DoD's $52.7M Ammunition Supply Point Upgrade Awarded to Harper Construction

Contract Overview

Contract Amount: $52,697,661 ($52.7M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2024-02-09

Contract Duration: 1,961 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-1310 AMMUNITION SUPPLY POINT UPGRADE

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $52.7 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P-1310 AMMUNITION SUPPLY POINT UPGRADE Key points: 1. Significant investment in critical military infrastructure. 2. Harper Construction, a large business, secured the contract. 3. Full and open competition was utilized. 4. Project duration is substantial at 1961 days.

Value Assessment

Rating: fair

The contract value of $52.7 million for an Ammunition Supply Point Upgrade appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for military facilities is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.

Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure upgrades, aiming for long-term operational efficiency and security.

Public Impact

Enhances readiness and logistical capabilities for the Navy. Supports the storage and handling of ammunition, a critical defense asset. Potential for job creation in the construction sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long project duration could lead to cost overruns or scope creep.
  • Reliance on a single large business contractor.

Positive Signals

  • Awarded through full and open competition.
  • Addresses a critical defense infrastructure need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on geopolitical needs and modernization efforts. Benchmarks for similar large-scale military construction projects are essential for context.

Small Business Impact

The contract was awarded to Harper Construction Company, Inc., a large business. There is no indication that small businesses were subcontracted for this specific award, which could be an area for future consideration.

Oversight & Accountability

The award was a delivery order under a larger contract, implying prior oversight and established terms. Further oversight would focus on project execution, adherence to schedule, and budget management throughout the 1961-day duration.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Long project duration.
  • Contract awarded to a large business.
  • Potential for cost escalation over the project's lifespan.
  • Specific performance metrics and success evaluation methods are not detailed.

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.7 million to HARPER CONSTRUCTION COMPANY, INC.. P-1310 AMMUNITION SUPPLY POINT UPGRADE

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 $52.7 million.

What is the period of performance?

Start: 2018-09-27. End: 2024-02-09.

What is the estimated cost per square foot or per unit of storage capacity for this ammunition supply point upgrade, and how does it compare to industry benchmarks for similar facilities?

Without specific details on the scope of work, such as square footage or storage capacity, a precise cost per unit benchmark is difficult to establish. However, large-scale military construction projects often incur higher costs due to stringent security, specialized requirements, and compliance with defense standards. A detailed cost breakdown and comparison with similar DoD or commercial facilities would be necessary for a thorough assessment.

What are the specific risks associated with the 1961-day duration of this project, and what mitigation strategies are in place?

The extended duration presents risks such as potential material cost escalation, labor availability fluctuations, and evolving technological or security requirements. Mitigation strategies may include fixed-price elements for certain components, regular contract reviews, contingency planning for supply chain disruptions, and phased execution to adapt to changing needs. The Department of the Navy's project management team would be responsible for monitoring and managing these risks.

How effectively will this upgrade enhance the Navy's ammunition readiness and operational capabilities, and what metrics will be used to measure success?

The upgrade is expected to enhance readiness by providing modernized, secure, and efficient storage and handling facilities for ammunition. Success metrics could include reduced response times for ammunition deployment, improved inventory management accuracy, enhanced safety compliance, and increased storage capacity or capability. Post-completion assessments and operational feedback from the end-users will be crucial in measuring the effectiveness of the upgrade.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247316R3201

Offers Received: 5

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: $52,697,661

Exercised Options: $52,697,661

Current Obligation: $52,697,661

Actual Outlays: $25,266,085

Subaward Activity

Number of Subawards: 1408

Total Subaward Amount: $2,529,988,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D0817

IDV Type: IDC

Timeline

Start Date: 2018-09-27

Current End Date: 2024-02-09

Potential End Date: 2024-02-09 00:00:00

Last Modified: 2025-07-21

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