DoD's $17.4M contract for UH Building 230 repairs in Hawaii awarded to Nan Inc

Contract Overview

Contract Amount: $17,447,000 ($17.4M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-13

End Date: 2026-04-13

Contract Duration: 396 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM-1025 REPAIR UH BUILDING 230, NCTAMS, WAHIAWA, HI

Place of Performance

Location: WAHIAWA, HONOLULU County, HAWAII, 96786

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to NAN INC for work described as: RM-1025 REPAIR UH BUILDING 230, NCTAMS, WAHIAWA, HI Key points: 1. Contract value appears reasonable for a large-scale building repair project in a high-cost area. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts cost overrun risk to the contractor. 4. Project duration of 396 days is standard for complex construction. 5. The contract is a delivery order under a larger contract, indicating potential for future work. 6. Geographic location in Hawaii may contribute to higher material and labor costs.

Value Assessment

Rating: good

The contract value of $17.4 million for building repairs is substantial. Benchmarking against similar large-scale construction and repair projects in Hawaii or other high-cost regions would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract provides cost certainty for the government, assuming the scope is well-defined. The award to Nan Inc. follows a competitive process, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 2 bids were received, which is a low number for a project of this magnitude and suggests that the market may be concentrated or that the solicitation requirements were highly specific. While competition occurred, the limited number of bidders warrants further investigation into market dynamics.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to achieve the best possible price through a wide range of offers. However, with only two bids, the potential for significant cost savings may have been limited compared to a scenario with more robust competition.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed at NCTAMS, Wahiawa, Hawaii, who will utilize the repaired facility. The contract will deliver essential repair and maintenance services for UH Building 230, ensuring its operational readiness and safety. The geographic impact is localized to Wahiawa, Hawaii, supporting the military infrastructure in the region. The project is expected to create or sustain jobs in the construction sector within Hawaii, benefiting local laborers and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids received (2) despite full and open competition could indicate limited market interest or high barriers to entry.
Potential for cost increases if the scope of work was not fully defined in the initial solicitation, despite the firm-fixed-price structure.
Reliance on a single delivery order under a potentially larger contract structure might limit visibility into the overall program cost and performance.

Positive Signals

Firm-fixed-price contract type transfers cost overrun risk to the contractor, providing budget certainty.
Awarding to a single contractor for a specific project ensures focused execution and accountability.
The project addresses critical infrastructure needs for the Department of Defense, ensuring operational capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading its extensive infrastructure. Spending in this sector is influenced by infrastructure needs, modernization efforts, and national security requirements. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per project for similar military facility repairs across different geographic locations.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, Nan Inc., may not be obligated to subcontract a specific portion of the work to small businesses under this award, potentially limiting opportunities for the small business ecosystem on this particular project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management departments. Accountability is established through the firm-fixed-price contract terms, requiring delivery of specified repairs by a certain date. Transparency is facilitated by the federal procurement data system, which publishes contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Military Construction Projects
Naval Facilities Engineering Command Contracts
Government Building Renovation
Construction Services for Federal Agencies

Risk Flags

Low bidder count
Potential for cost escalation in high-cost regions
Geographic specific risks (Hawaii)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to NAN INC. RM-1025 REPAIR UH BUILDING 230, NCTAMS, WAHIAWA, 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 $17.4 million.

What is the period of performance?

Start: 2025-03-13. End: 2026-04-13.

What is Nan Inc.'s track record with the Department of Defense, particularly on similar construction projects?

Nan Inc. has a history of contracting with the Department of Defense, including projects in Hawaii. Reviewing their past performance on similar building repair and construction contracts would provide insight into their ability to deliver on time and within budget. Analyzing past award data, contract modifications, and any reported performance issues or successes would be crucial. For instance, examining the number and value of previous DoD contracts awarded to Nan Inc., the types of services rendered, and their performance ratings (if publicly available) can help assess their reliability and expertise for this specific UH Building 230 repair project.

How does the awarded amount of $17.4 million compare to the estimated cost or budget for this project?

The provided data does not include the estimated cost or budget for the UH Building 230 repair project. Therefore, a direct comparison to assess if the awarded amount represents a good value against the initial budget is not possible. Typically, government agencies establish an independent government cost estimate (IGCE) before soliciting bids. The awarded price is then compared to this IGCE to gauge cost-effectiveness. Without the IGCE or a stated budget, assessing whether $17.4 million is high, low, or appropriate relative to expectations is speculative. Further investigation into the solicitation documents or agency budget justifications would be needed.

What are the specific risks associated with performing building repairs in Hawaii, and how are they mitigated in this contract?

Performing construction in Hawaii presents unique risks, including higher costs for materials due to shipping, specialized labor requirements, potential environmental considerations (e.g., seismic activity, weather), and logistical challenges on islands. This contract, being a firm-fixed-price (FFP) award, shifts the primary financial risk of cost overruns to the contractor, Nan Inc. The fixed price implies that the contractor is responsible for managing these Hawaii-specific cost escalations. However, risks related to project delays due to weather or material availability might still impact the schedule, and the contract's duration and any associated penalty or incentive clauses would be key mitigation factors.

What is the historical spending pattern for building repairs at NCTAMS, Wahiawa, HI, and how does this contract fit within that pattern?

The provided data does not contain historical spending patterns for building repairs at NCTAMS, Wahiawa, HI. To analyze this, one would need to examine past contracts awarded by the Department of the Navy or Department of Defense for facilities maintenance and repair at this specific installation over several fiscal years. This would involve searching databases for previous awards, their values, scopes of work, and durations. Understanding this history would help determine if $17.4 million is a typical expenditure for major repairs, an outlier, or part of a larger, ongoing modernization effort. Without this historical context, it's difficult to place this contract within a broader spending trend.

Given the full and open competition resulted in only two bids, what does this imply about the market for specialized building repair services in Hawaii?

The fact that a full and open competition yielded only two bids for this $17.4 million building repair contract suggests a potentially concentrated market for specialized construction services in Hawaii. This could be due to several factors: high barriers to entry (e.g., bonding requirements, specialized equipment, security clearances), a limited number of qualified contractors capable of undertaking projects of this scale and complexity, or perhaps the specific requirements of the solicitation were very niche. While competition occurred, the low number of bidders might indicate less price pressure than if there were numerous interested parties, potentially impacting the final price achieved for the government.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: N6247817R4032

Offers Received: 2

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: $17,447,000

Exercised Options: $17,447,000

Current Obligation: $17,447,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247820D4014

IDV Type: IDC

Timeline