DoD's $34.5M KC-46A Hangar Contract Awarded to Harper Construction for Tinker AFB

Contract Overview

Contract Amount: $34,533,170 ($34.5M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-28

End Date: 2019-10-03

Contract Duration: 1,100 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF KC-46A DEPOT MAINTENANCE HANGAR AT TINKER AIR FORCE BASE, OKLAHOMA

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF KC-46A DEPOT MAINTENANCE HANGAR AT TINKER AIR FORCE BASE, OKLAHOMA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The project duration of approximately 3 years (1100 days) indicates a significant construction undertaking. 4. The award was made to Harper Construction Company, Inc., a single entity. 5. The project is located at Tinker Air Force Base, Oklahoma, a key military installation. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $34.5 million for a depot maintenance hangar is substantial. Benchmarking this against similar large-scale military construction projects is challenging without more specific project scope details. However, the firm-fixed-price nature of the contract implies that the initial bid was deemed competitive and acceptable by the Army. The absence of detailed cost breakdowns or comparisons makes a precise value-for-money assessment difficult, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders (no) suggests a reasonable level of competition for this significant construction project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Tinker Air Force Base, who will gain a dedicated facility for KC-46A depot maintenance. The contract delivers essential infrastructure for maintaining and servicing the KC-46A Pegasus tanker aircraft. The geographic impact is concentrated in Oklahoma City, Oklahoma, supporting local economic activity through construction jobs and related services. The project will likely involve a significant construction workforce, providing employment opportunities in the skilled trades within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope creep occur, despite the firm-fixed-price structure.
Dependence on the contractor's ability to manage complex construction timelines and quality control for a critical military facility.
Risk associated with the specialized nature of depot maintenance facilities, requiring specific expertise and adherence to stringent military standards.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract structure transfers significant cost risk to the contractor.
The project is located at a major military installation (Tinker AFB), suggesting strategic importance and likely strong oversight.
The contract duration is clearly defined, providing a framework for project management and delivery.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for large-scale military infrastructure projects is specialized, often involving significant government investment and stringent regulatory requirements. Comparable spending benchmarks would typically involve other major military base construction or renovation projects, such as aircraft hangars, maintenance facilities, or barracks, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the contracting officer and their representatives, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases, though detailed project progress and financial oversight specifics are often internal to the agency.

Related Government Programs

KC-46A Pegasus Aircraft Program
Tinker Air Force Base Infrastructure Projects
Military Aircraft Maintenance Facilities
Department of Defense Construction Contracts

Risk Flags

Potential for cost growth if scope is not well-defined.
Contractor performance risk over a multi-year project.
Quality assurance challenges in specialized construction.
Dependency on timely delivery of materials and specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to HARPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF KC-46A DEPOT MAINTENANCE HANGAR AT TINKER AIR FORCE BASE, OKLAHOMA

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 Army).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2016-09-28. End: 2019-10-03.

What is the track record of Harper Construction Company, Inc. on similar government contracts?

Assessing Harper Construction Company, Inc.'s track record on similar government contracts requires a deeper dive into federal procurement databases like SAM.gov or FPDS. While this specific award indicates they were selected for a significant DoD project, their past performance on projects of comparable size, complexity, and type (e.g., large-scale institutional or industrial construction, military facilities) would provide a clearer picture of their capabilities and reliability. Information on past performance, including any disputes, contract terminations, or awards for excellence, is crucial for a comprehensive risk assessment. Without this specific historical data, we rely on the competitive process and the contracting agency's due diligence in vetting the awardee.

How does the $34.5 million cost compare to similar depot maintenance hangar constructions?

Benchmarking the $34.5 million cost against similar depot maintenance hangars is challenging without detailed project specifications and scope comparisons. Factors such as square footage, specialized equipment installation (e.g., cranes, lifts, environmental controls), site preparation complexity, and specific structural requirements for aircraft maintenance significantly influence costs. Generally, large-scale military construction projects of this nature can range widely, from tens of millions to over a hundred million dollars, depending on these variables. The firm-fixed-price nature suggests the awarded amount was deemed appropriate based on the defined scope at the time of bidding. A more precise comparison would necessitate analyzing the detailed project requirements and comparing them to publicly available data on recently awarded, similar military construction contracts.

What are the primary risks associated with this firm-fixed-price contract for the government?

The primary risk for the government with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or materials to maximize profit if they underestimated costs or if unforeseen issues arise. While the FFP structure shifts cost overrun risk to the contractor, the government still bears the risk of receiving a facility that does not meet the required quality standards or performance specifications. Additionally, if the initial scope definition was incomplete or inaccurate, the government might face challenges in obtaining necessary modifications or additions without significant cost increases or delays, potentially leading to disputes. Robust oversight and clear acceptance criteria are essential to mitigate these risks.

How effective is full and open competition in ensuring value for money for this type of construction?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including large construction projects. By allowing all responsible sources to compete, the government maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. The presence of 6 bidders in this case suggests a healthy level of competition, which likely contributed to a more favorable price for the Department of the Army. However, the effectiveness also depends on the clarity and completeness of the solicitation documents and the agency's ability to evaluate bids accurately to select the best overall value, not just the lowest price.

What is the historical spending trend for depot maintenance facilities at Tinker AFB or similar bases?

Analyzing historical spending trends for depot maintenance facilities at Tinker AFB or similar bases requires access to detailed historical contract data. This specific contract represents a significant investment in KC-46A maintenance capabilities. Without broader historical data, it's difficult to establish a trend. However, spending on such infrastructure is often driven by fleet modernization, aircraft lifecycle management, and strategic basing decisions. Increases in spending in this category might correlate with the introduction of new aircraft types (like the KC-46A) or aging infrastructure requiring upgrades. Fluctuations can also be influenced by budget allocations and military readiness priorities over time.

What are the implications of the 1100-day duration on project management and potential delays?

A duration of 1100 days (approximately three years) for a depot maintenance hangar project indicates a substantial and complex undertaking. This extended timeline allows for detailed planning, phased construction, and integration of specialized systems. However, it also increases the potential exposure to risks such as changing requirements, economic fluctuations affecting material costs, weather delays, and contractor performance issues over a longer period. Effective project management, including rigorous scheduling, regular progress monitoring, proactive risk mitigation, and clear communication channels between the government and the contractor, is critical to ensuring timely completion and staying within budget despite the long duration.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BV16R0103

Offers Received: 6

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: $34,533,170

Exercised Options: $34,533,170

Current Obligation: $34,533,170

Subaward Activity

Number of Subawards: 803

Total Subaward Amount: $1,104,585,493

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline