards: 752

Total Subaward Amount: $1,172,694,960

Contract Characteristics

Cost or Pricing Data: NO

Timeline