DoD's $24.7M MCAS Iwakuni Construction Contract Awarded to Nippo Corporation
Contract Overview
Contract Amount: $24,767,653 ($24.8M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2022-06-28
End Date: 2025-01-27
Contract Duration: 944 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: N4008420D0072, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG-MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008422F4499, REPAIR BEQ B/1388 & B/1368 (ID#4370691)
Plain-Language Summary
Department of Defense obligated $24.8 million to NIPPO CORPORATION for work described as: N4008420D0072, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG-MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008422F4499, REPAIR BEQ B/1388 & B/1368 (ID#4370691) Key points: 1. Contract awarded for repairs at MCAS Iwakuni, Japan. 2. Nippo Corporation secured the task order under a multiple award IDIQ. 3. The contract is for Firm Fixed Price, indicating clear cost expectations. 4. This falls under Commercial and Institutional Building Construction, a broad sector.
Value Assessment
Rating: good
The contract value of $24.7M for building repairs appears reasonable for a large-scale construction project at a military installation. Benchmarking against similar large construction contracts for institutional buildings 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 competitive bidding process that should lead to fair pricing. The use of an IDIQ with multiple awardees allows for efficient task order issuance while maintaining competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Enhances infrastructure at a key U.S. Marine Corps Air Station in Japan. Supports military readiness by ensuring operational facilities are maintained. Provides employment opportunities in the construction sector. Contributes to the local economy in the Iwakuni region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Geopolitical risks associated with overseas operations.
- Dependency on a single contractor for this specific task order.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Supports critical military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is substantial, driven by government infrastructure needs, private development, and maintenance of existing facilities. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Nippo Corporation, a large business. There is no explicit mention of small business participation in this specific task order.
Oversight & Accountability
The Department of the Navy awarded this task order under an existing IDIQ, suggesting a framework for oversight is in place. However, specific oversight mechanisms for this task order, such as regular progress reviews and quality control, are not detailed in the provided data.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule delays due to overseas logistics.
- Risk of unforeseen site conditions impacting cost and timeline.
- Dependency on specific material availability in Japan.
- Fluctuations in currency exchange rates could impact final cost.
- Ensuring compliance with both U.S. military and Japanese regulations.
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 $24.8 million to NIPPO CORPORATION. N4008420D0072, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG-MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008422F4499, REPAIR BEQ B/1388 & B/1368 (ID#4370691)
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 $24.8 million.
What is the period of performance?
Start: 2022-06-28. End: 2025-01-27.
What is the historical performance of Nippo Corporation on similar government construction contracts?
Assessing Nippo Corporation's past performance on comparable government contracts is crucial for understanding their reliability and efficiency. Reviewing past project completion times, adherence to budget, quality of work, and any documented disputes or claims can provide valuable insights into their capabilities and potential risks associated with this current contract.
Are there any specific environmental or safety compliance risks associated with construction at MCAS Iwakuni?
Construction projects, especially overseas, can face unique environmental and safety challenges. Factors like local regulations, material sourcing, waste disposal, and seismic activity at MCAS Iwakuni need thorough assessment. Proactive risk mitigation strategies and adherence to stringent safety protocols are essential to prevent accidents, environmental damage, and project delays.
How does the cost of this contract compare to similar building repair projects in other overseas military installations?
Benchmarking this contract's cost against similar repair projects at other overseas military installations is vital for evaluating cost-effectiveness. Factors such as labor rates, material costs, logistical challenges, and local economic conditions can significantly influence pricing. A comparative analysis would help determine if the $24.7M expenditure represents a fair market value.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N4008418R0069
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $24,767,653
Exercised Options: $24,767,653
Current Obligation: $24,767,653
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008420D0072
IDV Type: IDC
Timeline
Start Date: 2022-06-28
Current End Date: 2025-01-27
Potential End Date: 2025-01-27 00:00:00
Last Modified: 2025-03-07
More Contracts from Nippo Corporation
- Improve Military Family Housing - Stearley Heights, Kadena AB, Okinawa, Japan — $104.7M (Department of Defense)
- Construction of Three-Bay Hangar / AMU, Yokota AIR Base, Japan — $98.0M (Department of Defense)
- Sofa FY15 Dodea Milcon PA00017 Replace Killin Elementary School, Camp Foster, Okinaw a, Japan — $92.2M (Department of Defense)
- Afsoc Airfield Apron and Site Infrastructure, Yokota AIR Base, Japan — $67.4M (Department of Defense)
- Construction of Afsoc Squadron OPS & Hangar — $64.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)