DoD's Air Force awards $16M for Utility Plant O&M in Japan, ending March 2026

Contract Overview

Contract Amount: $16,080,285 ($16.1M)

Contractor: Sanei Thanks, K.K.

Awarding Agency: Department of Defense

Start Date: 2022-03-01

End Date: 2026-03-31

Contract Duration: 1,491 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION, MAINTENANCE AND REPAIR OF UTILITY PLANTS AND BOILER SYSTEM, KANTO AREA JAPAN

Plain-Language Summary

Department of Defense obligated $16.1 million to SANEI THANKS, K.K. for work described as: OPERATION, MAINTENANCE AND REPAIR OF UTILITY PLANTS AND BOILER SYSTEM, KANTO AREA JAPAN Key points: 1. Contract value is $16.08M over nearly 5 years. 2. Full and open competition was used. 3. Risk appears low due to established service and fixed-price contract. 4. Sector is Facilities Support Services.

Value Assessment

Rating: good

The contract value of $16.08M for nearly 5 years of facilities support services appears reasonable. Benchmarking against similar contracts for utility plant operation and maintenance in overseas locations would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for essential utility plant maintenance services.

Public Impact

Ensures continued operation of critical utility plants and boiler systems in the Kanto area, Japan. Supports military readiness and quality of life for personnel stationed in the region. Provides essential infrastructure maintenance, preventing costly failures and disruptions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm Fixed Price contract type
Long-term contract for stability

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing the operation and maintenance of various building systems. Spending in this sector is crucial for maintaining government infrastructure globally.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The contract is managed by the Department of the Air Force, part of the Department of Defense. Standard government oversight processes for contract performance and financial management are expected to be in place.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration is long (nearly 5 years).
Contractor is a single entity (Sanei Thanks, K.K.).
Geographic location (Japan) may introduce unique operational challenges.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to SANEI THANKS, K.K.. OPERATION, MAINTENANCE AND REPAIR OF UTILITY PLANTS AND BOILER SYSTEM, KANTO AREA JAPAN

Who is the contractor on this award?

The obligated recipient is SANEI THANKS, K.K..

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 $16.1 million.

What is the period of performance?

Start: 2022-03-01. End: 2026-03-31.

What is the historical performance of Sanei Thanks, K.K. on similar contracts?

Information on Sanei Thanks, K.K.'s historical performance is not provided in this data. A review of past performance records, including customer satisfaction surveys and any documented issues, would be beneficial to assess reliability and quality of service for this critical utility plant operation and maintenance contract.

Are there any potential risks associated with operating utility plants in the Kanto area, Japan?

Potential risks could include geopolitical factors, natural disaster preparedness (e.g., earthquakes), and specific environmental regulations in Japan. The firm fixed price contract mitigates some financial risk, but operational continuity and compliance with local laws are key considerations for the government.

How does the firm fixed price structure impact cost control and potential for cost overruns?

A firm fixed price (FFP) contract is designed to provide price certainty and control costs by shifting the risk of cost overruns to the contractor. While FFP is generally favorable for the government, it's crucial that the initial price is well-negotiated based on thorough cost analysis to avoid underpricing by the contractor or overpaying by the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 968-1, KURAMI, SAMUKAWAMACHI, KOZA-GUN

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

Financial Breakdown

Contract Ceiling: $21,503,522

Exercised Options: $16,887,713

Current Obligation: $16,080,285

Actual Outlays: $701,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline