DoD Awards $59.5M for Hawaii Electrical System Modernization to NAN INC
Contract Overview
Contract Amount: $59,491,443 ($59.5M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2025-06-05
End Date: 2028-07-08
Contract Duration: 1,129 days
Daily Burn Rate: $52.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P935 ELECTRICAL DISTRIBUTION SYSTEM MODERNIZATION
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 $59.5 million to NAN INC for work described as: P935 ELECTRICAL DISTRIBUTION SYSTEM MODERNIZATION Key points: 1. Significant investment in critical infrastructure for the Department of the Navy. 2. NAN INC secures a substantial contract, indicating potential market concentration. 3. Risk assessment needed for long-term system reliability and maintenance. 4. Construction sector spending benchmark for similar modernization projects. 5. Focus on modernization suggests potential for improved operational efficiency.
Value Assessment
Rating: good
The contract value of $59.5 million for an 1129-day duration appears reasonable for a large-scale electrical distribution system modernization. Benchmarking against similar government or commercial projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential infrastructure upgrades.
Public Impact
Modernization of electrical infrastructure will enhance operational readiness and safety at the naval facility. Potential for job creation in Hawaii's construction sector during the project lifecycle. Improved energy efficiency and reliability could lead to long-term cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex modernization projects.
- Dependency on a single contractor (NAN INC) for critical infrastructure.
- Schedule delays impacting operational readiness.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Modernization aims to improve system reliability and efficiency.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending on infrastructure modernization, particularly for critical systems like electrical distribution, is a common government expenditure. Benchmarks vary widely based on project scope and location.
Small Business Impact
While awarded under full and open competition, there is no explicit mention of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Contract clauses and performance metrics will dictate accountability for project completion, quality, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage.
- Dependency on contractor performance.
- Long-term maintenance and supportability.
- Risk of unforeseen site conditions impacting cost.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.5 million to NAN INC. P935 ELECTRICAL DISTRIBUTION SYSTEM MODERNIZATION
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 $59.5 million.
What is the period of performance?
Start: 2025-06-05. End: 2028-07-08.
What is the projected impact of this modernization on energy efficiency and long-term operational costs for the facility?
The modernization of the electrical distribution system is expected to significantly improve energy efficiency by replacing outdated components with modern, energy-saving technology. This upgrade should lead to reduced energy consumption and lower utility bills over the system's lifespan. Furthermore, enhanced reliability and reduced maintenance needs associated with newer equipment will contribute to lower long-term operational and repair costs, ensuring a more cost-effective and sustainable infrastructure.
What are the key risks associated with the long-term maintenance and potential obsolescence of the new electrical distribution system?
Key risks include the availability of specialized parts and skilled technicians for future maintenance as technology evolves. There's also a risk of premature obsolescence if the chosen technology is rapidly superseded. Ensuring robust warranty provisions, establishing long-term service agreements with the contractor or other qualified entities, and planning for future upgrades are crucial mitigation strategies to address these concerns.
How does the awarded price compare to industry benchmarks for similar electrical system modernization projects of this scale?
Without specific project details like the exact scope of work, geographical location, and specific technologies employed, a precise comparison is difficult. However, the reported value of $59.5 million for an 1129-day project suggests a significant undertaking. A detailed cost-benefit analysis comparing this price against publicly available data for comparable government or large commercial modernization projects would be necessary to definitively assess its competitiveness.
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: $66,479,077
Exercised Options: $59,491,443
Current Obligation: $59,491,443
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: 2025-06-05
Current End Date: 2028-07-08
Potential End Date: 2028-07-08 00:00:00
Last Modified: 2025-07-21
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