Navy awards $19.4M contract for BEQ 314 repair at MCAS Iwakuni under full and open competition

Contract Overview

Contract Amount: $19,382,403 ($19.4M)

Contractor: Nippo Corporation

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2025-10-07

Contract Duration: 830 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT N4008423D0045 TASK ORDER N4008423F4586, IWAKUNI DB/DBB MACC SEED PROJECT "REPAIR BEQ 314, MCAS IWAKUNI"

Plain-Language Summary

Department of Defense obligated $19.4 million to NIPPO CORPORATION for work described as: CONTRACT N4008423D0045 TASK ORDER N4008423F4586, IWAKUNI DB/DBB MACC SEED PROJECT "REPAIR BEQ 314, MCAS IWAKUNI" Key points: 1. The contract is for repair work on BEQ 314 at MCAS Iwakuni. 2. Awarded to NIPPO CORPORATION, a significant player in construction. 3. The project falls under a larger Multiple Award Construction Contract (MACC). 4. This is a firm-fixed-price contract, indicating defined scope and cost. 5. The project duration is 830 days, ending in October 2025.

Value Assessment

Rating: good

The contract value of $19.4M for building repair is within a reasonable range for a project of this scope and complexity, especially considering the location and specific requirements of military installations. Benchmarking against similar MACC projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified contractors had the opportunity to bid.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Improved living quarters for service members at MCAS Iwakuni. Supports military readiness by maintaining essential infrastructure. Potential for local economic impact through construction activities and material sourcing. Ensures compliance with safety and habitability standards for barracks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repair.
Schedule delays due to logistical challenges at an overseas base.
Quality control to ensure repairs meet long-term durability standards.

Positive Signals

Awarded under a competitive process, likely securing a fair price.
Firm-fixed-price contract limits cost uncertainty for the government.
Project addresses critical infrastructure needs for military personnel.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading government facilities, including military bases. Benchmarks for similar repair and renovation projects on military installations would be relevant for a detailed cost analysis.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, NIPPO CORPORATION, is likely a large business. There is no explicit information on small business subcontracting goals or participation in this specific task order.

Oversight & Accountability

The contract is managed by the Department of the Navy, part of the Department of Defense. Oversight would involve ensuring adherence to contract terms, quality of work, and timely completion. The MACC structure suggests a framework for ongoing oversight of multiple projects.

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 location.
Risk of unforeseen structural issues discovered during repair.
Dependence on global supply chains for materials and equipment.
Ensuring adequate quality control in a remote construction environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to NIPPO CORPORATION. CONTRACT N4008423D0045 TASK ORDER N4008423F4586, IWAKUNI DB/DBB MACC SEED PROJECT "REPAIR BEQ 314, MCAS IWAKUNI"

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 $19.4 million.

What is the period of performance?

Start: 2023-06-30. End: 2025-10-07.

What is the historical performance of NIPPO CORPORATION on similar government contracts, particularly regarding cost and schedule adherence?

Assessing NIPPO CORPORATION's past performance is crucial for understanding potential risks. Reviewing their track record on previous Department of Defense or similar large-scale construction projects can reveal patterns in meeting deadlines, staying within budget, and the quality of their work. This information helps predict the likelihood of successful execution for the MCAS Iwakuni project and informs future contracting decisions.

How does the cost per square foot for this repair project compare to industry benchmarks for similar military barracks renovations?

Comparing the cost per square foot against industry and government benchmarks for military barracks renovations is essential for validating value. Factors like the extent of repairs (structural, cosmetic, systems), material costs, and labor rates in the Iwakuni region should be considered. A favorable comparison suggests efficient use of funds, while a higher cost may warrant further investigation into the scope or specific project challenges.

What specific measures are in place to mitigate risks associated with construction projects on overseas military installations, such as logistics and potential supply chain disruptions?

Mitigation strategies for overseas construction projects typically include robust logistical planning, pre-qualification of suppliers, and contingency planning for material delivery delays. The contract may include clauses addressing force majeure events or specific performance requirements for managing remote site challenges. Understanding these measures helps assess the project's resilience and the government's preparedness for potential 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: N4008422R0041

Offers Received: 6

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: $19,382,403

Exercised Options: $19,382,403

Current Obligation: $19,382,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008423D0045

IDV Type: IDC

Timeline