DoD's $29.6M Misawa Air Base Wastewater Plant Repair Contract Awarded to FUSO KOSAKA JV

Contract Overview

Contract Amount: $29,589,340 ($29.6M)

Contractor: Fuso Kosaka JV

Awarding Agency: Department of Defense

Start Date: 2016-08-31

End Date: 2021-04-30

Contract Duration: 1,703 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF PROJECT NO. QKKA 07-1054, REPAIR MAIN WASTEWATER TREATMENT PLANT (WWTP), BLDG. 1190 FOR MISAWA, AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $29.6 million to FUSO KOSAKA JV for work described as: IGF::CT::IGF PROJECT NO. QKKA 07-1054, REPAIR MAIN WASTEWATER TREATMENT PLANT (WWTP), BLDG. 1190 FOR MISAWA, AIR BASE, JAPAN Key points: 1. The contract awarded to FUSO KOSAKA JV for $29.6 million addresses critical infrastructure at Misawa Air Base. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project falls under the construction sector, specifically water and sewer infrastructure. 4. The contract duration is substantial at 1703 days, indicating a complex and lengthy project.

Value Assessment

Rating: fair

The contract value of $29.6 million for a wastewater treatment plant repair is difficult to benchmark without specific project details and comparable contract data. However, the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple bidders were likely considered, which generally promotes price discovery and potentially better pricing for the government. The award was made to FUSO KOSAKA JV.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repair at a U.S. Air Force base in Japan, ensuring operational readiness and environmental compliance.

Public Impact

Ensures continued operation of vital wastewater treatment facilities at Misawa Air Base. Supports environmental protection by maintaining the integrity of wastewater infrastructure. Contributes to the overall readiness and operational capability of the U.S. Air Force in Japan. Provides employment opportunities through the construction contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1703 days) may indicate potential for cost overruns or delays.
Lack of specific details on the repair scope makes it hard to assess value for money.
Firm Fixed Price contract type can shift risk to the contractor, but requires careful initial scope definition.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Addresses critical infrastructure needs for military operations and environmental compliance.
Contract is for a definitive contract, implying a clear scope and objective.

Sector Analysis

This contract falls within the construction sector, specifically focusing on water and sewer infrastructure. Spending in this area is crucial for maintaining base operations and environmental standards. Benchmarks for such projects vary widely based on location, scope, and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

Oversight would typically be managed by the Department of the Air Force contracting and engineering divisions. The long duration and fixed-price nature necessitate diligent monitoring to ensure scope adherence and quality of work.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration increases risk of delays and cost overruns.
Lack of detailed scope information hinders independent value assessment.
Potential for unforeseen site conditions in infrastructure projects.
Firm Fixed Price contract requires precise initial scope definition to avoid disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to FUSO KOSAKA JV. IGF::CT::IGF PROJECT NO. QKKA 07-1054, REPAIR MAIN WASTEWATER TREATMENT PLANT (WWTP), BLDG. 1190 FOR MISAWA, AIR BASE, JAPAN

Who is the contractor on this award?

The obligated recipient is FUSO KOSAKA JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2016-08-31. End: 2021-04-30.

What specific repairs are included in the $29.6 million contract, and how do these align with the estimated costs for similar projects in comparable geographic regions?

The specific repairs encompassed within the $29.6 million contract for the Misawa Air Base WWTP are not detailed in the provided data. To assess value for money, a comparison with similar wastewater treatment plant repair projects in Japan or other overseas military installations would be necessary. Factors like labor costs, material availability, and regulatory requirements in the specific region significantly influence project costs.

Given the 1703-day duration, what are the primary risks associated with project delays or cost escalations, and what mitigation strategies are in place?

The primary risks for a project of this length include unforeseen site conditions, changes in environmental regulations, contractor performance issues, and potential material price fluctuations. Mitigation strategies likely involve robust contract management by the Air Force, clear performance metrics, contingency planning for unexpected issues, and potentially clauses within the Firm Fixed Price contract to address specific types of unforeseen circumstances.

How effectively does the 'full and open competition' process ensure that the selected contractor, FUSO KOSAKA JV, provides the best value and technical solution for this critical infrastructure repair

Full and open competition is designed to maximize the pool of potential bidders, thereby increasing the likelihood of receiving competitive bids and identifying the most capable contractor. Its effectiveness in ensuring best value relies on the clarity of the solicitation requirements, the evaluation criteria used, and the thoroughness of the technical and cost assessments performed by the Department of the Air Force on FUSO KOSAKA JV's proposal.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA520515R0007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SENDAI DAIICHISEIMEI TOWER BLDG. 12F., 4-6-1, SENDAI

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,589,340

Exercised Options: $29,589,340

Current Obligation: $29,589,340

Actual Outlays: $1,937,959

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline