DoD's $74M Navy V-22 Hangar Contract Awarded to Harper Construction Under Full and Open Competition

Contract Overview

Contract Amount: $74,189,159 ($74.2M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-11

End Date: 2024-08-12

Contract Duration: 1,523 days

Daily Burn Rate: $48.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILCON P-1024 NAVY V-22 HANGAR AT NAVAL BASE CORONADO, SAN DIEGO, CALIFORNIA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $74.2 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: MILCON P-1024 NAVY V-22 HANGAR AT NAVAL BASE CORONADO, SAN DIEGO, CALIFORNIA Key points: 1. The contract for the V-22 Hangar at Naval Base Coronado is a significant investment in aviation infrastructure. 2. Harper Construction Company, Inc. secured the $74.19 million contract through full and open competition. 3. The project aims to enhance operational capabilities for the Navy's V-22 Osprey fleet. 4. This expenditure falls within the broader context of defense infrastructure spending, which can fluctuate based on geopolitical needs and modernization efforts.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar large-scale military construction projects would provide further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating a robust process for soliciting bids and ensuring competitive pricing. This method generally leads to better price discovery for the government.

Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure, supporting national defense readiness.

Public Impact

Enhances operational readiness for the Navy's V-22 Osprey program. Supports critical maintenance and deployment capabilities for naval aviation assets. Contributes to the economic activity in the San Diego region through construction employment and material sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns in large-scale construction projects.
Schedule delays due to unforeseen site conditions or material availability.

Positive Signals

Firm fixed price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Supports critical defense infrastructure modernization.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. Spending in this sector is often driven by government capital investment needs for military facilities and modernization programs.

Small Business Impact

The contract was awarded to Harper Construction Company, Inc., a prime contractor. Analysis of subcontracting opportunities for small businesses would be necessary to assess their participation in this project.

Oversight & Accountability

The Department of the Navy, under the broader Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality assurance, are expected to be in place.

Related Government Programs

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

Risk Flags

Large contract value increases potential for significant financial impact if issues arise.
Construction projects are inherently subject to delays and cost overruns.
Dependence on a single prime contractor for project completion.
Potential for scope creep if requirements evolve during the lengthy construction period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.2 million to HARPER CONSTRUCTION COMPANY, INC.. MILCON P-1024 NAVY V-22 HANGAR AT NAVAL BASE CORONADO, SAN DIEGO, CALIFORNIA

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 $74.2 million.

What is the period of performance?

Start: 2020-06-11. End: 2024-08-12.

What is the projected return on investment for this V-22 Hangar in terms of improved operational efficiency and readiness?

The primary return on investment for the V-22 Hangar is measured in enhanced operational efficiency and readiness for the Navy's V-22 Osprey fleet. By providing dedicated, state-of-the-art facilities for maintenance, repair, and deployment, the hangar reduces turnaround times for aircraft, minimizes downtime, and ensures aircraft are mission-ready. This directly supports the Navy's ability to execute its strategic objectives and maintain air superiority.

What are the key risks associated with the construction timeline and potential cost escalations for this project?

Key risks include potential delays due to unforeseen environmental conditions at Naval Base Coronado, supply chain disruptions affecting specialized construction materials, and labor availability challenges in the San Diego region. Cost escalations could arise from changes in material prices, scope adjustments requested during construction, or the need for additional specialized equipment not initially accounted for in the fixed-price bid.

How effectively does this infrastructure investment align with the Navy's long-term strategic goals for its V-22 Osprey program?

This infrastructure investment is highly effective in aligning with the Navy's long-term strategic goals by providing essential support for the V-22 Osprey program. The hangar ensures the fleet's operational readiness, facilitates advanced maintenance, and supports the program's continued role in special operations and troop transport. It represents a commitment to sustaining and optimizing the capabilities of this critical aviation asset.

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: N6247319R1240

Offers Received: 7

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: $74,189,159

Exercised Options: $74,189,159

Current Obligation: $74,189,159

Actual Outlays: $62,086,315

Subaward Activity

Number of Subawards: 1781

Total Subaward Amount: $2,056,260,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline