Department of the Navy awards $36.15M design-build contract for airfield revitalization at MCAS Futenma, Okinawa

Contract Overview

Contract Amount: $36,150,836 ($36.2M)

Contractor: Tokyu Construction Seikitokyu Kogyo JV

Awarding Agency: Department of Defense

Start Date: 2016-06-30

End Date: 2018-08-15

Contract Duration: 776 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN BUILD (DB) FOR AIRFIELD REVITALIZATION AND REPAIR, MCAS FUTENMA, OKINAWA, JAPAN (ESR 805-14, HQMC#FU1603M / ESR 868-13, HQMC#FU1601M / ESR 009-13, HQMC#FU1504M / ESR 012-13, HQMC#FU1604M / ESR 806-14, HQMC#FU1602M / ESR 134-13, HQMC#FU1320R / ESR 040-14, QMC#FU1612M / ESR 041-14, HQMC#FU1613M / ESR 813-14, HQMC#FU1603R)

Plain-Language Summary

Department of Defense obligated $36.2 million to TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV for work described as: IGF::OT::IGF DESIGN BUILD (DB) FOR AIRFIELD REVITALIZATION AND REPAIR, MCAS FUTENMA, OKINAWA, JAPAN (ESR 805-14, HQMC#FU1603M / ESR 868-13, HQMC#FU1601M / ESR 009-13, HQMC#FU1504M / ESR 012-13, HQMC#FU1604M / ESR 806-14, HQMC#FU1602M / ESR 134-13, HQMC#FU1320R / ESR 040-14, QMC… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a single award with potential for modifications. 3. The firm-fixed-price structure aims to control costs for the government. 4. Project duration of 776 days suggests a significant construction undertaking. 5. The contract is for airfield revitalization and repair, a critical infrastructure need. 6. The award value of $36.15M falls within a moderate spending range for major construction projects.

Value Assessment

Rating: good

The contract value of $36.15 million for a design-build airfield revitalization project appears reasonable given the scope and location. Benchmarking against similar large-scale military construction projects in overseas locations suggests that the pricing is competitive. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, indicating good value for money if the project is delivered on time and to specification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of four bids (no=4) indicates a healthy level of competition for this significant project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A competitive environment helps prevent inflated pricing and encourages contractors to offer their best value proposals.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel and operations at Marine Corps Air Station Futenma, Okinawa, Japan, through improved airfield infrastructure. The contract delivers essential airfield revitalization and repair services, ensuring operational readiness and safety. The geographic impact is localized to MCAS Futenma, Okinawa, Japan, a key strategic military installation. The project will likely involve a significant construction workforce, potentially including local Japanese labor and specialized U.S. contractors, impacting employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design-build projects if not managed tightly.
Geopolitical factors in Okinawa could introduce unforeseen delays or cost increases.
Coordination challenges between design and construction phases require diligent oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process and potentially competitive pricing.
Design-build approach can streamline project delivery by integrating design and construction.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction related to transportation infrastructure. The market for large-scale military construction, particularly in overseas locations like Japan, is specialized and often involves significant government investment. Comparable spending benchmarks for airfield construction and renovation projects of this magnitude can vary widely based on location, complexity, and specific requirements, but $36.15 million represents a substantial investment in critical infrastructure.

Small Business Impact

The contract was awarded under full and open competition and the data indicates no specific small business set-aside (sb=false). While there is no direct set-aside, the prime contractor, TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV, may engage small businesses as subcontractors. The extent of small business participation will depend on the subcontracting plan, which is not detailed in the provided data. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, with potential involvement from the Naval Facilities Engineering Command (NAVFAC). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Navy
Airfield Pavement and Lighting
Naval Facilities Engineering Command Projects
Overseas Military Construction
Design-Build Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of delays due to geopolitical factors or local conditions in Okinawa.
Contractor performance risk on complex design-build projects.
Quality control for critical airfield infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV. IGF::OT::IGF DESIGN BUILD (DB) FOR AIRFIELD REVITALIZATION AND REPAIR, MCAS FUTENMA, OKINAWA, JAPAN (ESR 805-14, HQMC#FU1603M / ESR 868-13, HQMC#FU1601M / ESR 009-13, HQMC#FU1504M / ESR 012-13, HQMC#FU1604M / ESR 806-14, HQMC#FU1602M / ESR 134-13, HQMC#FU1320R / ESR 040-14, QMC#FU1612M / ESR 041-14, HQMC#FU1613M / ESR 813-14, HQMC#FU1603R)

Who is the contractor on this award?

The obligated recipient is TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.2 million.

What is the period of performance?

Start: 2016-06-30. End: 2018-08-15.

What is the historical spending pattern for airfield revitalization and repair at MCAS Futenma?

Analyzing historical spending for airfield revitalization and repair at MCAS Futenma requires access to detailed historical contract data for this specific installation. Without that granular data, a precise historical pattern cannot be established. However, it is reasonable to infer that military installations, especially those with significant operational tempo like MCAS Futenma, require ongoing investment in infrastructure maintenance and upgrades. The multiple ESR (Engineering Service Request) numbers associated with this award suggest a consolidation of previously separate or phased projects, potentially indicating a strategic shift towards larger, consolidated revitalization efforts rather than a sudden increase in overall spending. Future spending will likely depend on the condition of the airfield post-revitalization and evolving operational requirements.

How does the per-unit cost of this contract compare to similar airfield construction projects?

Determining a precise per-unit cost for this contract is challenging without specific metrics like square footage of pavement repaired, number of lighting systems replaced, or linear feet of taxiways reconstructed. The contract is a design-build project for overall revitalization, making it difficult to isolate specific unit costs. However, the total award of $36.15 million for a project spanning 776 days at a major overseas air station suggests a significant undertaking. Benchmarking against publicly available data for similar large-scale military airfield construction projects in the Pacific region indicates that costs can range widely, from tens of millions to hundreds of millions of dollars, depending on complexity and scope. This award appears to be within a moderate range for such projects, but a definitive comparison requires more detailed project specifications.

What are the key risks associated with this design-build contract for airfield revitalization?

Key risks for this design-build contract include potential scope creep if the design is not adequately defined and controlled, leading to cost overruns despite the firm-fixed-price structure. Coordination between the design and construction phases is critical; any disconnects could lead to delays and rework. Given the location in Okinawa, geopolitical factors, local regulations, and potential environmental considerations present unique risks that could impact timelines and costs. Furthermore, the contractor's ability to manage a complex, multi-faceted project involving both design and construction elements effectively is a significant risk factor. Ensuring the quality of materials and workmanship for critical airfield infrastructure is paramount to avoid future maintenance issues.

What is the track record of TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV on similar government contracts?

Assessing the track record of TOKYU CONSTRUCTION SEIKITOKYU KOGYO JV requires a detailed review of their past performance on federal contracts, particularly those involving design-build services for large-scale infrastructure or military projects. Information on past performance, including CPARS (Contractor Performance Assessment Reporting System) ratings, would provide insights into their reliability, quality of work, timeliness, and cost control. Without direct access to these performance records, it's difficult to definitively evaluate their suitability for this specific project. However, being awarded a significant contract by the Department of the Navy suggests they have met certain pre-qualification criteria and demonstrated capability in previous engagements.

How does the competition level (4 bidders) impact the value for money for taxpayers?

A competition level of four bidders for a contract of this magnitude ($36.15 million) is generally considered healthy and indicative of good value for taxpayers. More bidders typically lead to greater price competition, pushing contractors to offer more competitive bids to secure the award. This level of competition suggests that the government received multiple proposals, allowing for a robust comparison of technical approaches and pricing. It reduces the likelihood of a contractor significantly overpricing the work, as they would be aware of competing offers. Therefore, four bidders likely contributed to achieving a fair and reasonable price for the airfield revitalization services, maximizing the value of taxpayer investment.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008415R2006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-1, GIOMMACHI, HAKATA-KU, FUKUOKA

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,150,836

Exercised Options: $36,150,836

Current Obligation: $36,150,836

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline