DoD Awards $30.25M for Salt Water Line Replacement in Hawaii, Phase 2

Contract Overview

Contract Amount: $30,251,831 ($30.3M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2028-05-06

Contract Duration: 870 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM16-1400 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES PHASE 2, SIOP, PHNSY, JBPHH

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $30.3 million to NAN INC for work described as: RM16-1400 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES PHASE 2, SIOP, PHNSY, JBPHH Key points: 1. Significant investment in critical infrastructure for naval facilities. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Project duration is substantial (870 days), indicating complexity and potential for cost overruns. 4. Location in Hawaii may present logistical challenges and higher material costs.

Value Assessment

Rating: good

The award amount of $30.25M for replacing underground salt water lines appears reasonable given the project's scope and duration. Benchmarking against similar infrastructure projects in high-cost areas like Hawaii would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to better pricing for the government. The use of a Delivery Order suggests a structured procurement process.

Taxpayer Impact: The $30.25M expenditure is a direct cost to taxpayers for essential infrastructure upgrades, aiming to ensure operational readiness and prevent future costly repairs.

Public Impact

Ensures continued operational capability for naval facilities by replacing aging infrastructure. Supports local economy through construction contracts, though specific small business participation is not detailed. Addresses potential environmental risks associated with failing underground infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration and potential for delays.
Logistical challenges in Hawaii.
Potential for unforeseen site conditions impacting cost.

Positive Signals

Full and open competition.
Firm Fixed Price contract type.
Investment in critical infrastructure.

Sector Analysis

This project falls under heavy and civil engineering construction, specifically focused on utility infrastructure. Spending in this sector is often driven by aging systems requiring replacement and upgrades, with costs influenced by material, labor, and logistical factors.

Small Business Impact

While the contract was awarded under full and open competition, the data does not indicate specific set-asides or participation goals for small businesses. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The firm fixed price contract type provides some cost control, but the long duration necessitates diligent monitoring of progress and adherence to schedule to ensure accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to long duration.
Logistical challenges and higher costs associated with Hawaii location.
Risk of unforeseen subsurface conditions.
Dependence on contractor's ability to manage complex project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.3 million to NAN INC. RM16-1400 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES PHASE 2, SIOP, PHNSY, JBPHH

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 $30.3 million.

What is the period of performance?

Start: 2025-12-18. End: 2028-05-06.

What is the historical cost performance of similar underground utility replacement projects managed by the Department of the Navy in similar geographic locations?

Historical data on similar projects is crucial for validating the $30.25M award. Analyzing past performance regarding cost overruns, schedule adherence, and final costs compared to initial estimates for comparable naval infrastructure projects in Hawaii or other island territories would provide valuable context for assessing the value and potential risks of this specific contract.

What are the specific risks associated with performing heavy civil engineering construction in Hawaii, and how are they mitigated in this contract?

Construction in Hawaii can involve unique risks such as seismic activity, limited land availability, higher transportation costs for materials, and specialized labor requirements. The contract's mitigation strategies for these factors, including detailed site surveys, contingency planning for material delivery, and adherence to strict environmental regulations, need to be thoroughly assessed to understand the project's risk profile.

How effectively does the firm fixed price contract type manage potential cost escalations given the project's long duration and remote location?

A firm fixed price contract aims to shift cost risk to the contractor. However, for a project spanning nearly three years in a location like Hawaii, the contractor's initial pricing must account for potential fluctuations in labor and material costs. The effectiveness hinges on the accuracy of the initial bid and the contractor's ability to manage these variables without resorting to change orders.

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

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: $31,995,881

Exercised Options: $30,251,831

Current Obligation: $30,251,831

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