Harper Construction awarded $31.5M for building construction in Oklahoma

Contract Overview

Contract Amount: $31,553,332 ($31.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-15

End Date: 2013-03-08

Contract Duration: 540 days

Daily Burn Rate: $58.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION COSTS B5955

Place of Performance

Location: LAWTON, COMANCHE County, OKLAHOMA, 73501

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: CONSTRUCTION COSTS B5955 Key points: 1. Contract awarded at a competitive price point, indicating potential value for money. 2. Full and open competition suggests a robust market response and potential for cost efficiencies. 3. Contract duration of 540 days indicates a significant project scope. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Project located in Oklahoma, suggesting regional economic impact. 6. Contractor has a history of performance, though specific project details are needed for full assessment.

Value Assessment

Rating: good

The contract value of $31.5 million for commercial and institutional building construction appears reasonable given the project scope and duration. Benchmarking against similar Department of Defense construction projects would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 11 bids received. This high level of competition is a positive indicator, suggesting that the market was receptive to the opportunity and that the government likely received a range of pricing options. The presence of multiple bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final award price, ensuring that government funds were used efficiently.

Public Impact

The primary beneficiaries are the Department of the Army and potentially military personnel or support staff who will utilize the constructed facility. The contract delivers commercial and institutional building construction services. The geographic impact is concentrated in Oklahoma, potentially creating local jobs and stimulating the regional economy. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Oklahoma area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Dependence on a single contractor for the full duration of the project.
Quality control and adherence to specifications will be critical throughout the construction process.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a strong market vetting process.
The contractor, Harper Construction Company, Inc., has a history of performance, implying experience in similar projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is a significant part of the broader construction industry, encompassing the building of non-residential structures. Federal spending in this area often supports infrastructure development, military facilities, and government operational needs. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar government-built facilities in the region and nationally.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and inspection reports may not always be publicly accessible.

Related Government Programs

Military Construction
Government Facilities
Infrastructure Projects
Department of Defense Procurement

Risk Flags

Potential for cost overruns due to fixed-price nature if not managed.
Quality control risks inherent in large construction projects.
Contractor performance risk, although mitigated by competition and selection process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to HARPER CONSTRUCTION COMPANY, INC.. CONSTRUCTION COSTS B5955

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 $31.6 million.

What is the period of performance?

Start: 2011-09-15. End: 2013-03-08.

What is the track record of Harper Construction Company, Inc. on similar federal contracts?

Harper Construction Company, Inc. has a history of performing federal contracts, including construction projects. While the provided data indicates a 'good' status ('st': 'OK'), a comprehensive review would involve examining past performance evaluations, any documented disputes or claims, and the successful completion of projects of similar scale and complexity. Understanding their experience with Department of Defense projects specifically would also be crucial. Without access to detailed past performance information, it's difficult to provide a definitive assessment of their track record beyond the general indication of 'OK'.

How does the awarded price compare to industry benchmarks for similar construction projects?

The awarded price of $31.5 million for commercial and institutional building construction needs to be benchmarked against industry standards for projects of similar size, scope, and location. Key metrics would include cost per square foot, cost per cubic foot, and the complexity of the construction. Given the firm fixed-price nature, the government has a degree of cost certainty. However, a detailed comparison with publicly available data on similar government or private sector construction projects in Oklahoma or the surrounding region would be necessary to definitively assess if this price represents excellent value for money or if it is on the higher end.

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

The primary risk with a firm fixed-price contract, while generally favorable for the government's cost certainty, lies in the contractor's potential to cut corners on quality or materials to maintain profitability if unforeseen issues arise during construction. Scope creep, if not managed tightly through change orders, could also lead to cost increases. Additionally, contractor default or significant delays, though less likely with an established firm, represent risks. The government's risk is primarily mitigated through robust contract oversight, clear specifications, and performance monitoring.

How effective is the full and open competition process in ensuring the best value for this type of construction contract?

The full and open competition process, evidenced by 11 bids, is generally highly effective in ensuring the best value for construction contracts. It allows a wide range of qualified contractors to compete, fostering price reductions and encouraging innovative solutions. The government can then evaluate proposals based on a combination of price and non-price factors (like technical approach and past performance) to select the offer that represents the best overall value. The high number of bidders suggests a healthy market and increases the likelihood that the government secured competitive pricing.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Army in Oklahoma?

Analyzing historical spending patterns for commercial and institutional building construction by the Department of the Army in Oklahoma would require access to historical contract databases and procurement reports. This specific contract award of $31.5 million contributes to the overall spending in this category. Understanding the frequency, size, and types of previous construction contracts awarded by the Army in Oklahoma would provide context on whether this award is typical, larger, or smaller than average, and whether spending in this area has been consistent or fluctuating.

What are the potential long-term implications of this construction project for the Department of the Army's infrastructure?

The long-term implications of this construction project depend heavily on the specific nature and purpose of the facility being built. If it's a critical operational facility, barracks, or support infrastructure, its successful and timely completion will enhance the Army's capabilities and readiness in the region. Conversely, delays, cost overruns, or subpar construction quality could negatively impact operational effectiveness and require future remediation. The durability and functionality of the completed structure will determine its long-term value and contribution to the Army's infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BV11R0048

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,090,040

Exercised Options: $31,553,332

Current Obligation: $31,553,332

Subaward Activity

Number of Subawards: 134

Total Subaward Amount: $214,315,802

Contract Characteristics

Cost or Pricing Data: NO

Timeline