Navy's $45.2M CNATT Aviation Training Facility contract awarded to Harper Construction, highlighting commercial building construction

Contract Overview

Contract Amount: $45,248,882 ($45.2M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-12

End Date: 2014-06-23

Contract Duration: 1,015 days

Daily Burn Rate: $44.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CNATT AVIATION TRAINING FACILITY

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: CNATT AVIATION TRAINING FACILITY Key points: 1. Value for money assessed through comparison with similar construction projects and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include project duration and fixed-price contract type, which can shift risk to the contractor. 4. Performance context is framed by the project's goal to support aviation training. 5. Sector positioning places this contract within the broader commercial and institutional building construction market.

Value Assessment

Rating: good

The contract value of $45.2 million for the CNATT Aviation Training Facility appears reasonable when benchmarked against similar large-scale construction projects. While specific per-unit cost data is not provided, the firm fixed-price nature of the contract suggests that the contractor assumed significant cost risk. The award to Harper Construction Company, Inc. was the result of a competitive process, which typically leads to more favorable pricing for the government compared to sole-source awards. Further analysis would involve comparing the final cost against the initial bid and any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation attracted 14 bids, indicating a healthy level of interest and competition within the market for this type of construction. A higher number of bidders generally suggests that the government received a range of pricing options, increasing the likelihood of securing a competitive price and potentially driving innovation from the offerors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price than if the contract had been awarded on a sole-source or limited basis. This competitive pressure helps ensure that government funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the new aviation training facility. The contract delivers a critical infrastructure asset to support advanced aviation training programs. The geographic impact is concentrated in California, where the facility is located. The project likely created numerous jobs in the construction sector, benefiting skilled trades and related industries in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Ensuring timely completion within the 1015-day duration is crucial for operational readiness.
Quality control and adherence to specifications for a specialized aviation training facility require diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a fair market price was likely achieved.
Firm fixed-price contract shifts cost risk to the contractor, potentially protecting the government from budget increases.
The existence of 14 bids indicates a competitive market and a good selection of potential contractors.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. This sector encompasses the building of non-residential structures such as educational facilities, government buildings, and specialized training centers. The total federal spending on construction is substantial, and contracts like this represent a portion of the government's investment in infrastructure. Benchmarking this project against other large-scale institutional construction projects would provide further context on its cost-effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large construction projects often involve a tiered subcontracting structure where small businesses may participate.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC) or a designated contracting officer's representative (COR). Accountability measures are embedded in the contract terms, including performance standards, quality assurance surveillance plans, and payment schedules tied to milestones. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. The Department of Defense's Inspector General may conduct audits or investigations if specific concerns arise.

Related Government Programs

Military Construction
Naval Facilities
Aviation Training Infrastructure
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting operational readiness.
Ensuring adherence to stringent quality and safety standards for aviation training facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to HARPER CONSTRUCTION COMPANY, INC.. CNATT AVIATION TRAINING FACILITY

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 $45.2 million.

What is the period of performance?

Start: 2011-09-12. End: 2014-06-23.

What is Harper Construction Company, Inc.'s track record with federal contracts, particularly with the Department of Defense?

Harper Construction Company, Inc. has a history of securing federal contracts, primarily with the Department of Defense and other government agencies. Their portfolio often includes large-scale construction projects, such as military facilities, barracks, and training centers. Reviewing their past performance ratings, any contract disputes, or awards for similar projects would provide insight into their reliability and capability. Data from contract databases like SAM.gov or FPDS can reveal the volume and types of contracts they have held, as well as their performance history, including any past issues with timeliness, quality, or cost control on government projects.

How does the $45.2 million cost compare to similar aviation training facility constructions by the Navy or other branches?

To assess the value for money, the $45.2 million cost for the CNATT Aviation Training Facility needs to be benchmarked against comparable projects. This involves comparing the cost per square foot, cost per training station, or other relevant metrics against similar facilities built for the Navy or other military branches over the past several years. Factors such as location, specific technological requirements for training, and the prevailing construction market conditions at the time of award significantly influence costs. Without access to detailed cost breakdowns and specific project comparisons, a definitive value assessment is challenging, but the firm fixed-price nature and competitive award suggest an effort to control costs.

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

The primary risks associated with a firm fixed-price (FFP) contract for a large construction project like the CNATT Aviation Training Facility lie with the contractor, Harper Construction Company, Inc. If construction costs exceed the agreed-upon price due to unforeseen issues (e.g., material price increases, labor shortages, site conditions), the contractor absorbs the loss. Conversely, the government's risk is primarily related to potential quality compromises if the contractor seeks to cut costs to maintain profitability, or delays in project completion. The government also risks paying a premium if the initial price was inflated due to market uncertainty or a lack of robust competition, although the 14 bids here mitigate that concern.

How effective is the firm fixed-price contract type in ensuring project completion and controlling costs for the government in this context?

The firm fixed-price (FFP) contract type is generally considered effective for controlling costs for the government, especially in construction projects where the scope of work is well-defined. It incentivizes the contractor to manage their resources efficiently and complete the project within the agreed budget, as any cost overruns are their responsibility. For the CNATT Aviation Training Facility, this means the $45.2 million is the ceiling price. However, effectiveness can be diminished if the initial price was set too high due to inadequate competition or poor estimation, or if significant change orders are required due to scope creep or unforeseen circumstances, which can increase the total cost and complexity.

What is the historical spending trend for similar aviation training infrastructure projects by the Department of the Navy?

Analyzing historical spending trends for similar aviation training infrastructure projects by the Department of the Navy would provide context for the $45.2 million award. This involves examining the number of such projects awarded over time, their average contract values, and the types of contractors typically involved. Trends might indicate increasing or decreasing costs due to inflation, technological advancements in training, or shifts in military priorities. Understanding this historical spending pattern can help assess whether the current contract represents a typical investment, an outlier, or a strategic increase in capacity for naval aviation training infrastructure.

What oversight mechanisms are in place to ensure the quality and timely delivery of the CNATT Aviation Training Facility?

Oversight for the CNATT Aviation Training Facility contract would involve a multi-layered approach. The contracting officer and their representatives (CORs) are responsible for monitoring contractor performance against contract requirements, including schedule adherence and quality standards. Quality assurance surveillance plans (QASPs) are typically employed to systematically inspect work and ensure compliance with specifications. Periodic site visits, progress meetings, and review of contractor submittals are standard practices. For a project of this magnitude, the Naval Facilities Engineering Command (NAVFAC) would likely have dedicated personnel overseeing the construction to ensure it meets all technical and safety requirements for an aviation training environment.

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: N6247310R5023

Offers Received: 14

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: $45,248,882

Exercised Options: $45,248,882

Current Obligation: $45,248,882

Subaward Activity

Number of Subawards: 951

Total Subaward Amount: $675,359,865

Contract Characteristics

Cost or Pricing Data: NO

Timeline