DoD's $23M Pacific Warfighting Center Construction Awarded to NAN INC Under Full and Open Competition
Contract Overview
Contract Amount: $22,984,788 ($23.0M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-06
End Date: 2010-11-19
Contract Duration: 1,262 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY06 P-113, PACIFIC WARFIGHTING CENTER, FORD ISLAND, PEARL HARBOR, HAWAII
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: FY06 P-113, PACIFIC WARFIGHTING CENTER, FORD ISLAND, PEARL HARBOR, HAWAII Key points: 1. The contract awarded to NAN INC for the Pacific Warfighting Center represents a significant investment in military infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project's duration of 1262 days indicates a complex construction undertaking. 4. The fixed-price contract type aims to control costs for the Department of the Navy.
Value Assessment
Rating: fair
The award amount of $22.98 million for commercial and institutional building construction appears within a reasonable range for a project of this scale and complexity, though specific benchmarks are unavailable without more detailed project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. The number of bids received (3) is moderate for this type of procurement.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment, potentially leading to lower prices than a sole-source or limited competition award.
Public Impact
Enhances military readiness and training capabilities in the Pacific region. Supports construction jobs and economic activity in Hawaii. Represents a long-term investment in strategic defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bids received (3) could indicate potential barriers to entry or a specialized market.
- The contract was awarded to a single entity, NAN INC, with no indication of subcontracting to small businesses.
- The project's significant duration may present opportunities for cost overruns if not managed effectively.
Positive Signals
- Firm fixed-price contract type helps mitigate cost escalation risks.
- Full and open competition was employed, promoting a competitive bidding process.
- The project is located in Hawaii, potentially benefiting the local economy.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can fluctuate based on infrastructure modernization needs and geopolitical priorities. Benchmarks are difficult to establish without specific project details.
Small Business Impact
The data indicates that small businesses were not directly involved as the prime contractor in this award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality assurance, would be expected.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to long project duration.
- Limited competition may have resulted in a higher-than-optimal price.
- Lack of apparent small business participation as prime contractor.
- Dependence on a single contractor (NAN INC) for a critical infrastructure project.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to NAN INC. FY06 P-113, PACIFIC WARFIGHTING CENTER, FORD ISLAND, PEARL HARBOR, HAWAII
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: 2007-06-06. End: 2010-11-19.
What was the estimated cost or baseline against which the bids were compared?
The provided data does not include the government's estimate or baseline cost for the Pacific Warfighting Center construction. Understanding this would allow for a more robust assessment of whether the winning bid of $22.98 million represented good value. Without it, we can only compare it broadly to similar projects, which is challenging due to varying scopes and locations.
What specific factors might have limited the number of bidders to three for this construction project?
The limited number of bidders (3) could stem from several factors, including the specialized nature of the construction required for a warfighting center, stringent pre-qualification requirements set by the Navy, the project's remote location in Hawaii, or the specific contract size and type. These factors might deter smaller or less specialized firms from bidding.
How effectively will this facility contribute to the Navy's operational goals in the Pacific?
The effectiveness of the Pacific Warfighting Center in supporting the Navy's operational goals hinges on its final design, capabilities, and integration into existing military infrastructure. While the construction award signifies a commitment to enhancing Pacific warfighting, its true effectiveness will be realized through its operational use and contribution to training, readiness, and strategic positioning.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274207R1307
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 636 LAUMAKA ST, HONOLULU, HI, 01
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,984,788
Exercised Options: $22,984,788
Current Obligation: $22,984,788
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-06
Current End Date: 2010-11-19
Potential End Date: 2010-11-19 00:00:00
Last Modified: 2011-01-18
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