Navy Awards $23M Dry Dock Repair Contract to NAN INC for PHNSY in Hawaii

Contract Overview

Contract Amount: $22,984,691 ($23.0M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2025-01-30

End Date: 2029-01-29

Contract Duration: 1,460 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM20-0230 DRY DOCK NO. 1 VOID REPAIR, SIOP, PHNSY, HI

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to NAN INC for work described as: RM20-0230 DRY DOCK NO. 1 VOID REPAIR, SIOP, PHNSY, HI Key points: 1. Contract awarded to NAN INC for $22.98M for dry dock void repair. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 1460 days, indicating a long-term project. 4. The project is located in Hawaii, potentially impacting logistics and labor costs.

Value Assessment

Rating: fair

The award amount of $22.98M for a 4-year dry dock repair project appears within a reasonable range for specialized heavy construction. Benchmarking against similar large-scale naval infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the necessary repairs to critical naval infrastructure.

Public Impact

Ensures operational readiness of naval vessels by maintaining essential dry dock facilities. Supports the local economy in Hawaii through construction jobs and related services. Addresses critical infrastructure needs for the Pacific Fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long duration and specialized nature of the work.
Geographic location in Hawaii may lead to higher material and labor costs.
Reliance on a single awardee for a critical, long-term repair.

Positive Signals

Awarded through full and open competition.
Addresses essential infrastructure maintenance for national security.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically for naval infrastructure. Spending in this sector is often driven by defense needs and aging infrastructure requiring significant investment.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is NAN INC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The firm fixed price contract type offers some cost control, but monitoring progress and scope is crucial.

Related Government Programs

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

Risk Flags

Long contract duration increases risk of scope creep and cost escalation.
Geographic isolation of Hawaii may lead to supply chain disruptions and higher costs.
Potential for unforeseen structural issues within the dry dock requiring additional work.
Dependence on a single contractor for a critical, long-term repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to NAN INC. RM20-0230 DRY DOCK NO. 1 VOID REPAIR, 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 $23.0 million.

What is the period of performance?

Start: 2025-01-30. End: 2029-01-29.

What is the historical cost performance of NAN INC on similar large-scale construction contracts?

Historical performance data for NAN INC on comparable projects is essential for a thorough value assessment. Reviewing past contract awards, completion times, and any cost variances would reveal their track record in managing complex infrastructure repairs. This information helps predict future performance and potential risks associated with this specific contract.

Are there any specific environmental or logistical challenges in Hawaii that could impact the project's cost and timeline?

Hawaii's remote location presents unique logistical challenges, including potentially higher shipping costs for materials and specialized equipment. Environmental regulations specific to the islands may also add complexity and cost to construction processes. Understanding these factors is crucial for assessing potential risks and ensuring the project stays within budget and schedule.

How does the awarded price compare to independent cost estimates for similar dry dock repairs?

Comparing the $22.98M award to independent cost estimates for similar dry dock repairs is vital for evaluating value. If the awarded price is significantly higher than benchmarks, it could indicate potential overpricing or unforeseen complexities. Conversely, a lower price might suggest aggressive bidding or potential risks to quality or schedule.

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: $22,984,691

Exercised Options: $22,984,691

Current Obligation: $22,984,691

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