DoD's $58.77M Fort Shafter Parking Structure Contract Awarded to Nan Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $58,765,400 ($58.8M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-08

End Date: 2027-04-07

Contract Duration: 699 days

Daily Burn Rate: $84.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN092340 COMMAND AND CONTROL FACILITY (C2F) COMPLEX, PHASE 3 PARKING STRUCTURE, FORT SHAFTER, OAHU, HAWAII.

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $58.8 million to NAN INC for work described as: PN092340 COMMAND AND CONTROL FACILITY (C2F) COMPLEX, PHASE 3 PARKING STRUCTURE, FORT SHAFTER, OAHU, HAWAII. Key points: 1. Contract awarded to Nan Inc. for a parking structure at Fort Shafter, Hawaii. 2. The contract is a firm-fixed-price definitive contract with an estimated completion date in April 2027. 3. The project falls under the Commercial and Institutional Building Construction NAICS code. 4. The award was made under full and open competition, indicating a competitive bidding process. 5. The contract value is approximately $58.77 million. 6. The project is located in Honolulu County, Hawaii.

Value Assessment

Rating: fair

The contract value of $58.77 million for a parking structure needs to be benchmarked against similar construction projects in Hawaii and other military installations. Without specific details on the size, capacity, and complexity of the structure, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be beneficial for the government if the contractor manages costs effectively. The bid range of $84.07 million suggests Nan Inc.'s winning bid was significantly lower than the highest bid received.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The solicitation received 5 bids, indicating a moderate level of competition for this project. A higher number of bidders generally leads to more competitive pricing, but the specific market conditions and the complexity of the project influence the number of interested parties.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of offers. The presence of 5 bidders suggests that the government likely received competitive pricing, although further analysis of the bid spread would be needed to confirm the extent of cost savings.

Public Impact

The primary beneficiaries are Department of the Army personnel and visitors at Fort Shafter, Hawaii, who will gain improved parking facilities. The project will deliver a new parking structure, enhancing infrastructure at the military installation. The geographic impact is localized to Fort Shafter, Oahu, Hawaii. The construction phase will likely create temporary employment opportunities for skilled and unskilled labor in the local Hawaii workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Dependence on Nan Inc.'s ability to manage project timelines and deliver the structure by the specified completion date.
The firm-fixed-price contract may limit flexibility for design changes or scope adjustments during construction.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Award under full and open competition suggests a competitive bidding process was utilized.
The existence of multiple bids (5) indicates market interest and potential for competitive pricing.
The project aims to improve essential infrastructure at a key military installation.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, including the construction of parking structures. Federal spending in this sector is significant, supporting military base infrastructure, government facilities, and public buildings. The market for large-scale construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. Benchmarking this contract's value would involve comparing it to similar multi-story parking garage constructions, considering factors like square footage, materials, and site-specific challenges.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Nan Inc., a company that may or may not be classified as a small business depending on its size standards, means that opportunities for small business participation would likely be through subcontracting if Nan Inc. chooses to engage them. Further investigation into Nan Inc.'s subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver the specified product within the agreed-upon price and timeline. Transparency regarding contract performance and any potential issues would typically be available through federal procurement databases and agency reporting, though specific oversight details are not provided.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
General Building Construction

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of contractor default or failure to perform.
Scope creep management challenges under firm-fixed-price.
Quality control concerns if contractor prioritizes cost-cutting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.8 million to NAN INC. PN092340 COMMAND AND CONTROL FACILITY (C2F) COMPLEX, PHASE 3 PARKING STRUCTURE, FORT SHAFTER, 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 $58.8 million.

What is the period of performance?

Start: 2025-05-08. End: 2027-04-07.

What is Nan Inc.'s track record with similar Department of Defense construction contracts?

Assessing Nan Inc.'s track record with similar Department of Defense (DoD) construction contracts is crucial for understanding their capability and past performance. A review of federal procurement databases (like SAM.gov or FPDS) would reveal their history of awarded contracts, including project types, values, and completion status. Specifically, looking for past performance on parking structures, large-scale building construction, or projects at military installations in Hawaii would provide relevant context. Past performance evaluations, if available, would offer insights into their adherence to schedule, budget, quality standards, and overall client satisfaction. Any history of contract disputes, terminations, or performance issues would be significant risk indicators.

How does the $58.77 million cost compare to similar parking structure projects at other military bases?

To benchmark the $58.77 million cost, we would need to compare it against similar parking structure projects at other military bases. Key comparison metrics include the total square footage, number of parking spaces, number of levels, materials used (e.g., concrete, steel), and any unique site challenges (e.g., seismic requirements, soil conditions). For instance, if a similar 1,000-space, 5-level concrete parking garage at another base cost $50 million, this contract might appear relatively high, assuming comparable complexity and location. Conversely, if other projects of similar scale in high-cost areas like Hawaii were in the $60-70 million range, this award could be considered competitive. Without detailed project specifications, a precise comparison is difficult, but the bid range of $84.07 million suggests Nan Inc.'s bid was notably lower than at least one other offer.

What are the primary risks associated with this firm-fixed-price contract for the government?

While firm-fixed-price (FFP) contracts are generally favored for transferring cost risk to the contractor, potential risks for the government still exist. One primary risk is contractor underestimation of costs, which could lead to the contractor cutting corners on quality or safety to maintain profitability, potentially resulting in a subpar structure or future maintenance issues. Another risk is contractor default or failure to perform, especially on long-duration projects, which could lead to delays and the need for contract termination and re-procurement. Scope creep is also a risk; if the government requires significant changes to the design or scope after the contract is awarded, managing those changes under an FFP contract can be complex and may lead to costly modifications or disputes. Finally, if the initial competition was not robust enough, the government might not have secured the lowest possible price.

How effective is the 'full and open competition' strategy likely to be in ensuring value for this project?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value in federal contracting, as it maximizes the pool of potential bidders and encourages competitive pricing. In this case, with 5 bids received for the Fort Shafter parking structure, the strategy appears to have generated a reasonable level of interest. The effectiveness in ensuring value hinges on several factors: the clarity and completeness of the solicitation documents (which influence the quality of bids), the realism of the government's cost estimate, and the evaluation criteria used to select the winning bid. If the bids were closely clustered, it suggests strong competition. If there was a significant spread, it might indicate varying interpretations of the scope or differing cost structures among bidders. The firm-fixed-price nature further enhances value assurance by locking in the cost.

What are the historical spending patterns for similar construction projects at Fort Shafter or within the Department of the Army in Hawaii?

Analyzing historical spending patterns for similar construction projects at Fort Shafter or within the Department of the Army (DoA) in Hawaii is essential for context. This involves examining past contracts for infrastructure development, building construction, or facility upgrades at this installation or others in the region. Key data points to look for include the average contract value for comparable projects, the typical number of bidders, the types of contractors awarded work (large vs. small business), and the duration of similar projects. Understanding these patterns can help determine if the $58.77 million award is within the expected range, if competition levels are typical, and if there are any recurring cost or schedule trends. For example, if previous parking structure projects in Hawaii averaged $50 million, this award might warrant closer scrutiny, or if construction costs in Hawaii are known to be significantly higher due to logistics and labor, it could be justified.

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: W9128A24R0020

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: $74,882,600

Exercised Options: $58,765,400

Current Obligation: $58,765,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline