DoD's $23.9M Flood Mitigation Project Awarded to NAN INC, Facing Limited Competition
Contract Overview
Contract Amount: $23,910,442 ($23.9M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-25
End Date: 2016-12-16
Contract Duration: 1,543 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FLOOD MITIGATION STRUCTURES
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to NAN INC for work described as: FLOOD MITIGATION STRUCTURES Key points: 1. The contract value of $23.9 million for flood mitigation structures is significant, requiring careful oversight. 2. Limited competition may have impacted the final price, warranting a review of the procurement process. 3. The project's duration of 1543 days suggests a complex undertaking with potential for cost overruns. 4. The sector is Highway, Street, and Bridge Construction, which can be subject to market fluctuations and material costs.
Value Assessment
Rating: fair
The award amount of $23.9 million for flood mitigation structures appears reasonable given the project's scope and duration. However, without specific benchmarks for similar large-scale infrastructure projects in Hawaii, a definitive assessment of value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, which can sometimes lead to higher prices than a full and open competition. The specific reasons for this limitation and the price discovery mechanisms employed are crucial for assessing fairness.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential flood mitigation structures.
Public Impact
Taxpayers may have paid more due to limited competition in awarding the flood mitigation contract. The long duration of the project could lead to unforeseen costs and delays impacting public safety. The effectiveness of the flood mitigation structures will be critical for protecting communities in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long project duration
- Potential for cost overruns
Positive Signals
- Awarded to NAN INC
- Flood mitigation project
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, which is vital for infrastructure development. Spending in this sector can vary significantly based on government initiatives and regional needs, with large projects like this representing a substantial investment.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation into subcontracting opportunities would be beneficial.
Oversight & Accountability
The Department of the Army's oversight of this large, multi-year contract is critical. Regular performance reviews and financial audits are necessary to ensure accountability and prevent waste, fraud, and abuse.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have inflated costs.
- Long project duration increases risk of cost overruns and delays.
- Lack of small business participation noted.
- Effectiveness of flood mitigation needs clear measurement.
Tags
highway-street-and-bridge-construction, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to NAN INC. FLOOD MITIGATION STRUCTURES
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 $23.9 million.
What is the period of performance?
Start: 2012-09-25. End: 2016-12-16.
What specific factors justified the limited competition for this flood mitigation project, and how were these justified to ensure fair pricing?
The justification for limited competition needs to be thoroughly documented. Typically, this involves demonstrating that only one or a few sources possess the unique capabilities, specialized knowledge, or proprietary technology required for the project. Without this clear justification, the limited competition raises concerns about whether the government explored all viable options to secure the most competitive pricing and best value for taxpayers.
What are the key performance indicators (KPIs) for this flood mitigation project, and how will their achievement be measured to ensure effectiveness?
Key performance indicators should focus on the structural integrity of the mitigation systems, their operational readiness, and their demonstrated effectiveness in preventing or reducing flood damage. Metrics could include adherence to design specifications, successful stress tests, response times during flood events, and quantifiable reductions in flood impact compared to pre-project baselines. Regular reporting and independent verification of these KPIs are essential for assessing project success.
Given the project's duration and fixed-price nature, what mechanisms are in place to manage potential cost escalations or scope creep?
A firm fixed-price contract aims to cap costs, but long durations can still present risks. Mechanisms should include robust change order management processes, clear definitions of scope to prevent creep, and contingency planning for unforeseen site conditions or material price volatility. The contracting officer's vigilance in monitoring contract performance and enforcing terms is paramount to controlling costs and ensuring the project remains within its defined objectives.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W9128A12R0019
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: $23,910,442
Exercised Options: $23,910,442
Current Obligation: $23,910,442
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-25
Current End Date: 2016-12-16
Potential End Date: 2016-12-16 00:00:00
Last Modified: 2016-11-16
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