DoD Awards $174M for Bachelor Enlisted Quarters at MCBH, Hawaii, with Firm Fixed Price Contract
Contract Overview
Contract Amount: $174,467,064 ($174.5M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2029-06-24
Contract Duration: 2,097 days
Daily Burn Rate: $83.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MCON PROJECT FY22 P956 BACHELOR ENLISTED QUARTERS (BEQ) & FY23 P973 BEQ, MARINE CORPS BASE HAWAII (MCBH), KANEOHE BAY, HAWAII
Place of Performance
Location: M C B H KANEOHE BAY, HONOLULU County, HAWAII, 96863
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $174.5 million to NAN INC for work described as: MCON PROJECT FY22 P956 BACHELOR ENLISTED QUARTERS (BEQ) & FY23 P973 BEQ, MARINE CORPS BASE HAWAII (MCBH), KANEOHE BAY, HAWAII Key points: 1. The contract is for Bachelor Enlisted Quarters (BEQ) construction and renovation across FY22 and FY23. 2. NAN INC, a small business, is the prime contractor. 3. The project is located at Marine Corps Base Hawaii (MCBH), Kaneohe Bay, Hawaii. 4. The contract type is Firm Fixed Price, indicating defined costs for the contractor.
Value Assessment
Rating: good
The contract value of $174.5 million for two BEQ projects appears reasonable for large-scale construction in Hawaii, considering the location and scope. Benchmarking against similar military construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair market price. The use of a Firm Fixed Price contract further solidifies cost certainty.
Taxpayer Impact: Taxpayer funds are being used for essential military housing infrastructure, aiming for long-term value and improved living conditions for service members.
Public Impact
Enhances quality of life for enlisted Marines at MCBH. Supports military readiness by providing adequate housing. Contributes to the local economy through construction jobs and services. Addresses critical infrastructure needs for the Marine Corps.
Waste & Efficiency Indicators
Waste Risk Score: 83 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on a single contractor for a large-scale project.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition likely secured competitive pricing.
- Project addresses a critical need for military housing.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Military construction projects often have higher costs due to stringent security, environmental, and quality standards compared to civilian projects.
Small Business Impact
NAN INC, identified as a small business, is the prime contractor. This award supports the government's goal of contracting with small businesses, fostering economic growth and competition.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Regular progress reports and site inspections are expected to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Geographic location in Hawaii may increase logistical costs.
- Firm Fixed Price contracts can sometimes lead to contractor pushback on scope changes.
- Reliance on a single contractor for a multi-year project.
- Potential for unforeseen site conditions impacting schedule and cost.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $174.5 million to NAN INC. MCON PROJECT FY22 P956 BACHELOR ENLISTED QUARTERS (BEQ) & FY23 P973 BEQ, MARINE CORPS BASE HAWAII (MCBH), KANEOHE BAY, HAWAII
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 Navy).
What is the total obligated amount?
The obligated amount is $174.5 million.
What is the period of performance?
Start: 2023-09-27. End: 2029-06-24.
What is the estimated cost per square foot or per unit for the BEQ construction compared to industry benchmarks?
Without detailed project specifications (e.g., square footage, number of units, amenities), a precise per-unit or per-square-foot cost benchmark is difficult to establish. However, military construction in high-cost areas like Hawaii typically exceeds national averages due to logistical challenges, labor rates, and specific building codes. Further analysis would require access to the detailed scope of work and design documents.
What are the key performance indicators (KPIs) for this project to ensure successful delivery and value for money?
Key performance indicators would likely include adherence to schedule (completion by June 2029), quality of construction meeting military standards, safety compliance on-site, and effective budget management. Post-occupancy evaluations to assess habitability and durability would also be crucial for long-term value assessment.
How will the long-term maintenance costs of these new BEQs be factored into the overall lifecycle cost assessment?
Lifecycle cost assessment should ideally incorporate projected maintenance and repair expenses over the expected lifespan of the BEQs. This includes budgeting for routine upkeep, potential major renovations, and addressing wear and tear. Understanding the materials and systems chosen for durability and ease of maintenance will be critical for managing these future costs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247817R4032
Offers Received: 4
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: $174,974,088
Exercised Options: $174,974,088
Current Obligation: $174,467,064
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247820D4014
IDV Type: IDC
Timeline
Start Date: 2023-09-27
Current End Date: 2029-06-24
Potential End Date: 2029-06-24 00:00:00
Last Modified: 2025-11-03
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