DoD awards $6.3M contract for water line upgrade at MCAS Iwakuni, Japan, to ACTY CO., LTD

Contract Overview

Contract Amount: $6,363,111 ($6.4M)

Contractor: Acty CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2023-08-25

End Date: 2026-03-31

Contract Duration: 949 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: N4008420D0069, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG- MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008423F4619, WATER SUPPLY LINE UPGRADE (ID#4994190/P1014U)

Plain-Language Summary

Department of Defense obligated $6.4 million to ACTY CO., LTD. for work described as: N4008420D0069, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG- MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008423F4619, WATER SUPPLY LINE UPGRADE (ID#4994190/P1014U) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Project duration of 949 days indicates a significant, multi-year undertaking. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. 6. The award is for a specific task order under a larger IDIQ contract, indicating a pre-established framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more detailed cost breakdowns or comparisons to similar water supply line upgrade projects in similar geographic locations. The firm-fixed-price nature provides some cost control, but the overall value for money depends on the execution and final costs incurred by ACTY CO., LTD. Further analysis would require understanding the scope of work in detail and comparing it to industry standards for such infrastructure improvements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders (as indicated by 'no': 3) suggests a moderate level of competition for this specific task order. While not a large number of bidders, it indicates that multiple companies were interested and capable of performing the work, which generally aids in price discovery.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it encourages competitive pricing and can lead to better value compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are U.S. Marines and personnel stationed at MCAS Iwakuni, Japan, who will receive improved water supply infrastructure. The service delivered is the upgrade of a critical water supply line, ensuring reliable access to water. The geographic impact is localized to the U.S. Marine Corps Air Station Iwakuni, Japan. Workforce implications may include employment opportunities for construction workers and specialists involved in the project, potentially including local hires depending on ACTY CO., LTD.'s practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive 949-day construction period.
Dependence on a single contractor (ACTY CO., LTD.) for the successful completion of this critical infrastructure upgrade.
Geopolitical factors or supply chain disruptions in Japan could impact project timelines and costs.

Positive Signals

Awarded under a competitive process, which typically leads to better pricing and quality.
Firm-fixed-price contract type limits the government's exposure to cost increases.
The project addresses a critical infrastructure need, enhancing operational readiness at the base.

Sector Analysis

The construction sector, particularly for institutional and government facilities, is a significant market. This contract falls under commercial and institutional building construction (NAICS 236220). Spending in this area is driven by the need to maintain and upgrade military installations worldwide. Comparable benchmarks would involve analyzing other construction contracts for similar infrastructure upgrades at U.S. military bases, both domestically and internationally, considering factors like project complexity, location, and prevailing labor/material costs.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though ACTY CO., LTD. may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Given it's a construction project at an overseas base, specific oversight mechanisms would likely involve on-site contracting officers' representatives (CORs), quality assurance personnel, and potentially the Naval Facilities Engineering Command (NAVFAC). Transparency is facilitated by the contract award being publicly available, but detailed progress reports and specific accountability measures are typically managed internally by the contracting agency.

Related Government Programs

Base Infrastructure Modernization Programs
Military Construction (MILCON)
Overseas Contingency Operations (OCO) - Infrastructure
Department of Defense Facilities Maintenance and Repair

Risk Flags

Potential for schedule delays due to overseas location
Risk of unforeseen site conditions impacting cost and timeline
Dependence on contractor's performance for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to ACTY CO., LTD.. N4008420D0069, IDIQ MULTIPLE AWARD CONSTRUCTION CONTRACT (BIG- MACC) AT U.S. MCAS IWAKUNI, JAPAN, TASK ORDER N4008423F4619, WATER SUPPLY LINE UPGRADE (ID#4994190/P1014U)

Who is the contractor on this award?

The obligated recipient is ACTY 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 $6.4 million.

What is the period of performance?

Start: 2023-08-25. End: 2026-03-31.

What is the track record of ACTY CO., LTD. with the Department of Defense or similar government entities?

Information regarding ACTY CO., LTD.'s specific track record with the Department of Defense or other government entities is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. This would help in understanding their reliability, quality of work, and adherence to schedules and budgets on similar projects. Without this historical data, it's difficult to definitively assess their suitability beyond the fact they were selected in a competitive bid.

How does the awarded amount compare to similar water supply line upgrade projects at other military installations?

Direct comparison of the $6.3 million award for this specific water supply line upgrade to similar projects is challenging without detailed project scopes and location-specific cost data. Factors such as the length and complexity of the line, soil conditions, required materials, labor rates in Japan, and the specific upgrades needed (e.g., pipe material, capacity) significantly influence costs. Generally, infrastructure projects at overseas bases can incur higher costs due to logistical challenges and specific regulatory requirements. A thorough benchmark would require analyzing multiple comparable projects with similar technical specifications and geographic contexts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential construction delays due to unforeseen site conditions, weather, or logistical challenges inherent in overseas projects. Cost overruns are also a risk, particularly with a long project duration (949 days), although the firm-fixed-price contract type aims to mitigate this for the government. Supply chain disruptions for materials or specialized labor could impact the schedule. Mitigation strategies likely involve robust project management by ACTY CO., LTD., detailed site investigations prior to work, contingency planning by the contracting agency (Department of the Navy), and close monitoring by contracting officers' representatives (CORs) to ensure adherence to the schedule and quality standards.

What is the expected impact of this water supply line upgrade on the operational effectiveness of MCAS Iwakuni?

The upgrade of the water supply line is expected to significantly enhance the operational effectiveness of MCAS Iwakuni by ensuring a reliable, safe, and potentially higher-capacity water source. Modernizing aging infrastructure reduces the risk of service interruptions, leaks, or contamination, which can disrupt daily operations, training, and quality of life for personnel. A robust water system is fundamental for various base functions, including sanitation, firefighting, dining facilities, and potentially specialized equipment. This upgrade contributes to the overall resilience and readiness of the installation.

How has spending on construction contracts for base infrastructure at U.S. military installations in Japan trended over the past five years?

Analyzing spending trends on construction contracts for base infrastructure in Japan over the past five years would require access to historical contract databases and filtering for relevant agencies (e.g., Department of Defense, Navy, Army Corps of Engineers) and project types (e.g., construction, repair, upgrades). Generally, spending in this category is influenced by strategic military posture shifts, aging infrastructure needs, and specific modernization initiatives. It's plausible that spending has remained consistent or increased to address deferred maintenance and upgrade facilities to meet current operational requirements. A detailed trend analysis would reveal specific patterns and investment priorities.

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: N4008418R0069

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000-14, MIYOSHI, NAKA-KU, OKAYAMA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,363,111

Exercised Options: $6,363,111

Current Obligation: $6,363,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008420D0069

IDV Type: IDC

Timeline