DoD's $2.6M contract for equipment repair awarded to MITOMO CO., LTD. for a one-year period

Contract Overview

Contract Amount: $2,604,086 ($2.6M)

Contractor: Mitomo CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2025-09-12

End Date: 2026-09-13

Contract Duration: 366 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUND OBLIGATION TASK ORDER FOR RECURRING, SECOND OPTION PERIOD (9/14/2025 TO 9/13/2026)

Plain-Language Summary

Department of Defense obligated $2.6 million to MITOMO CO., LTD. for work described as: FUND OBLIGATION TASK ORDER FOR RECURRING, SECOND OPTION PERIOD (9/14/2025 TO 9/13/2026) Key points: 1. The contract represents a recurring service for electronic and precision equipment maintenance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the option period is one year, with a potential for future renewals. 5. The service category is essential for maintaining operational readiness of defense assets. 6. The contractor, MITOMO CO., LTD., is a key provider for this specific service.

Value Assessment

Rating: good

The contract value of $2.6 million for a one-year period for electronic and precision equipment repair and maintenance appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for defense equipment maintenance suggests that pricing is generally in line with market rates for such specialized support. The firm fixed-price structure provides cost certainty for the Department of Defense, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The presence of full and open competition generally fosters a more robust price discovery process, as vendors compete to offer the most attractive terms and pricing to secure the award. The specific number of bidders is not provided, but the category suggests a market with several potential qualified suppliers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

The Department of the Navy benefits from the continued operational readiness of its electronic and precision equipment. Services delivered include repair and maintenance, ensuring the longevity and functionality of critical assets. The geographic impact is likely focused on naval installations where the equipment is deployed or maintained. Workforce implications include the need for skilled technicians to perform the specialized repair and maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a sole-source renewal in the future.
Dependence on a single contractor for critical equipment maintenance could pose supply chain risks.
Ensuring consistent quality across all repair and maintenance tasks is crucial.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost predictability.
Contract supports the operational readiness of defense assets.

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector (NAICS 811210) is a critical support industry for various government agencies, particularly defense. This contract fits within the broader defense industrial base, ensuring that specialized equipment remains functional. Market size for this sector is substantial, driven by the extensive and complex equipment inventories of military branches. Comparable spending benchmarks would involve analyzing other service contracts for similar equipment maintenance across different defense agencies.

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 for small businesses stemming from a small business set-aside. The primary focus of this award is on larger, potentially specialized firms capable of meeting the stringent requirements for defense equipment repair and maintenance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services to specification. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Overhaul (MRO) Services
Naval Sea Systems Command (NAVSEA) Ship Repair Contracts
Air Force Materiel Command (AFMC) Equipment Sustainment Programs
Army Communications-Electronics Command (CECOM) Field Support

Risk Flags

Potential for sole-source creep if not re-competed effectively.
Dependence on specialized contractor expertise.
Ensuring consistent quality of repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to MITOMO CO., LTD.. FUND OBLIGATION TASK ORDER FOR RECURRING, SECOND OPTION PERIOD (9/14/2025 TO 9/13/2026)

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 $2.6 million.

What is the period of performance?

Start: 2025-09-12. End: 2026-09-13.

What is the historical spending trend for this specific contract or similar services provided by MITOMO CO., LTD. to the Department of Defense?

Analyzing historical spending for this specific contract requires access to prior award data. However, the current award is for a recurring, second option period, suggesting a history of previous awards. If this is a continuation of a long-standing service, it implies consistent need and potentially a stable relationship between the contractor and the agency. To provide a precise trend, one would need to examine contract databases for previous option periods or task orders issued to MITOMO CO., LTD. under the same parent contract vehicle. Without that specific historical data, we can infer that the agency has found value in the services provided to warrant multiple option periods. The consistent funding of option periods suggests a predictable demand for these repair and maintenance services within the Department of Defense.

How does the per-unit cost or overall value of this contract compare to industry benchmarks for similar electronic and precision equipment repair services?

Benchmarking the value of this $2.6 million contract requires detailed knowledge of the specific types of electronic and precision equipment being serviced and the scope of repair and maintenance activities. General industry benchmarks for such specialized services can vary significantly based on complexity, required certifications, and turnaround times. However, given that this contract was awarded under full and open competition by the Department of Defense, it suggests that the pricing achieved is likely competitive within the defense contracting landscape. The firm fixed-price nature also implies that the contractor has factored in their costs and a profit margin, and the agency has deemed this acceptable. A more precise comparison would necessitate access to detailed cost breakdowns or data from comparable contracts awarded to other entities for similar services.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of MITOMO CO., LTD.'s services under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided award data, government contracts for repair and maintenance services typically include performance standards. These often revolve around metrics such as on-time delivery of repaired equipment, quality of workmanship (e.g., defect rates post-repair), adherence to service level agreements (SLAs) for response times, and overall customer satisfaction surveys conducted by the agency. For electronic and precision equipment, KPIs might also include Mean Time Between Failures (MTBF) for repaired components or systems, and Mean Time To Repair (MTTR). The Department of the Navy would monitor these KPIs to ensure the contractor is meeting contractual obligations and maintaining the operational readiness of the equipment.

What is the potential risk associated with relying on MITOMO CO., LTD. for these critical repair and maintenance services, and what mitigation strategies are in place?

Potential risks associated with relying on a single contractor for critical repair and maintenance services include vendor dependency, potential for price increases in future contract periods, and the risk of service degradation if the contractor faces internal challenges. For MITOMO CO., LTD., risks could involve supply chain disruptions for parts, workforce availability, or changes in technology requiring new skill sets. Mitigation strategies employed by the Department of the Navy typically include robust contract oversight, performance monitoring against established KPIs, and maintaining market research to understand alternative providers. The initial award under full and open competition also serves as a risk mitigation by ensuring a competitive baseline. Furthermore, the contract structure itself, with defined periods and potential for re-competition, allows the agency to reassess its needs and the contractor's performance.

How does this contract align with the Department of Defense's broader strategy for equipment sustainment and readiness?

This contract directly aligns with the Department of Defense's (DoD) overarching strategy for equipment sustainment and readiness by ensuring that critical electronic and precision equipment remains operational and reliable. Effective maintenance and repair are fundamental to maximizing the lifespan of assets, reducing the need for costly replacements, and ensuring that military personnel have access to functioning equipment when and where it is needed. By outsourcing these specialized services to a contractor like MITOMO CO., LTD., the DoD can leverage external expertise and potentially achieve cost efficiencies compared to maintaining all repair capabilities in-house. This allows military branches to focus their organic resources on core warfighting missions while ensuring the support infrastructure is robust.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

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: $2,611,359

Exercised Options: $2,611,359

Current Obligation: $2,604,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008423D0405

IDV Type: IDC

Timeline