DoD Awards $7.9M Contract for Freight Terminal Building Repair to Nakasato Contracting LLC
Contract Overview
Contract Amount: $7,909,277 ($7.9M)
Contractor: Nakasato Contracting LLC
Awarding Agency: Department of Defense
Start Date: 2022-07-12
End Date: 2026-01-02
Contract Duration: 1,270 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR FREIGHT TERMINAL BUILDING 4069H
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $7.9 million to NAKASATO CONTRACTING LLC for work described as: REPAIR FREIGHT TERMINAL BUILDING 4069H Key points: 1. Contract awarded for freight terminal building repair. 2. Nakato Contracting LLC is the recipient. 3. The contract falls under Commercial and Institutional Building Construction. 4. Awarded via full and open competition after exclusion of sources.
Value Assessment
Rating: fair
The contract value of $7.9M for building repair appears within a reasonable range for a project of this scope. Benchmarking against similar construction projects of this size and complexity would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a potentially limited competition pool. While open, the exclusion of certain sources may have impacted price discovery and overall competitiveness.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repair. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures operational readiness of critical freight terminal facilities. Supports infrastructure maintenance within the Department of Defense. Potential impact on local construction labor market in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 62 / 10
Warning Flags
- Limited competition pool due to source exclusion.
- Potential for cost overruns in fixed-price contracts for construction.
- Long duration of the contract (over 3 years).
Positive Signals
- Addresses critical infrastructure needs.
- Awarded through a competitive process.
- Fixed-price contract can provide cost certainty if managed well.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs across government agencies, with significant variability based on project size and location.
Small Business Impact
The data indicates that Nakasato Contracting LLC, the awardee, is not identified as a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight will be crucial to ensure the contractor adheres to the fixed-price terms and delivers the repair work to the specified standards within the contract period. The Department of the Army's contracting office is responsible for monitoring performance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Potential for cost overruns.
- Long contract duration.
- Lack of small business participation noted.
- Complexity of building repair projects.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.9 million to NAKASATO CONTRACTING LLC. REPAIR FREIGHT TERMINAL BUILDING 4069H
Who is the contractor on this award?
The obligated recipient is NAKASATO CONTRACTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $7.9 million.
What is the period of performance?
Start: 2022-07-12. End: 2026-01-02.
What specific criteria led to the exclusion of certain sources in the competition, and how did this impact the final price?
The exclusion of sources likely stemmed from specific technical requirements, security clearances, or past performance evaluations necessary for this particular freight terminal repair. Understanding these criteria is vital to assess if the exclusion was justified and if it inadvertently limited the competitive landscape, potentially affecting the final price achieved for the government.
What are the primary risks associated with a firm-fixed-price contract for a multi-year building repair project, and how are they being mitigated?
The primary risk with firm-fixed-price contracts is that the contractor may face unforeseen cost increases due to material price fluctuations, labor shortages, or unexpected site conditions, potentially leading to quality compromises or disputes. Mitigation strategies typically involve robust contract clauses, detailed specifications, regular progress monitoring, and contingency planning by the contracting officer.
How does the long contract duration (1270 days) impact the overall value and effectiveness of this freight terminal repair project?
A long duration can increase the risk of scope creep, material obsolescence, and contractor performance degradation. However, it may also be necessary for complex repairs or phased construction to minimize operational disruption. Effectiveness hinges on strict project management, clear milestones, and performance incentives to ensure timely completion and value realization.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128A19R0002
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1015 PAAPU ST, HONOLULU, HI, 96819
Business Categories: Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $8,366,791
Exercised Options: $7,909,277
Current Obligation: $7,909,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128A21D0004
IDV Type: IDC
Timeline
Start Date: 2022-07-12
Current End Date: 2026-01-02
Potential End Date: 2026-01-02 00:00:00
Last Modified: 2025-12-31
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