DoD's $20.4M Sasebo Housing Revitalization Contract Awarded to Nippo Corporation
Contract Overview
Contract Amount: $20,373,904 ($20.4M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2016-11-16
Contract Duration: 778 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DESIGN BUILD WHOLE HOUSE REVITALIZATION HIRISE BARA TOWER BLDG5035 AT HARIO HOUSING AREA, SASEBO, JAPAN
Plain-Language Summary
Department of Defense obligated $20.4 million to NIPPO CORPORATION for work described as: IGF::OT::IGF DESIGN BUILD WHOLE HOUSE REVITALIZATION HIRISE BARA TOWER BLDG5035 AT HARIO HOUSING AREA, SASEBO, JAPAN Key points: 1. Contract awarded for residential remodelers in Sasebo, Japan. 2. Nippo Corporation secured the $20.4M firm-fixed-price contract. 3. Full and open competition was utilized. 4. The project aims to revitalize housing at Hario Housing Area. 5. Contract duration was 778 days.
Value Assessment
Rating: fair
The contract value of $20.4M for a large-scale housing revitalization project appears within a reasonable range for the scope of work. Benchmarking against similar large-scale construction and renovation projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market-driven pricing and potentially reduces overall costs compared to less competitive methods.
Public Impact
Military families in Sasebo, Japan, will benefit from improved housing conditions. The revitalization project supports the quality of life for service members and their families stationed overseas. Investment in infrastructure demonstrates a commitment to maintaining military readiness and personnel well-being.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large-scale construction projects.
- Delays in project completion impacting housing availability.
- Quality control and adherence to specifications.
Positive Signals
- Firm-fixed-price contract limits cost risk for the government.
- Full and open competition likely resulted in a competitive price.
- Project addresses critical housing needs for military personnel.
Sector Analysis
This contract falls within the construction sector, specifically residential remodeling and revitalization. Spending benchmarks for similar overseas military housing projects can vary significantly based on location, scope, and material costs.
Small Business Impact
The data indicates this was a definitive contract awarded to Nippo Corporation. There is no specific information provided regarding the participation or subcontracting opportunities for small businesses in this particular contract.
Oversight & Accountability
The Department of the Navy awarded this contract. Standard oversight mechanisms for construction projects would apply, including site inspections, progress reporting, and final acceptance procedures to ensure contract compliance and quality.
Related Government Programs
- Residential Remodelers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep in large construction projects.
- Logistical challenges of overseas construction.
- Ensuring long-term durability and maintenance of revitalized housing.
- Compliance with Japanese building codes and environmental regulations.
Tags
residential-remodelers, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to NIPPO CORPORATION. IGF::OT::IGF DESIGN BUILD WHOLE HOUSE REVITALIZATION HIRISE BARA TOWER BLDG5035 AT HARIO HOUSING AREA, SASEBO, JAPAN
Who is the contractor on this award?
The obligated recipient is NIPPO CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2014-09-30. End: 2016-11-16.
What was the average bid price during the full and open competition?
The provided data does not include the number of bids received or the average bid price. To assess the value effectively, comparing the awarded price against the range of submitted bids would be beneficial. This information is crucial for understanding the competitiveness of the final award.
What are the specific risks associated with construction in Sasebo, Japan?
Construction in Sasebo, Japan, may involve risks related to seismic activity, unique logistical challenges for importing materials, adherence to local building codes and regulations, and potential labor availability issues. Understanding these site-specific risks is important for project management and cost estimation.
How will the effectiveness of the housing revitalization be measured?
The effectiveness of the housing revitalization will likely be measured through post-occupancy evaluations, resident satisfaction surveys, and inspections to ensure the completed work meets quality standards and addresses the intended improvements. Tracking maintenance requests and repair costs in the revitalized units can also indicate long-term effectiveness.
Industry Classification
NAICS: Construction › Residential Building Construction › Residential Remodelers
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008414R0011
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: JX Holdings, Inc. (UEI: 691005588)
Address: 1-19-11, KYOBASHI, CHUO-KU
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $20,373,904
Exercised Options: $20,373,904
Current Obligation: $20,373,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-30
Current End Date: 2016-11-16
Potential End Date: 2016-11-16 00:00:00
Last Modified: 2021-07-30
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