DoD Awards $26.9M for MCAS Iwakuni Housing Revitalization to Nippo Corporation
Contract Overview
Contract Amount: $26,895,762 ($26.9M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2027-02-18
Contract Duration: 1,602 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: N40084-20-D-0072/N4008422F4724 - FAMILY HOUSING MIDRISE #7 WHOLE-HOUSE REVITALIZATION (WHR), MCAS IWAKUNI, JAPAN (ID#4862275)
Plain-Language Summary
Department of Defense obligated $26.9 million to NIPPO CORPORATION for work described as: N40084-20-D-0072/N4008422F4724 - FAMILY HOUSING MIDRISE #7 WHOLE-HOUSE REVITALIZATION (WHR), MCAS IWAKUNI, JAPAN (ID#4862275) Key points: 1. The contract is for whole-house revitalization of family housing at MCAS Iwakuni. 2. Nippo Corporation, a Japanese firm, is the awardee. 3. The contract was awarded under full and open competition. 4. This project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The award amount of $26.9 million for a multi-year revitalization project appears within a reasonable range for large-scale construction. However, without specific details on the scope of work and comparable project costs in Japan, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using 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 aims to secure the best value and price for government projects.
Public Impact
Improves living conditions for military families stationed at MCAS Iwakuni. Supports infrastructure development and maintenance in a key overseas base. Potential for job creation in the construction sector in Japan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited information on the specific scope of revitalization work.
- Potential for cost overruns in long-term construction projects.
- Geopolitical factors could impact project execution in Japan.
Positive Signals
- Awarded under full and open competition.
- Addresses critical family housing needs.
- Long-term contract duration allows for phased execution.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale renovation and revitalization of residential facilities. Spending benchmarks for similar overseas military construction projects can vary significantly based on location and scope.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Nippo Corporation. There is no information provided on whether small businesses are involved as subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, would be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long-term contract duration (over 4 years).
- Large contract value ($26.9M).
- Construction project in an overseas location.
- Limited detail on scope of work.
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 $26.9 million to NIPPO CORPORATION. N40084-20-D-0072/N4008422F4724 - FAMILY HOUSING MIDRISE #7 WHOLE-HOUSE REVITALIZATION (WHR), MCAS IWAKUNI, JAPAN (ID#4862275)
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 $26.9 million.
What is the period of performance?
Start: 2022-09-30. End: 2027-02-18.
What is the detailed scope of the 'whole-house revitalization' and how does it compare to typical housing upgrade projects?
The specific scope of 'whole-house revitalization' is not detailed in the provided data. Typically, such projects can encompass structural repairs, system upgrades (HVAC, plumbing, electrical), interior renovations (kitchens, bathrooms), and exterior improvements. A detailed breakdown of the work, including square footage and specific components to be addressed, is needed for a comprehensive comparison to other projects and to assess value.
What are the potential risks associated with performing large-scale construction in an overseas military installation like MCAS Iwakuni?
Risks include logistical challenges in procuring materials and equipment, potential labor shortages or increased labor costs, navigating local regulations and customs, security concerns, and the impact of environmental factors or natural disasters specific to the region. Coordination with base operations and ensuring minimal disruption to military activities are also critical.
How will the effectiveness of this revitalization project be measured to ensure it meets the needs of military families?
Effectiveness will likely be measured through post-occupancy evaluations, resident satisfaction surveys, and inspections to ensure the completed work meets quality standards and addresses the identified deficiencies. Key performance indicators could include reduced maintenance calls, improved energy efficiency, and positive feedback from families residing in the revitalized housing units.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N4008418R0069
Offers Received: 3
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: $26,895,762
Exercised Options: $26,895,762
Current Obligation: $26,895,762
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: 2022-09-30
Current End Date: 2027-02-18
Potential End Date: 2027-02-18 00:00:00
Last Modified: 2025-06-20
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