DoD awards $5.9M for runway repair on Ie-Shima, with Yabudoken Co. as contractor

Contract Overview

Contract Amount: $5,925,026 ($5.9M)

Contractor: Yabudoken CO.

Awarding Agency: Department of Defense

Start Date: 2024-08-21

End Date: 2026-07-31

Contract Duration: 709 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CRUSHED MOTOBU BLACK PURCHASE FOR IE-SHIMA RUNWAY REPAIR

Plain-Language Summary

Department of Defense obligated $5.9 million to YABUDOKEN CO. for work described as: CRUSHED MOTOBU BLACK PURCHASE FOR IE-SHIMA RUNWAY REPAIR Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 2. The contract is for crushed and broken limestone mining and quarrying, essential for infrastructure repair. 3. A firm-fixed-price contract type indicates that the price is set and not subject to change based on contractor costs. 4. The duration of 709 days suggests a significant scope of work for the runway repair. 5. The award amount of $5.9M falls within a range that typically allows for streamlined acquisition processes. 6. The specific nature of the material (limestone) points to a localized or specialized supply chain requirement.

Value Assessment

Rating: fair

The contract value of $5.9 million for runway repair materials appears reasonable given the scope and duration. Benchmarking against similar infrastructure repair projects in the Pacific region would provide a clearer picture of value for money. The firm-fixed-price structure helps control costs, but the absence of detailed cost breakdowns makes a precise value assessment challenging. The award was made under SAP, which may imply less rigorous price competition than larger contract vehicles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bidders is not detailed, SAP awards are often solicited from a pre-approved list or through specific outreach, suggesting a potentially less broad competitive landscape. This can sometimes lead to less aggressive pricing than what might be achieved through a wider solicitation.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than if the contract were widely advertised, though the streamlined process may also reduce administrative overhead.

Public Impact

The primary beneficiaries are the U.S. Department of the Navy and military personnel stationed at or utilizing the Ie-Shima facility, ensuring operational readiness. The service delivered is the supply of crushed and broken limestone, critical for repairing and maintaining runway infrastructure. The geographic impact is localized to the Ie-Shima facility, likely in Okinawa, Japan, supporting U.S. military presence in the Indo-Pacific region. Workforce implications are likely related to the mining and quarrying of limestone, potentially involving specialized labor for material extraction and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not yield the best possible pricing for taxpayers.
The specific nature of the material required could limit the pool of qualified suppliers.
Geographic location of Ie-Shima may present logistical challenges and increased costs for material transport.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarding under SAP suggests an efficient procurement process for a necessary repair.
The contract duration indicates a commitment to ensuring the long-term integrity of the runway.

Sector Analysis

The contract falls within the Construction and Engineering sector, specifically focusing on raw material supply for infrastructure projects. The market for crushed stone and aggregates is generally robust, but specialized requirements for military installations, especially overseas, can create niche markets. The $5.9 million award is moderate for a government contract, fitting within the parameters of simplified acquisition, which is often used for projects valued below certain thresholds to expedite delivery.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Yabudoken Co., is either a large business or that the nature of the work did not lend itself to small business participation under the specific solicitation. Further analysis would be needed to determine if any subcontracting opportunities were missed for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a purchase order under SAP, it likely involves standard inspection and acceptance procedures. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are managed internally by the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Repair
Construction Materials Procurement
Indo-Pacific Region Defense Contracts
Runway Maintenance and Construction
Aggregates and Mining Services

Risk Flags

Limited Competition
Potential Logistical Challenges
Material Quality Assurance
Overseas Procurement Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to YABUDOKEN CO.. CRUSHED MOTOBU BLACK PURCHASE FOR IE-SHIMA RUNWAY REPAIR

Who is the contractor on this award?

The obligated recipient is YABUDOKEN CO..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2024-08-21. End: 2026-07-31.

What is Yabudoken Co.'s track record with the Department of Defense, particularly in construction or material supply contracts?

A review of Yabudoken Co.'s contract history with the Department of Defense is necessary to assess their performance and reliability. Information regarding past performance, including on-time delivery, quality of materials, and adherence to contract terms, would be crucial. Specifically, looking for similar projects involving infrastructure repair or bulk material supply in overseas locations would provide the most relevant context. A lack of extensive DoD contracting history might indicate a newer entrant or a company primarily serving other sectors, potentially increasing performance risk. Conversely, a strong history of successful, similar contracts would bolster confidence in their ability to execute this award effectively.

How does the $5.9 million award compare to the typical cost of similar runway repair material procurements by the DoD?

Benchmarking the $5.9 million award requires comparing it to similar contracts for crushed limestone and runway repair materials, ideally in the same geographic region or similar operational environments. Factors such as volume of material, quality specifications, transportation costs, and prevailing market rates for aggregates in the Indo-Pacific region would influence this comparison. Given that the award was made under Simplified Acquisition Procedures (SAP), it might be expected to be on the lower end of major infrastructure projects. However, the specific needs of a military runway and potential logistical complexities could justify the amount. A detailed cost analysis comparing unit prices for materials and delivery against market data and other government contracts is needed for a definitive value assessment.

What are the primary risks associated with this contract, considering the location and material type?

Key risks for this contract include logistical challenges in delivering bulk construction materials to Ie-Shima, potential quality control issues with the sourced limestone, and the possibility of unforeseen site conditions impacting the repair work. Given the overseas location, supply chain disruptions, customs delays, and transportation costs are significant considerations. Ensuring the aggregate meets stringent military specifications for runway integrity is paramount, requiring robust quality assurance processes. Furthermore, the firm-fixed-price nature means that Yabudoken Co. bears the risk of cost overruns, but this could also incentivize cutting corners if not properly monitored. The duration of the contract also introduces risks related to material availability over an extended period.

What is the historical spending pattern for runway repair and related materials by the Department of the Navy in the Indo-Pacific region?

Analyzing historical spending patterns for runway repair and materials by the Department of the Navy in the Indo-Pacific region would provide context for the $5.9 million award. This involves examining previous contracts for similar services, their values, durations, and the types of materials procured. Understanding the frequency and scale of such procurements can indicate the ongoing need for infrastructure maintenance and upgrades in the region. It also helps identify trends in pricing, contractor performance, and the effectiveness of different contracting approaches, such as SAP versus larger, more competitive solicitations. Significant fluctuations or a consistent high level of spending could signal critical infrastructure needs or ongoing strategic importance of these facilities.

How does the use of Simplified Acquisition Procedures (SAP) impact the potential for cost savings and competition for this contract?

The use of Simplified Acquisition Procedures (SAP) for this $5.9 million contract aims to expedite the procurement process and reduce administrative burden, which can indirectly lead to cost savings through faster project initiation. However, SAP typically involves a more limited competitive environment compared to full and open competition. While it may solicit quotes from a few vendors, it doesn't guarantee the same level of price discovery as a broad solicitation. The impact on cost savings is therefore a trade-off: efficiency gains from SAP versus potentially higher prices due to reduced competition. For taxpayers, this means the government might secure the necessary materials faster, but potentially at a slightly higher unit cost than if a wider net were cast.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Nonmetallic Mineral Mining and Quarrying › Crushed and Broken Limestone Mining and Quarrying

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: M6740024Q0050

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-6-5 MINATO, NAGO-SHI

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,069,126

Exercised Options: $5,925,026

Current Obligation: $5,925,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline