Army Awards $59.7M for Kwajalein Family Housing Construction to NAN INC
Contract Overview
Contract Amount: $59,729,076 ($59.7M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2022-08-05
End Date: 2026-01-25
Contract Duration: 1,269 days
Daily Burn Rate: $47.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PN77881 FY21 ARMY FAMILY HOUSING CONSTRUCTION, KWAJALEIN, REPUBLIC OF THE MARSHALL ISLANDS
Place of Performance
Location: MARSHALL ISLANDS, 96555
Plain-Language Summary
Department of Defense obligated $59.7 million to NAN INC for work described as: PN77881 FY21 ARMY FAMILY HOUSING CONSTRUCTION, KWAJALEIN, REPUBLIC OF THE MARSHALL ISLANDS Key points: 1. Contract awarded to NAN INC for significant family housing project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration is substantial at 1269 days. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $59.7 million for new single-family housing construction appears within a reasonable range for a project of this scale and complexity, especially considering the remote location. Benchmarking against similar remote construction projects would provide a more precise assessment.
Cost Per Unit: $470,680 (estimated per unit based on 2 units)
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple qualified contractors to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for this essential housing project.
Public Impact
Improved housing for Army families stationed at Kwajalein. Supports military readiness and personnel retention. Potential economic impact in the Republic of the Marshall Islands through local labor and resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Remote location may increase costs and logistical challenges.
- Long project duration could lead to cost overruns if not managed effectively.
- Reliance on a single awardee for a large project.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition promotes market efficiency.
- Addresses critical infrastructure needs for military families.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Spending benchmarks for remote military construction projects can vary significantly due to logistical complexities and material transport costs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Standard Department of Defense oversight mechanisms should be in place for a contract of this magnitude. Monitoring progress, quality, and adherence to the fixed-price terms will be crucial for accountability.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geographic isolation and logistical challenges.
- Potential for cost escalation despite fixed-price contract due to unforeseen site conditions.
- Long project duration increases exposure to market fluctuations.
- Dependence on a single contractor for a critical infrastructure project.
Tags
new-single-family-housing-construction-e, department-of-defense, mh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.7 million to NAN INC. PN77881 FY21 ARMY FAMILY HOUSING CONSTRUCTION, KWAJALEIN, REPUBLIC OF THE 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 $59.7 million.
What is the period of performance?
Start: 2022-08-05. End: 2026-01-25.
What is the historical performance of NAN INC on similar government contracts, particularly in remote or overseas locations?
Assessing NAN INC's past performance is critical for understanding their capability to execute this project successfully. Reviewing their track record on similar overseas construction projects, especially those involving significant logistical challenges, can reveal potential risks or strengths. This includes examining project completion times, budget adherence, and quality of work on prior contracts to inform the current project's risk assessment.
How were the specific costs for construction materials and labor in the Marshall Islands benchmarked against national averages or similar overseas bases?
Understanding the cost benchmarking process is essential for validating the $59.7 million award. Given the remote location, material and labor costs could be substantially higher than mainland US projects. Detailed justification for these costs, including transportation, local labor rates, and any unique environmental considerations, should be available to ensure the price is fair and reasonable.
What are the specific quality assurance measures and inspection protocols in place to ensure the new housing meets Army standards?
Ensuring the quality of the new family housing is paramount for soldier and family welfare. Robust quality assurance measures, including regular inspections by government representatives and adherence to specified building codes and materials, are necessary. The contract should clearly outline these protocols and the process for addressing any deficiencies found during construction.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9128A21R0009
Offers Received: 2
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: $59,729,076
Exercised Options: $59,729,076
Current Obligation: $59,729,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-05
Current End Date: 2026-01-25
Potential End Date: 2026-01-25 00:00:00
Last Modified: 2025-09-30
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