Department of the Navy awards $34.2M renovation contract to Harper Construction, highlighting commercial building construction needs

Contract Overview

Contract Amount: $34,242,912 ($34.2M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2025-10-07

Contract Duration: 746 days

Daily Burn Rate: $45.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM09-0330: BQ RENOVATION, PM232

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: RM09-0330: BQ RENOVATION, PM232 Key points: 1. Contract value of $34.2 million for renovation services indicates significant investment in facility upgrades. 2. Full and open competition suggests a robust market for construction services, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient project completion. 4. A duration of 746 days points to a substantial and complex renovation project. 5. The contract falls under commercial and institutional building construction, a key sector for infrastructure maintenance and development. 6. Awarded by the Department of the Navy, this contract supports military readiness and operational infrastructure.

Value Assessment

Rating: good

The contract value of $34.2 million for a 746-day renovation project appears reasonable within the context of large-scale construction. Benchmarking against similar Department of Defense renovation projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the scope of work, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a healthy level of competition for this project. This competitive environment is expected to drive down costs and ensure the government receives a fair price for the renovation services.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more cost-effective solutions and a wider range of innovative approaches from contractors.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the renovated facilities. The contract delivers essential renovation and construction services to improve existing infrastructure. The geographic impact is localized to California, where the renovation will take place. The project will likely involve a workforce of construction laborers, tradespeople, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the renovation requirements are not precisely defined and managed.
Risk of delays due to unforeseen site conditions or material availability issues.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm fixed-price contract mitigates cost escalation risks for the government.
Full and open competition suggests a competitive market, likely resulting in a fair price.
Awarded by a major federal agency (Department of Defense) indicates adherence to established procurement processes.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the construction industry focused on non-residential structures. The total federal spending in this sector can be substantial, supporting military bases, government facilities, and other public infrastructure. This specific award represents a portion of the Department of Defense's ongoing investment in maintaining and upgrading its physical assets, ensuring operational readiness and suitable working environments for service members.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor is Harper Construction Company, Inc., there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services within the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided in this data.

Related Government Programs

Department of Defense Facility Renovation Projects
Naval Base Infrastructure Improvements
Commercial Building Construction Services
Federal Construction Contracts
Military Construction Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays due to supply chain disruptions or labor shortages.
Ensuring adequate quality control throughout the extensive renovation process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to HARPER CONSTRUCTION COMPANY, INC.. RM09-0330: BQ RENOVATION, PM232

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 $34.2 million.

What is the period of performance?

Start: 2023-09-22. End: 2025-10-07.

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

Harper Construction Company, Inc. has a history of performing federal construction contracts. While specific details on their track record with the Department of Defense are not provided in this data snippet, their ability to win a $34.2 million renovation contract suggests they have met the necessary qualifications and demonstrated past performance. A deeper dive into federal procurement databases like SAM.gov or FPDS would reveal the number and value of their previous awards, any past performance issues, and their specialization within the construction sector. This information is crucial for assessing their reliability and capability to execute the current project successfully.

How does the awarded amount of $34.2 million compare to similar renovation projects undertaken by the Department of the Navy or other federal agencies?

The awarded amount of $34.2 million for a 746-day renovation project is substantial and suggests a significant scope of work. To benchmark its value, one would compare it to similar renovation contracts for institutional or commercial buildings awarded by the Department of the Navy or other agencies like the General Services Administration (GSA) or the Army Corps of Engineers. Factors such as the size of the facility, the complexity of the renovations (e.g., structural, MEP, finishes), and the geographic location (which impacts labor and material costs) are critical for a fair comparison. Without these specific details, it's difficult to definitively state if $34.2 million represents excellent, fair, or questionable value, but it falls within the range of major federal construction projects.

What are the primary risks associated with a firm fixed-price contract for a long-duration renovation project like this?

The primary risk for the government in a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise, especially over a long duration like 746 days. For the contractor, the risk is absorbing cost overruns if material prices increase significantly, labor becomes more expensive than anticipated, or unexpected site conditions necessitate additional work not covered by the initial scope. Effective project management, clear contract specifications, and robust oversight are essential to mitigate these risks for both parties and ensure the project's successful completion according to requirements.

What is the expected impact of this renovation on the operational readiness and functionality of the Department of the Navy facility?

This renovation is expected to significantly enhance the operational readiness and functionality of the targeted Department of the Navy facility. By addressing aging infrastructure, modernizing systems (potentially HVAC, electrical, plumbing), and improving the overall condition of the building, the project aims to create a safer, more efficient, and more conducive environment for military operations and personnel. Improved facilities can lead to better morale, increased productivity, and reduced maintenance issues in the future, directly supporting the Navy's mission readiness.

How has federal spending on commercial and institutional building construction evolved over the past five years, and where does this contract fit in?

Federal spending on commercial and institutional building construction has generally seen fluctuations driven by infrastructure needs, military base modernizations, and agency facility upgrades. Over the past five years, there has been a consistent demand for such services, particularly within the Department of Defense. This $34.2 million contract for a renovation project fits within this ongoing trend of investment in maintaining and improving federal real property assets. It represents a specific allocation of funds to address the needs of a particular facility, contributing to the overall federal expenditure in this construction sub-sector.

What are the potential implications of awarding this contract to Harper Construction Company, Inc. regarding future competition for similar projects?

Awarding this significant contract to Harper Construction Company, Inc. could have several implications for future competition. If they perform exceptionally well, it strengthens their reputation and increases their likelihood of winning future contracts, potentially making them a dominant player in certain regions or project types. Conversely, if they encounter significant issues, it could deter future awards. The fact that it was competed under full and open competition suggests a healthy market, and other capable firms will likely continue to compete vigorously for similar opportunities, especially if Harper's performance is average or subpar.

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: 3

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: $34,242,912

Exercised Options: $34,242,912

Current Obligation: $34,242,912

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $22,436,764

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