Navy awards $62.9M contract for SKYTOP FIRING BAYS to Harper Construction, emphasizing full and open competition

Contract Overview

Contract Amount: $62,888,865 ($62.9M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-10

End Date: 2024-06-17

Contract Duration: 1,103 days

Daily Burn Rate: $57.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P1922 - SKYTOP FIRING BAYS

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $62.9 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P1922 - SKYTOP FIRING BAYS Key points: 1. Contract value of $62.9 million for construction services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates price certainty for the government. 4. Delivery Order awarded against a larger contract vehicle. 5. Project duration of 1103 days spans nearly three years. 6. Located in California, potentially impacting local construction workforce and economy.

Value Assessment

Rating: good

The contract value of $62.9 million for commercial and institutional building construction appears reasonable given the project scope and duration. Benchmarking against similar large-scale construction projects for the Department of Defense would provide a more precise value-for-money assessment. The firm fixed price structure helps mitigate cost overrun risks for the government, contributing to a more predictable expenditure.

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 presence of 4 bids suggests a healthy level of competition for this project. A competitive 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. It provides assurance that the selected contractor offers the best value considering both cost and technical aspects.

Public Impact

The Department of the Navy benefits from the construction of essential firing bay facilities. The project supports military readiness and training capabilities. Construction activities will likely create jobs within the local California construction sector. The project's completion will enhance the infrastructure at the specified Navy facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost increases if unforeseen site conditions arise, despite fixed-price contract.
Dependence on the contractor's ability to manage a complex, multi-year project.

Positive Signals

Firm Fixed Price contract mitigates cost escalation risks.
Full and open competition suggests a competitive award process.
Awarded to a contractor with experience in commercial and institutional building construction.
Project duration allows for phased construction and integration.

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 development and facility upgrades. Benchmarking this $62.9 million award against other similar military construction projects would provide context on its scale within the sector.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Harper Construction Company, Inc., there is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a Delivery Order under a larger contract vehicle, oversight may be managed at the agency level (Department of the Navy). The firm fixed price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though specific project oversight details are not provided.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Contracts
Department of Defense Construction Projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions impacting cost
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.9 million to HARPER CONSTRUCTION COMPANY, INC.. P1922 - SKYTOP FIRING BAYS

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 $62.9 million.

What is the period of performance?

Start: 2021-06-10. End: 2024-06-17.

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 securing federal contracts, primarily with the Department of Defense. Their portfolio includes various construction projects, ranging from barracks and training facilities to administrative buildings. Analyzing their past performance on similar-sized projects, including adherence to schedules and budgets, would provide insight into their reliability for the SKYTOP FIRING BAYS project. Specific data on past contract awards, completion timeliness, and any performance issues or disputes would be crucial for a comprehensive assessment of their track record.

How does the $62.9 million award compare to similar firing bay construction projects for the Navy or other military branches?

Benchmarking the $62.9 million award requires comparing it to similar projects in terms of scope, size, location, and complexity. Firing bays can vary significantly in their technological requirements and construction standards. A direct comparison to other recently awarded Navy or DoD contracts for similar facilities would reveal if this price is within the expected range. Factors such as prevailing construction costs in California, specific security requirements, and the inclusion of specialized equipment in the contract would influence the overall cost and make direct comparisons challenging without detailed project specifications.

What are the primary risks associated with a multi-year, firm-fixed-price construction contract of this magnitude?

The primary risks associated with a multi-year, firm-fixed-price construction contract of this magnitude include potential cost overruns due to unforeseen site conditions, material price escalations beyond contract allowances, or labor shortages, despite the fixed-price nature. Schedule delays are also a significant risk, which can impact operational readiness and incur penalties. Contractor performance risk, including quality of work and adherence to specifications, is another key concern. Furthermore, the government bears the risk if the scope of work needs to change significantly, potentially leading to change orders that could increase the total contract value.

What is the expected impact of this contract on the local construction labor market in California?

This $62.9 million contract for the SKYTOP FIRING BAYS is expected to have a positive impact on the local construction labor market in California. Projects of this scale typically require a substantial workforce, including skilled trades such as carpenters, electricians, plumbers, and heavy equipment operators, as well as project managers and support staff. The multi-year duration of the project (1103 days) suggests sustained employment opportunities. The demand generated by this contract could lead to increased hiring, potentially boosting local employment rates and contributing to the regional economy through wages and associated spending.

How does the 'full and open competition' award mechanism influence the final price and quality of the delivered facility?

The 'full and open competition' award mechanism is designed to foster a competitive environment where multiple qualified contractors can bid on the project. This typically drives down the price as contractors strive to offer the most competitive bids to win the contract. It also encourages higher quality by allowing the government to evaluate not only price but also technical proposals, past performance, and other factors. The expectation is that this process leads to the best value for the government, securing a facility that meets requirements at a reasonable cost, as evidenced by the 4 bids received in this instance.

What are the potential long-term implications for military training and readiness resulting from these new firing bays?

The construction of new firing bays under this contract is intended to enhance military training capabilities and readiness. Modernized or expanded firing facilities can accommodate advanced training scenarios, improve safety, and potentially increase the capacity for personnel to qualify and maintain proficiency with various weapon systems. This directly supports the Navy's mission by ensuring service members are adequately trained. The long-term implications include improved combat effectiveness, better retention of skilled personnel who value quality training environments, and the ability to adapt training protocols to evolving military technologies and threats.

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: N6247319R1237

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: $62,888,865

Exercised Options: $62,888,865

Current Obligation: $62,888,865

Actual Outlays: $42,060,778

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $43,919,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1206

IDV Type: IDC

Timeline