Harper Construction awarded $20.7M for commercial building, highlighting strong competition and fixed-price certainty

Contract Overview

Contract Amount: $20,752,361 ($20.8M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-10

End Date: 2015-11-06

Contract Duration: 1,305 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ALL WORK UNLESS LISTED SEPARATELY

Place of Performance

Location: LAWTON, COMANCHE County, OKLAHOMA, 73501

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: ALL WORK UNLESS LISTED SEPARATELY Key points: 1. The contract utilized full and open competition, suggesting a competitive pricing environment. 2. A firm fixed-price structure provides cost certainty for the government. 3. The contract duration of 1305 days indicates a significant, long-term project. 4. The award to Harper Construction Company, Inc. represents a substantial commitment to a single entity. 5. The project falls under the broad category of commercial and institutional building construction. 6. The absence of small business set-asides may warrant further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $20.7 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Without specific details on the project's deliverables, a direct comparison to similar contracts is challenging. However, the firm fixed-price nature suggests that the contractor assumed the majority of the cost risk, which can be a positive indicator of value if the project is completed within budget. Benchmarking against industry standards for similar construction projects would provide a more precise assessment of value for money.

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 a bid. The presence of 11 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to more favorable pricing for the government as contractors vie to win the award. The number of bidders provides a good indication that the market was adequately engaged.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, ensuring that the government received competitive pricing for the construction services.

Public Impact

The primary beneficiaries are the Department of the Army and potentially military personnel or civilian staff who will utilize the constructed facilities. The contract delivers essential commercial and institutional building construction services. The geographic impact is localized to Oklahoma, where the construction will take place. The project will likely involve a significant construction workforce, including skilled trades and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of specific small business subcontracting goals could limit opportunities for smaller firms.
The long duration of the contract might introduce risks related to material cost fluctuations or unforeseen site conditions.

Positive Signals

The firm fixed-price contract structure mitigates cost overrun risks for the government.
Full and open competition indicates a robust market response and potentially competitive pricing.
The award to an established entity like Harper Construction suggests a degree of contractor reliability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses the building of non-residential structures such as offices, schools, hospitals, and retail spaces. The market for federal construction is substantial, driven by the need for infrastructure and facilities across various government agencies. This specific award represents a portion of the broader federal spending on facilities management and development.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the 'sb' field is false. This suggests that the primary award was not specifically targeted towards small businesses. Further analysis would be needed to determine if there are any subcontracting requirements or opportunities for small businesses to participate in fulfilling the contract's scope. The absence of explicit set-asides may mean fewer direct opportunities for small businesses unless they are prime contractors on other related efforts or are engaged as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army officials. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facilities Engineering
General Services Administration (GSA) Buildings
Department of Veterans Affairs (VA) Construction

Risk Flags

Long contract duration may increase risk of cost escalation or unforeseen issues.
Absence of explicit small business set-aside requires verification of subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to HARPER CONSTRUCTION COMPANY, INC.. ALL WORK UNLESS LISTED SEPARATELY

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 $20.8 million.

What is the period of performance?

Start: 2012-04-10. End: 2015-11-06.

What is the specific nature of the commercial and institutional building being constructed?

The provided data does not specify the exact nature of the commercial and institutional building. The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' is broad and covers a wide range of structures including office buildings, retail spaces, educational facilities, hospitals, and more. To understand the specific project, one would need to consult the contract details or associated documentation, which are not included in the abbreviated data. This information is crucial for assessing the project's impact and relevance.

How does Harper Construction Company, Inc.'s track record compare for similar federal contracts?

Assessing Harper Construction Company, Inc.'s track record requires access to historical contract data beyond this single award. While this contract indicates they secured a significant $20.7 million award, their broader performance history with the federal government, including past project success rates, any past performance issues, and the volume of work they have undertaken, would be necessary for a comprehensive evaluation. A review of their award history, contract modifications, and any reported disputes or terminations would provide a clearer picture of their reliability and capability in executing large-scale federal construction projects.

What is the benchmark for similar commercial and institutional building construction contracts awarded by the Department of the Army?

Benchmarking this $20.7 million contract requires comparing it to similar projects in terms of scope, size, complexity, and location. The Department of the Army awards numerous construction contracts annually. A thorough benchmark would involve analyzing the average cost per square foot, the duration, and the final negotiated prices of other commercial and institutional buildings of comparable function (e.g., barracks, administrative offices, training facilities) awarded within a similar timeframe and geographic region. Without more specific project details, a precise benchmark is difficult, but the number of bidders (11) suggests the price was likely competitive within the market for such projects.

What are the potential risks associated with a firm fixed-price contract of this duration?

While firm fixed-price contracts offer cost certainty, a long duration (1305 days) can introduce risks. These include potential escalation in material and labor costs over time, which the contractor must absorb. Unforeseen site conditions or changes in regulatory requirements could also lead to disputes or claims for equitable adjustments, even under a fixed-price agreement. Furthermore, the contractor's financial stability and capacity to manage a project over several years are critical. The government's risk is primarily related to the contractor's ability to perform and the potential for disputes if the scope or conditions change significantly.

How has federal spending in commercial and institutional building construction evolved over the past five years?

Federal spending in commercial and institutional building construction has generally remained robust, driven by the need to maintain and upgrade aging infrastructure and build new facilities for various agencies. While specific figures fluctuate annually based on budget appropriations and national priorities, the sector consistently represents a significant portion of federal procurement. Factors influencing spending include geopolitical stability (for defense facilities), economic conditions, and specific agency mandates. Analyzing historical data from sources like USAspending.gov would reveal trends, major spending categories within this sector, and the primary agencies driving demand.

What is the significance of the contract type 'DEFINITIVE CONTRACT' in this context?

A 'Definitive Contract' is a standard, fully funded contract that specifies all the terms and conditions, including price, quantity, and delivery schedule. In this case, it signifies that the agreement with Harper Construction Company, Inc. is a complete and binding contract, unlike a task order contract or a letter contract which might have more variable elements or require further action. For a project of this scale and duration, a definitive contract provides the clearest framework for execution and payment, ensuring both parties have a well-defined understanding of their obligations from the outset.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BV12R0003

Offers Received: 11

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: $20,773,757

Exercised Options: $20,773,757

Current Obligation: $20,752,361

Subaward Activity

Number of Subawards: 192

Total Subaward Amount: $245,495,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline