Department of Defense awards $38.6M contract for construction services to Harper Construction Company, Inc

Contract Overview

Contract Amount: $38,647,435 ($38.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-05-23

End Date: 2020-06-22

Contract Duration: 761 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UR C&I MACC II

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85364

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $38.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: UR C&I MACC II Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for construction services, falling under the Commercial and Institutional Building Construction NAICS code. 3. Delivery order awarded under a Multiple Award Construction Contract (MACC) II, indicating a pre-competed framework. 4. The contract duration of 761 days suggests a significant project scope. 5. Fixed-price contract type aims to control costs for the government. 6. The award was made to Harper Construction Company, Inc., with a total award value of approximately $38.6 million.

Value Assessment

Rating: good

The award value of $38.6 million for construction services appears reasonable given the project scope and duration. Benchmarking against similar large-scale construction projects within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price contract type helps mitigate cost overrun risks for the government, contributing to predictable spending.

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 a bid. The presence of 4 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. The multiple bids received suggest that the government secured a competitive price for these construction services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive improved or new facilities. Services delivered include commercial and institutional building construction, likely encompassing new builds, renovations, or repairs. The contract is geographically focused on Arizona (ST: AZ, SN: ARIZONA), impacting local construction markets and labor. This contract will likely create or sustain jobs within the construction sector in Arizona, 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 the fixed-price nature.
Dependence on the contractor's ability to manage complex construction timelines and quality control.
Risk of delays impacting military readiness or operational capabilities if construction is not completed on schedule.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Contract awarded under a pre-competed MACC II framework, suggesting efficiency in procurement.
Multiple bids received (4) indicate market interest and competitive pricing.
Contractor has experience in construction, implied by winning a significant DoD contract.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, frequently awarding large contracts for infrastructure and facility development. Spending in this sector is influenced by government infrastructure needs, economic conditions, and geopolitical factors. Comparable spending benchmarks would involve analyzing other large-scale DoD construction awards or similar projects by other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false, SS: false). Therefore, there are no direct subcontracting requirements mandated for small businesses through a set-aside program. However, the prime contractor, Harper Construction Company, Inc., may voluntarily subcontract portions of the work to small businesses, contributing to the small business ecosystem. The absence of a set-aside means larger firms likely competed for the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting activity. Quality assurance surveillance plans (QASPs) are standard for construction contracts to monitor performance, quality, and compliance. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Construction Contracts
Navy Facilities Engineering Command Contracts
Multiple Award Construction Contracts (MACC)
Commercial and Institutional Building Construction Services

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.6 million to HARPER CONSTRUCTION COMPANY, INC.. UR C&I MACC II

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 $38.6 million.

What is the period of performance?

Start: 2018-05-23. End: 2020-06-22.

What is the track record of Harper Construction Company, Inc. with federal contracts, particularly with the Department of Defense?

Harper Construction Company, Inc. has a history of receiving federal contracts, primarily with the Department of Defense and Department of the Navy. Analysis of available data indicates multiple awards for construction and facility-related services. While this specific contract is for approximately $38.6 million, their broader federal contracting portfolio would need to be examined to fully assess their track record. Key indicators would include past performance reviews, any history of contract disputes or terminations, and the types and scale of projects previously completed for the government. A comprehensive review would involve looking at their on-time delivery rates, adherence to budget, and overall client satisfaction on prior federal engagements.

How does the awarded amount of $38.6 million compare to similar construction contracts awarded by the Department of Defense for projects of comparable scope and complexity?

The $38.6 million award value for construction services needs to be benchmarked against similar projects to assess its value for money. The Department of Defense frequently awards large construction contracts, often through MACC vehicles, for various facility types. Factors influencing cost include project location, specific construction requirements (e.g., specialized infrastructure, seismic retrofitting), and prevailing labor and material costs in the region. A comparison would involve identifying other DoD contracts for institutional or commercial building construction with similar durations (761 days) and award values. If this contract falls within the typical range for such projects, it suggests fair pricing. Conversely, if it is significantly higher or lower than comparable awards, it warrants further investigation into the underlying cost drivers or competitive dynamics.

What are the primary risk indicators associated with this specific contract, considering its fixed-price nature and delivery order structure?

The primary risk indicators for this contract, despite its firm fixed-price nature, include potential for scope creep if modifications are not managed rigorously, and unforeseen site conditions that could lead to change orders, potentially impacting the final cost and schedule. As a delivery order under a MACC II, there's a risk associated with the initial competition for the MACC itself, and whether that competition adequately captured the full range of potential future needs. The 761-day duration also presents schedule risks, including potential delays due to weather, labor availability, or supply chain disruptions. Contractor performance risk is always present, though mitigated by the competitive award process and oversight mechanisms. The fixed-price structure shifts most cost risk to the contractor, but significant overruns could still impact their ability to complete the project.

How effective is the full and open competition process in ensuring competitive pricing for large construction contracts like this one?

The full and open competition process is generally considered the most effective method for ensuring competitive pricing for large construction contracts. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The fact that four bids were received for this $38.6 million contract suggests that the process was successful in attracting multiple interested parties. This competition drives down prices as contractors vie for the award. However, the effectiveness can be influenced by factors such as the clarity of the solicitation requirements, the complexity of the project, and the overall market conditions for construction services. In this case, the competitive award indicates that the process likely yielded a fair market price.

What are the implications of this contract being awarded under a Multiple Award Construction Contract (MACC) II framework?

Awarding this contract under a MACC II framework implies that the initial competition for the MACC itself established a pool of pre-qualified contractors capable of performing a wide range of construction services. This approach streamlines the procurement process for subsequent task orders or delivery orders, as much of the vetting and initial competition has already occurred. For this specific $38.6 million delivery order, the competition was likely focused on the technical approach, price, and specific qualifications relevant to this particular project among the MACC holders. This can lead to faster award times and potentially more efficient project execution compared to a standalone full and open competition for each individual project. It also suggests a long-term relationship or framework for ongoing construction needs.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Navy in Arizona?

Analyzing historical spending patterns for commercial and institutional building construction by the Department of the Navy in Arizona would provide context for this $38.6 million award. This involves examining past contract awards within the same NAICS code (236220) and geographic region over several fiscal years. Key metrics to review would include the total annual spending, the average award value, the number of contracts awarded, and the primary contractors receiving these awards. Understanding these trends can help determine if this contract represents a typical level of investment, an increase, or a decrease in spending for such services in Arizona. It can also highlight any shifts in contracting strategies or the types of construction projects being prioritized by the Navy in the region.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247315R2434

Offers Received: 4

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: $38,647,435

Exercised Options: $38,647,435

Current Obligation: $38,647,435

Subaward Activity

Number of Subawards: 953

Total Subaward Amount: $899,116,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247316D1881

IDV Type: IDC

Timeline