DoD Awards $25.1M Contract for Misawa Air Base Dormitory Repair to Nippo Corporation

Contract Overview

Contract Amount: $25,132,860 ($25.1M)

Contractor: Nippo Corporation

Awarding Agency: Department of Defense

Start Date: 2022-10-26

End Date: 2024-10-31

Contract Duration: 736 days

Daily Burn Rate: $34.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NO. QKKA171042, REPAIR DORM BLDG. 542, MISAWA AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $25.1 million to NIPPO CORPORATION for work described as: PROJECT NO. QKKA171042, REPAIR DORM BLDG. 542, MISAWA AIR BASE, JAPAN Key points: 1. The contract value of $25.1M is significant for a single dormitory repair project. 2. Competition was full and open, suggesting a competitive bidding process. 3. The project duration of 736 days (approx. 2 years) indicates a substantial scope of work. 4. The sector is primarily construction/residential remodeling. 5. The absence of small business participation is noted.

Value Assessment

Rating: fair

The contract value of $25.1M for repairing a single dormitory building appears high. Benchmarking against similar military housing renovation projects would be necessary to assess if this price is competitive or inflated, especially considering the 2-year duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final price relative to the scope and duration needs further scrutiny to ensure taxpayer value was maximized.

Taxpayer Impact: The significant contract value raises questions about whether the final price achieved optimal value for taxpayers, despite the competitive award process.

Public Impact

Military personnel housing conditions at Misawa Air Base are directly impacted by this repair project. The project's success ensures improved living quarters for service members. Taxpayer funds are allocated for infrastructure improvements at a key overseas military installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a single building repair.
Long project duration.
No small business participation.
Potential for cost overruns given the duration.

Positive Signals

Awarded under full and open competition.
Definitive contract type suggests clear scope.
Firm fixed price contract mitigates some cost risk.

Sector Analysis

This project falls within the construction sector, specifically residential remodeling for military infrastructure. Spending benchmarks for similar overseas military base construction and renovation projects would provide context for the $25.1M award.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests that the prime contractor, Nippo Corporation, is a large business, and there was no specific set-aside or subcontracting plan for small businesses in this award.

Oversight & Accountability

Oversight will be crucial throughout the 736-day duration to ensure the project stays on schedule and within budget, and that the repairs meet quality standards. The Department of the Air Force is responsible for this oversight.

Related Government Programs

Residential Remodelers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

High contract value.
Long project duration.
No small business participation.
Potential for scope creep or change orders.
Geopolitical or logistical risks associated with overseas projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to NIPPO CORPORATION. PROJECT NO. QKKA171042, REPAIR DORM BLDG. 542, MISAWA AIR BASE, JAPAN

Who is the contractor on this award?

The obligated recipient is NIPPO CORPORATION.

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 $25.1 million.

What is the period of performance?

Start: 2022-10-26. End: 2024-10-31.

What is the breakdown of costs within the $25.1M contract, and how does it compare to industry standards for similar dormitory renovations?

A detailed cost breakdown is not publicly available in the provided data. However, the total value of $25.1M for repairing a single dormitory building over two years warrants scrutiny. Industry benchmarks for large-scale residential renovations, especially in overseas locations with logistical complexities, would be needed to assess the reasonableness of the unit costs for labor, materials, and overhead.

What are the specific risks associated with a 736-day construction project at an overseas military base, and what mitigation strategies are in place?

Risks include potential delays due to weather, supply chain disruptions for materials, labor availability, and unforeseen site conditions. Mitigation strategies typically involve robust project management, contingency planning, clear communication channels with the contracting officer, and performance bonds. The firm fixed-price nature of the contract shifts some cost risk to the contractor, but delays can still impact overall project value.

How will the effectiveness of the dormitory repairs be measured, and what are the long-term implications for service member quality of life?

Effectiveness will likely be measured through post-construction inspections, user surveys, and monitoring of maintenance requests related to the repaired areas. Successful completion should lead to improved living conditions, increased morale, and better retention rates for service members stationed at Misawa Air Base. The durability and quality of the repairs will determine the long-term impact.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

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: FA520522R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1-19-11, KYOBASHI, CHUO-KU

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

Financial Breakdown

Contract Ceiling: $25,132,860

Exercised Options: $25,132,860

Current Obligation: $25,132,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline