Navy Awards $27.2M Okinawa Building Repair Task Order Under Full and Open Competition

Contract Overview

Contract Amount: $27,241,730 ($27.2M)

Contractor: Toda-Nudp JV

Awarding Agency: Department of Defense

Start Date: 2025-03-12

End Date: 2027-08-04

Contract Duration: 875 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: N40084-21-D-0078 / TO N4008425F4220 DBB TO REPAIR BEQ, BLDG 5718, CAMP FOSTER, OKINAWA, JAPAN

Plain-Language Summary

Department of Defense obligated $27.2 million to TODA-NUDP JV for work described as: N40084-21-D-0078 / TO N4008425F4220 DBB TO REPAIR BEQ, BLDG 5718, CAMP FOSTER, OKINAWA, JAPAN Key points: 1. The award represents a significant investment in infrastructure maintenance at Camp Foster, Okinawa. 2. Competition was robust, with six bids received, suggesting a competitive market for these services. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. The sector is Commercial and Institutional Building Construction, a critical area for military base operations.

Value Assessment

Rating: good

The awarded amount of $27.2 million for a 31-month duration appears reasonable given the scope of repairing a building in an overseas location. Benchmarking against similar overseas construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bids submitted. This indicates a healthy competitive environment and likely contributed to achieving a fair market price.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repair, ensuring the continued operational readiness of facilities in a key strategic location.

Public Impact

Ensures continued operational capability of critical facilities at Camp Foster, Okinawa. Supports the U.S. military's presence and infrastructure in the Indo-Pacific region. Provides economic activity for construction firms involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to overseas logistics and labor.
  • Scope creep could impact the final cost and timeline.
  • Ensuring quality of work in a remote location requires diligent oversight.

Positive Signals

  • Firm Fixed Price contract mitigates cost uncertainty for the government.
  • Full and open competition suggests a competitive price was likely achieved.
  • Long-term infrastructure investment supports strategic military posture.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending in this sector is crucial for maintaining operational readiness and supporting personnel at overseas bases.

Small Business Impact

While this specific task order was awarded to TODA-NUDP JV, the competitive nature of the bidding process may have allowed for subcontracting opportunities for smaller businesses within the construction trades.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Diligent monitoring of progress, quality, and adherence to the fixed-price contract will be crucial to ensure value for taxpayer money.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Overseas construction complexities
  • Potential for supply chain disruptions
  • Labor availability and cost in Okinawa
  • Ensuring quality control at a distance

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 $27.2 million to TODA-NUDP JV. N40084-21-D-0078 / TO N4008425F4220 DBB TO REPAIR BEQ, BLDG 5718, CAMP FOSTER, OKINAWA, JAPAN

Who is the contractor on this award?

The obligated recipient is TODA-NUDP JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2025-03-12. End: 2027-08-04.

What is the historical cost performance of similar building repair projects managed by the Department of the Navy in overseas locations?

Analyzing historical data for similar overseas building repair projects managed by the Department of the Navy is essential for validating the current award's cost-effectiveness. Factors such as geographic location, specific repair scope, and contract type influence costs. Benchmarking against these past projects can reveal potential cost efficiencies or areas where this award might be an outlier, prompting further investigation into the specific circumstances.

What are the specific risks associated with performing construction in Okinawa, Japan, and how are they mitigated in this contract?

Construction in Okinawa presents unique risks including logistical challenges for materials and equipment, potential labor shortages or higher wage demands, and specific environmental or seismic considerations. The contract's mitigation strategies likely involve detailed planning for logistics, pre-qualification of local labor or specialized subcontractors, and adherence to stringent building codes. The Firm Fixed Price structure also shifts some of these execution risks to the contractor.

How does the successful completion of this repair project contribute to the overall effectiveness of military operations at Camp Foster?

The effective repair of BEQ, Bldg 5718 ensures the availability and habitability of essential personnel housing and facilities at Camp Foster. This directly supports the morale and readiness of stationed personnel, contributing to the overall operational effectiveness of the base. Neglecting such repairs could lead to decreased functionality, increased maintenance costs, and potential disruptions to military missions.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008420R0073

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-28-21, MASHIKI, GINOWAN

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

Financial Breakdown

Contract Ceiling: $27,241,730

Exercised Options: $27,241,730

Current Obligation: $27,241,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008421D0078

IDV Type: IDC

Timeline

Start Date: 2025-03-12

Current End Date: 2027-08-04

Potential End Date: 2027-08-04 00:00:00

Last Modified: 2025-03-12

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