Army Awards $13.7M for Pipeline and Tank Repairs at Kwajalein Atoll
Contract Overview
Contract Amount: $13,689,361 ($13.7M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2021-10-14
End Date: 2026-02-09
Contract Duration: 1,579 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY21 REPAIR POL PIPELINES AND ABOVE GROUND STORAGE TANKS, US ARMY GARRISON, KWAJALEIN ATOLL, AND REPUBLIC OF MARSHALL ISLANDS
Place of Performance
Location: MARSHALL ISLANDS, 96555
Plain-Language Summary
Department of Defense obligated $13.7 million to NAN INC for work described as: FY21 REPAIR POL PIPELINES AND ABOVE GROUND STORAGE TANKS, US ARMY GARRISON, KWAJALEIN ATOLL, AND REPUBLIC OF MARSHALL ISLANDS Key points: 1. The contract addresses critical infrastructure repair needs for the U.S. Army Garrison at Kwajalein Atoll. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The award amount of $13.7 million for pipeline and storage tank repairs appears reasonable given the scope and location. Benchmarking against similar infrastructure repair contracts in remote or overseas locations would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers by leveraging market forces.
Public Impact
Ensures operational readiness and safety of critical infrastructure at a key U.S. Army installation. Supports essential services for personnel stationed at Kwajalein Atoll. The repairs are vital for maintaining the integrity and functionality of the garrison's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geographic isolation of Kwajalein Atoll may increase logistical costs and complexity.
- Potential for unforeseen site conditions impacting repair timelines and costs.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive award process.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure maintenance and repair. Spending in this sector can vary significantly based on infrastructure age, location, and modernization needs.
Small Business Impact
The provided data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to assess small business involvement.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and compliance checks.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geographic isolation may lead to higher costs and logistical challenges.
- Potential for unforeseen site conditions impacting project scope and cost.
- Reliance on specific materials or expertise not readily available locally.
- Environmental considerations unique to the Republic of Marshall Islands.
Tags
commercial-and-institutional-building-co, department-of-defense, mh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to NAN INC. FY21 REPAIR POL PIPELINES AND ABOVE GROUND STORAGE TANKS, US ARMY GARRISON, KWAJALEIN ATOLL, AND REPUBLIC OF MARSHALL ISLANDS
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 $13.7 million.
What is the period of performance?
Start: 2021-10-14. End: 2026-02-09.
What is the historical maintenance cost for these pipelines and tanks, and how does this award compare?
Historical maintenance costs for these specific pipelines and tanks are not provided in the data. However, the award amount of $13.7 million represents a significant investment, suggesting either a substantial backlog of deferred maintenance or a comprehensive upgrade/replacement project. Comparing this to previous repair expenditures or similar projects at other overseas installations would be necessary for a full assessment of value.
What are the specific risks associated with performing construction in the Republic of Marshall Islands, and how are they mitigated?
Performing construction in the Republic of Marshall Islands presents unique risks including logistical challenges due to remote location, potential environmental sensitivities, and reliance on specialized labor or materials. Mitigation strategies likely involve detailed logistical planning, adherence to strict environmental protocols, and potentially pre-qualifying contractors with experience in similar challenging environments. The contract's duration and firm-fixed-price nature suggest these risks have been factored into the pricing.
How does the chosen contract type (Firm Fixed Price) align with the project's complexity and potential for unforeseen issues?
A Firm Fixed Price (FFP) contract is generally preferred for projects with well-defined scopes to provide cost certainty. For infrastructure repair, especially in remote locations like Kwajalein Atoll, there's always a risk of unforeseen conditions. While FFP aims to cap costs, significant unforeseen issues could lead to change orders or contractor claims, potentially impacting the final cost and schedule. The government likely assessed the risk of unknowns and determined FFP was appropriate, possibly with contingency planning.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128A17R0002
Offers Received: 1
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: $13,689,361
Exercised Options: $13,689,361
Current Obligation: $13,689,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128A17D0010
IDV Type: IDC
Timeline
Start Date: 2021-10-14
Current End Date: 2026-02-09
Potential End Date: 2026-02-09 00:00:00
Last Modified: 2025-09-10
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