Navy Awards $101.7M Hangar Contract to Harper Construction, Facing Limited Competition
Contract Overview
Contract Amount: $101,726,428 ($101.7M)
Contractor: Harper Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-16
End Date: 2022-08-12
Contract Duration: 1,061 days
Daily Burn Rate: $95.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE ITEM 0001 + BID OPTION ITEM 3 P-284 F35C HANGER, NAS LEMOORE, CA
Place of Performance
Location: LEMOORE, KINGS County, CALIFORNIA, 93246
Plain-Language Summary
Department of Defense obligated $101.7 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: BASE ITEM 0001 + BID OPTION ITEM 3 P-284 F35C HANGER, NAS LEMOORE, CA Key points: 1. Contract awarded for F35C Hangar at NAS Lemoore, CA. 2. Harper Construction Company, Inc. secured the $101.7M definitive contract. 3. Limited competition may impact price discovery and taxpayer value. 4. Construction sector spending benchmarks are relevant for this project.
Value Assessment
Rating: fair
The contract value of $101.7M for a large hangar facility appears within a reasonable range for major construction projects. However, without specific details on the scope and complexity, a precise comparison to similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, which can sometimes lead to higher prices than full and open competition. The impact on price discovery is a concern, as fewer bids may reduce the incentive for contractors to offer the most competitive pricing.
Taxpayer Impact: The limited competition raises concerns about potential overspending, impacting taxpayer value. Further analysis is needed to ensure the price reflects fair market value.
Public Impact
Military readiness: The new hangar is crucial for supporting F35C operations at NAS Lemoore. Economic impact: The project will likely create jobs and stimulate economic activity in the California region. Infrastructure investment: This represents a significant investment in military infrastructure, potentially with long-term benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Potential for cost overruns in large construction projects.
- Contract duration is substantial, increasing risk exposure.
Positive Signals
- Supports critical F35C operations.
- Investment in vital military infrastructure.
- Contract awarded to an established construction company.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions and government priorities. Benchmarks for similar military construction projects would provide better context.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as Harper Construction Company, Inc. is the prime contractor. Subcontracting opportunities for small businesses may exist, but are not detailed here.
Oversight & Accountability
Oversight of this large construction contract is critical to ensure adherence to scope, budget, and timeline. The Department of the Navy's contracting office and potentially independent auditors will be responsible for monitoring progress and expenditures.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Large contract value.
- Long contract duration.
- Potential for cost overruns.
- Dependence on prime contractor for small business subcontracting.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.7 million to HARPER CONSTRUCTION COMPANY, INC.. BASE ITEM 0001 + BID OPTION ITEM 3 P-284 F35C HANGER, NAS LEMOORE, CA
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 $101.7 million.
What is the period of performance?
Start: 2019-09-16. End: 2022-08-12.
What specific factors led to the limited competition for this hangar construction contract?
The limited competition may stem from specific requirements of the F35C hangar, such as specialized construction techniques, security clearances, or proximity to existing military infrastructure. Understanding these unique demands is key to assessing whether the limited competition was justified or if opportunities for broader bidding were missed.
How does the awarded price compare to industry benchmarks for similar military aviation hangar construction projects?
A direct comparison requires detailed project specifications. However, the $101.7M award for a single hangar suggests a significant investment. Benchmarking against recently completed similar facilities, considering size, complexity, and location, would reveal if this contract represents a fair market price or if it is potentially inflated due to limited bidding.
What mechanisms are in place to ensure cost control and prevent overruns during the 1061-day contract duration?
Effective cost control relies on robust contract management, including regular progress reviews, independent cost estimates, and strict change order management. The firm-fixed-price structure provides some cost certainty, but vigilance is needed to manage potential scope creep or unforeseen site conditions that could drive up costs.
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: N6247318R2203
Offers Received: 5
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: $101,726,428
Exercised Options: $101,726,428
Current Obligation: $101,726,428
Actual Outlays: $6,971,527
Subaward Activity
Number of Subawards: 1337
Total Subaward Amount: $2,932,281,767
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-16
Current End Date: 2022-08-12
Potential End Date: 2022-08-12 00:00:00
Last Modified: 2022-08-23
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