Army Awards $6.25M for Kwajalein Atoll Water Tank Repair to NAN INC
Contract Overview
Contract Amount: $6,254,724 ($6.3M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2026-01-02
End Date: 2027-10-04
Contract Duration: 640 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PN103377 REPAIR WATER STORAGE TANK, FN 968, U.S. ARMY GARRISON, KWAJALEIN ATOLL, REPUBLIC OF THE MARSHALL ISLANDS
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $6.3 million to NAN INC for work described as: PN103377 REPAIR WATER STORAGE TANK, FN 968, U.S. ARMY GARRISON, KWAJALEIN ATOLL, REPUBLIC OF THE MARSHALL ISLANDS Key points: 1. Spending focuses on essential infrastructure maintenance in a remote location. 2. The contract is a delivery order under a larger contract, indicating potential for future work. 3. The firm fixed price contract type aims to control costs for the government. 4. The project duration is 640 days, suggesting a significant scope of work.
Value Assessment
Rating: good
The award amount of $6.25M for a water storage tank repair appears reasonable given the remote location and the scope of work. Benchmarking against similar infrastructure repair projects in isolated areas 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, which is a positive sign for price discovery and achieving a fair market price. The existence of 5 bids suggests a competitive environment.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for this essential repair.
Public Impact
Ensures continued access to clean water for U.S. Army Garrison personnel at Kwajalein Atoll. Supports critical infrastructure maintenance in a strategically important, albeit remote, U.S. military installation. The repair project contributes to the operational readiness and quality of life for service members and their families.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Remote location may lead to increased logistical costs and potential delays.
- Reliance on a single delivery order could indicate a need for future, potentially larger, contracts.
- The specific nature of the repair is not detailed, making it difficult to assess technical risks.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
- Project duration is clearly defined.
- Awarded to NAN INC, a known entity in construction.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining government facilities and infrastructure, particularly in remote or overseas locations like Kwajalein Atoll.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award, as the 'sb' field is false. Further analysis would be needed to understand the overall small business utilization within the contracting agency or for similar projects.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Remote location logistics and potential cost overruns.
- Potential for unforeseen technical challenges during repair.
- Dependence on a single delivery order for a critical infrastructure component.
- Lack of small business participation noted.
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 $6.3 million to NAN INC. PN103377 REPAIR WATER STORAGE TANK, FN 968, U.S. ARMY GARRISON, KWAJALEIN ATOLL, 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 $6.3 million.
What is the period of performance?
Start: 2026-01-02. End: 2027-10-04.
What is the historical performance of NAN INC on similar infrastructure repair contracts, particularly in remote or challenging environments?
Assessing NAN INC's past performance is crucial for understanding their capability to execute this project successfully. Reviewing their track record on similar water storage tank repairs, especially in isolated locations like Kwajalein Atoll, would reveal their experience with logistical challenges, quality control, and adherence to schedules. This information helps gauge the risk associated with the current award and provides a basis for performance expectations.
How does the awarded price compare to the government's independent cost estimate for this water storage tank repair project?
Comparing the awarded price ($6.25M) to the government's estimate is a key indicator of value for money. If the award is significantly lower than the estimate, it suggests strong competition and potentially a good deal. Conversely, if it's higher, it warrants further investigation into the estimate's accuracy and potential cost drivers. This comparison helps determine if taxpayers received a fair price.
What are the specific technical requirements and potential risks associated with repairing this particular water storage tank at Kwajalein Atoll?
Understanding the technical specifics of the repair is vital for assessing project risks. Factors like the tank's age, material, existing damage, and the environmental conditions at Kwajalein Atoll (e.g., humidity, salt air) can significantly impact the complexity and cost. Identifying potential technical challenges, such as material compatibility or specialized repair techniques needed, allows for a more accurate evaluation of the project's feasibility and potential for unforeseen issues.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
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: $6,254,724
Exercised Options: $6,254,724
Current Obligation: $6,254,724
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128A24D0005
IDV Type: IDC
Timeline
Start Date: 2026-01-02
Current End Date: 2027-10-04
Potential End Date: 2027-10-04 00:00:00
Last Modified: 2026-02-09
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