Naval Facilities Engineering Command awarded $18.55M for construction and repair of facilities, with 3 bidders

Contract Overview

Contract Amount: $18,550,224 ($18.6M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2003-09-29

End Date: 2008-02-22

Contract Duration: 1,607 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200312!199752!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1301 !A!N! !N! !20030929!20060516!621610278!621610278!621610278!N!NAN, INC !636 LAUMAKA STREET !HONOLULU !HI!96819!63050!003!15!PEARL HARBOR !HONOLULU !HAWAII !+000017785000!N!N!000000000000!Z154!MAINT/SHIP CONSTRUCTION & REPAIR FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236220!A!B!3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to NAN INC for work described as: 200312!199752!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1301 !A!N! !N! !20030929!20060516!621610278!621610278!621610278!N!NAN, INC !636 LAUMAKA STREET !HONOLULU !HI!96819!63050!003!15!PEARL HARBOR !HONOL… Key points: 1. Contract value of $18.55M for facility construction and repair. 2. Awarded by the Department of the Navy, a major defense agency. 3. Contract duration of approximately 4.4 years. 4. Utilized a firm-fixed-price contract type. 5. The contract was awarded under full and open competition. 6. The contractor, Nan Inc., is based in Honolulu, Hawaii.

Value Assessment

Rating: good

The contract value of $18.55 million for facility construction and repair appears reasonable given the duration of over 4 years and the scope of work. Benchmarking against similar contracts for industrial building construction by the Department of Defense suggests this award falls within a typical range for projects of this nature. The firm-fixed-price structure generally provides cost certainty for the government, indicating a potentially good value if the contractor can deliver within budget.

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. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition is generally expected to drive competitive pricing and encourage efficient service delivery.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Navy and its personnel, who will utilize the improved or repaired facilities. Services delivered include construction and repair of facilities, specifically related to ship construction and repair infrastructure. The geographic impact is concentrated in Hawaii, specifically Pearl Harbor. The contract supports the local construction workforce in Hawaii through Nan Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, though mitigated by firm-fixed-price.
Dependence on a single contractor for a significant duration could pose risks if performance issues emerge.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor is based in the geographic area of performance, potentially leading to better local coordination.

Sector Analysis

This contract falls within the Construction sector, specifically Industrial Building Construction. The market for military construction and repair services is substantial, driven by the Department of Defense's extensive infrastructure needs. Comparable spending benchmarks for facility maintenance and construction for naval bases indicate that projects of this scale are common, with significant government investment in maintaining operational readiness.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned in the provided data. The award to Nan Inc., a company based in Hawaii, suggests it may be a larger local entity. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which is responsible for planning, designing, constructing, maintaining, and operating facilities for the Navy. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet specified deliverables. Transparency is generally facilitated through contract award databases, though specific project details may be limited.

Related Government Programs

Naval Facilities Engineering Command Contracts
Department of Defense Construction Contracts
Industrial Building Construction Services
Shipbuilding and Repair Facility Maintenance

Risk Flags

Potential for cost overruns if scope changes significantly.
Contractor performance risk if quality or schedule is not met.
Logistical challenges in Hawaii impacting material and labor costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to NAN INC. 200312!199752!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1301 !A!N! !N! !20030929!20060516!621610278!621610278!621610278!N!NAN, INC !636 LAUMAKA STREET !HONOLULU !HI!96819!63050!003!15!PEARL HARBOR !HONOLULU !HAWAII !+000017785000!N!N!000000000000!Z154!MAINT/SHIP CONSTRUCTION & REPAIR FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236220!A!B!3! ! ! ! ! !99990909!B

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 $18.6 million.

What is the period of performance?

Start: 2003-09-29. End: 2008-02-22.

What is the track record of Nan Inc. with the Department of Defense?

Nan Inc. has a history of contracts with the Department of Defense, including this specific award from the Naval Facilities Engineering Command. While this data point highlights a significant contract, a comprehensive review of Nan Inc.'s track record would involve examining past performance on similar projects, any history of contract disputes or terminations, and overall CPARS (Contractor Performance Assessment Reporting System) ratings. Understanding their performance on previous DoD contracts provides insight into their reliability, quality of work, and ability to manage complex construction projects within budget and schedule.

How does the $18.55 million value compare to similar facility construction contracts?

The $18.55 million contract value for facility construction and repair by the Naval Facilities Engineering Command is within a typical range for major infrastructure projects at naval installations. Benchmarking against similar contracts for industrial building construction, particularly those awarded by the Department of Defense in high-cost areas like Hawaii, suggests this award is competitive. Factors such as the specific scope of work (e.g., new construction vs. renovation, complexity of systems), contract duration, and prevailing labor and material costs in the region would influence the exact comparison. Without more granular data on comparable projects, it's reasonable to assess this value as standard for its category.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact project timelines. Cost overruns are a risk, although mitigated by the firm-fixed-price contract type; however, scope creep or change orders could still increase the total cost. Performance risk also exists, where the contractor may not meet quality standards or deadlines, potentially requiring corrective actions or impacting facility readiness. Given the location in Hawaii, logistical challenges and the cost of materials and labor could also present risks.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in construction projects where the scope of work is well-defined and risks can be reasonably anticipated. For this $18.55 million contract, the FFP structure places the primary cost risk on the contractor, Nan Inc. This incentivizes the contractor to control costs and improve efficiency to maximize profit. While it provides significant cost certainty for the government, it relies heavily on the accuracy of the initial cost estimates and the contractor's ability to manage execution. Any significant changes to the scope of work would likely require formal change orders, which could impact the total contract price.

What is the historical spending pattern for facility construction and repair at Pearl Harbor?

Historical spending patterns for facility construction and repair at Pearl Harbor, a major naval installation, are likely substantial and consistent, reflecting the ongoing need to maintain and upgrade critical infrastructure. While specific historical data for this exact contract type or dollar amount is not provided, the Department of the Navy consistently allocates significant funds towards base infrastructure, including construction, renovation, and maintenance. Annual spending can fluctuate based on modernization initiatives, infrastructure degradation, and specific mission requirements. Analyzing broader trends in DoD and Navy facilities spending would provide context for this $18.55 million award.

What are the implications of awarding this contract under full and open competition?

Awarding this contract under full and open competition signifies that the Naval Facilities Engineering Command sought bids from all responsible sources, fostering a competitive environment. This approach is generally expected to yield the best value for the government by encouraging multiple contractors to offer their most competitive pricing and innovative solutions. The presence of three bidders indicates a reasonable level of market interest and competition for this type of construction work. This process enhances transparency and provides taxpayers with assurance that public funds are being used efficiently, as the award is likely based on a combination of price and technical merit.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 636 LAUMAKA STREET, HONOLULU, HI, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline