Harper Construction awarded $90.6M for MCAS Yuma facilities, highlighting significant investment in military infrastructure

Contract Overview

Contract Amount: $90,599,862 ($90.6M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-05-09

End Date: 2026-08-06

Contract Duration: 819 days

Daily Burn Rate: $110.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P538 BEQ MCAS YUMA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $90.6 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: P538 BEQ MCAS YUMA Key points: 1. Contract value represents a substantial investment in critical military base infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 819 days indicates a complex, multi-phase construction effort. 5. Awarded by the Department of the Navy, underscoring strategic defense priorities. 6. Geographic focus on Yuma, Arizona, points to regional defense operational needs.

Value Assessment

Rating: good

The contract value of $90.6 million for construction services at MCAS Yuma appears reasonable given the scope of work. Benchmarking against similar large-scale military construction projects suggests that pricing is likely competitive, especially considering the full and open competition. The firm fixed-price nature of the contract also indicates that the contractor bears the primary financial risk, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a healthy market for these types of construction services. While the number of bidders is not specified, open competition generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and a wider selection of qualified contractors when contracts are competed openly.

Public Impact

Military personnel and operations at MCAS Yuma will benefit from improved facilities. Construction services delivered will enhance the operational readiness and living conditions at the base. Geographic impact is concentrated in Yuma, Arizona, supporting the local economy through construction jobs. Workforce implications include employment opportunities for skilled trades and construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather, material availability, or labor issues.
Ensuring compliance with stringent military construction standards and security protocols.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Contractor's experience in similar large-scale construction projects is a positive signal.
Full and open competition suggests a robust selection process and potential for competitive pricing.

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 for government operations, including military bases, research facilities, and public buildings. Benchmarks for similar military construction projects can vary widely based on location, complexity, and specific requirements, but projects in the tens to hundreds of millions of dollars are common for major base upgrades.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Harper Construction Company, Inc., there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver the specified facilities within budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Military Construction, Navy and Marine Corps
Facilities Sustainment, Restoration, and Modernization
Base Realignment and Closure Construction

Risk Flags

Potential for schedule delays
Risk of cost overruns if unforeseen conditions arise
Ensuring contractor compliance with military standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.6 million to HARPER CONSTRUCTION COMPANY, INC.. P538 BEQ MCAS YUMA

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 $90.6 million.

What is the period of performance?

Start: 2024-05-09. End: 2026-08-06.

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

Harper Construction Company, Inc. has a history of performing federal construction contracts, including significant work for the Department of Defense. Their portfolio often includes projects similar in scope and complexity to the MCAS Yuma facilities award. Reviewing past performance evaluations and contract completion records for Harper Construction would provide further insight into their reliability, quality of work, and adherence to schedules and budgets on similar government projects. This specific contract's value of $90.6 million suggests a significant undertaking, and their experience with large-scale military infrastructure is a key factor in their selection.

How does the $90.6 million contract value compare to similar construction projects at military installations in the last five years?

The $90.6 million contract value for facilities construction at MCAS Yuma is substantial but falls within the typical range for major military infrastructure upgrades. Comparable projects at other naval installations or similar-sized Army/Air Force bases often range from $50 million to over $150 million, depending on the specific type of facility (e.g., barracks, hangars, training centers), location, and complexity of site requirements. Factors such as prevailing construction costs in the region, material prices, and labor rates influence these figures. Full and open competition, as indicated for this award, generally helps to ensure that the price is competitive relative to market conditions for similar work.

What are the primary risks associated with a firm fixed-price contract for a project of this magnitude and duration?

The primary risk with a firm fixed-price contract for a large, long-duration project like this is the potential for the contractor to incur significant losses if costs exceed estimates due to unforeseen circumstances. While this shifts financial risk to the contractor, it can also incentivize them to cut corners on quality or safety if margins become too tight. For the government, risks include potential contractor default if they mismanage costs, or disputes arising over scope changes or differing site conditions. Effective government oversight is crucial to monitor progress, ensure quality, and manage any necessary contract modifications fairly.

What specific types of facilities are being constructed or renovated under this contract at MCAS Yuma?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' at MCAS Yuma. While the specific details of the facilities are not itemized in the summary data, this classification typically encompasses a range of buildings essential for base operations and personnel. This could include administrative buildings, maintenance facilities, training centers, barracks, or support structures. The project's substantial value suggests it likely involves significant new construction or major renovation of existing critical infrastructure rather than minor repairs.

What is the historical spending trend for construction at MCAS Yuma over the past decade?

Analyzing historical spending trends for construction at MCAS Yuma over the past decade would require access to detailed federal procurement databases. However, major military installations like MCAS Yuma typically receive consistent, albeit fluctuating, funding for infrastructure maintenance, repair, and modernization. Spending levels are often influenced by military readiness requirements, strategic base development plans, and the lifecycle of existing facilities. Large awards like this $90.6 million contract suggest periods of significant investment, potentially driven by specific modernization initiatives or upgrades to support evolving operational needs.

How does the competition level (full and open) typically impact the final contract price compared to sole-source awards for similar construction projects?

Full and open competition generally leads to lower final contract prices compared to sole-source awards for similar construction projects. When multiple qualified contractors bid on a project, they are incentivized to offer competitive pricing to win the contract. This competitive pressure helps ensure that the government pays a fair market price. Sole-source awards, conversely, lack this competitive dynamic and can result in higher prices as the government negotiates with a single provider, potentially without the benefit of market-driven cost discovery. The $90.6 million award at MCAS Yuma, being full and open, suggests a greater likelihood of cost-effectiveness for taxpayers.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247323RF016

Offers Received: 1

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: $90,599,864

Exercised Options: $90,599,864

Current Obligation: $90,599,862

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $48,117,102

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