Department of Defense awarded Harper Construction a $22.9M contract for water and sewer line construction

Contract Overview

Contract Amount: $22,889,506 ($22.9M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-08

End Date: 2011-12-30

Contract Duration: 1,331 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIMARY INFRASTRUCTURE 2

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: PRIMARY INFRASTRUCTURE 2 Key points: 1. The contract value of $22.9M for water and sewer line construction appears to be within a reasonable range for a project of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process that likely drove pricing. 3. The definitive contract type with a firm fixed price indicates a clear understanding of project scope and cost control. 4. The project duration of 1331 days (approximately 3.6 years) suggests a substantial and complex undertaking. 5. The contract was awarded to Harper Construction Company, Inc., a known entity in federal contracting. 6. The project is located in Oklahoma, potentially impacting local workforce and small business opportunities.

Value Assessment

Rating: good

The contract value of $22.9 million for water and sewer line construction is substantial. Benchmarking against similar projects would be necessary for a precise value-for-money assessment. However, the use of firm fixed price and full and open competition suggests that pricing was likely scrutinized and competitive. The duration of the contract (1331 days) also indicates a significant scope of work, which can influence overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this project. While more bidders could potentially lead to lower prices, two bids still provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can drive down costs and ensure the government receives competitive pricing.

Public Impact

This contract directly benefits the Department of the Army by ensuring the maintenance and upgrade of critical water and sewer infrastructure. The services delivered include the construction of water and sewer lines and related structures, essential for base operations and personnel. The geographic impact is concentrated in Oklahoma, where the construction work will take place. The project likely has implications for the local construction workforce in Oklahoma, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed price structure.
Dependence on the performance and capacity of a single contractor (Harper Construction) for a long-duration project.
Limited competition (2 bids) might have resulted in a higher price than if more bidders had participated.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Full and open competition process generally leads to better value.
The contractor, Harper Construction Company, Inc., has experience in federal contracting.
The project addresses essential infrastructure needs for the Department of the Army.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil construction related to utility infrastructure. The North American Industry Classification System (NAICS) code 237110, 'Water and Sewer Line and Related Structures Construction,' represents a specialized segment of the construction market. Federal spending in this area is crucial for maintaining and upgrading essential public and military infrastructure across the nation.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no specific small business set-aside. This means large businesses were eligible to bid and potentially win. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

The contract is a definitive contract with a firm fixed price, which provides a degree of oversight through adherence to the agreed-upon terms and cost. The Department of the Army, as the awarding agency, would be responsible for monitoring performance and ensuring compliance. Further oversight mechanisms would typically involve contract officers, quality assurance personnel, and potentially Inspector General reviews if issues arise.

Related Government Programs

Military Construction
Infrastructure Modernization Programs
Public Works Projects
Utility System Upgrades

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays due to weather or supply chain issues.
Limited competition (2 bids) may impact final price.
Contractor performance risk over a long project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to HARPER CONSTRUCTION COMPANY, INC.. PRIMARY INFRASTRUCTURE 2

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 Army).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2008-05-08. End: 2011-12-30.

What is Harper Construction Company, Inc.'s track record with the Department of Defense and similar infrastructure projects?

Harper Construction Company, Inc. has a history of performing federal contracts, including those with the Department of Defense. While specific details on their track record for water and sewer line construction are not provided in this data snippet, their engagement in federal projects suggests familiarity with government procurement processes and regulations. A deeper dive into their past performance ratings, project completion history, and any past performance issues would be necessary for a comprehensive assessment. Their ability to secure a $22.9 million contract indicates a certain level of capability and trust from the awarding agency.

How does the $22.9 million contract value compare to similar water and sewer infrastructure projects awarded by the Department of Defense or other federal agencies?

The $22.9 million contract value for water and sewer line construction is a significant investment. To benchmark its value, one would need to compare it against similar projects in terms of scope, complexity, geographic location, and the specific types of infrastructure being built or upgraded. Factors such as soil conditions, environmental regulations, and the scale of the project (e.g., miles of pipe, number of connections) heavily influence costs. Without access to a database of comparable federal contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value. However, the firm fixed price and full and open competition suggest an effort to achieve competitive pricing.

What are the primary risks associated with this specific contract, considering its duration and scope?

The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions (e.g., unexpected geological issues, hazardous materials), delays caused by weather or supply chain disruptions, and contractor performance issues. Given the 1331-day duration (over 3.5 years), the risk of scope creep or changes in requirements also increases. While the firm fixed price contract aims to mitigate cost risk for the government, significant unforeseen issues could lead to change orders or disputes. Ensuring robust project management, regular site inspections, and clear communication channels will be crucial for mitigating these risks.

How effective is the 'full and open competition' approach in ensuring the best value for taxpayers on projects of this nature?

Full and open competition is generally considered the most effective method for ensuring the best value for taxpayers on projects like this. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of 2 bids in this instance indicates that competition occurred, but a higher number of bidders could potentially have driven prices down further. The effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to manage the process efficiently to avoid unnecessary delays or administrative costs.

What are the historical spending patterns for water and sewer infrastructure construction by the Department of the Army in Oklahoma?

Analyzing historical spending patterns for water and sewer infrastructure construction by the Department of the Army in Oklahoma would require access to historical federal procurement data. This specific contract represents a $22.9 million expenditure over approximately 3.6 years. To understand broader patterns, one would need to examine spending trends over multiple fiscal years, identify other similar contracts awarded in the region, and assess the average contract values and durations. This context would help determine if this contract is an outlier, a continuation of a trend, or part of a larger infrastructure initiative.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BV07R2049

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: $22,889,506

Exercised Options: $22,889,506

Current Obligation: $22,889,506

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline