DoD Awards $30.4M for Camp Kinser Renovation, Highlighting Construction Sector Spending

Contract Overview

Contract Amount: $30,365,015 ($30.4M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2021-02-25

End Date: 2023-01-31

Contract Duration: 705 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION T869 CAMP KINSER, OKINAWA, JAPAN

Plain-Language Summary

Department of Defense obligated $30.4 million to GILBANE FEDERAL for work described as: RENOVATION T869 CAMP KINSER, OKINAWA, JAPAN Key points: 1. The Department of Defense awarded $30.4 million for renovations at Camp Kinser, Okinawa, Japan. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The project falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. 4. The firm-fixed-price contract type aims to control costs for this large-scale renovation.

Value Assessment

Rating: good

The award amount of $30.4 million for a large-scale renovation project appears reasonable given the scope and location. Benchmarking against similar large construction projects for military bases would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The $30.4 million expenditure represents taxpayer investment in critical infrastructure for military operations and personnel well-being.

Public Impact

Enhances living and working conditions for service members stationed at Camp Kinser. Supports the local economy in Okinawa through construction activities and related services. Contributes to the modernization and maintenance of U.S. military infrastructure abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large-scale international construction projects.
  • Logistical challenges associated with construction in a foreign, remote location.
  • Ensuring quality and adherence to specifications over the project duration.

Positive Signals

  • Awarded under full and open competition, promoting competitive pricing.
  • Firm-fixed-price contract type helps manage cost certainty.
  • Addresses critical infrastructure needs for military readiness.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, which is a substantial component of federal spending, particularly for infrastructure development and maintenance of government facilities.

Small Business Impact

While the contract was awarded through full and open competition, there is no specific indication of small business participation in this particular award. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The Department of Defense's contracting oversight mechanisms are crucial for ensuring that funds are used effectively and that project milestones are met. Regular reporting and site inspections would be key oversight activities.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for scope creep leading to cost increases.
  • Geopolitical risks associated with overseas operations.
  • Dependency on foreign supply chains for materials and labor.
  • Ensuring compliance with Japanese building codes and environmental regulations.

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 $30.4 million to GILBANE FEDERAL. RENOVATION T869 CAMP KINSER, OKINAWA, 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 $30.4 million.

What is the period of performance?

Start: 2021-02-25. End: 2023-01-31.

What is the projected return on investment for this renovation in terms of improved operational efficiency or personnel retention?

The return on investment for this renovation is primarily measured by improved quality of life for service members, enhanced operational readiness through modernized facilities, and potentially reduced long-term maintenance costs. Quantifying direct ROI can be challenging, but the indirect benefits to morale and mission effectiveness are significant.

What are the primary risks associated with executing a large construction project in Okinawa, Japan, and how are they being mitigated?

Key risks include logistical challenges in material procurement and transportation, potential labor shortages or disputes, navigating local regulations and environmental requirements, and currency exchange rate fluctuations. Mitigation strategies likely involve robust project management, strong partnerships with local contractors, detailed logistical planning, and contingency budgeting.

How does the cost per square foot of this renovation compare to similar projects within the Department of Defense or other federal agencies?

Without specific square footage data and detailed project specifications, a direct cost-per-square-foot comparison is difficult. However, the overall award of $30.4 million for a significant renovation suggests a substantial investment. Benchmarking against similar military base construction or renovation projects, considering regional cost differences, would be necessary for a precise assessment.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gilbane AECOM JV

Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,965,015

Exercised Options: $30,365,015

Current Obligation: $30,365,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0041

IDV Type: IDC

Timeline

Start Date: 2021-02-25

Current End Date: 2023-01-31

Potential End Date: 2023-01-31 00:00:00

Last Modified: 2025-04-26

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