DOD's $23.2M Nellis AFB hangar contract awarded to Harper Construction, completed on time

Contract Overview

Contract Amount: $23,233,910 ($23.2M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-16

End Date: 2018-02-02

Contract Duration: 870 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF F35 MAINTENANCE HANGAR AND 4 BAY AIRCRAFT MAINTENANCE UNIT (AMU), NELLIS AFB, NEVADA

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF F35 MAINTENANCE HANGAR AND 4 BAY AIRCRAFT MAINTENANCE UNIT (AMU), NELLIS AFB, NEVADA Key points: 1. Contract awarded for aircraft maintenance facilities, indicating investment in operational readiness. 2. Fixed-price contract type suggests cost certainty for the government. 3. Completion within the estimated duration points to effective project management. 4. The project was awarded under full and open competition, suggesting a competitive bidding process. 5. The contract value falls within a typical range for similar construction projects of this scale. 6. No small business set-aside was utilized, potentially limiting direct participation for smaller firms.

Value Assessment

Rating: good

The contract value of $23.2 million for a maintenance hangar and AMU at Nellis AFB appears reasonable for a project of this nature. Benchmarking against similar military construction projects for aircraft maintenance facilities suggests that the pricing was competitive. The firm fixed-price structure provided cost predictability. The project was completed within its original timeframe, indicating efficient execution and potentially avoiding cost overruns associated with delays.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, with 8 bidders vying for the work. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests a healthy market for this type of construction service.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a better price for taxpayers compared to a sole-source award. The multiple bids indicate that the government was able to leverage market forces to secure the best value.

Public Impact

The primary beneficiaries are the U.S. Air Force units stationed at Nellis AFB, Nevada, gaining enhanced aircraft maintenance capabilities. The project delivered a new maintenance hangar and a 4-bay aircraft maintenance unit, directly supporting operational readiness. The geographic impact is localized to Nellis AFB, Nevada, improving infrastructure at a key military installation. The contract supported construction jobs during its execution phase, contributing to the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions were encountered, though mitigated by fixed-price contract.
Dependence on contractor's ability to manage complex construction schedules and quality control.
Risk of delays if permitting or environmental reviews were not managed proactively.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded under full and open competition, indicating a competitive market.
Completed within the estimated duration, suggesting effective project management.
Contractor has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The U.S. military is a significant client for construction services, with substantial annual spending on infrastructure development and maintenance at bases worldwide. This project represents a typical investment in specialized facilities required for modern air operations, contributing to the overall defense infrastructure spending.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mandated within the award data. While Harper Construction Company, Inc. may engage small businesses as subcontractors, the primary award did not prioritize small business participation. This means opportunities for direct prime contracting with the federal government were not specifically reserved for small businesses in this instance.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and their representatives within the relevant Army contracting command. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified scope within the agreed price. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Nellis AFB Infrastructure Projects
Department of Defense Military Construction
Aircraft Maintenance Facility Construction
Air Force Base Improvement Contracts

Risk Flags

Project Duration
Contract Type
Competition Level
Contract Value
Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to HARPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF F35 MAINTENANCE HANGAR AND 4 BAY AIRCRAFT MAINTENANCE UNIT (AMU), NELLIS AFB, 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 Army).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2015-09-16. End: 2018-02-02.

What is Harper Construction Company, Inc.'s track record with similar federal construction contracts?

Harper Construction Company, Inc. has a history of securing and executing federal construction contracts, particularly with the Department of Defense. Their portfolio includes various types of military facilities, such as barracks, training centers, and maintenance structures. While specific details on past performance metrics for every contract are not always public, their ability to win bids and complete projects like the Nellis AFB hangar suggests a capacity for managing government construction requirements. Reviewing their contract history in federal databases can provide further insight into their performance, including any past issues or commendations related to schedule adherence, budget management, and quality of work.

How does the $23.2 million cost compare to similar aircraft maintenance facility projects?

The $23.2 million cost for the Nellis AFB hangar and AMU appears to be within a reasonable range for specialized military construction projects of this scale. Comparable projects, such as constructing aircraft maintenance hangars or similar support facilities at other Air Force bases, often fall within a similar dollar range, depending on size, complexity, and specific technological requirements. Factors influencing cost include the square footage, specialized equipment integration (e.g., cranes, ventilation systems), site preparation needs, and prevailing labor and material costs in the region. The firm fixed-price nature of this contract also suggests that the initial bid was deemed competitive by the contracting agency.

What were the primary risks associated with this construction project, and how were they managed?

Key risks for a project of this nature include potential cost overruns due to unforeseen site conditions, delays caused by weather or supply chain issues, and ensuring adherence to stringent military construction standards. The firm fixed-price contract structure inherently shifts much of the cost overrun risk to the contractor, Harper Construction Company, Inc. Effective project management, including detailed planning, proactive scheduling, robust quality assurance, and contingency planning for weather delays, would have been crucial. The fact that the project was completed within its estimated duration suggests that these risks were likely managed effectively by both the contractor and the contracting officer's representative.

How effective was the competition for this contract in ensuring value for taxpayers?

The contract was awarded under full and open competition with eight bidders, which is a strong indicator of effective competition. A higher number of bidders generally leads to more competitive pricing as companies vie for the contract. This scenario allows the government to select the offer that provides the best value, considering both price and technical qualifications. The presence of eight bids suggests that the market was robust for this type of construction service, and taxpayers likely benefited from the resulting competitive pressure on pricing and the selection of a qualified contractor.

What is the historical spending trend for aircraft maintenance facilities at Nellis AFB or similar installations?

Historical spending on aircraft maintenance facilities at Nellis AFB and similar installations reflects the Air Force's ongoing need to modernize and maintain its operational infrastructure. Investments in such facilities are cyclical, often driven by the introduction of new aircraft types requiring different maintenance capabilities, aging infrastructure needing replacement, or strategic base realignments. While specific historical spending figures for Nellis AFB maintenance hangars are not detailed here, broader trends show consistent federal investment in base infrastructure. The $23.2 million awarded to Harper Construction represents a significant, but not unusual, investment for a single, specialized facility project within this category.

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: W912PL15R0003

Offers Received: 8

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: $23,233,910

Exercised Options: $23,233,910

Current Obligation: $23,233,910

Subaward Activity

Number of Subawards: 635

Total Subaward Amount: $4,183,275,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline