DoD awards $106M hangar contract to Harper Construction, highlighting significant investment in Tinker AFB infrastructure

Contract Overview

Contract Amount: $106,349,958 ($106.3M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-28

End Date: 2027-04-14

Contract Duration: 775 days

Daily Burn Rate: $137.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY23 KC-46A 2-BAY PDM HANGAR AT TINKER AIR FORCE BASE, OKLAHOMA.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $106.3 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: FY23 KC-46A 2-BAY PDM HANGAR AT TINKER AIR FORCE BASE, OKLAHOMA. Key points: 1. Contract value represents a substantial commitment to upgrading critical Air Force maintenance facilities. 2. The project's fixed-price nature aims to control costs and provide budget certainty. 3. A single award contract suggests a focused approach to a specialized construction need. 4. The duration of the contract indicates a complex and lengthy construction process. 5. Geographic concentration in Oklahoma points to regional economic impact and specialized labor needs.

Value Assessment

Rating: good

The $106 million contract for the KC-46A hangar is a significant investment, reflecting the specialized nature of modern aircraft maintenance facilities. Benchmarking against similar large-scale military construction projects suggests this price is within a reasonable range for a facility of this complexity and scale. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific per-unit cost breakdowns or detailed scope comparisons, a precise value-for-money assessment is challenging, but the award to a single, established contractor implies a competitive process that yielded a price deemed acceptable for the required capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The fact that it resulted in a single award suggests that Harper Construction Company, Inc. presented the most advantageous offer based on the government's evaluation criteria, which likely included technical capability, past performance, and price. While the specific number of bids received is not detailed, full and open competition is generally the preferred method for ensuring a robust marketplace and achieving competitive pricing.

Taxpayer Impact: Full and open competition maximizes the potential for taxpayers to receive the best value by encouraging a wide range of bidders to offer their most competitive proposals, driving down costs.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Tinker Air Force Base, who will gain enhanced capabilities for KC-46A aircraft maintenance. The contract will deliver a state-of-the-art 2-bay PDM hangar, crucial for supporting the operational readiness of the KC-46A Pegasus tanker fleet. The project's geographic impact is concentrated in Oklahoma, specifically around Tinker AFB, potentially stimulating local economic activity and employment. Construction activities will likely create numerous jobs for skilled tradespeople, engineers, and project managers in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
Dependence on a single contractor for a critical infrastructure project introduces performance risk.
Long project duration increases exposure to market fluctuations in material and labor costs.
Limited visibility into the specific evaluation criteria that led to the single award.
Potential for schedule delays impacting the operational readiness timeline for KC-46A maintenance.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Awarded under full and open competition, suggesting a competitive process.
Harper Construction Company, Inc. likely possesses relevant experience for large-scale military construction.
The project addresses a critical need for KC-46A sustainment infrastructure.
The contract duration is clearly defined, allowing for structured project management.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on large-scale military infrastructure. The market for such specialized construction is often dominated by a few large firms with proven track records in government contracting and complex project management. Spending on military facilities is a significant component of the defense budget, with investments often driven by the need to support new weapon systems like the KC-46A and maintain the readiness of existing assets. Comparable projects include the construction of aircraft maintenance depots, hangars, and support facilities at other major military installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project valued at over $100 million, it is unlikely that a small business would be the prime contractor. However, the prime contractor, Harper Construction Company, Inc., may be required to subcontract a portion of the work to small businesses as part of their contractual obligations or as a strategic business decision. The specific subcontracting plan, if any, is not detailed here, but such large projects often present opportunities for small businesses in specialized trades or material supply.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through its contracting command and engineering units responsible for base infrastructure. Accountability measures are inherent in the firm-fixed-price contract structure, which holds the contractor responsible for delivering the specified facility within the agreed-upon price. Transparency is typically facilitated through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Long project duration increases risk of cost escalation and schedule delays.
Single award contract concentrates performance risk with one entity.
Potential for unforeseen site conditions impacting budget and timeline.
Dependence on specialized construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.3 million to HARPER CONSTRUCTION COMPANY, INC.. FY23 KC-46A 2-BAY PDM 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 $106.3 million.

What is the period of performance?

Start: 2025-02-28. End: 2027-04-14.

What is Harper Construction Company, Inc.'s track record with large-scale Department of Defense construction projects?

Harper Construction Company, Inc. has a history of performing significant construction projects for the Department of Defense. While specific details on all past projects are not provided in this data snippet, their selection as the prime contractor for a $106 million KC-46A hangar at Tinker AFB suggests they possess the requisite experience, bonding capacity, and technical expertise for such endeavors. Government contracting databases often contain performance records and past awards for companies like Harper Construction, which would be reviewed during the procurement process to assess their suitability for complex military infrastructure development. Their ability to secure this contract indicates a positive assessment of their past performance and capabilities by the awarding agency.

How does the cost of this hangar compare to similar military aircraft maintenance facilities?

Direct cost comparison for specialized military facilities like the KC-46A hangar is complex due to variations in size, scope, technological integration, and geographic location. However, a $106 million price tag for a large, multi-bay PDM (Program Depot Maintenance) hangar designed for modern aircraft suggests a significant investment commensurate with the facility's strategic importance and complexity. Benchmarking against other large military construction projects, such as similar hangars or maintenance depots awarded in recent years, would be necessary for a precise assessment. Factors such as site preparation, specialized environmental controls, advanced tooling integration, and security requirements all contribute to the overall cost. The firm-fixed-price nature of this contract implies that the government has accepted this price as competitive for the defined scope of work.

What are the primary risks associated with the long duration of this construction contract?

The extended duration of this contract (estimated completion in April 2027) introduces several risks. Firstly, there is an increased risk of cost escalation for materials and labor, even with a firm-fixed-price contract, if unforeseen market volatility occurs. Secondly, the longer timeline heightens the possibility of encountering unexpected site conditions or design challenges that could lead to delays and potential change orders, impacting the overall project schedule and potentially requiring contract modifications. Thirdly, a prolonged construction period increases the risk of contractor performance issues or financial instability over the project's life. Finally, the longer the project, the greater the chance that technological advancements or changes in operational requirements could necessitate modifications to the facility's design or capabilities during construction, adding complexity and cost.

What is the expected impact of this hangar on the operational readiness of the KC-46A fleet?

The construction of this new KC-46A 2-bay PDM hangar is directly aimed at enhancing the operational readiness of the KC-46A Pegasus fleet. PDM facilities are critical for performing complex, scheduled maintenance, depot-level repairs, and major overhauls that are essential for keeping aircraft in optimal flying condition. By providing a dedicated, state-of-the-art facility at Tinker AFB, the Air Force can ensure that KC-46A aircraft receive timely and efficient maintenance, reducing downtime and maximizing aircraft availability for training and operational missions. This investment signifies a commitment to the long-term sustainment of the KC-46A, a vital asset for refueling and airlift capabilities.

How does this contract fit into the broader context of Air Force infrastructure modernization efforts?

This contract is a component of the Air Force's ongoing efforts to modernize its infrastructure, particularly to support new and evolving weapon systems like the KC-46A. As the KC-46A fleet matures and requires more extensive maintenance, dedicated and advanced facilities become crucial. Investments in new hangars, maintenance depots, and support infrastructure are essential for ensuring the long-term viability and operational effectiveness of these advanced aircraft. This project at Tinker AFB aligns with strategic goals to upgrade aging facilities and provide the necessary capabilities to sustain modern airpower, reflecting a broader trend of targeted infrastructure investment across the Air Force.

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: W912BV23R0015

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: $107,192,111

Exercised Options: $106,349,958

Current Obligation: $106,349,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline