Department of the Navy awards $21.6M MACC contract to Harper Construction for engine repair facilities

Contract Overview

Contract Amount: $21,618,443 ($21.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2026-01-12

Contract Duration: 641 days

Daily Burn Rate: $33.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB CONSTRUCTION MACC AWARD OF TO P254 F35 CENTRALIZED ENGINE REPAI

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92126

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: DB CONSTRUCTION MACC AWARD OF TO P254 F35 CENTRALIZED ENGINE REPAI Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Performance period of 641 days indicates a medium-term project. 4. The contract is for commercial and institutional building construction, specifically engine repair facilities. 5. Awarded by the Department of the Navy, indicating a focus on naval infrastructure. 6. The contract value of over $21 million represents a significant investment in facility upgrades.

Value Assessment

Rating: good

The contract value of $21.6 million for engine repair facilities appears reasonable given the scope of construction. Benchmarking against similar MACC (Multiple Award Construction Contract) awards for specialized facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns. However, without detailed cost breakdowns or comparisons to similar projects, 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, meaning all responsible sources were permitted to submit bids. The presence of 7 bidders indicates a healthy level of competition for this type of construction work. A competitive process generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the government received competitive proposals.

Public Impact

Naval personnel and operations will benefit from improved engine repair facilities. The contract supports the construction of specialized infrastructure critical for military readiness. The project is geographically located in California, potentially impacting the local construction workforce. The delivery order contributes to the modernization of defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in construction projects of this magnitude.
Ensuring the specialized nature of engine repair facilities meets all operational requirements.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, indicating a competitive market.
The contractor has a track record with the government, suggesting familiarity with requirements.

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, with substantial annual spending on facilities maintenance and upgrades. This award represents a specific investment in specialized repair infrastructure, contributing to the overall defense construction market.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a 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 award notice. Further review of the contract details would be needed to assess small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. The firm-fixed-price nature of the delivery order provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight mechanisms are not publicly detailed in this award notice.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Defense Infrastructure Projects
Military Construction Contracts
Base Realignment and Closure (BRAC) Facilities

Risk Flags

Potential for cost overruns if scope is not fully defined.
Risk of schedule delays impacting operational readiness.
Ensuring specialized facility requirements are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to HARPER CONSTRUCTION COMPANY, INC.. DB CONSTRUCTION MACC AWARD OF TO P254 F35 CENTRALIZED ENGINE REPAI

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 $21.6 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-01-12.

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

Harper Construction Company, Inc. has a history of contracts with the Department of Defense, as indicated by the presence of 7 bidders in this procurement, suggesting they are an established entity in this space. While this specific award notice doesn't detail their entire contract history, their participation in competitive bids for significant projects implies a level of experience and capability. Further investigation into their past performance ratings, previous contract values, and types of projects completed for the DoD would provide a more comprehensive understanding of their track record and reliability for complex construction tasks like specialized engine repair facilities.

How does the awarded price of $21.6 million compare to similar engine repair facility construction projects?

Benchmarking the $21.6 million award against similar engine repair facility construction projects is crucial for assessing value for money. Without access to a database of comparable projects with detailed cost breakdowns, a precise comparison is difficult. However, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price based on expected costs and a reasonable profit margin. Factors such as facility size, complexity of required systems (e.g., specialized ventilation, heavy machinery integration), location-specific labor and material costs, and the specific engine types to be serviced would all influence the overall project cost. A detailed cost analysis by the contracting officer would have been performed prior to award.

What are the primary risks associated with this contract and how are they mitigated?

Primary risks for this construction contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, and cost overruns if the firm-fixed-price contract does not adequately account for all contingencies. Mitigation strategies likely include robust project management by the Navy, clear contract specifications, performance bonds from the contractor, and regular progress reviews. The firm-fixed-price structure itself is a risk mitigation tool for the government, shifting much of the cost overrun risk to the contractor. The contractor's experience and the competitive bidding process also serve to mitigate risks by selecting a capable and competitively priced vendor.

How effective is the firm-fixed-price contract type in ensuring value for the government in construction projects?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value in construction projects when the scope of work is well-defined and risks are understood. It provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. This incentivizes the contractor to manage their costs efficiently and complete the project within budget. For the government, it simplifies financial management and reduces the risk of unexpected cost increases. However, if the scope is not adequately defined, contractors may build in significant contingencies, potentially leading to a higher initial price, or scope creep can lead to costly change orders.

What are the historical spending patterns for similar construction contracts by the Department of the Navy?

Historical spending patterns for similar construction contracts by the Department of the Navy typically show significant investment in infrastructure, including repair facilities, barracks, training centers, and operational buildings. The Navy, through entities like the Naval Facilities Engineering Command (NAVFAC), awards numerous construction contracts annually, often in the hundreds of millions or billions of dollars across various categories. Spending often fluctuates based on military readiness needs, modernization initiatives, and infrastructure replacement cycles. Contracts for specialized facilities like engine repair bays are recurring needs, reflecting the ongoing maintenance and operational demands of the naval fleet.

What is the significance of the contract being a Delivery Order under a MACC?

This contract being a Delivery Order (DO) under a Multiple Award Construction Contract (MACC) signifies a streamlined procurement process for specific construction needs. A MACC establishes pre-qualified contractors who can compete for task orders (like this delivery order) over a set period. This approach allows the government to award individual projects more quickly and efficiently than starting a new full and open competition for each one. It leverages the pre-competition of the MACC to ensure a pool of capable contractors is available, and then uses further competition among those awardees (or in this case, potentially a directed order if the MACC structure allows) to secure the best value for each specific task.

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: 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: $21,618,443

Exercised Options: $21,618,443

Current Obligation: $21,618,443

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $12,457,509

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