DoD's $31.8M Commercial Building Construction Contract Awarded to NAN INC in Hawaii

Contract Overview

Contract Amount: $31,797,328 ($31.8M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-22

End Date: 2009-10-30

Contract Duration: 1,499 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to NAN INC for work described as: Key points: 1. Contract awarded for commercial and institutional building construction in Hawaii. 2. Significant value of $31.8 million for a 1499-day duration. 3. Full and open competition was utilized. 4. The contract falls under the Construction sector.

Value Assessment

Rating: fair

The contract value of $31.8 million for nearly 4 years of construction services appears reasonable given the scope. Benchmarking against similar large-scale construction projects would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust process for price discovery. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.

Public Impact

Impacts military personnel and their families in Hawaii by providing necessary facilities. Supports the local economy through construction jobs and material sourcing. Ensures operational readiness by delivering critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in long-term construction projects.
Risk of delays due to unforeseen site conditions or material availability.
Ensuring quality standards are met throughout the extended project duration.

Positive Signals

Awarded under full and open competition, indicating potential for good value.
Clear contract type (Firm Fixed Price) helps manage cost certainty.
Long duration may allow for phased construction and better resource management.

Sector Analysis

This contract falls within the Construction sector, specifically commercial and institutional building. Spending in this sector is crucial for infrastructure development and maintenance, with benchmarks varying widely based on project type and location.

Small Business Impact

The data indicates the prime contractor is NAN INC and does not specify any small business subcontracting. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight would typically involve contract officers, inspectors, and potentially program managers to ensure adherence to specifications, timelines, and budget. The long duration necessitates consistent monitoring.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long project duration increases risk of cost escalation and scope creep.
Potential for unforeseen site conditions impacting schedule and budget.
Dependence on a single prime contractor for a large project.
Lack of explicit small business participation noted in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to NAN INC. See the official description on USAspending.

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 Army).

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2005-09-22. End: 2009-10-30.

What was the specific scope of work for this commercial and institutional building construction?

The specific scope of work would detail the type of buildings, their intended use (e.g., barracks, offices, training facilities), square footage, required amenities, and any specialized construction requirements. Understanding the scope is crucial for evaluating the contract's value and the appropriateness of the awarded price.

Were there any significant cost changes or contract modifications during the 1499-day period?

Tracking contract modifications and cost changes is vital for assessing project management effectiveness and potential cost overruns. Frequent or substantial changes could indicate issues with initial planning, scope creep, or unforeseen challenges, impacting the overall value and taxpayer investment.

How did the final cost compare to the initial bid and any independent cost estimates?

Comparing the final cost to the initial bid and independent estimates helps determine if the contract delivered value for money. Deviations could highlight issues with the bidding process, contractor performance, or the accuracy of initial cost assessments, informing future procurement strategies.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 636 LAUMAKA ST, HONOLULU, HI, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline