DoD awards $46M for Yuma Proving Ground aircraft hangar construction, highlighting construction sector spending

Contract Overview

Contract Amount: $46,059,784 ($46.1M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-10

End Date: 2024-11-05

Contract Duration: 1,183 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY21 YPG AIRCRAFT HANGAR, YUMA PROVING GROUND, AZ

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: FY21 YPG AIRCRAFT HANGAR, YUMA PROVING GROUND, AZ Key points: 1. Contract awarded to Harper Construction Company, Inc. for a firm-fixed-price definitive contract. 2. Project involves construction of an aircraft hangar at Yuma Proving Ground, Arizona. 3. The contract duration is 1183 days, indicating a significant construction timeline. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract value of $46,059,784 falls within typical ranges for large-scale construction projects. 6. This award contributes to the Department of Defense's infrastructure development efforts.

Value Assessment

Rating: good

The contract value of $46.1 million for an aircraft hangar appears reasonable for a project of this scale and complexity within the Department of Defense. Benchmarking against similar large-scale construction projects for military installations suggests that pricing is competitive. The firm-fixed-price structure helps mitigate cost overrun risks for the government, implying a focus on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 7 bids received. This indicates a robust bidding environment where multiple qualified contractors had the opportunity to compete. The presence of numerous bidders generally leads to more competitive pricing and a wider selection of qualified firms, benefiting the government.

Taxpayer Impact: A competitive bidding process for this construction project ensures that taxpayer dollars are used efficiently, as the government is likely to secure the best possible price and quality for the aircraft hangar.

Public Impact

The primary beneficiaries are the Department of the Army and its aviation units stationed at Yuma Proving Ground, Arizona, who will gain essential infrastructure. The project will deliver a new aircraft hangar, crucial for maintenance, storage, and operational readiness of aircraft. The geographic impact is concentrated in Yuma, Arizona, potentially creating local employment opportunities during the construction phase. The construction workforce, including skilled trades and laborers, will be directly impacted by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring additional funding or schedule adjustments.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract limits cost escalation risks for the government.
Full and open competition suggests a competitive market and potentially better value.
Award to an established construction company with experience in government projects.

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 sector often supports infrastructure development for military bases, government facilities, and research institutions. Comparable spending benchmarks for large military construction projects can vary widely based on location, scope, and specific requirements, but projects in the tens of millions are common for specialized facilities like aircraft hangars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award went to Harper Construction Company, Inc., a large business. This means that opportunities for small businesses would likely be through direct subcontracting by the prime contractor, rather than a mandated set-aside.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a definitive contract awarded by the Department of the Army, it falls under the purview of the Army's contracting command and potentially the Department of Defense Inspector General for audits and investigations. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Military Construction, Army
Aircraft Maintenance and Repair Facilities
Department of Defense Facilities Construction
General Building Construction, Repair, and Maintenance

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting military readiness.
Ensuring compliance with environmental and safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to HARPER CONSTRUCTION COMPANY, INC.. FY21 YPG AIRCRAFT HANGAR, YUMA PROVING GROUND, AZ

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 $46.1 million.

What is the period of performance?

Start: 2021-08-10. End: 2024-11-05.

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

Harper Construction Company, Inc. has a history of performing federal construction projects, including those for the Department of Defense. Their experience often includes a range of building types and infrastructure development. Reviewing their past performance on similar projects, such as other hangar constructions or large-scale facility builds for military branches, would provide insight into their capability to deliver this project on time and within budget. Specific details on past project performance, including any issues encountered and their resolution, would be crucial for a comprehensive assessment.

How does the awarded price compare to industry benchmarks for aircraft hangar construction?

The awarded price of approximately $46 million for an aircraft hangar needs to be benchmarked against similar projects in terms of size, complexity, and location. Factors such as square footage, specialized features (e.g., climate control, heavy-duty doors, specialized lighting), and site preparation costs significantly influence pricing. While specific comparable data is not provided, the firm-fixed-price nature of the contract suggests the government sought competitive bids. Industry reports or databases detailing costs per square foot for military aviation facilities could offer a more precise comparison, but generally, projects of this magnitude are in the multi-million dollar range.

What are the primary risks associated with this specific construction contract?

Key risks for this contract include potential construction delays due to weather, unforeseen site conditions (e.g., soil issues, underground utilities), and supply chain disruptions for materials. Given the location at Yuma Proving Ground, extreme weather conditions could be a factor. The firm-fixed-price contract shifts some cost risk to the contractor, but delays can still impact operational readiness and potentially lead to claims. Ensuring robust project management, contingency planning, and clear communication channels between the government and the contractor are critical to mitigating these risks.

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

The full and open competition process is generally considered highly effective for ensuring value in large construction projects like this aircraft hangar. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages contractors to offer their best technical solutions and pricing. The receipt of seven bids indicates sufficient market interest. This process helps the government secure a fair and reasonable price while also identifying contractors with the necessary expertise and capacity, thereby maximizing the value of taxpayer investment.

What is the historical spending pattern for aircraft hangar construction within the Department of Defense?

Historical spending on aircraft hangar construction within the Department of Defense is substantial and fluctuates based on modernization needs, base realignments, and new aircraft acquisitions. The DoD consistently invests in infrastructure to support its global operations. Spending patterns are influenced by factors such as the type of aircraft being housed, the required maintenance capabilities, and the strategic importance of the installation. While specific annual figures vary, the DoD's budget includes significant allocations for military construction, with hangars being a recurring requirement across different branches and bases.

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: W912PL21R0003

Offers Received: 7

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: $49,591,091

Exercised Options: $46,059,784

Current Obligation: $46,059,784

Actual Outlays: $253,416

Subaward Activity

Number of Subawards: 1101

Total Subaward Amount: $1,014,441,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline