Navy awards $31.6M aviation supply facility repair contract to Harper Construction

Contract Overview

Contract Amount: $31,586,968 ($31.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-03

End Date: 2026-02-13

Contract Duration: 1,351 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY22 DB CONSTRUCTION, M2R2, MI1707M REPAIR AVIATION SUPPLY TASK ORDER AWARD

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: FY22 DB CONSTRUCTION, M2R2, MI1707M REPAIR AVIATION SUPPLY TASK ORDER AWARD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for repair of an aviation supply facility, indicating infrastructure maintenance needs. 3. Fixed-price contract type may limit cost overruns for the government. 4. The duration of the contract extends over three years, suggesting a significant scope of work. 5. Awarded by the Department of the Navy, part of the broader Department of Defense spending. 6. The contract was awarded in FY22, providing context for current infrastructure investment.

Value Assessment

Rating: good

The contract value of $31.6 million for aviation supply facility repair appears reasonable given the multi-year duration and scope. Benchmarking against similar large-scale construction and repair projects within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in managing costs for defined scopes of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates a healthy level of market interest and suggests that the Navy sought the best value from multiple qualified contractors. The presence of five bidders generally supports competitive pricing and a robust discovery process for fair market value.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the repair services.

Public Impact

The primary beneficiaries are the Department of the Navy and its aviation supply operations, ensuring continued functionality of critical infrastructure. The services delivered include the repair and maintenance of an aviation supply facility, crucial for logistics and readiness. The geographic impact is concentrated in California, where the facility is located. The contract supports the construction and repair workforce, likely creating or sustaining jobs in the skilled trades within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues arise during repairs, though the fixed-price nature aims to mitigate this.
Dependence on the contractor's ability to manage complex repair schedules and coordinate with ongoing facility operations.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for best value.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Harper Construction Company, Inc., has a track record that can be reviewed for performance history.
The contract duration allows for phased repairs and potentially less disruption to operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure maintenance and upgrades for government facilities. The market for large-scale construction and repair services is competitive, with numerous firms capable of undertaking such projects. This specific award represents a portion of the Department of Defense's substantial investment in maintaining its operational infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within the scope of this repair project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified repairs within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance monitoring details may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Infrastructure Modernization Programs
Naval Facilities Engineering Command (NAVFAC) Contracts
Military Construction Projects
Aviation Logistics Support Contracts

Risk Flags

Potential for cost overruns if unforeseen issues arise during repairs.
Risk of schedule delays impacting operational readiness.
Contractor performance risk, dependent on Harper Construction's execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to HARPER CONSTRUCTION COMPANY, INC.. FY22 DB CONSTRUCTION, M2R2, MI1707M REPAIR AVIATION SUPPLY TASK ORDER AWARD

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 $31.6 million.

What is the period of performance?

Start: 2022-06-03. End: 2026-02-13.

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

Harper Construction Company, Inc. has a history of performing construction and repair services for the federal government. A detailed review of their contract history, including past performance evaluations, on-time delivery rates, and any disputes or claims on similar projects within the Department of Defense or other agencies, would be necessary to fully assess their suitability and reliability for this specific aviation supply facility repair. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial for this evaluation.

How does the awarded price of $31.6 million compare to similar aviation supply facility repair projects awarded by the Navy or other branches of the DoD?

Benchmarking this $31.6 million award against comparable aviation supply facility repair projects requires access to detailed cost data for similar contracts. Factors such as facility size, age, specific repair scope (e.g., structural, electrical, HVAC), and geographic location significantly influence project costs. Without specific comparable contract data, it's challenging to definitively state if this price represents excellent, good, or fair value. However, the presence of five bids suggests a competitive environment that likely contributed to a fair market price.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential unforeseen structural issues discovered during repairs, which could lead to cost increases despite the fixed-price contract, and schedule delays impacting facility operations. Mitigation strategies likely involve thorough initial site assessments, contingency planning within the contractor's proposal, clear contract language defining scope and change order procedures, and active government oversight to monitor progress and address issues promptly. The contractor's experience and the firm fixed-price nature of the contract also serve as risk mitigation elements.

What is the expected impact of this contract on the operational readiness and efficiency of the Navy's aviation supply chain?

The successful and timely completion of repairs to the aviation supply facility is expected to enhance operational readiness and efficiency. A well-maintained facility ensures the integrity of stored aviation assets, facilitates smoother logistics operations, and reduces the risk of disruptions caused by infrastructure failures. This directly supports the Navy's ability to maintain and deploy aircraft effectively by ensuring a reliable supply chain.

How has federal spending on aviation supply facility repairs trended over the past five fiscal years, and does this award align with historical patterns?

Analyzing historical spending trends for aviation supply facility repairs requires accessing comprehensive federal procurement data over several years. This specific $31.6 million award needs to be contextualized within the broader spending patterns of the Department of Defense and the Navy for similar infrastructure projects. If historical data shows consistent investment in facility maintenance, this award would align with established patterns. Conversely, a significant deviation might warrant further investigation into the underlying reasons, such as aging infrastructure needs or strategic shifts.

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: N6247319R1237

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: $31,626,988

Exercised Options: $31,626,988

Current Obligation: $31,586,968

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $18,745,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1206

IDV Type: IDC

Timeline