DoD awards $47.5M for Building 703 Zamperini repair, highlighting construction sector activity

Contract Overview

Contract Amount: $47,484,703 ($47.5M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-12-08

Contract Duration: 1,530 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR WORK, BUILDING 703 ZAMPERINI

Place of Performance

Location: MARSHALL ISLANDS

Plain-Language Summary

Department of Defense obligated $47.5 million to NAN INC for work described as: REPAIR WORK, BUILDING 703 ZAMPERINI Key points: 1. Contract value of $47.5M indicates significant investment in facility maintenance. 2. Full and open competition suggests a robust bidding process for this construction project. 3. The definitive contract type with a firm fixed price offers cost certainty. 4. Project duration of 1530 days spans over four years, indicating a substantial scope of work. 5. The contract is managed by the Department of the Army, a key defense agency. 6. Location in the Marshall Islands may present unique logistical and operational challenges.

Value Assessment

Rating: good

The contract value of $47.5 million for building repair is substantial. Benchmarking against similar large-scale construction and repair projects within the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure generally provides good cost control for the government, assuming the scope was well-defined. The duration suggests a comprehensive approach to the repairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bids received, the competition level appears moderate. This suggests that the agency sought a broad range of potential contractors, which can contribute to competitive pricing and a wider selection of qualified firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the repaired Building 703. The services delivered include comprehensive repair work for a significant facility. The geographic impact is localized to the Marshall Islands, potentially involving local labor and resources. Workforce implications may include employment opportunities for construction workers and specialized trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential logistical complexities and increased costs associated with performing construction in a remote island location like the Marshall Islands.
Ensuring adequate oversight and quality control for a long-duration project in a geographically dispersed area.
The firm fixed-price nature could lead to contractor claims if unforeseen issues arise during the extensive repair period.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract type provides budget certainty for the government.
The substantial contract value indicates a commitment to maintaining critical infrastructure.
A duration of over four years allows for thorough planning and execution of complex repairs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The Department of Defense is a significant client for construction services, often requiring specialized capabilities for facilities in diverse and sometimes challenging locations. Spending in this sector is influenced by infrastructure needs, modernization efforts, and maintenance requirements across government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. The firm fixed-price nature and long duration necessitate robust monitoring of progress, quality, and adherence to the contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Department of Defense Facilities Maintenance
Military Construction
Government Building Renovation
Pacific Region Infrastructure Projects

Risk Flags

Geographic isolation may increase logistical costs and complexity.
Long project duration increases risk of unforeseen issues and market volatility.
Firm fixed-price contract may be less flexible for unexpected repair challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to NAN INC. REPAIR WORK, BUILDING 703 ZAMPERINI

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 $47.5 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-12-08.

What is the historical spending pattern for Building 703 repair and maintenance by the Department of the Army?

Analyzing historical spending for Building 703 requires access to detailed procurement data beyond this single award. Typically, agencies maintain records of past contracts, including repair and maintenance activities, for specific facilities. A review of historical data would reveal if this $47.5 million award represents a significant increase or is in line with previous investments in the building. Factors such as the building's age, its operational criticality, and previous repair cycles would influence historical spending. Without specific historical data, it's difficult to contextualize this award relative to past expenditures, but the substantial amount suggests a major renovation or repair effort rather than routine maintenance.

How does the per-square-foot cost of this repair project compare to similar construction projects in the Marshall Islands or similar remote locations?

Determining the per-square-foot cost requires knowing the building's square footage, which is not provided in the data. However, construction projects in remote locations like the Marshall Islands often incur higher costs due to logistical challenges, transportation of materials and personnel, and potentially limited local labor availability. These factors can significantly increase the overall project cost compared to similar projects in more accessible areas. A detailed cost analysis would involve comparing the total contract value adjusted for scope against the building's size and then benchmarking this against known costs for construction or major repairs in comparable geographic and economic environments.

What specific repair or renovation activities are included in the $47.5 million contract for Building 703?

The provided data categorizes this award under 'REPAIR WORK, BUILDING 703 ZAMPERINI' and identifies the North American Industry Classification System (NAICS) code as 236220, which pertains to Commercial and Institutional Building Construction. While the contract type is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE,' the specific details of the repair or renovation activities are not itemized in the summary data. Such details would typically be found in the contract's statement of work (SOW) or specifications, outlining the scope of repairs, materials to be used, and performance standards required. Without the SOW, we can infer it involves substantial structural, mechanical, electrical, or architectural work necessary to restore or improve the building's condition.

What is the track record of NAN INC in performing large-scale construction contracts for the Department of Defense?

Information regarding NAN INC's specific track record with the Department of Defense for large-scale construction contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review past awards, contract performance evaluations (CPARS), and any history of disputes or claims. A positive track record would include successful completion of similar projects on time and within budget, with favorable performance reviews. Conversely, a history of issues could raise concerns about their capacity to manage this significant $47.5 million project effectively, especially given its remote location and long duration.

What are the potential risks associated with the 1530-day duration of this contract?

A contract duration of 1530 days (approximately 4.2 years) for building repair presents several potential risks. Firstly, the extended timeline increases the likelihood of unforeseen conditions arising, such as discovering hidden structural damage or encountering hazardous materials, which could lead to cost overruns or delays, particularly with a firm fixed-price contract. Secondly, market fluctuations in material costs and labor availability over such a long period can impact the contractor's profitability and potentially affect project timelines. Thirdly, maintaining consistent government oversight and quality assurance over an extended duration requires sustained resources and attention. Finally, changes in military requirements or budget priorities could potentially impact the project's scope or continuation.

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: TWO STEP

Solicitation ID: W9128A22R0013

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: $47,484,703

Exercised Options: $47,484,703

Current Obligation: $47,484,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline