DoD's $5.6M contract for power line construction awarded to MITOMO CO., LTD. with a 44-month duration

Contract Overview

Contract Amount: $5,588,267 ($5.6M)

Contractor: Mitomo CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2022-12-21

End Date: 2026-05-31

Contract Duration: 1,257 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NON-RECURRING, ONETIME SERVICES

Plain-Language Summary

Department of Defense obligated $5.6 million to MITOMO CO., LTD. for work described as: NON-RECURRING, ONETIME SERVICES Key points: 1. The contract is a one-time service, indicating a specific project need rather than ongoing support. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of over three years suggests a significant scope of work. 5. The contract falls under construction services, specifically power and communication line infrastructure.

Value Assessment

Rating: fair

The contract value of approximately $5.6 million for power and communication line construction over 1257 days (approximately 3.5 years) appears to be within a reasonable range for a project of this nature. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment of value for money. The firm fixed-price structure is a positive indicator for cost control. However, without specific details on the scope of work and the complexity of the power and communication lines to be constructed, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Department of the Navy sought to leverage market competition to obtain the best possible price and technical solution. The number of bidders is not specified, but the open competition framework generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and higher quality services by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, who will receive upgraded or new power and communication line infrastructure. The services delivered involve the construction of power and communication lines and related structures. The geographic impact is likely localized to a specific military installation or area requiring infrastructure improvements. Workforce implications include employment opportunities for construction workers, electricians, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of infrastructure projects.
Ensuring the quality of construction meets stringent military standards for critical infrastructure.
Managing the coordination of construction activities with ongoing military operations.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive and fair process.
Long duration allows for phased construction and potentially better resource allocation.

Sector Analysis

This contract falls within the construction sector, specifically focusing on utility infrastructure. The market for power and communication line construction is substantial, driven by both public and private sector needs for reliable infrastructure. Federal spending in this area often supports military bases, government facilities, and critical national infrastructure projects. Comparable spending benchmarks would involve analyzing other federal contracts for similar utility construction services, considering factors like project scale, location, and specific technical requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, MITOMO CO., LTD., may still engage small businesses as subcontractors based on their own procurement strategies, but this is not a requirement stemming from the contract's award terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Military Construction
Utility Infrastructure Projects
Department of Defense Procurement
Communication Network Infrastructure

Risk Flags

Long contract duration increases risk of unforeseen issues.
Potential for quality control challenges in large-scale construction.
Need for strong oversight due to multi-year timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to MITOMO CO., LTD.. NON-RECURRING, ONETIME SERVICES

Who is the contractor on this award?

The obligated recipient is MITOMO 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 $5.6 million.

What is the period of performance?

Start: 2022-12-21. End: 2026-05-31.

What is the specific scope of work for the power and communication line construction under this contract?

The provided data indicates the contract is for 'Power and Communication Line and Related Structures Construction' (nd: 'Power and Communication Line and Related Structures Construction'). However, the specific details of the scope of work, such as the exact locations, types of lines (e.g., fiber optic, high-voltage power), length of lines to be installed, and the nature of related structures (e.g., poles, conduits, substations), are not detailed in the summary data. A comprehensive understanding would require reviewing the contract's statement of work (SOW) or performance work statement (PWS).

How does the awarded amount of approximately $5.6 million compare to similar federal contracts for power and communication line construction?

Benchmarking this $5.6 million contract requires comparing it to similar federal projects in terms of scope, complexity, and geographic location. Without more specific details on the project's requirements (e.g., miles of cable, type of terrain, specific technological standards), a direct comparison is difficult. However, federal contracts for utility infrastructure can range from hundreds of thousands to tens of millions of dollars. The firm fixed-price nature and the 44-month duration suggest a substantial, multi-year project, making the $5.6 million figure potentially reasonable if the scope is appropriately sized. Further analysis would involve querying federal procurement databases for comparable projects awarded over the last few years.

What are the potential risks associated with a firm fixed-price contract for a multi-year construction project?

While firm fixed-price (FFP) contracts are generally favored for cost control, they can introduce risks, especially for long-duration projects like this 44-month construction contract. The primary risk lies with the contractor (MITOMO CO., LTD.) if unforeseen issues arise, such as material cost escalations, labor shortages, or unexpected site conditions, which could lead to reduced profit margins or even financial losses if not adequately planned for. For the government, the risk is that the contractor might cut corners on quality or scope to protect profitability, necessitating robust oversight. The long duration increases the likelihood of encountering such unforeseen circumstances.

What is MITOMO CO., LTD.'s track record with federal contracts, particularly with the Department of Defense?

The provided data identifies MITOMO CO., LTD. as the contractor but does not offer details on their past performance or track record with federal agencies, including the Department of Defense. To assess their reliability and experience, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review their contract history, including past awards, performance evaluations (e.g., CPARS), and any history of contract disputes or terminations. This information is crucial for understanding their capability to successfully execute this significant construction project.

What is the historical spending pattern for 'Power and Communication Line and Related Structures Construction' by the Department of the Navy?

The provided data is specific to a single contract (NA: '237130') and does not offer historical spending patterns. To analyze historical spending, one would need to query federal procurement data for all contracts awarded by the Department of the Navy (or the broader Department of Defense) under the Product Service Code (PSC) related to power and communication line construction over several fiscal years. This analysis would reveal trends in contract values, award volumes, and potentially identify major projects or recurring needs within this category.

How does the contract duration of 1257 days (approx. 3.5 years) impact project management and oversight?

A contract duration of over three years for construction necessitates a robust project management and oversight plan. It implies a phased approach to construction, requiring detailed scheduling, milestone tracking, and regular progress reporting. Oversight personnel must maintain consistent engagement throughout the project lifecycle to monitor quality, adherence to specifications, and budget alignment. The extended timeline also increases the potential for scope creep or changes, requiring diligent change management processes. Furthermore, maintaining consistent communication and coordination between the government and the contractor over such a long period is critical for success.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008422T0404

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3-30-2, AKUWANISHI, SEYA-KU, YOKOHAMA

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

Financial Breakdown

Contract Ceiling: $5,588,267

Exercised Options: $5,588,267

Current Obligation: $5,588,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline