DoD awards $6.4M for snow removal and groundskeeping at Misawa Air Base, Japan

Contract Overview

Contract Amount: $6,410,696 ($6.4M)

Contractor: Kotobuki Shoji Limited

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2026-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SNOW REMOVAL AND GRASS CUTTING SERVICE, MISAWA AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $6.4 million to KOTOBUKI SHOJI LIMITED for work described as: SNOW REMOVAL AND GRASS CUTTING SERVICE, MISAWA AIR BASE, JAPAN Key points: 1. Contract awarded to Kotobuki Shoji Limited for essential base maintenance. 2. Service period spans nearly five years, indicating a long-term need. 3. Competed under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. No small business set-aside, indicating the primary competition was not specifically targeted towards small businesses. 6. Base maintenance services are critical for operational readiness and safety.

Value Assessment

Rating: fair

The contract value of $6.4 million over five years for snow removal and grass cutting at a single air base appears reasonable given the location and duration. Benchmarking against similar international base maintenance contracts is challenging due to limited public data. However, the firm fixed-price nature suggests the government has a clear understanding of expected costs. The absence of detailed performance metrics in the provided data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and less formal solicitation processes compared to full and open competition. While the exact number of bidders is not specified beyond the awardee, SAP is designed for procurements below certain thresholds, aiming for efficiency. The limited competition under SAP may result in less aggressive pricing compared to a broader competition.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than if a wider range of vendors had competed. However, it also signifies a streamlined process that can reduce administrative costs for the government.

Public Impact

Ensures the operational readiness of Misawa Air Base, Japan, by maintaining safe and accessible grounds. Supports the daily functions of U.S. Air Force personnel stationed at the base. Provides essential services that contribute to the safety and security of the installation. Impacts the local environment around the air base through grounds maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not yield the best possible pricing.
Lack of detailed performance metrics makes assessing contractor performance challenging.
Geographic isolation of the base could limit vendor pool and increase costs.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long-term contract (nearly 5 years) suggests a stable and reliable service provider.
Essential service ensures base operational continuity.

Sector Analysis

This contract falls within the broader facilities support services sector, specifically focusing on grounds maintenance and snow removal. The market for these services is often localized, especially for overseas military installations. While the total market size for such specialized services globally is substantial, individual contracts like this are typically awarded based on proximity and capability. Benchmarking against similar contracts is difficult due to the unique nature of overseas base support and varying local labor costs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Kotobuki Shoji Limited, is likely a larger entity capable of fulfilling the contract requirements independently. This means the direct economic benefit to the U.S. small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and relevant base command at Misawa Air Base. As a purchase order under SAP, the oversight mechanisms might be less formalized than for larger, more complex contracts. Transparency is generally maintained through contract databases, but detailed performance monitoring and accountability measures are internal to the Department of Defense and not publicly detailed.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Services
Groundskeeping Services
Winter Operations Support

Risk Flags

Limited competition may impact price.
Contract duration requires sustained performance monitoring.
Geographic location may present logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to KOTOBUKI SHOJI LIMITED. SNOW REMOVAL AND GRASS CUTTING SERVICE, MISAWA AIR BASE, JAPAN

Who is the contractor on this award?

The obligated recipient is KOTOBUKI SHOJI LIMITED.

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 $6.4 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-11-30.

What is the track record of Kotobuki Shoji Limited with the Department of Defense?

Information regarding Kotobuki Shoji Limited's specific track record with the Department of Defense is not detailed in the provided data. Generally, for contracts awarded under Simplified Acquisition Procedures (SAP), the focus is on meeting the immediate needs of the agency efficiently. While the award suggests they met the basic requirements for this contract, a comprehensive review of their past performance, including any prior issues or commendations on DoD contracts, would require accessing more extensive federal procurement databases. The duration of this contract (nearly five years) implies a level of trust or satisfactory performance expectation from the Air Force for the services rendered.

How does the $6.4 million value compare to similar snow removal and groundskeeping contracts at overseas bases?

Direct comparison of the $6.4 million value for this five-year contract at Misawa Air Base is difficult without access to a comprehensive database of similar international base maintenance contracts. Factors such as the specific climate, size of the base, labor costs in Japan, and the scope of services (e.g., frequency of mowing, extent of snow removal) significantly influence pricing. However, for a five-year period covering essential groundskeeping and snow removal for a military installation, this amount suggests a moderate investment. Contracts for similar services at stateside bases can vary widely, and overseas contracts often incur additional logistical and operational costs.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense in this contract include potential service disruptions due to contractor performance issues, such as failure to adequately clear snow or maintain grounds, which could impact base operations and safety. Price escalation beyond the fixed-price agreement is unlikely, but unforeseen operational challenges or changes in base requirements could lead to contract modifications or disputes. There's also a risk related to the contractor's financial stability or capacity to sustain services over the five-year period, especially given the geographic location. Ensuring consistent quality and adherence to environmental standards for groundskeeping also presents a potential risk.

How effective is the firm fixed-price contract type in managing costs for these services?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for services like snow removal and groundskeeping because it shifts the risk of cost overruns to the contractor. The government knows the exact price it will pay, providing budget certainty. This structure incentivizes the contractor to perform efficiently to maximize their profit margin. For predictable, recurring services with well-defined scopes, FFP is often preferred. However, if the scope of work changes significantly or unforeseen circumstances arise (e.g., extreme weather events requiring substantially more work than anticipated), the contractor may be less willing to absorb additional costs, potentially leading to disputes or a desire for contract modifications.

What is the historical spending pattern for snow removal and groundskeeping at Misawa Air Base?

The provided data only includes details for this specific contract awarded in late 2021. Historical spending patterns for snow removal and groundskeeping at Misawa Air Base are not available within this dataset. To analyze historical spending, one would need to query federal procurement databases for previous contracts awarded to various vendors for similar services at this specific installation over multiple fiscal years. This would reveal trends in contract values, awardees, and contract types, providing context for the current award's value and duration.

What are the implications of using Simplified Acquisition Procedures (SAP) for this contract?

Using Simplified Acquisition Procedures (SAP) for this $6.4 million contract implies that the Department of the Air Force sought to streamline the procurement process, aiming for efficiency and speed, as SAP is designed for purchases below certain dollar thresholds (typically $250,000, though exceptions exist, especially for overseas contracts). This often involves less extensive documentation and fewer regulatory hurdles compared to full and open competition. While it can lead to faster award times and reduced administrative burden, it also typically involves a smaller pool of potential bidders, potentially limiting price competition and the opportunity for innovative solutions from a wider market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-1-34, SAIWAICHO, MISAWA

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,410,696

Exercised Options: $6,410,696

Current Obligation: $6,410,696

Actual Outlays: $95,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline