DoD awards $43.6M for petroleum lubricant piping repair at Japan facility
Contract Overview
Contract Amount: $43,626,375 ($43.6M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2017-02-22
End Date: 2020-11-28
Contract Duration: 1,375 days
Daily Burn Rate: $31.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF REPAIR PETROLEUM OIL LUBRICANT PIPING AT DEFENSE FUEL SUPPORT POINT HAKOZAKI, JAPAN
Plain-Language Summary
Department of Defense obligated $43.6 million to GILBANE FEDERAL for work described as: IGF::OT::IGF REPAIR PETROLEUM OIL LUBRICANT PIPING AT DEFENSE FUEL SUPPORT POINT HAKOZAKI, JAPAN Key points: 1. Significant contract value for infrastructure repair. 2. Full and open competition suggests market availability. 3. Risk of cost overruns or schedule delays in complex construction. 4. Construction sector is prone to material and labor cost fluctuations.
Value Assessment
Rating: good
The award amount of $43.6M appears reasonable for a multi-year infrastructure repair project of this nature. Benchmarking against similar large-scale construction contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Competitive bidding likely resulted in a fair price, maximizing taxpayer value for essential defense infrastructure maintenance.
Public Impact
Ensures operational readiness of fuel supply at a key overseas base. Supports critical infrastructure maintenance for U.S. military operations in Japan. Potential for job creation in the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Geopolitical factors in Japan could introduce risks.
- Complexity of repairing active fuel lines requires specialized expertise.
Positive Signals
- Full and open competition indicates a healthy market.
- Firm Fixed Price contract provides cost certainty.
- Long-term contract duration allows for phased execution.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is characterized by large project values and significant labor requirements. Spending benchmarks for similar defense infrastructure projects are typically in the tens to hundreds of millions.
Small Business Impact
The data indicates no specific set-aside for small businesses. While large prime contractors like Gilbane Federal often subcontract, the extent of small business participation is not detailed here.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would typically involve contract management teams ensuring adherence to scope, schedule, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for unforeseen site conditions.
- Complexity of working with active fuel systems.
- Schedule delays due to operational tempo at a military base.
- Geopolitical or environmental risks specific to Japan.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.6 million to GILBANE FEDERAL. IGF::OT::IGF REPAIR PETROLEUM OIL LUBRICANT PIPING AT DEFENSE FUEL SUPPORT POINT HAKOZAKI, JAPAN
Who is the contractor on this award?
The obligated recipient is GILBANE FEDERAL.
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 $43.6 million.
What is the period of performance?
Start: 2017-02-22. End: 2020-11-28.
What is the historical cost performance of similar petroleum piping repair contracts awarded by the DoD?
Historical data on similar petroleum piping repair contracts is crucial for assessing value. Analyzing past projects for cost overruns, schedule slippage, and change order frequency can reveal trends. This helps determine if the current $43.6M award is within expected parameters or if it warrants closer scrutiny for potential inefficiencies or unexpected complexities.
What are the specific risks associated with repairing active fuel lines in a potentially high-traffic military installation?
Repairing active fuel lines presents significant safety and operational risks, including potential leaks, explosions, and environmental contamination. High-traffic military installations add complexity due to ongoing operations, requiring meticulous planning for shutdowns, diversions, and security. The contractor must possess specialized expertise and adhere to stringent safety protocols to mitigate these risks effectively.
How effectively does the firm fixed price contract mitigate cost escalation for this project?
A firm fixed price contract is designed to provide maximum cost certainty to the government, shifting most of the financial risk to the contractor. This structure is effective in mitigating cost escalation, provided the initial scope is well-defined and the contractor accurately estimates all costs. However, significant unforeseen issues could lead to contractor claims or contract modifications.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane AECOM JV
Address: 2730 SHADELANDS DR # 100, WALNUT CREEK, CA, 94598
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $43,626,375
Exercised Options: $43,626,375
Current Obligation: $43,626,375
Actual Outlays: $6,196,887
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA300208D0008
IDV Type: IDC
Timeline
Start Date: 2017-02-22
Current End Date: 2020-11-28
Potential End Date: 2020-11-28 00:00:00
Last Modified: 2023-01-27
More Contracts from Gilbane Federal
- "sofa" to Construct Usfk OPS Ctr&phase III Facility, Usag-Humphrey, Scif Portion — $198.7M (Department of Defense)
- Repair of Runway Facilities 6666/667 Ofutt AFB NE — $170.1M (Department of Defense)
- F15 Fleet Modernization, King Khalid AB, Saudi Arabia — $168.6M (Department of Defense)
- THE Contractor Must Construct a NEW Multi-Bay Aircraft Hangar of Approximately 130,000 Square Feet, Sited Over the Current Footprint of Buildings 1043, 1042, 1004, and 104 AT Beale AIR Force Base — $142.8M (Department of Defense)
- Design and Construction Kodiak OPC FRC Phase II — $131.3M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)