DoD's $22.1M P-2005 Working Dog Facility Replacement in Hawaii awarded to NAN INC

Contract Overview

Contract Amount: $22,124,234 ($22.1M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2022-06-07

End Date: 2025-04-24

Contract Duration: 1,052 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-2005 WORKING DOG TREATMENT FACILITY REPLACEMENT, JOINT BASE PEARL HARBOR-HICKAM, HAWAII

Place of Performance

Location: HICKAM AFB, HONOLULU County, HAWAII, 96853

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to NAN INC for work described as: P-2005 WORKING DOG TREATMENT FACILITY REPLACEMENT, JOINT BASE PEARL HARBOR-HICKAM, HAWAII Key points: 1. Contract value of $22.1M for a critical facility upgrade. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 1052 days indicates a significant construction timeline. 5. Located at Joint Base Pearl Harbor-Hickam, highlighting strategic military infrastructure. 6. The contract falls under Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $22.1M for a working dog treatment facility replacement appears reasonable given the scope of a major construction project on a military installation. Benchmarking against similar large-scale construction projects for specialized facilities on bases would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the initial bid accurately reflected all project requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 bidders, this suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive pressures, ensuring a more cost-effective use of public funds.

Public Impact

Benefits military working dogs by providing a modern, functional treatment facility. Enhances the operational readiness and welfare of canine units at Joint Base Pearl Harbor-Hickam. Supports the infrastructure needs of the Department of the Navy and the broader Department of Defense. Impacts the local construction workforce in Hawaii through job creation during the project's duration. Ensures continuity of essential veterinary services for military working animals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Delays in construction could impact the operational readiness of military working dog units.
Ensuring the quality of construction meets the specific needs of a veterinary treatment facility.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive award.
Project addresses a critical infrastructure need for military working dogs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a specialized facility. The construction market for government and military installations is a significant segment, often characterized by stringent requirements and competitive bidding processes. The $22.1M value places it as a substantial project within this category, comparable to other large-scale base infrastructure upgrades.

Small Business Impact

While the contract was awarded under full and open competition and does not explicitly mention small business set-asides, the prime contractor, NAN INC, may engage small businesses for subcontracting opportunities. The impact on the small business ecosystem will depend on the subcontracting plan, if any, and the specific trades or services required for this construction project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with potential involvement from the base's contracting command and engineering departments. Transparency is expected through contract award databases and reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Veterinary Services Facilities
Department of Defense Infrastructure
Joint Base Construction
Commercial Building Construction

Risk Flags

Construction project delays
Potential for cost overruns despite fixed-price
Specialized facility requirements
Logistical challenges in Hawaii

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to NAN INC. P-2005 WORKING DOG TREATMENT FACILITY REPLACEMENT, JOINT BASE PEARL HARBOR-HICKAM, 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 $22.1 million.

What is the period of performance?

Start: 2022-06-07. End: 2025-04-24.

What is the track record of NAN INC. in completing similar large-scale construction projects for the Department of Defense?

Information regarding NAN INC.'s specific track record on similar large-scale Department of Defense construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Understanding their experience with specialized facilities, such as veterinary treatment centers, and their ability to manage projects of this magnitude and duration (1052 days) is crucial for evaluating their capability to deliver this project successfully and on time.

How does the awarded price of $22.1M compare to similar working dog treatment facility construction projects or comparable military infrastructure projects?

Without specific data on comparable working dog treatment facility projects or detailed cost breakdowns, a direct price comparison is challenging. However, $22.1 million for a specialized facility on a major military installation like Joint Base Pearl Harbor-Hickam, encompassing design and construction over approximately three years, suggests a significant investment. Benchmarking against other large-scale construction contracts for barracks, training facilities, or maintenance depots at similar bases could offer a relative perspective on the value proposition. The firm fixed-price nature aims to lock in costs, but the initial bid's competitiveness is key to its value.

What are the primary risk indicators associated with this specific contract, considering its scope and location?

Key risk indicators include the inherent complexities of large-scale construction, potential for unforeseen site conditions at Joint Base Pearl Harbor-Hickam, and the long duration of the project (1052 days), which increases exposure to material cost fluctuations and labor availability issues, even under a fixed-price contract. The specialized nature of a working dog treatment facility may also introduce risks related to design adequacy and specialized equipment integration. Furthermore, construction in Hawaii can present logistical challenges and higher material costs compared to the mainland US. The contractor's past performance and project management capabilities are critical mitigating factors.

How effective is the firm fixed-price contract type in ensuring program effectiveness and cost control for this project?

The firm fixed-price (FFP) contract type is generally considered effective for controlling costs and ensuring predictability, as it shifts most of the risk to the contractor. For this project, it means NAN INC. is obligated to complete the work for the agreed-upon price, incentivizing them to manage their costs efficiently. Program effectiveness is tied to the contractor's ability to meet the specified requirements and quality standards within budget. While FFP is good for cost control, it can sometimes lead to contractors cutting corners on quality if not rigorously overseen, or to disputes if the scope is not perfectly defined upfront.

What are the historical spending patterns for similar infrastructure projects at Joint Base Pearl Harbor-Hickam or within the Department of the Navy?

Historical spending patterns for similar infrastructure projects at Joint Base Pearl Harbor-Hickam or within the Department of the Navy would typically show significant investment in facility upgrades, maintenance, and new construction to support military operations. This includes projects ranging from housing and training facilities to specialized operational support buildings. The average cost and duration of such projects can vary widely based on scope, complexity, and location. Analyzing past contracts for construction at this base or for similar naval installations would reveal trends in contract types, competition levels, and overall investment in maintaining and modernizing military infrastructure.

What are the implications of the 6 bidders in the full and open competition on the final price and value for taxpayers?

Having 6 bidders in a full and open competition is a positive signal for taxpayers. It indicates that the opportunity was widely advertised and that multiple companies were interested and capable of undertaking the project. This level of competition typically drives down the offered prices as contractors vie for the award. It increases the likelihood that the government receives a competitive bid that reflects fair market value for the construction services. The presence of numerous bidders also suggests that the government is likely to achieve a good balance between cost and quality, maximizing the value derived from taxpayer funds.

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: N6274222R1319

Offers Received: 6

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: $22,478,634

Exercised Options: $22,124,234

Current Obligation: $22,124,234

Actual Outlays: $4,115,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline