DoD Awards $57M Child Development Center Contract in Hawaii to NAN INC
Contract Overview
Contract Amount: $56,960,465 ($57.0M)
Contractor: NAN Inc
Awarding Agency: Department of Defense
Start Date: 2022-10-07
End Date: 2026-01-04
Contract Duration: 1,185 days
Daily Burn Rate: $48.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHILD DEVELOPMENT CENTER, ALIAMANU MILITARY RESERVATION
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $57.0 million to NAN INC for work described as: CHILD DEVELOPMENT CENTER, ALIAMANU MILITARY RESERVATION Key points: 1. Contract awarded to NAN INC for a Child Development Center. 2. The contract is a Firm Fixed Price Definitive Contract. 3. Competition was Full and Open, suggesting a competitive bidding process. 4. The project is located in Hawaii, a high-cost construction environment.
Value Assessment
Rating: fair
The contract value of $56.96M for an 1185-day duration appears high, especially considering the base bid was $4.8M. Further analysis is needed to understand the scope and justify the total award amount.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for the construction of a military child development center. The value and efficiency of this expenditure are key considerations.
Public Impact
Provides essential childcare services for military families in Hawaii. Supports local employment and economic activity during the construction phase. Enhances quality of life for service members stationed at Aliamanu Military Reservation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total contract value for construction.
- Potential for cost overruns given the difference between base bid and award amount.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Addresses a critical need for military family support.
- Long-term contract duration provides stability.
Sector Analysis
The construction sector, particularly for government projects, often involves complex bidding processes and significant capital investment. Benchmarks for similar military construction projects in high-cost areas like Hawaii would be useful for comparison.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to support small business participation in federal contracting.
Oversight & Accountability
Standard DoD oversight mechanisms should be in place for this contract. However, the significant difference between the base bid and the final award warrants close monitoring to ensure fiscal responsibility.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value.
- Significant difference between base bid and award amount.
- No small business participation.
- Potential for cost escalation in high-cost construction environment.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.0 million to NAN INC. CHILD DEVELOPMENT CENTER, ALIAMANU MILITARY RESERVATION
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 $57.0 million.
What is the period of performance?
Start: 2022-10-07. End: 2026-01-04.
What factors contributed to the significant increase from the base bid to the final award amount, and how does this align with industry standards for similar projects?
The increase from the base bid to the final award could be attributed to various factors including scope adjustments, unforeseen site conditions, material cost escalations, or competitive bidding dynamics where initial bids were conservative. A detailed breakdown of the final award components is necessary to assess its alignment with industry standards for similar military construction projects in Hawaii, which is known for its higher construction costs.
What are the specific risks associated with the high total contract value and the lack of small business involvement?
The high total contract value ($56.96M) presents a financial risk if the project exceeds budget or if the delivered facility does not meet long-term value expectations. The absence of small business participation is a missed opportunity for economic development and potentially limits the pool of specialized subcontractors, which could indirectly impact project efficiency or innovation.
How effectively will this Child Development Center serve the long-term needs of military families at Aliamanu Military Reservation, considering the investment?
The effectiveness will depend on the quality of construction, adherence to the finalized scope, and the center's operational capacity. A well-executed project should provide a safe, modern, and adequate facility for childcare, directly supporting military readiness and family well-being. Post-construction evaluation of usage and satisfaction will be crucial indicators of long-term effectiveness.
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: W9128A22R0019
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: $56,960,465
Exercised Options: $56,960,465
Current Obligation: $56,960,465
Actual Outlays: $6,780,199
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-07
Current End Date: 2026-01-04
Potential End Date: 2026-01-04 00:00:00
Last Modified: 2025-11-10
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