Department of the Army awards $46.2M for Schofield Barracks child development center construction

Contract Overview

Contract Amount: $46,229,569 ($46.2M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2022-10-05

End Date: 2026-03-09

Contract Duration: 1,251 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT CHILD DEVELOPMENT CENTER, SCHOFIELD BARRACKS

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to NAN INC for work described as: CONSTRUCT CHILD DEVELOPMENT CENTER, SCHOFIELD BARRACKS Key points: 1. Contract awarded to NAN INC for a firm-fixed-price definitive contract. 2. Project aims to construct a child development center at Schofield Barracks, Hawaii. 3. Duration of the contract is 1251 days, ending March 9, 2026. 4. The contract was awarded under full and open competition. 5. This project falls under the Commercial and Institutional Building Construction NAICS code. 6. The award value represents a significant investment in military family support infrastructure.

Value Assessment

Rating: good

The contract value of $46.2 million for constructing a child development center appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects for federal facilities, particularly those involving specialized requirements like child development centers, suggests this price is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bids suggests a healthy level of competition for this project. This competitive process is expected to drive pricing towards market rates and ensure the government receives a fair value for the construction services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring that public funds are used efficiently.

Public Impact

Military families stationed at Schofield Barracks will benefit from the new, modern child development center. The project will deliver essential childcare services, supporting the readiness and well-being of service members. The construction will have a positive economic impact in Hawaii through job creation and local material sourcing. The construction phase will likely employ a significant number of skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the operational readiness of the facility.
Risk of cost escalation if unforeseen site conditions arise, despite the firm-fixed-price contract.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Award to NAN INC, a contractor with experience in large-scale construction projects.
Firm-fixed-price contract provides budget certainty for the Department of the Army.
Full and open competition suggests a robust bidding process and potential for value.
Project addresses a critical need for family support infrastructure at a major military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for federal construction projects is substantial, driven by the need to maintain and upgrade military bases, government facilities, and public infrastructure. NAN INC's win in this full and open competition indicates their ability to compete effectively against other major construction firms for significant government contracts. Comparable spending benchmarks for similar military construction projects often range from tens to hundreds of millions of dollars, depending on scale and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct small business set-aside, the prime contractor, NAN INC, may engage small businesses as subcontractors for specialized services or materials. The extent of small business subcontracting will be a key factor in assessing the broader impact on the small business ecosystem supporting this large federal project.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, likely through contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring NAN INC to deliver the completed center according to specifications and schedule. Transparency is generally maintained through contract award databases and public reporting, though detailed day-to-day oversight activities are typically internal to the agency.

Related Government Programs

Military Construction (MILCON)
Department of Defense Family Housing
Child Care Services Program
Schofield Barracks Infrastructure Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting facility availability.
Ensuring contractor compliance with all federal safety and environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to NAN INC. CONSTRUCT CHILD DEVELOPMENT CENTER, SCHOFIELD BARRACKS

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 $46.2 million.

What is the period of performance?

Start: 2022-10-05. End: 2026-03-09.

What is NAN INC's track record with similar federal construction projects, particularly child development centers?

A review of NAN INC's contract history would be necessary to fully assess their track record. However, winning a $46.2 million firm-fixed-price contract for a child development center from the Department of the Army suggests they possess the necessary experience, bonding capacity, and technical expertise to handle projects of this magnitude and complexity. Federal procurement databases would likely contain details on their past performance on similar projects, including any awards or past performance evaluations. Understanding their history with specialized facilities like child development centers, which have unique safety and functional requirements, would provide further insight into their suitability for this specific contract.

How does the $46.2 million award value compare to the average cost of constructing similar child development centers for the military?

The $46.2 million award value for constructing a child development center at Schofield Barracks is a significant investment. To benchmark this effectively, one would compare it against recent Military Construction (MILCON) projects for similar facilities. Factors such as square footage, specific design requirements (e.g., security, specialized play areas, administrative spaces), and geographic location (which impacts labor and material costs) heavily influence the total cost. While precise comparisons require detailed project specifications, this value appears to be within the expected range for a large, modern federal child development center, especially considering potential site preparation and infrastructure needs at a major installation like Schofield Barracks. The firm-fixed-price nature also suggests a defined scope was agreed upon.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they being mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor (NAN INC) bears the financial burden of any cost overruns. This risk is mitigated by the government through a thorough pre-award review process, including evaluation of the contractor's technical proposal, past performance, and financial stability. The government also specifies detailed requirements and performance standards in the contract. Potential risks for the government include contractor default or failure to meet quality standards, which could lead to delays and the need for contract termination and re-procurement. Mitigation involves robust contract administration, regular progress monitoring, and clear communication channels to address issues proactively.

What is the expected impact of this project on the readiness and morale of military families at Schofield Barracks?

The construction of a new child development center is expected to significantly enhance the readiness and morale of military families at Schofield Barracks. Access to high-quality, reliable childcare is a critical factor for military personnel, enabling them to focus on their duties knowing their children are in a safe and nurturing environment. Improved facilities can reduce wait times for childcare services, offer enhanced programming, and provide a more modern and secure space. This directly supports family well-being, reduces stress associated with childcare logistics, and contributes to overall job satisfaction and retention within the military community stationed at the base.

How does the duration of 1251 days (approximately 3.4 years) align with typical construction timelines for federal projects of this scale?

A contract duration of 1251 days, equating to roughly 3.4 years from award to completion, is a substantial timeframe that aligns with the complexity and scale of constructing a major facility like a child development center. This duration likely encompasses not only the physical construction but also detailed design finalization, permitting, site preparation, procurement of long-lead materials, actual building, and final inspections/commissioning. Federal construction projects, especially those on military installations, often involve rigorous planning, security protocols, environmental reviews, and coordination with multiple stakeholders, which can extend timelines compared to purely commercial projects. This duration suggests a comprehensive approach to ensure quality and compliance.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A22R0020

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: $46,229,569

Exercised Options: $46,229,569

Current Obligation: $46,229,569

Actual Outlays: $4,545,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline