DoD's $43.7M Barracks Renewal Project at Schofield Barracks Faces Potential Cost Overruns and Schedule Delays

Contract Overview

Contract Amount: $43,714,998 ($43.7M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-20

End Date: 2015-05-22

Contract Duration: 1,340 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY11 PN 52269, QUAD D, WHOLE BARRACKS RENEWAL, PHASE 3B, BUILDINGS 450 AND 451, SCHOFIELD BARRACKS, OAHU, HAWAII

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858, UNITED STATES OF AMERICA

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to NAN INC for work described as: FY11 PN 52269, QUAD D, WHOLE BARRACKS RENEWAL, PHASE 3B, BUILDINGS 450 AND 451, SCHOFIELD BARRACKS, OAHU, HAWAII Key points: 1. The project, awarded in 2011, has already experienced significant delays, extending from an initial duration of 1340 days to a current end date of May 2015. 2. With a current value of $43.7 million, the contract was awarded under full and open competition, suggesting a robust price discovery process. 3. The firm-fixed-price contract type aims to mitigate cost risks for the government, but the extended duration may still lead to unforeseen expenses. 4. The sector is Commercial and Institutional Building Construction, a critical area for military readiness and personnel well-being.

Value Assessment

Rating: fair

The contract's value of $43.7 million for barracks renewal appears reasonable given the scope of work involving two buildings. However, the extended duration and potential for cost overruns warrant close monitoring against similar large-scale construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically ensures competitive pricing. The initial bid of $3.26 million (BR) suggests a competitive initial award, but the subsequent modifications and extended timeline may have impacted the final cost discovery.

Taxpayer Impact: While competition was robust, the extended timeline and potential for cost increases due to delays could lead to a higher taxpayer burden than initially anticipated.

Public Impact

Ensures adequate and modern housing for service members at Schofield Barracks, improving morale and retention. Supports the local economy in Hawaii through construction jobs and related services. Potential for increased costs due to schedule slippage could impact future military construction budgets. The project's success is crucial for maintaining operational readiness and quality of life for stationed personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Schedule delays
Potential cost overruns
Contract modifications
Extended duration

Positive Signals

Firm-fixed-price contract
Full and open competition
Critical infrastructure upgrade

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, which is vital for maintaining military infrastructure. Spending benchmarks for similar barracks construction projects vary widely based on location, size, and amenities, but projects exceeding $40 million require careful cost management.

Small Business Impact

While the primary contract was awarded to NAN INC, it's important to assess if any subcontracts were awarded to small businesses. The data provided does not indicate direct small business participation in the prime contract.

Oversight & Accountability

The extended duration and potential for cost increases suggest that oversight may need to be intensified to ensure accountability and adherence to the original project goals and budget. Regular performance reviews and progress tracking are essential.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Schedule slippage
Potential cost overruns
Contract modifications impacting price
Extended project duration
Lack of detailed cost breakdown for modifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to NAN INC. FY11 PN 52269, QUAD D, WHOLE BARRACKS RENEWAL, PHASE 3B, BUILDINGS 450 AND 451, SCHOFIELD BARRACKS, OAHU, 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 Army).

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2011-09-20. End: 2015-05-22.

What specific factors contributed to the significant schedule delays beyond the initial 1340-day estimate, and what is the projected final completion date?

The provided data indicates a substantial extension from the original duration. Further investigation into the contract modifications, unforeseen site conditions, or contractor performance issues would be necessary to pinpoint the exact causes of the delays. Understanding these factors is crucial for assessing the overall project management effectiveness and for preventing similar issues in future construction contracts.

How have contract modifications impacted the total cost of the project, and are these increases justified by the scope changes or unforeseen circumstances?

The data does not detail contract modifications or their financial impact. A thorough review of all contract modifications is needed to determine if the price increases are reasonable and directly linked to necessary scope adjustments or unavoidable issues. This analysis is key to evaluating the government's negotiation effectiveness and preventing unwarranted cost escalations.

What measures are in place to ensure the quality of the completed barracks, given the extended timeline and potential for rushed work or material degradation?

Ensuring quality on a project with extended timelines requires robust quality assurance and quality control processes. This includes regular inspections, material testing, and adherence to construction standards. The government's contracting officer's representative (COR) and quality assurance personnel play a vital role in monitoring workmanship and materials throughout the project lifecycle.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A11R0012

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,714,998

Exercised Options: $43,714,998

Current Obligation: $43,714,998

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline