DoD awards $41.3M for combat training tank construction, highlighting construction sector activity

Contract Overview

Contract Amount: $41,289,953 ($41.3M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-06

End Date: 2027-05-06

Contract Duration: 791 days

Daily Burn Rate: $52.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P528 COMBAT TRAINING TANK

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $41.3 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P528 COMBAT TRAINING TANK Key points: 1. Construction project awarded to Harper Construction Company, Inc. for a significant value. 2. The contract falls under Commercial and Institutional Building Construction NAICS code 236220. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract is a delivery order with a firm fixed price, indicating cost certainty. 5. Project duration is 791 days, spanning over two years. 6. The contract is not set aside for small businesses. 7. The project is located in Arizona, impacting the regional construction market.

Value Assessment

Rating: good

The contract value of $41.3 million for a combat training tank facility appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale construction projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government. However, without specific details on the facility's size, complexity, and amenities, 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 all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bidders, there is a risk that the competition may not have been as robust as possible, potentially leading to a higher-than-optimal price.

Public Impact

The Department of the Navy benefits from the construction of a new combat training tank facility. This facility will support military training operations, enhancing readiness. The project is geographically located in Arizona, potentially creating local construction jobs and economic activity. The construction services will be delivered by Harper Construction Company, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher costs for taxpayers.
The firm fixed-price contract, while offering cost certainty, may not fully capture potential efficiencies if the contractor's initial estimates were high.
The specific details of the combat training tank facility's requirements are not fully elaborated, making a comprehensive risk assessment difficult.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential contractors.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
The project is awarded to a known entity, Harper Construction Company, Inc., suggesting a degree of confidence in their capabilities.
The contract duration is clearly defined, allowing for project planning and oversight.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant area of federal spending. This contract represents a portion of the Department of Defense's investment in infrastructure and training facilities. The value of $41.3 million places it as a substantial project within this category. Comparable spending benchmarks would involve analyzing other large-scale construction contracts for military facilities, training centers, or similar government buildings to assess if the pricing is in line with market rates and historical trends.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' field being false. Consequently, there are no direct subcontracting requirements mandated for small businesses within this award. The primary contractor, Harper Construction Company, Inc., will be responsible for the construction. While not a direct set-aside, the prime contractor may still engage small businesses as subcontractors, but this is not a contractual obligation stemming from this specific award. The impact on the small business ecosystem is therefore indirect and dependent on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, the awarding agency. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified construction within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or alleged.

Related Government Programs

Department of Defense Military Construction
Federal Building and Infrastructure Projects
Naval Facilities Engineering Command Contracts
Commercial and Institutional Building Construction Contracts

Risk Flags

Limited competition (2 bidders)
Potential for cost overruns if contractor underestimated costs
Need for detailed comparison to similar projects for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.3 million to HARPER CONSTRUCTION COMPANY, INC.. P528 COMBAT TRAINING TANK

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 $41.3 million.

What is the period of performance?

Start: 2025-03-06. End: 2027-05-06.

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. A detailed analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts awarded by the Department of Defense and other federal agencies, and any instances of contract disputes or terminations. Understanding their experience with similar-sized projects and specific construction types (e.g., military facilities, institutional buildings) would provide further insight into their capability to successfully execute this $41.3 million combat training tank facility project.

How does the awarded price of $41.3 million compare to similar combat training facility construction projects?

Benchmarking the $41.3 million award requires identifying comparable federal construction projects for military training facilities, specifically those involving tank operations or similar specialized infrastructure. Factors such as project size (square footage), complexity of specialized features (e.g., blast resistance, environmental controls), geographic location (which impacts labor and material costs), and the specific year of award are crucial for a fair comparison. Without access to a detailed database of similar projects and their costs, it is difficult to definitively state whether this award represents excellent, good, or fair value. However, the firm fixed-price nature suggests an effort to control costs.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price contract, despite its cost certainty benefits, include potential for scope creep if requirements are not rigidly defined and managed, and the risk that the contractor may have underestimated costs, leading to potential quality compromises to maintain profitability. If the contractor's initial bid was overly aggressive, they might face financial distress, impacting project completion. Furthermore, unforeseen site conditions or material price escalations beyond the contractor's control could pose challenges, although the fixed-price nature shifts much of this risk to the contractor. Effective government oversight is crucial to mitigate these risks.

How effective is the 'full and open competition' strategy likely to be with only two bidders for this project?

The effectiveness of 'full and open competition' with only two bidders for this $41.3 million construction project is moderate. While it adheres to the principle of allowing all eligible sources to compete, a low number of bids can limit the government's ability to achieve the most competitive pricing. The government may have received a fair price, but it's less likely to be the absolute lowest possible price compared to a scenario with numerous bidders. The quality of the bids received and the government's negotiation strategy would also influence the final outcome. Further analysis would require understanding why only two bids were submitted.

What are the historical spending patterns for commercial and institutional building construction by the Department of the Navy?

Historical spending patterns for commercial and institutional building construction by the Department of the Navy typically show significant investment in infrastructure to support naval operations, training, and personnel. This includes barracks, training facilities, maintenance depots, and administrative buildings. Annual spending can fluctuate based on military readiness needs, modernization efforts, and congressional appropriations. Analyzing past Navy contracts under NAICS code 236220 would reveal trends in contract values, types of projects undertaken, and the primary contracting firms involved, providing context for the current $41.3 million award.

What are the potential workforce implications of this construction project in Arizona?

This $41.3 million construction project is likely to have positive workforce implications in Arizona. It will create demand for skilled labor in various trades, including carpenters, electricians, plumbers, heavy equipment operators, and project managers. Harper Construction Company, Inc. may hire locally or bring in specialized crews. The project duration of 791 days suggests sustained employment opportunities over approximately two years. Additionally, indirect employment may be generated in supporting industries such as material suppliers, equipment rental companies, and logistics providers within the region.

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: 2

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: $41,289,953

Exercised Options: $41,289,953

Current Obligation: $41,289,953

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $8,893,519

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