DoD's $46.7M Facility Modifications Contract Awarded to NAN INC Under Full and Open Competition
Contract Overview
Contract Amount: $46,715,526 ($46.7M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2015-09-01
End Date: 2021-02-03
Contract Duration: 1,982 days
Daily Burn Rate: $23.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY15 MCON P861 FACILITY MODIFICATIONS
Place of Performance
Location: M C B H KANEOHE BAY, HONOLULU County, HAWAII, 96863
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $46.7 million to NAN INC for work described as: IGF::OT::IGF FY15 MCON P861 FACILITY MODIFICATIONS Key points: 1. The contract value of $46.7M for facility modifications is substantial, indicating significant project scope. 2. Awarded under full and open competition, this suggests a competitive bidding process was utilized. 3. The long duration of 1982 days (approx. 5.4 years) may introduce risks related to cost escalation and scope creep. 4. The construction sector is prone to fluctuations in material costs and labor availability, impacting long-term projects.
Value Assessment
Rating: fair
The contract value of $46.7M for facility modifications is significant. Benchmarking against similar large-scale construction projects would be necessary to fully assess its pricing reasonableness.
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 pricing. However, the long duration could potentially lead to price adjustments over time.
Taxpayer Impact: Full and open competition generally aims to secure the best value for taxpayers by encouraging multiple bids.
Public Impact
Impacts military readiness and infrastructure in Hawaii. Potential for local job creation within the construction sector. Ensures modernization and maintenance of critical defense facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1982 days) increases risk of cost overruns.
- Potential for scope creep over the extended performance period.
- Reliance on a single awardee for a large project.
Positive Signals
- Awarded through full and open competition, promoting market competitiveness.
- Firm Fixed Price contract type offers cost certainty to the government.
- Project addresses necessary facility modifications for operational effectiveness.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar large-scale military facility modifications would provide further context for the $46.7M award.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation in the provided data. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's long duration necessitates robust oversight from the Department of the Navy to manage performance, control costs, and ensure adherence to the contract terms and scope.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk.
- Potential for scope creep.
- Lack of specific detail on modifications.
- No explicit mention of small business subcontracting.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 million to NAN INC. IGF::OT::IGF FY15 MCON P861 FACILITY MODIFICATIONS
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 $46.7 million.
What is the period of performance?
Start: 2015-09-01. End: 2021-02-03.
What specific facility modifications are included in this contract, and how do they align with current and future operational needs of the Department of the Navy in Hawaii?
The provided data does not detail the specific modifications. A thorough review of the contract's statement of work would be required to understand the scope. Aligning these modifications with evolving operational needs is crucial for ensuring the investment's long-term value and effectiveness in supporting the Navy's mission in the region.
Given the 1982-day duration, what mechanisms are in place to mitigate risks associated with potential material cost increases and labor shortages in the construction market?
The Firm Fixed Price contract type offers some protection against cost increases for the government. However, the contractor bears the risk. Mitigation strategies could include detailed cost breakdowns, contingency planning within the contractor's bid, and proactive supply chain management. The government's oversight should monitor market trends closely.
How will the effectiveness of these facility modifications be measured post-completion to ensure they meet the intended performance improvements and support the Department of the Navy's objectives?
Effectiveness measurement typically involves post-occupancy evaluations, performance testing, and user feedback. Key performance indicators related to facility functionality, energy efficiency, safety, and operational support should be established. The Department of the Navy should have a plan to track these metrics to confirm the project's success.
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: N6274215R1305
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, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,715,526
Exercised Options: $46,715,526
Current Obligation: $46,715,526
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-01
Current End Date: 2021-02-03
Potential End Date: 2021-02-03 00:00:00
Last Modified: 2024-09-11
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