Department of State awards $2.7M contract for facility repair and replacement in Japan

Contract Overview

Contract Amount: $2,698,750 ($2.7M)

Contractor: Hana-Nati, LLC

Awarding Agency: Department of State

Start Date: 2025-09-15

End Date: 2027-02-27

Contract Duration: 530 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FEBR PRODUCT REPAIR AND REPLACEMENT AT U.S. CONSULATE NAHA, JAPAN.

Plain-Language Summary

Department of State obligated $2.7 million to HANA-NATI, LLC for work described as: FEBR PRODUCT REPAIR AND REPLACEMENT AT U.S. CONSULATE NAHA, JAPAN. Key points: 1. Contract awarded to HANA-NATI, LLC for facility maintenance and repair. 2. The contract has a duration of 530 days, ending in February 2027. 3. This is a delivery order under a larger contract, indicating ongoing needs. 4. The contract type is Firm Fixed Price, which sets a ceiling on costs. 5. The procurement method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for initial source exclusion. 6. The value of this specific order is $2,698,750. 7. The work is to be performed at the U.S. Consulate in Naha, Japan.

Value Assessment

Rating: fair

The contract value of $2.7 million for facility repair and replacement in Japan appears to be within a reasonable range for such services, though specific benchmarks are difficult to ascertain without detailed scope of work and local labor cost data. The Firm Fixed Price contract type helps manage cost certainty for the government. However, the procurement method 'Full and Open Competition After Exclusion of Sources' warrants further investigation to understand if it led to optimal pricing or limited the competitive pool unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, there was an initial exclusion of certain sources, possibly due to specific requirements or prior performance issues. The number of bidders is not explicitly stated, but the designation suggests a potentially narrowed field compared to a standard full and open competition. This procurement approach may impact price discovery by limiting the number of potential offerors.

Taxpayer Impact: Taxpayers may not benefit from the broadest possible competition, potentially leading to higher prices than if all qualified sources were initially considered. The rationale behind the source exclusion needs to be transparent to ensure fairness and value.

Public Impact

U.S. Consulate in Naha, Japan benefits from essential facility repairs and maintenance. Ensures the operational readiness and safety of a key diplomatic facility. Supports the U.S. diplomatic mission in Japan. Potential for local employment opportunities in Japan during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' raises questions about the initial competitive landscape and potential impact on pricing.
Lack of detailed scope of work makes it difficult to benchmark value for money effectively.
The specific reasons for excluding sources are not detailed, hindering a full understanding of the procurement process.

Positive Signals

The contract is Firm Fixed Price, providing cost certainty for the government.
The work is essential for maintaining the operational integrity of a U.S. Consulate.
The contract duration is clearly defined, allowing for planning and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of projects, from minor repairs to large-scale new constructions. Government contracts in this area often involve complex logistical challenges, especially when performed overseas. Benchmarking is challenging due to the unique nature of each facility and location, but typical government construction projects can range from tens of thousands to hundreds of millions of dollars depending on scope and complexity.

Small Business Impact

There is no indication that this contract involved small business set-asides. The contractor, HANA-NATI, LLC, is not identified as a small business in the provided data. Subcontracting opportunities for small businesses are not specified, and the impact on the small business ecosystem is likely minimal unless HANA-NATI, LLC actively engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Overseas Buildings Operations (OBO) or equivalent facilities management division. Accountability measures are inherent in the Firm Fixed Price contract type, requiring delivery of specified services within the agreed price. Transparency is dependent on the Department of State's public reporting practices regarding contract awards and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Overseas Buildings Operations (OBO) Contracts
Department of State Facilities Management
U.S. Embassy and Consulate Maintenance
International Construction Services

Risk Flags

Procurement method raises questions about competitive fairness.
Lack of detailed scope of work hinders value assessment.
Contractor's past performance data is not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.7 million to HANA-NATI, LLC. FEBR PRODUCT REPAIR AND REPLACEMENT AT U.S. CONSULATE NAHA, JAPAN.

Who is the contractor on this award?

The obligated recipient is HANA-NATI, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2025-09-15. End: 2027-02-27.

What specific services are included in the 'FEBR PRODUCT REPAIR AND REPLACEMENT' scope of work?

The provided data abbreviates the contract title as 'FEBR PRODUCT REPAIR AND REPLACEMENT AT U.S. CONSULATE NAHA, JAPAN.' While 'FEBR' might stand for Facility, Engineering, Building, or a similar term, the exact nature of the 'product repair and replacement' is not detailed. It likely encompasses a range of maintenance, repair, and potentially minor replacement activities for the physical infrastructure and systems within the U.S. Consulate in Naha, Japan. This could include HVAC systems, electrical, plumbing, structural repairs, or cosmetic improvements. A detailed statement of work (SOW) would be necessary to fully understand the scope and associated deliverables.

What is the rationale behind the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) method suggests that the agency initially intended to solicit offers from all responsible sources but then excluded certain sources for specific, documented reasons. These reasons could include national security concerns, prior unsatisfactory performance by certain contractors, or the need for specialized capabilities possessed by only a limited number of firms. The Federal Acquisition Regulation (FAR) Part 6 outlines conditions under which sources may be excluded. Without further documentation from the Department of State, the precise justification for excluding sources in this instance remains unclear, but it implies a deliberate narrowing of the competitive field based on agency assessment.

How does the contract value of $2.7 million compare to similar facility repair contracts for overseas diplomatic missions?

Benchmarking this $2.7 million contract against similar overseas facility repair contracts is challenging without specific details on the scope of work, the size and complexity of the consulate, and the prevailing labor and material costs in Naha, Japan. However, for a significant repair and replacement project at a U.S. Consulate, $2.7 million appears to be a moderate to substantial investment. Contracts for overseas facilities can vary widely, with minor repairs costing tens of thousands and major renovations or new constructions running into hundreds of millions. The value suggests a comprehensive scope of work beyond routine maintenance, likely involving critical systems or structural elements.

What are the potential risks associated with performing construction work at a U.S. Consulate in Japan?

Performing construction work at a U.S. Consulate in Japan presents several potential risks. These include logistical challenges related to importing materials and equipment, navigating Japanese building codes and regulations (even within a U.S. facility), ensuring security protocols are strictly adhered to, and managing potential disruptions to the consulate's operations. Labor availability and cost in Japan can also be a factor. Furthermore, geopolitical considerations and the specific security environment of Naha could introduce unforeseen risks. The contractor must demonstrate robust project management capabilities to mitigate these complex factors.

What is the track record of HANA-NATI, LLC in performing government contracts, particularly overseas construction?

Information regarding the specific track record of HANA-NATI, LLC in performing government contracts, especially overseas construction, is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any reported issues or successes on similar projects. Without this data, it's difficult to gauge their experience, reliability, and capability to successfully execute this contract in Japan. Further due diligence would be needed to evaluate their past performance.

What is the significance of the contract duration (530 days) in relation to the contract value?

The contract duration of 530 days (approximately 17-18 months) for a $2.7 million contract suggests a project that is more involved than a simple repair job but likely not a complete overhaul or new construction. This duration allows for phased work, potential material procurement lead times, and integration of various repair and replacement activities without rushing critical tasks. The implied average monthly expenditure is roughly $150,000, which seems reasonable for a project of this nature requiring skilled labor and materials in an overseas location. The duration provides adequate time for thorough execution and quality control.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM24R0135

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1099 ALAKEA ST STE 2520, HONOLULU, HI, 96813

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,698,750

Exercised Options: $2,698,750

Current Obligation: $2,698,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM25D0608

IDV Type: IDC

Timeline