DoD Awards $27.6M Whole House Renovation Contract to Nippo Corporation
Contract Overview
Contract Amount: $27,610,222 ($27.6M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-17
End Date: 2021-08-04
Contract Duration: 749 days
Daily Burn Rate: $36.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ASAGAO HEIGHTS WHOLE HOUSE RENOVATION
Plain-Language Summary
Department of Defense obligated $27.6 million to NIPPO CORPORATION for work described as: ASAGAO HEIGHTS WHOLE HOUSE RENOVATION Key points: 1. The Department of the Navy awarded a significant contract for a large-scale residential renovation. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type aims to control costs for the government. 4. The duration of the contract (749 days) indicates a substantial project scope.
Value Assessment
Rating: fair
The contract value of $27.6 million for a whole house renovation is substantial. Benchmarking against similar large-scale residential remodeling projects is difficult due to the unique nature and scale of this award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The firm fixed-price structure helps protect taxpayers from cost overruns, as the contractor is responsible for any expenses exceeding the agreed-upon price.
Public Impact
Taxpayers funded a major renovation project for residential facilities. The large contract value suggests a significant investment in infrastructure. The duration of the contract implies a long-term commitment of resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the nature of renovation projects.
- Ensuring quality and adherence to specifications over a long duration.
Positive Signals
- Full and open competition likely yielded competitive pricing.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the construction sector, specifically residential remodeling. Government spending on construction and renovation can fluctuate based on infrastructure needs and modernization efforts.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Navy, implying oversight from this agency. The firm fixed-price nature of the contract also provides a degree of financial accountability.
Related Government Programs
- Residential Remodelers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value for residential renovation.
- Long contract duration (749 days).
- Lack of detail on specific scope of work.
- Potential for unforeseen issues in renovation projects.
Tags
residential-remodelers, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to NIPPO CORPORATION. ASAGAO HEIGHTS WHOLE HOUSE RENOVATION
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 $27.6 million.
What is the period of performance?
Start: 2019-07-17. End: 2021-08-04.
What specific scope of work was included in this "whole house renovation" to justify the $27.6 million price tag?
The provided data lacks specific details on the scope of work. A "whole house renovation" could encompass structural repairs, extensive interior and exterior upgrades, system replacements (HVAC, plumbing, electrical), and potentially landscaping. The high cost suggests a comprehensive overhaul, possibly involving multiple units or a very large property, requiring detailed justification and oversight to ensure value.
What risks are associated with a 749-day firm fixed-price contract for a large-scale renovation?
Risks include potential contractor underestimation of costs leading to quality compromises, unforeseen site conditions requiring change orders (though FFP aims to limit this), and contractor default or delays impacting project completion. For the government, the risk lies in ensuring the contractor maintains quality and efficiency over the long duration to achieve the intended value.
How effectively does a firm fixed-price contract manage costs for extensive residential renovations with potential unknowns?
A firm fixed-price contract is generally effective at cost control by shifting risk to the contractor. However, for extensive renovations with potential for unforeseen issues (e.g., structural problems, hazardous materials), it can incentivize the contractor to cut corners on quality or seek costly change orders if not meticulously managed. Clear initial scope definition and robust oversight are crucial.
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: SEALED BID
Solicitation ID: N4008419R0100
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: $27,610,222
Exercised Options: $27,610,222
Current Obligation: $27,610,222
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-07-17
Current End Date: 2021-08-04
Potential End Date: 2021-08-04 00:00:00
Last Modified: 2021-09-29
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