DoD Awards $62.86M for Guam Artillery Battery Facilities Under Pacific Deterrence Initiative
Contract Overview
Contract Amount: $62,860,000 ($62.9M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2024-09-11
End Date: 2027-03-27
Contract Duration: 927 days
Daily Burn Rate: $67.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WON 1737347, FY24 P-316, PACIFIC DETERRENCE INITIATIVE: ARTILLERY BATTERY FACILITIES, US NAVSUPPACT MARINE CORPS BASE, GUAM
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $62.9 million to NAN INC for work described as: WON 1737347, FY24 P-316, PACIFIC DETERRENCE INITIATIVE: ARTILLERY BATTERY FACILITIES, US NAVSUPPACT MARINE CORPS BASE, GUAM Key points: 1. Significant investment in critical infrastructure for the Pacific Deterrence Initiative. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to construction timelines and potential cost overruns. 4. Sector is commercial building construction, with a focus on military facilities.
Value Assessment
Rating: good
The award of $62.86 million for artillery battery facilities appears reasonable given the scope and location. Benchmarking against similar military construction projects in high-cost regions like Guam is essential for a definitive assessment.
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 and allows for a broad range of contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: The $62.86 million expenditure supports strategic military readiness in the Pacific, a key taxpayer interest, while competitive bidding aims to ensure efficient use of funds.
Public Impact
Enhances US military readiness and deterrence posture in the Indo-Pacific region. Supports economic activity in Guam through construction contracts. Addresses infrastructure needs for artillery units operating in the Pacific.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for construction delays in remote locations.
- Geopolitical risks in the Indo-Pacific region could impact project execution.
Positive Signals
- Strategic alignment with national defense goals.
- Full and open competition promotes cost efficiency.
- Investment in critical infrastructure for a key strategic area.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, specifically for military facilities. Spending benchmarks for similar projects in Guam are typically higher due to logistical challenges and local labor costs.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation in this data. 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 oversight. The Pacific Deterrence Initiative itself is a significant program requiring robust oversight to ensure funds are used effectively and strategically.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Geographic location challenges (Guam).
- Potential for cost escalation due to material and labor.
- Dependency on timely delivery of specialized construction materials.
- Long-term maintenance and operational costs of new facilities.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.9 million to NAN INC. WON 1737347, FY24 P-316, PACIFIC DETERRENCE INITIATIVE: ARTILLERY BATTERY FACILITIES, US NAVSUPPACT MARINE CORPS BASE, GUAM
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 $62.9 million.
What is the period of performance?
Start: 2024-09-11. End: 2027-03-27.
What is the projected impact of this facility on artillery unit operational readiness in Guam?
The new artillery battery facilities are expected to significantly enhance operational readiness by providing modern, secure, and well-equipped spaces for personnel and equipment. This includes improved maintenance, storage, and deployment capabilities, directly supporting the strategic goals of the Pacific Deterrence Initiative and ensuring units are prepared for rapid response in the region.
What are the primary risks associated with constructing military facilities in Guam, and how are they being mitigated?
Key risks include logistical challenges in material transport, potential labor shortages, and environmental considerations specific to island construction. Mitigation strategies likely involve detailed logistical planning, pre-qualification of contractors with experience in similar environments, and adherence to strict environmental impact assessments and building codes.
How does this $62.86 million investment compare to other recent military construction projects in the Indo-Pacific region?
This investment is substantial and reflects the strategic importance of Guam. Compared to projects in mainland US, construction costs in Guam are generally higher due to transportation and labor factors. Its scale aligns with the broader US commitment to bolstering its presence and capabilities across the Indo-Pacific theater.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6274224R1315
Offers Received: 5
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: $100,025,473
Exercised Options: $100,025,473
Current Obligation: $62,860,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274223D1325
IDV Type: IDC
Timeline
Start Date: 2024-09-11
Current End Date: 2027-03-27
Potential End Date: 2027-03-27 00:00:00
Last Modified: 2025-04-04
More Contracts from NAN Inc
- Mcon Project FY22 P956 Bachelor Enlisted Quarters (BEQ) & FY23 P973 BEQ, Marine Corps Base Hawaii (mcbh), Kaneohe BAY, Hawaii — $174.5M (Department of Defense)
- Construction for RM19-0926 Repair Ammunition Wharves W3 and W1, Joint Base Pearl Harborhickam, Hawaii — $134.5M (Department of Defense)
- N62742-20-C-1315, FY20 Mcon P-911 Bachelor Enlisted Quarters Marine Corps Base Hawaii, Kaneohe, Hawaii — $123.5M (Department of Defense)
- FY11 Mcon P-005, Construct POW / MIA Accounting Command, Hickam AIR Force Base, Hawaii — $84.9M (Department of Defense)
- FY13 MCA PN76586 Quad B Building Renovation, Whole Barracks Renewal, Phase 2B, and FY13 MCA PN76587 Quad B Building Renovation, Whole Barracks Renewal, Phase 2C, Schofield Barracks, Oahu, Hawaii — $76.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)