Navy awards $31.1M hangar construction contract to Harper Construction, highlighting commercial building expertise

Contract Overview

Contract Amount: $31,136,975 ($31.1M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-06

End Date: 2015-06-27

Contract Duration: 1,024 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P535 AIRCRAFT MAINTENANCE HANGAR, YUMA

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85369

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P535 AIRCRAFT MAINTENANCE HANGAR, YUMA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates a defined cost, potentially limiting contractor risk. 3. Project duration of 1024 days suggests a significant construction undertaking. 4. The contract falls under commercial and institutional building construction, a common sector for defense infrastructure. 5. Awarded by the Department of the Navy, indicating a specific military infrastructure need. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $31.1 million for a P535 Aircraft Maintenance Hangar appears reasonable for a project of this scale and duration. Benchmarking against similar large-scale construction projects for military aviation facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final value is dependent on the scope and execution of the delivery order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With 6 bidders, the competition level suggests a healthy market response for this type of construction. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition indicates that taxpayers likely benefited from competitive pricing due to multiple companies vying for the contract, leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and operations at the Yuma facility, who will gain enhanced aircraft maintenance capabilities. The project delivers a critical piece of infrastructure: a P535 Aircraft Maintenance Hangar. The geographic impact is localized to Yuma, Arizona, supporting military operations in that region. The contract supports the construction workforce, likely involving skilled trades and project management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Schedule delays could impact operational readiness if the hangar is not completed on time.
Quality control during construction is crucial to ensure the hangar meets all specifications for aircraft maintenance.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses a clear need for enhanced aviation maintenance infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that includes the building of non-residential structures. The Department of Defense is a major client for construction services, frequently awarding contracts for military bases, hangars, and other facilities. Spending in this sector is often driven by infrastructure upgrades and modernization efforts. Comparable spending benchmarks would involve analyzing other large military construction projects, particularly hangars or maintenance facilities, to assess cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as it was awarded to Harper Construction Company, Inc., and the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contract was not specifically targeted towards small businesses, and their involvement would likely depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified hangar within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though specific project oversight details may not be publicly available.

Related Government Programs

Military Construction
Aircraft Maintenance Facilities
Department of Defense Contracts
Naval Facilities Engineering Command Projects
Commercial Building Construction

Risk Flags

Potential for cost overruns due to construction complexity.
Risk of schedule delays impacting operational readiness.
Ensuring long-term durability and functionality of specialized hangar systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to HARPER CONSTRUCTION COMPANY, INC.. P535 AIRCRAFT MAINTENANCE HANGAR, YUMA

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 $31.1 million.

What is the period of performance?

Start: 2012-09-06. End: 2015-06-27.

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 securing federal contracts, primarily within the Department of Defense and specifically with the Navy and Marine Corps. Their awards often center around construction projects, including facilities, hangars, and infrastructure improvements at military installations. Analyzing their past performance on similar projects, including on-time delivery, budget adherence, and quality of work, would provide further insight into their reliability and capability for this P535 Aircraft Maintenance Hangar project. A review of their contract history might reveal any patterns of disputes, contract modifications, or performance issues that could be relevant.

How does the awarded price of $31.1 million compare to similar aircraft maintenance hangar construction projects awarded by the Navy or other military branches?

The $31.1 million award for the P535 Aircraft Maintenance Hangar needs to be benchmarked against comparable projects to assess its value. Factors such as square footage, complexity of aircraft supported (e.g., size, specific maintenance needs), location, and the specific year of award significantly influence costs. Projects awarded in the same timeframe and region, or for similar types of aircraft, would offer the most relevant comparison. Without specific data on comparable projects, it's difficult to definitively state if this price is high or low, but it represents a substantial investment in specialized military infrastructure.

What are the primary risks associated with the construction of a large aircraft maintenance hangar, and how are they mitigated in this contract?

Key risks in constructing a large aircraft maintenance hangar include unforeseen site conditions (e.g., soil stability, underground utilities), material cost fluctuations, labor shortages, and potential design or scope changes. The firm-fixed-price contract structure mitigates financial risk for the government by establishing a ceiling cost. However, the contractor bears more risk for cost overruns. Mitigation strategies likely include thorough site investigations prior to award, detailed project planning, robust quality assurance/quality control processes, and contingency planning for schedule delays. The 1024-day duration also allows for a more phased approach to managing risks.

What is the expected impact of this hangar on the operational effectiveness and efficiency of aircraft maintenance at the Yuma facility?

The construction of a new P535 Aircraft Maintenance Hangar is expected to significantly enhance operational effectiveness and efficiency. Modern hangars provide controlled environments essential for complex maintenance tasks, protecting aircraft from weather and environmental factors. This can lead to improved turnaround times, higher quality repairs, and better preservation of valuable assets. The facility likely incorporates specialized equipment and workflows designed to streamline maintenance processes, ultimately supporting the readiness and deployment capabilities of the aircraft stationed at Yuma.

How has federal spending on aircraft maintenance hangar construction evolved over the past five years, and does this contract align with historical trends?

Federal spending on aircraft maintenance hangar construction is generally driven by military modernization needs, base infrastructure upgrades, and the introduction of new aircraft types requiring specialized facilities. Historical trends often show consistent investment, with peaks and troughs influenced by defense budgets and strategic priorities. This $31.1 million contract for a specific hangar appears to be a significant, but not necessarily anomalous, investment. To determine alignment with trends, one would need to analyze aggregate spending data for similar construction projects across the DoD over the past five years, looking at the number of awards and total obligated amounts.

What are the implications of awarding this contract through 'full and open competition' with 6 bidders for taxpayer value?

Awarding this contract through 'full and open competition' with six bidders is generally positive for taxpayer value. It signifies that the government sought bids from all qualified contractors, fostering a competitive environment. With six bidders, there was a reasonable level of competition, which typically drives down prices as contractors vie to win the contract. This process increases the likelihood that the government secured the hangar construction services at a fair and reasonable price, maximizing the return on taxpayer investment compared to a sole-source or limited competition scenario.

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: N6247307R2003

Offers Received: 6

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,136,975

Exercised Options: $31,136,975

Current Obligation: $31,136,975

Subaward Activity

Number of Subawards: 840

Total Subaward Amount: $608,530,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247308D8617

IDV Type: IDC

Timeline