Navy awards $28M contract for Camp Pendleton repairs, highlighting construction needs in California

Contract Overview

Contract Amount: $28,031,640 ($28.0M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2027-01-26

Contract Duration: 1,226 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PE2225M REPAIR BEQ 430405 AT CAMP PENDLETON, CA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: PE2225M REPAIR BEQ 430405 AT CAMP PENDLETON, CA Key points: 1. Contract addresses critical infrastructure repair and maintenance requirements. 2. Competition was robust, suggesting potential for competitive pricing. 3. Project duration indicates a significant, long-term commitment to facility upkeep. 4. Geographic concentration in California may reflect regional infrastructure priorities. 5. Fixed-price contract type shifts risk to the contractor. 6. Contractor has a history of performing similar government construction work.

Value Assessment

Rating: good

The contract value of $28 million for building construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for military installations suggests that this award falls within expected cost ranges. The firm fixed-price structure indicates that the government has negotiated a definitive price, limiting potential cost overruns, provided the scope remains unchanged. Further analysis would involve comparing specific unit costs for materials and labor against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, as it allows a wide range of qualified contractors to participate and encourages competitive pricing. The presence of multiple bidders suggests a healthy market for this type of construction service. The government likely benefited from a competitive bidding process that drove down costs compared to a sole-source or limited competition scenario.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of receiving the best possible price for the required construction services. The five bids indicate that multiple companies vied for the contract, fostering a price-sensitive environment.

Public Impact

Military personnel and their families at Camp Pendleton will benefit from improved facilities. The contract delivers essential repair and maintenance services for critical infrastructure. The geographic impact is concentrated in San Diego County, California. The project will likely create or sustain jobs in the construction sector within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction projects, leading to cost increases.
Reliance on a single contractor for an extended period could limit flexibility.
Construction projects can face unforeseen site conditions or material availability issues.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a competitive price was likely achieved.
Contractor has experience in government construction, indicating capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government spending on infrastructure, particularly for military bases, represents a substantial portion of this sector's revenue. Comparable spending benchmarks for similar repair and renovation projects at large military installations would typically range from tens to hundreds of millions of dollars, depending on the scale and complexity.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the primary awardee is Harper Construction Company, Inc., there is no explicit information on subcontracting plans for small businesses. Further review of the contract documentation would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal contract databases where award information is published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Repair
Department of Defense Construction Contracts
Federal Building Maintenance
Naval Facilities Engineering Command Projects

Risk Flags

Potential for schedule delays due to construction complexity.
Risk of unforeseen site conditions impacting cost and timeline.
Reliance on contractor's ability to manage workforce and resources effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to HARPER CONSTRUCTION COMPANY, INC.. PE2225M REPAIR BEQ 430405 AT CAMP PENDLETON, CA

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 $28.0 million.

What is the period of performance?

Start: 2023-09-18. End: 2027-01-26.

What is the contractor's past performance record with the federal government, particularly on similar construction projects?

Harper Construction Company, Inc. has a history of performing federal construction contracts. While specific details on past performance ratings are not provided in this summary, their selection for a significant project like this suggests they meet the government's criteria for capability and reliability. A deeper dive into their contract history, including any past performance evaluations or disputes, would offer a more comprehensive understanding of their track record. Government agencies typically maintain internal records of contractor performance that inform future award decisions.

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

The provided data does not include the government's initial estimate or budget for this project. The awarded amount of $28,031,640.27 represents the final negotiated price. To assess value for money, this figure would ideally be compared against the government's independent cost estimate. A significant difference between the estimate and the award could indicate issues with the bidding process or the initial estimate's accuracy. Without the estimate, a direct comparison of value is limited.

What are the key performance indicators (KPIs) and deliverables outlined in the contract?

The summary does not detail the specific Key Performance Indicators (KPIs) or deliverables for this contract. However, as a construction project for building repairs, typical deliverables would include completed repair work according to specified standards, adherence to project timelines, and submission of relevant documentation (e.g., progress reports, as-built drawings). Performance would likely be evaluated based on quality of work, timeliness, and compliance with contract terms. The firm fixed-price nature implies that meeting these deliverables within the agreed price is paramount.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or contractor performance issues?

While no specific risks are detailed in the summary, large-scale construction projects inherently carry risks. These can include unforeseen site conditions (e.g., hazardous materials, unexpected structural issues), potential delays in material procurement or delivery, labor shortages, and weather impacts. For this contract, the firm fixed-price structure shifts some financial risk to the contractor, but schedule and performance risks remain. The government's oversight and the contractor's experience are key mitigating factors.

What is the historical spending trend for similar building repair contracts at Camp Pendleton or within the Department of the Navy?

The provided data focuses on a single contract award and does not offer historical spending trends. To analyze this, one would need to examine past contracts for building repair and maintenance at Camp Pendleton and across the Department of the Navy over several fiscal years. This would involve looking at the volume of contracts, average award values, and the frequency of repairs. Such an analysis could reveal patterns in spending, identify recurring needs, and highlight any significant increases or decreases in investment in facility maintenance.

What is the potential impact of this contract on the local economy in San Diego County, California?

This $28 million contract is likely to have a positive impact on the local economy in San Diego County, California. The project will necessitate the hiring of construction workers, potentially creating or sustaining numerous jobs in the region. Furthermore, the contractor will likely procure materials and services from local suppliers, generating additional economic activity. The presence of a large federal contract can also stimulate ancillary services and support industries within the community.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R1237

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: $28,031,640

Exercised Options: $28,031,640

Current Obligation: $28,031,640

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $17,415,619

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