Naval Air Station Fallon hangar construction awarded to Harper Construction for $42.5M under full and open competition

Contract Overview

Contract Amount: $42,470,998 ($42.5M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-30

End Date: 2027-11-07

Contract Duration: 830 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS ACQUISITION WILL RESULT IN A FIRM-FIXED PRICE (FFP) DESIGN-BUILD CONTRACT TASK ORDER FOR THE CONSTRUCTION OF P-429 F-35C 1 MODULE TYPE 1 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION (NAS) FALLON IN NEVADA.

Place of Performance

Location: FALLON, CHURCHILL County, NEVADA, 89406

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: THIS ACQUISITION WILL RESULT IN A FIRM-FIXED PRICE (FFP) DESIGN-BUILD CONTRACT TASK ORDER FOR THE CONSTRUCTION OF P-429 F-35C 1 MODULE TYPE 1 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION (NAS) FALLON IN NEVADA. Key points: 1. The contract is a firm-fixed-price design-build task order, indicating clear cost expectations for the government. 2. Awarded under full and open competition, suggesting a competitive environment that should drive favorable pricing. 3. The project involves constructing a specialized aircraft maintenance hangar, crucial for F-35C operations. 4. The duration of the contract is 830 days, spanning over two years, allowing for phased construction and potential supply chain management. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction, a standard industry category. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: good

The contract value of $42.5 million for a design-build aircraft maintenance hangar appears reasonable given the specialized nature of the facility and the firm-fixed-price structure. Benchmarking against similar large-scale construction projects for military aviation infrastructure would provide a more precise value assessment. The fixed-price nature limits cost overrun risks for the government, provided the design and scope are well-defined upfront. The duration of over two years suggests a complex project, and the price reflects the comprehensive scope of design and construction services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The fact that it was competed openly suggests that the Navy sought to maximize value and innovation by engaging the broadest possible market for construction services.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is expected to lead to lower prices and higher quality services through market forces. It ensures that the government is not limited to a single provider, thereby preventing potential price gouging and encouraging efficiency.

Public Impact

The primary beneficiaries are the U.S. Navy and its F-35C fleet, gaining enhanced maintenance capabilities at NAS Fallon. The project will deliver a P-429 F-35C 1 Module Type 1 aircraft maintenance hangar. The geographic impact is localized to Naval Air Station Fallon in Nevada, supporting regional military readiness. The construction will likely involve a workforce of skilled tradespeople, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design-build projects if requirements are not meticulously defined and managed.
Construction timelines can be subject to delays due to unforeseen site conditions, weather, or supply chain disruptions.
Ensuring adequate quality control throughout the design and construction phases is critical for specialized military facilities.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Awarded under full and open competition, which typically drives competitive pricing.
Design-build approach can streamline the project delivery process by integrating design and construction.
The project supports critical F-35C operational readiness at a key naval installation.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant area of federal spending. This contract falls within the broader category of military infrastructure development, which often involves specialized requirements for aircraft hangars, maintenance facilities, and testing grounds. Federal spending in this area is influenced by defense modernization efforts, operational readiness needs, and base infrastructure upgrades. Comparable spending benchmarks would involve analyzing the cost per square foot or per unit of specialized facility for other military branches or similar government agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Harper Construction Company, Inc. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and any specific requirements outlined in the contract or broader small business utilization goals set by the Department of the Navy.

Oversight & Accountability

Oversight for this firm-fixed-price design-build contract will likely be managed by the Department of the Navy's contracting officers and project managers. Accountability measures will be tied to the contract's performance metrics, delivery schedule, and quality standards. Transparency is facilitated through the federal procurement data system where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
F-35 Program Support Infrastructure
Aircraft Maintenance and Repair Facilities Construction

Risk Flags

Potential for cost increases if design scope is not fully defined.
Risk of schedule delays due to construction complexities or external factors.
Ensuring specialized F-35C maintenance requirements are met in the design and build.
Contractor performance and capacity to deliver on time and budget.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to HARPER CONSTRUCTION COMPANY, INC.. THIS ACQUISITION WILL RESULT IN A FIRM-FIXED PRICE (FFP) DESIGN-BUILD CONTRACT TASK ORDER FOR THE CONSTRUCTION OF P-429 F-35C 1 MODULE TYPE 1 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION (NAS) FALLON IN NEVADA.

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 $42.5 million.

What is the period of performance?

Start: 2025-07-30. End: 2027-11-07.

What is Harper Construction Company, Inc.'s track record with similar large-scale military construction projects?

Assessing Harper Construction Company, Inc.'s track record would involve reviewing their past performance on similar firm-fixed-price design-build contracts, particularly those involving specialized aviation facilities for the Department of Defense or other federal agencies. Key indicators include on-time and on-budget delivery, quality of work, safety record, and client satisfaction. A review of their contract history in the Federal Procurement Data System (FPDS) or other public databases could reveal the scale and complexity of projects they have successfully completed. Experience with hangar construction, particularly for advanced aircraft like the F-35C, would be a significant positive indicator. Conversely, a history of significant cost overruns, schedule delays, or performance disputes would raise concerns about their capability to execute this specific task order effectively.

How does the awarded price of $42.5 million compare to similar aircraft maintenance hangar construction projects?

To benchmark the $42.5 million award, one would compare it against the cost of similar aircraft maintenance hangars constructed for military aviation. This comparison should consider factors such as square footage, specialized equipment requirements (e.g., environmental controls, heavy-duty flooring, specialized lighting), geographic location (which impacts labor and material costs), and the specific aircraft type being supported (F-35C hangars may have unique design needs). Analyzing the cost per square foot or cost per module for this project against a portfolio of recently awarded military hangar contracts would provide a valuable perspective. If this project's cost per unit is significantly higher or lower than comparable projects, it warrants further investigation into the underlying reasons, such as unique design complexities, market conditions, or the level of competition.

What are the primary risks associated with a firm-fixed-price design-build contract for this type of facility?

The primary risks associated with a firm-fixed-price design-build contract for an F-35C maintenance hangar include potential inadequacies in the initial design scope definition, which could lead to change orders and cost increases despite the fixed-price nature. Contractor performance risk is also significant; if Harper Construction Company, Inc. underestimates costs, faces labor shortages, or encounters unforeseen site conditions, they may struggle to deliver within the agreed price, potentially impacting quality or schedule. Schedule risk is inherent in large construction projects, with potential delays from weather, supply chain issues, or regulatory hurdles. Finally, ensuring the design meets the highly specialized operational and technical requirements of the F-35C, including specific environmental controls and safety features, presents a technical risk that must be meticulously managed throughout the design and construction phases.

How effective is the 'full and open competition' strategy likely to be in ensuring value for this specific project?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for projects like the construction of an F-35C maintenance hangar. By allowing all responsible contractors to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition puts downward pressure on bids, encouraging contractors to offer their best value proposition to win the contract. The success of this strategy hinges on the clarity and completeness of the government's requirements and the evaluation criteria used. If the solicitation is well-defined and the evaluation process is robust, full and open competition should lead to a favorable outcome for the taxpayer, securing a high-quality facility at a competitive price.

What are the historical spending patterns for aircraft maintenance hangar construction at Naval Air Station Fallon?

To analyze historical spending patterns for aircraft maintenance hangar construction at Naval Air Station Fallon, one would need to examine past contracts awarded for similar facilities at this specific base. This would involve searching procurement databases for contracts related to hangar construction, maintenance facilities, or airfield infrastructure at NAS Fallon over a relevant period (e.g., the last 5-10 years). Key data points to collect would include contract award amounts, contract types (FFP, cost-plus, etc.), duration, and the contractors involved. Analyzing these historical data points can reveal trends in pricing, project complexity, and the typical scale of such investments at the base. It can also help identify if there have been significant increases or decreases in costs over time, potentially due to inflation, changes in technology, or evolving operational requirements for aircraft maintenance.

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

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: $42,470,998

Exercised Options: $42,470,998

Current Obligation: $42,470,998

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $11,971,387

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