DoD's Navy Awards $16.3M Contract for Building Repairs to NIHON MECCS CO., LTD
Contract Overview
Contract Amount: $16,298,257 ($16.3M)
Contractor: Nihon Meccs CO.,Ltd.
Awarding Agency: Department of Defense
Start Date: 2022-06-29
End Date: 2027-06-30
Contract Duration: 1,827 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR CTF-72/CFWP ADMIN BLDG 970 AND REPAIR INTERIOR BLDG 1401
Plain-Language Summary
Department of Defense obligated $16.3 million to NIHON MECCS CO.,LTD. for work described as: REPAIR CTF-72/CFWP ADMIN BLDG 970 AND REPAIR INTERIOR BLDG 1401 Key points: 1. The contract focuses on repairing administrative buildings, a critical but potentially high-cost area. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is substantial (1827 days), indicating a long-term need. 4. The sector is Commercial and Institutional Building Construction, which can be subject to material cost fluctuations.
Value Assessment
Rating: fair
The award amount of $16.3M for building repairs appears within a reasonable range for similar large-scale construction projects. However, without detailed breakdowns of the repair scope and material costs, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wider range of contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repair, ensuring the longevity and functionality of government facilities.
Public Impact
Ensures operational readiness by maintaining critical government facilities. Supports the construction industry and associated supply chains. Potential for cost overruns if unforeseen issues arise during extensive repairs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases exposure to market volatility.
- Potential for scope creep in complex building repair projects.
Positive Signals
- Full and open competition should drive competitive pricing.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be influenced by economic conditions, material availability, and labor costs. Benchmarks for similar repair projects vary widely based on scope and location.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The long duration necessitates diligent monitoring to ensure adherence to scope, budget, and quality standards, mitigating risks of cost overruns and delays.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (1827 days).
- Potential for unforeseen repair complexities.
- Dependence on specific contractor's expertise.
- Exposure to fluctuating material and labor costs over the contract period.
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 $16.3 million to NIHON MECCS CO.,LTD.. REPAIR CTF-72/CFWP ADMIN BLDG 970 AND REPAIR INTERIOR BLDG 1401
Who is the contractor on this award?
The obligated recipient is NIHON MECCS CO.,LTD..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2022-06-29. End: 2027-06-30.
What is the specific breakdown of repair tasks and their estimated costs within the $16.3M award to ensure value for money?
A detailed breakdown of repair tasks, including structural, electrical, plumbing, and interior finishes, is crucial for validating the $16.3M award. Understanding the cost allocation per task allows for better assessment of value for money and helps identify potential areas of overpricing or underestimation. This granular data is essential for effective oversight and future contract planning.
What are the key risk mitigation strategies in place for a 5-year building repair contract, considering potential material price fluctuations and unforeseen structural issues?
Risk mitigation strategies should include contingency funds for unforeseen structural issues, clear change order processes, and potentially clauses that address material price escalation for key components. Regular site inspections and progress reviews by the contracting officer's representative are vital. The firm-fixed-price nature requires careful initial scope definition to minimize contractor risk and potential claims.
How does the successful completion of these repairs contribute to the long-term operational effectiveness and cost-efficiency of the facilities?
The successful completion of these repairs is expected to enhance the long-term operational effectiveness by ensuring the structural integrity, safety, and functionality of critical administrative buildings. This prevents further deterioration, reduces the likelihood of costly emergency repairs, and maintains a suitable working environment, ultimately contributing to cost-efficiency through extended facility lifespan and minimized disruptions.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N4008418R0071
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3-6-3, IRIFUNE, CHUO-KU
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,298,257
Exercised Options: $16,298,257
Current Obligation: $16,298,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008419D0078
IDV Type: IDC
Timeline
Start Date: 2022-06-29
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-09-03
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