DoD's $41M P-545 Aircraft Hangar Contract Awarded to Harper Construction Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $40,981,826 ($41.0M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-03-20

End Date: 2015-02-05

Contract Duration: 1,052 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-545 NORTH AIRCRAFT MAINTENANCE HANGAR AT MARINE CORPS AIR STATION, YUMA AZ.

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85369

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P-545 NORTH AIRCRAFT MAINTENANCE HANGAR AT MARINE CORPS AIR STATION, YUMA AZ. Key points: 1. The $41 million contract for the P-545 Aircraft Maintenance Hangar at MCAS Yuma appears to be a significant investment in infrastructure. 2. Harper Construction Company, Inc. secured the contract, but the limited information on competition raises questions about potential price discovery. 3. The project's duration of 1052 days suggests a complex undertaking, with potential risks associated with construction timelines and cost overruns. 4. The sector is Commercial and Institutional Building Construction, a critical area for military readiness and operational support.

Value Assessment

Rating: fair

The contract value of $41 million for a large aircraft maintenance hangar seems within a reasonable range for major construction projects of this nature. However, without detailed cost breakdowns or benchmarks for similar specialized military facilities, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bids received are not provided, making it hard to fully assess the competitive landscape and its impact on the final price.

Taxpayer Impact: The full and open competition method aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment, potentially leading to better pricing for this significant infrastructure project.

Public Impact

Military readiness and operational capabilities at MCAS Yuma are enhanced by the new maintenance hangar. Local economic impact through construction jobs and related services in Arizona. Potential for long-term operational cost savings due to improved maintenance facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for transparency.
Limited insight into the competitive bidding process beyond 'full and open'.
Potential for construction delays impacting operational readiness.

Positive Signals

Awarded under full and open competition.
Addresses critical infrastructure needs for the Marine Corps.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized military infrastructure. Spending benchmarks in this area can vary widely based on project complexity, location, and specific requirements, but large-scale hangars represent a significant capital investment.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as Harper Construction Company, Inc. is the prime contractor. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of the Navy awarded this contract, implying oversight from within the Department of Defense. The firm fixed price contract type offers some level of cost control. However, detailed oversight reports or performance reviews are not available in the provided data.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed cost breakdown.
Limited information on the competitive bidding process.
Potential for construction delays due to long duration.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to HARPER CONSTRUCTION COMPANY, INC.. P-545 NORTH AIRCRAFT MAINTENANCE HANGAR AT MARINE CORPS AIR STATION, YUMA AZ.

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 $41.0 million.

What is the period of performance?

Start: 2012-03-20. End: 2015-02-05.

What specific factors contributed to the $41 million cost for the P-545 hangar, and how does this compare to similar specialized military construction projects?

The $41 million cost likely encompasses design, materials, labor, specialized equipment installation, and site preparation for a large aircraft maintenance hangar. Factors such as the size, complexity of systems (HVAC, fire suppression, power), specific aircraft requirements, and location at MCAS Yuma influence the price. Benchmarking against similar projects is challenging without access to detailed cost data and project specifics, but large military infrastructure projects often incur significant costs due to stringent requirements and specialized needs.

Given the 'full and open competition' designation, what was the level of actual competition, and how did it influence the final price awarded to Harper Construction?

While designated as 'full and open competition,' the provided data lacks specifics on the number of bids received or the evaluation process. A robust competition typically involves multiple qualified bidders submitting proposals, driving down prices through market forces. If only a few bids were submitted, or if the evaluation criteria heavily favored certain aspects, the competitive pressure might have been less intense, potentially impacting the final price achieved for the taxpayer.

What are the primary risks associated with the 1052-day duration of this construction project, and what measures are in place to mitigate potential cost overruns or delays?

The primary risks associated with a nearly three-year construction timeline include potential weather disruptions, unforeseen site conditions, material price fluctuations, labor availability issues, and changes in military operational requirements. Mitigation strategies typically involve detailed project management, contingency planning, robust contract clauses for delays and cost increases, and regular progress monitoring by the contracting officer's representative to ensure adherence to schedule and budget.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247309R1608

Offers Received: 9

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,981,826

Exercised Options: $40,981,826

Current Obligation: $40,981,826

Subaward Activity

Number of Subawards: 726

Total Subaward Amount: $519,026,927

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D5406

IDV Type: IDC

Timeline