DoD Awards $178.6M MACC for JSF Hangar at MCAS Miramar to Harper Construction

Contract Overview

Contract Amount: $178,577,942 ($178.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-11-23

Contract Duration: 1,026 days

Daily Burn Rate: $174.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-201 DBB MACC TO JSF HANGAR MCAS MIRAMAR, CA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $178.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P-201 DBB MACC TO JSF HANGAR MCAS MIRAMAR, CA Key points: 1. Significant investment in critical military infrastructure for F-35 operations. 2. Harper Construction, a large business, secured the contract. 3. Full and open competition suggests potential for competitive pricing. 4. Project duration of 1026 days indicates a complex, long-term undertaking.

Value Assessment

Rating: good

The award amount of $178.6 million for a large-scale hangar facility appears reasonable given the project's scope and duration. Benchmarking against similar large military construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure, supporting national defense objectives. Competitive bidding aims to ensure efficient use of these funds.

Public Impact

Enhances operational readiness for the F-35 Joint Strike Fighter program. Supports military personnel and operations at Marine Corps Air Station Miramar. Contributes to the local economy in San Diego County through construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns on a large, multi-year construction project.
  • Schedule delays due to unforeseen site conditions or supply chain issues.
  • Ensuring compliance with environmental regulations during construction.

Positive Signals

  • Investment in critical defense infrastructure.
  • Utilizes competitive bidding to achieve value.
  • Supports a key military aviation program.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for large-scale military facilities. Spending in this sector is often driven by defense modernization and infrastructure upgrade requirements.

Small Business Impact

The contract was awarded to Harper Construction Company, Inc., identified as a large business. There is no indication of specific set-asides or participation goals for small businesses in this particular award.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large 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 cost overruns.
  • Long project duration (1026 days) heightens risk of schedule delays.
  • Dependence on specialized construction services.
  • Potential impact of fluctuating material costs over the project lifecycle.

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $178.6 million to HARPER CONSTRUCTION COMPANY, INC.. P-201 DBB MACC TO JSF HANGAR MCAS MIRAMAR, 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 $178.6 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-11-23.

What is the estimated cost per square foot for the hangar construction, and how does it compare to industry benchmarks for similar facilities?

The provided data does not include square footage, making a direct per-square-foot cost calculation impossible. To assess value, further details on the facility's size and specific construction elements would be needed. Comparing this to industry benchmarks for specialized aviation hangars would then be feasible.

What are the primary risk mitigation strategies employed by the Department of the Navy for this long-duration, high-value construction project?

While specific strategies are not detailed, typical risk mitigation for such projects includes robust contract clauses for delays and cost overruns, detailed site investigations, contingency planning for material and labor, and regular progress reviews. The firm-fixed-price contract type also shifts some cost risk to the contractor.

How will the successful completion of this hangar impact the operational efficiency and deployment capabilities of the F-35 program at MCAS Miramar?

The new hangar is crucial for providing dedicated, state-of-the-art maintenance and operational facilities for the F-35. Its completion is expected to enhance aircraft readiness, streamline maintenance processes, and ensure the F-35 fleet at MCAS Miramar can operate at peak efficiency and deploy effectively.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247323RF019

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: $178,577,942

Exercised Options: $178,577,942

Current Obligation: $178,577,942

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $139,273,179

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

Start Date: 2024-02-01

Current End Date: 2026-11-23

Potential End Date: 2026-11-23 00:00:00

Last Modified: 2025-10-27

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