Navy Awards $15M Drydock Overhaul Contract to NAN INC for PHNSY, Hawaii

Contract Overview

Contract Amount: $15,033,387 ($15.0M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-17

End Date: 2026-08-27

Contract Duration: 801 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST16-2709 DRYDOCK 2 (S780) OVERHAUL REGULAR CAISSON (2R) DD CERTIFICATION, SIOP, PHNSY, HI

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to NAN INC for work described as: ST16-2709 DRYDOCK 2 (S780) OVERHAUL REGULAR CAISSON (2R) DD CERTIFICATION, SIOP, PHNSY, HI Key points: 1. Contract awarded for a significant drydock overhaul, indicating critical infrastructure maintenance. 2. NAN INC is the contractor, with no prior contract history provided for comparison. 3. The contract is Firm Fixed Price, which transfers risk to the contractor. 4. The sector is Other Heavy and Civil Engineering Construction, vital for naval operations.

Value Assessment

Rating: fair

The contract value of $15,033,387.12 is for a significant overhaul. Without specific details on the scope of work or comparable projects, it's difficult to definitively assess pricing. The benchmark of $18,768 for 'br' is likely a unit cost and seems low for a major overhaul, suggesting it might not be directly comparable or represents a specific component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government. However, the specific number of bids received is not detailed.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and competitive pricing.

Public Impact

Ensures operational readiness of naval assets by maintaining critical drydock infrastructure. Supports regional economic activity in Hawaii through construction and related services. Potential for long-term cost savings through preventative maintenance and infrastructure upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of contractor past performance data.
Limited detail on the specific scope of work for the overhaul.
Potential for cost overruns if unforeseen issues arise during the overhaul.

Positive Signals

Firm Fixed Price contract structure limits government cost exposure.
Awarded under full and open competition, suggesting competitive pricing.
Essential maintenance for critical naval infrastructure.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to naval infrastructure maintenance. Spending in this sector can fluctuate based on military readiness needs and infrastructure investment cycles. Benchmarks are difficult without specific project details.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is not a small business, and there's no explicit mention of subcontracting goals for small businesses.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle. Oversight will involve monitoring the contractor's performance against the fixed-price terms and ensuring the overhaul meets all technical specifications and deadlines. Accountability rests with the Department of the Navy to manage the contract effectively.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed scope of work.
No contractor past performance data available.
Potential for unforeseen issues in aging infrastructure.
Limited information on the competitive bidding process beyond 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to NAN INC. ST16-2709 DRYDOCK 2 (S780) OVERHAUL REGULAR CAISSON (2R) DD CERTIFICATION, SIOP, PHNSY, HI

Who is the contractor on this award?

The obligated recipient is NAN INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2024-06-17. End: 2026-08-27.

What is the specific scope of work for the drydock overhaul, and how does it compare to similar past projects to ensure value for money?

The provided data lacks specific details on the scope of work for the drydock overhaul (ST16-2709 DRYDOCK 2 (S780) OVERHAUL REGULAR CAISSON (2R) DD CERTIFICATION, SIOP). Without this information, it's challenging to perform a detailed value assessment or compare it to similar projects. Understanding the specific repairs, upgrades, and certifications required is crucial for determining if the $15M price tag represents a fair market value and ensures optimal use of taxpayer funds.

What is the risk associated with the contractor, NAN INC, given the lack of historical performance data in the provided information?

The primary risk associated with NAN INC stems from the absence of readily available historical performance data. While the contract is Firm Fixed Price, mitigating direct cost overrun risk for the government, a lack of past performance information raises concerns about the contractor's ability to execute the complex drydock overhaul effectively and on time. This could lead to delays, quality issues, or the need for increased government oversight to manage potential performance deficiencies.

How does this contract contribute to the overall effectiveness and readiness of the naval fleet in the Pacific region?

This contract is crucial for maintaining the operational effectiveness and readiness of naval assets. Drydock overhauls are essential for the maintenance, repair, and certification of critical naval vessels. By ensuring the functionality of drydock facilities like the one at PHNSY, Hawaii, the Navy can continue to service its fleet, ensuring ships are mission-ready and capable of supporting strategic objectives in the Pacific region.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247820R4044

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 636 LAUMAKA ST, HONOLULU, HI, 96819

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,033,387

Exercised Options: $15,033,387

Current Obligation: $15,033,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247822D4009

IDV Type: IDC

Timeline