DoD Awards $30.8M for Air Cargo Handling System at Yokota AB, Japan to Sanki Engineering
Contract Overview
Contract Amount: $30,880,690 ($30.9M)
Contractor: Sanki Engineering CO., Ltd.
Awarding Agency: Department of Defense
Start Date: 2012-07-31
End Date: 2015-01-20
Contract Duration: 903 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIR CARGO HANDLING SYSTEM, YOKOTA AB, JAPAN
Plain-Language Summary
Department of Defense obligated $30.9 million to SANKI ENGINEERING CO., LTD. for work described as: AIR CARGO HANDLING SYSTEM, YOKOTA AB, JAPAN Key points: 1. Contract awarded to Sanki Engineering for a significant air cargo handling system. 2. The contract value is $30.8 million, indicating a substantial investment. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The system involves overhead traveling cranes, hoists, and monorails, crucial for logistics.
Value Assessment
Rating: good
The contract value of $30.8 million for an air cargo handling system appears reasonable given the scope and complexity. Benchmarking against similar large-scale logistics infrastructure projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to competitive pricing and ensures the government receives the best value. The use of this method suggests multiple capable vendors were considered.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price, maximizing taxpayer value for this critical infrastructure.
Public Impact
Enhances logistical capabilities at Yokota Air Base, supporting military operations in the region. The system's advanced components will likely improve efficiency and safety in cargo handling. Potential for long-term operational cost savings due to improved system performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if unforeseen technical challenges arise during installation.
- Dependence on a single contractor for system implementation.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract helps control costs.
- Strategic location at Yokota AB enhances operational readiness.
Sector Analysis
This contract falls within the industrial equipment and construction sector, specifically related to specialized material handling systems. Spending benchmarks for similar defense logistics infrastructure projects vary widely based on scale and location.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Sanki Engineering is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Air Force awarded this contract, implying oversight from this agency. Further details on specific oversight mechanisms, such as performance reviews and quality assurance, would be beneficial.
Related Government Programs
- Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for long-term maintenance and support challenges.
- Risk of technological obsolescence over the system's lifecycle.
- Dependence on a single prime contractor for system implementation.
- Geopolitical risks associated with operating critical infrastructure abroad.
Tags
overhead-traveling-crane-hoist-and-monor, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.9 million to SANKI ENGINEERING CO., LTD.. AIR CARGO HANDLING SYSTEM, YOKOTA AB, JAPAN
Who is the contractor on this award?
The obligated recipient is SANKI ENGINEERING CO., LTD..
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 $30.9 million.
What is the period of performance?
Start: 2012-07-31. End: 2015-01-20.
What are the key performance indicators (KPIs) for this air cargo handling system, and how will their achievement be measured to ensure operational effectiveness?
Key performance indicators would likely include cargo throughput rates, system uptime, safety incident frequency, and energy efficiency. Measurement would involve regular operational data collection, performance audits, and post-implementation reviews. Ensuring these KPIs are clearly defined and tracked is crucial for validating the system's effectiveness and return on investment for the taxpayer.
What are the potential risks associated with the long-term maintenance and obsolescence of this specialized air cargo handling system, particularly given its location in Japan?
Risks include the availability of spare parts, specialized maintenance personnel, and potential obsolescence of technology over the system's lifespan. Given its location, geopolitical factors and logistical challenges for support could also pose risks. Proactive maintenance planning, vendor support agreements, and contingency plans for technological upgrades are essential to mitigate these long-term concerns.
How does the $30.8 million investment in this system align with the broader strategic goals for air mobility and logistics within the Pacific theater?
This investment likely aligns with strategic goals by enhancing the capacity and efficiency of cargo movement at a key Pacific hub. Improved handling systems can reduce turnaround times for aircraft, increase operational tempo, and support broader force projection capabilities. The system's effectiveness will be measured by its contribution to these overarching strategic objectives and its ability to adapt to evolving mission requirements.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Product/Service Code: MATERIALS HANDLING EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8-1, AKASHICHO, CHUO-KU
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $31,154,490
Exercised Options: $30,880,690
Current Obligation: $30,880,690
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-07-31
Current End Date: 2015-01-20
Potential End Date: 2015-01-20 00:00:00
Last Modified: 2014-09-24
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