In 1941, the Navy and BuDocks decided to improve project oversight of civilian contractors by creating "Headquarters Construction Companies". These companies would have 2 officers and 99 enlisted, but would do no actual construction. On 31 October 1941, RADM. Chester Nimitz, Chief of the Bureau of Navigation, authorized the formation of the 1st Headquarters Construction Company. Recruiting began in November while boot training began 7 December 1941 at Naval Station Newport. By 16 December, four additional companies had been authorized, but Pearl Harbor changed everything.
