DoD's $38.5M Harper Construction contract for building construction shows fair value with 28 bids

Contract Overview

Contract Amount: $38,508,109 ($38.5M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-29

End Date: 2016-08-20

Contract Duration: 1,513 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 58531 TEMF

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: 58531 TEMF Key points: 1. The contract achieved a reasonable price point given the scope of commercial and institutional building construction. 2. Robust competition with 28 bidders suggests effective market engagement and potential for competitive pricing. 3. The firm-fixed-price structure transfers risk to the contractor, aligning incentives for cost control. 4. Performance was rated 'OK', indicating satisfactory execution without significant issues. 5. This contract falls within the broad construction sector, supporting infrastructure development. 6. The duration of 1513 days suggests a substantial project requiring significant contractor resources.

Value Assessment

Rating: good

The contract's total value of $38.5 million for building construction appears reasonable, especially considering the 28 bids received, which typically drive prices down. While specific benchmarks for this exact type of construction are difficult without more granular data, the competitive nature of the award suggests it was likely priced in line with market expectations. The firm-fixed-price contract type further supports value by placing cost control responsibility on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 28 bids submitted. This high level of competition is a positive indicator, suggesting that the solicitation was widely accessible and that the market had sufficient capacity and interest to bid. The large number of bidders likely contributed to a competitive pricing environment, allowing the agency to select a contractor at a favorable price.

Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government spending.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will utilize the constructed facilities. The contract delivered commercial and institutional building construction services, likely including new structures or renovations. The geographic impact is centered in Oklahoma, where the construction took place. The project supported jobs in the construction sector, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract performance was rated 'OK', which, while not negative, suggests there may have been minor issues or areas for improvement that did not warrant a higher rating.

Positive Signals

Awarded under full and open competition with 28 bids, indicating strong market interest and a competitive process.
Firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
The contract was awarded to Harper Construction Company, Inc., a known entity in the construction space.

Sector Analysis

This contract falls within the broader construction industry, specifically commercial and institutional building construction. This sector is vital for infrastructure development and government facilities. The market for large-scale construction projects is often characterized by significant competition, especially for federal contracts, where agencies typically seek the best value through competitive bidding processes. Benchmarks for similar projects would depend on size, complexity, and location, but the number of bids suggests a healthy competitive landscape for this type of work.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Harper Construction Company, Inc. utilizes them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts can sometimes lead to downstream opportunities for specialized small firms.

Oversight & Accountability

The contract was awarded by the Department of the Army, implying oversight from relevant Army contracting and program management offices. The firm-fixed-price nature of the contract shifts some risk to the contractor, but oversight would still focus on adherence to contract terms, quality of work, and timely completion. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facility Maintenance and Repair
General Services Administration (GSA) Building Construction
Public Building Construction

Risk Flags

Performance rating of 'OK' suggests potential for minor issues.
Long contract duration could indicate complexity or potential for delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to HARPER CONSTRUCTION COMPANY, INC.. 58531 TEMF

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 $38.5 million.

What is the period of performance?

Start: 2012-06-29. End: 2016-08-20.

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

Harper Construction Company, Inc. has a history of receiving federal contracts, primarily with the Department of Defense. The provided data shows this specific contract was for building construction valued at approximately $38.5 million, awarded in 2012 and completed in 2016. While the performance rating was 'OK', indicating satisfactory completion, a deeper analysis would involve reviewing other contract awards, their associated performance ratings, any modifications, and any disputes or claims filed. This would provide a more comprehensive understanding of their reliability and performance history across various projects and agencies.

How does the $38.5 million value compare to similar building construction contracts awarded by the Department of Defense?

The $38.5 million value for this building construction contract is a substantial but not extraordinary amount for federal projects of this nature. The Department of Defense awards numerous construction contracts annually, ranging from smaller facility upgrades to massive base construction initiatives. To benchmark this value effectively, one would need to compare it against contracts for similar types of buildings (e.g., barracks, administrative facilities, hangars), in similar geographic regions, and awarded within a comparable timeframe. The fact that 28 bids were received suggests that the project was of a size and scope that attracted significant interest from multiple contractors, indicating it was likely within the expected market range for such federal construction endeavors.

What are the primary risks associated with a firm-fixed-price contract for large-scale construction?

The primary risk with a firm-fixed-price (FFP) contract, especially for large-scale construction, lies with the contractor. The contractor assumes the risk of cost overruns. If material costs escalate unexpectedly, labor shortages drive up wages, or unforeseen site conditions arise, the contractor must absorb these additional expenses, potentially impacting their profitability or even leading to financial distress. For the government, the risk is that the contractor might cut corners on quality or safety to maintain profitability, or that the initial price might have been inflated to account for the contractor's perceived risk. Robust oversight and clear specifications are crucial to mitigate these risks.

How effective was the competition level (28 bids) in ensuring a competitive price for this contract?

A total of 28 bids for a federal construction contract of this magnitude ($38.5 million) strongly suggests a highly competitive environment. Generally, a larger number of bidders correlates with increased price competition, as contractors vie more intensely for the award. This high level of participation indicates that the solicitation was well-publicized and that the market had sufficient capacity and interest. It implies that the Department of the Army likely received a range of proposals, allowing them to select an offer that represented good value. While the lowest bid doesn't always equate to the best value, a large pool of bidders increases the probability of securing a competitive price.

What does the 'OK' performance rating signify in the context of federal contracting?

An 'OK' performance rating, often represented by codes like 'S' for Satisfactory or similar terms, signifies that the contractor met the minimum requirements of the contract but did not necessarily exceed expectations. It indicates that the project was completed without major deficiencies, contractual breaches, or significant delays that would warrant a negative rating. However, it also suggests that there might have been minor issues, areas for improvement, or a lack of exceptional performance. For future procurements, agencies often consider past performance ratings, and an 'OK' rating is generally acceptable but less favorable than a 'Highly Successful' or 'Exceptional' rating.

What is the typical duration for federal building construction contracts of this size?

The duration of 1513 days (approximately 4.1 years) for this $38.5 million building construction contract is substantial, reflecting the complexity and scale typical of large federal infrastructure projects. Federal construction projects often involve extensive planning, permitting, procurement processes, and on-site execution, which can be lengthy. Factors influencing duration include the size and type of the facility, site conditions, environmental reviews, and the specific requirements of the agency. While durations can vary significantly, a multi-year timeline is common for projects of this value and scope within the Department of Defense.

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: TWO STEP

Solicitation ID: W912BV12R0018

Offers Received: 28

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: $40,197,739

Exercised Options: $38,508,109

Current Obligation: $38,508,109

Subaward Activity

Number of Subawards: 900

Total Subaward Amount: $1,359,176,329

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline