DoD's $45.9M Marine Corps facility contract awarded to Harper Construction shows fair value with 7 bidders

Contract Overview

Contract Amount: $45,892,699 ($45.9M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-02

End Date: 2023-02-21

Contract Duration: 1,391 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-1901 AAV-ACV MAINTENANCE FACILITY 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 $45.9 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF P-1901 AAV-ACV MAINTENANCE FACILITY MCB CAMP PENDLETON Key points: 1. The contract's value appears reasonable given the scope of construction services. 2. Robust competition with seven bidders suggests effective price discovery. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over nearly four years, indicating a substantial project timeline. 5. This contract falls within the broader Defense sector's construction spending. 6. The project's location in California may influence labor and material costs.

Value Assessment

Rating: good

The contract's total value of approximately $45.9 million for a large-scale construction project appears to be within a reasonable range for commercial and institutional building construction. Benchmarking against similar large military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally indicates that the contractor bears the risk of cost increases, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally considered healthy and suggests that multiple capable contractors had the opportunity to bid, leading to a more competitive pricing environment. The presence of seven bidders indicates a good market response and likely contributed to achieving a fair market price.

Taxpayer Impact: The strong competition ensures that taxpayer dollars were likely used efficiently, as the government received multiple proposals and could select the best value offer. This competitive process helps prevent inflated pricing and promotes cost savings.

Public Impact

The primary beneficiary is the U.S. Marine Corps, receiving a new or improved maintenance facility. The contract delivers essential infrastructure supporting military readiness and operations at Camp Pendleton. The geographic impact is concentrated in San Diego County, California. The project likely created numerous jobs in the construction sector, including skilled trades and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring change orders.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract limits government exposure to cost overruns.
Full and open competition suggests a competitive pricing environment.
Award to an established construction company with relevant experience.

Sector Analysis

This contract falls within the broader construction industry, specifically commercial and institutional building construction, which is a significant segment of federal spending. The Department of Defense is a major client for construction services, awarding numerous contracts for military bases, facilities, and infrastructure. Comparable spending benchmarks for similar-sized military construction projects would indicate if this contract's value is aligned with market rates.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Harper Construction Company, Inc. is a large business, there is no specific information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors and the extent of their participation in this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, with potential involvement from the Naval Criminal Investigative Service (NCIS) or the Department of Defense Office of Inspector General (DoD OIG) for audits or investigations. Transparency is generally maintained through contract award databases like FPDS. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight compared to cost-reimbursement contracts.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Sustainment, Restoration, and Modernization (FSRM)

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of quality control issues in a large-scale construction project.
Dependency on timely delivery of materials and specialized labor.
Impact of regulatory changes or environmental compliance challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to HARPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF P-1901 AAV-ACV MAINTENANCE FACILITY 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 $45.9 million.

What is the period of performance?

Start: 2019-05-02. End: 2023-02-21.

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

Harper Construction Company, Inc. has a significant history of performing federal construction contracts, primarily with the Department of Defense and other agencies like the General Services Administration. Their portfolio includes a variety of projects such as barracks, training facilities, and administrative buildings at military installations across the United States. Reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, quality of work, and adherence to schedule and budget on previous projects. Their experience with similar-sized projects and contract types (like firm-fixed-price) suggests a capability to handle the scope and complexity of the IGF::OT::IGF P-1901 contract.

How does the awarded price of $45.9 million compare to similar large-scale military construction projects?

Directly comparing the $45.9 million award to similar projects requires access to a database of comparable construction contracts, including project scope, location, and specific construction types. However, for a large facility maintenance and construction project at a major Marine Corps base like Camp Pendleton, this figure appears within a plausible range. Factors influencing cost include the specific building systems, site preparation requirements, local labor rates, and material costs in Southern California. Without detailed project specifications and benchmark data for similar military construction projects, a precise value-for-money assessment is challenging, but the competitive bidding process suggests the price was market-driven.

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

While firm-fixed-price (FFP) contracts are generally favored for controlling costs, they carry specific risks for both the government and the contractor, especially on long-duration projects. For the government, the primary risk is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise, potentially leading to latent defects or reduced lifespan of the facility. Conversely, the contractor bears the risk of cost overruns due to inflation, labor shortages, or unexpected site conditions. Effective government oversight is crucial to monitor quality and ensure compliance with contract specifications, mitigating the risk of substandard work.

What is the expected effectiveness and impact of the AAV-ACV Maintenance Facility on Marine Corps operations?

The AAV-ACV Maintenance Facility at MCB Camp Pendleton is designed to provide essential infrastructure for the maintenance, repair, and readiness of Amphibious Assault Vehicles (AAVs) and potentially Armored Combat Vehicles (ACVs). Its effectiveness hinges on its design, functionality, and the quality of construction. A well-equipped and properly maintained facility directly supports the operational readiness of these critical platforms by ensuring they are mission-capable. The impact is significant, enabling the Marine Corps to sustain its combat power and execute its training and deployment missions more efficiently and effectively.

How has federal spending on military construction and facilities maintenance evolved over the past five years?

Federal spending on military construction and facilities maintenance has generally remained robust, driven by the need to modernize aging infrastructure, adapt to new weapon systems, and maintain operational readiness across all branches of the armed forces. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the Department of Defense consistently represents a substantial portion of federal construction outlays. Factors such as geopolitical tensions, technological advancements requiring new types of facilities, and deferred maintenance backlogs contribute to sustained investment in this category. Analyzing trends requires examining specific budget requests and enacted appropriations for Military Construction, Defense (MILCON) accounts.

What does the presence of seven bidders signify regarding the market for large-scale military construction contracts?

The fact that seven bids were received for this contract signifies a healthy and competitive market for large-scale military construction projects in the relevant geographic area. It indicates that there are multiple capable contractors with the capacity, expertise, and resources to undertake projects of this magnitude. A higher number of bidders generally leads to more competitive pricing, as contractors vie for the award. It also suggests that the government's solicitation was well-structured and accessible, attracting a broad range of interested parties and increasing the likelihood of selecting the best value proposal for the taxpayer.

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: N6247316R1868

Offers Received: 7

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: $45,892,699

Exercised Options: $45,892,699

Current Obligation: $45,892,699

Subaward Activity

Number of Subawards: 1421

Total Subaward Amount: $1,286,790,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247318D5853

IDV Type: IDC

Timeline