DoD's $1.06B contract with Japan's Ministry of Defense for unspecified services, awarded in 2020

Contract Overview

Contract Amount: $1,055,881,147 ($1.1B)

Contractor: Ministry of Defense

Awarding Agency: Department of Defense

Start Date: 2020-10-21

End Date: 2021-09-30

Contract Duration: 344 days

Daily Burn Rate: $3.1M/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR GOV'T OF JAPAN SHARE.

Plain-Language Summary

Department of Defense obligated $1.06 billion to MINISTRY OF DEFENSE for work described as: US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR GOV'T OF JAPAN SHARE. Key points: 1. Contract value is substantial at over $1 billion. 2. Competition was explicitly stated as not available. 3. Risk is moderate due to long-term nature and lack of competition. 4. Sector is unclear, but likely defense-related services.

Value Assessment

Rating: questionable

The contract value is extremely high, but without a clear description of services or a competitive bidding process, assessing value for money is difficult. The pricing is based on a government of Japan share, adding complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher cost for the government.

Taxpayer Impact: The taxpayer impact is significant due to the large contract value and the absence of competitive bidding, which typically drives down costs.

Public Impact

Significant financial commitment from the US government. Potential for funds to be allocated to foreign entities. Lack of transparency regarding the specific services rendered. Long-standing contract dating back to 1957, with current modifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Unclear service description
High contract value
Foreign government recipient

Positive Signals

Potential for strong intergovernmental relations

Sector Analysis

The defense sector often involves complex, high-value contracts, particularly for international cooperation. Benchmarks are difficult without knowing the specific service, but $1B+ is a major expenditure.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to a foreign government's Ministry of Defense.

Oversight & Accountability

Oversight is crucial for such a large, non-competitive contract. The specific mechanisms for ensuring accountability and performance monitoring are not detailed in the provided data.

Related Government Programs

Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
High dollar value
Unspecified services
Foreign government recipient
Long contract history without clear current justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.06 billion to MINISTRY OF DEFENSE. US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR GOV'T OF JAPAN SHARE.

Who is the contractor on this award?

The obligated recipient is MINISTRY OF DEFENSE.

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 $1.06 billion.

What is the period of performance?

Start: 2020-10-21. End: 2021-09-30.

What specific services or goods are being procured under this contract, and how does their value align with market rates?

The provided data does not specify the services or goods. The contract's origin dates back to 1957, and the current amount reflects the Government of Japan's share. Without a clear description, assessing value for money against market rates is impossible. Further investigation into the contract's details is required.

What are the risks associated with a sole-source or limited-competition contract of this magnitude, particularly with a foreign government entity?

Risks include potential overpayment due to lack of competitive pressure, reduced transparency in performance and cost management, and potential geopolitical or diplomatic dependencies. Ensuring clear deliverables and robust oversight is critical to mitigate these risks.

How effective has this long-standing contractual relationship been in meeting the Department of Defense's objectives?

Effectiveness cannot be determined from the provided data. The contract's longevity suggests a sustained need or relationship, but the lack of specific performance metrics or outcomes makes an assessment of its effectiveness impossible without further information.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: National University Corporation Yokohama National University (UEI: 718105944)

Address: 5-1, ICHIGAYAHOMMURACHO, SHINJUKU-KU

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,055,881,147

Exercised Options: $1,055,881,147

Current Obligation: $1,055,881,147

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA520957D0001

IDV Type: IDC

Timeline