DoD's $44.8M Yokota Air Base housing project awarded to Gilbane Japan GK, with 2 bidders

Contract Overview

Contract Amount: $44,832,353 ($44.8M)

Contractor: Gilbane Japan GK

Awarding Agency: Department of Defense

Start Date: 2022-04-29

End Date: 2025-10-23

Contract Duration: 1,273 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY2202 ZNRE254300 IMPROVE FAMILY HOUSING, YOKOTA AIR BASE, PHASE 8 (45 UN) - PAIP8

Plain-Language Summary

Department of Defense obligated $44.8 million to GILBANE JAPAN GK for work described as: FY2202 ZNRE254300 IMPROVE FAMILY HOUSING, YOKOTA AIR BASE, PHASE 8 (45 UN) - PAIP8 Key points: 1. The contract value represents a significant investment in military family housing infrastructure. 2. Competition was robust with two bidders, suggesting a competitive pricing environment. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 1273 days indicates a complex and lengthy construction undertaking. 5. The contract is part of a broader initiative to improve family housing at military installations.

Value Assessment

Rating: good

The contract value of $44.8M for housing improvements at Yokota Air Base appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, similar large-scale military construction projects often fall within this range. The firm-fixed-price structure helps control costs. Benchmarking against similar residential remodelers' contracts would provide further insight into value for money.

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. With two bidders, the competition level suggests a moderately competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition with two bidders likely resulted in a more competitive price, benefiting taxpayers by ensuring the government did not overpay for the housing improvements.

Public Impact

Military families stationed at Yokota Air Base will benefit from improved housing quality and living conditions. The project will deliver essential residential remodeling services, enhancing the habitability of family housing units. The geographic impact is localized to Yokota Air Base in Japan, directly serving the military community there. The construction and remodeling activities will likely create temporary employment opportunities for skilled trades and labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the multi-year duration and complexity of international construction projects.
Ensuring quality of work meets military housing standards over the long term.
Managing logistical challenges associated with a project located overseas.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established contractor (Gilbane) suggests experience in large-scale projects.
Focus on improving family housing addresses a critical need for military personnel.

Sector Analysis

This contract falls within the Construction and Residential Remodeling sector, specifically focusing on military infrastructure. The market for military construction is substantial, driven by the need to maintain and upgrade aging facilities worldwide. This project aligns with broader government efforts to modernize military housing, ensuring adequate living conditions for service members and their families. Comparable spending benchmarks would involve analyzing other large-scale military construction or renovation contracts awarded by the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Gilbane Japan GK, will likely manage the majority of the work with its own resources or through larger subcontractors. The impact on the small business ecosystem is minimal unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers and project managers stationed at or responsible for Yokota Air Base. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Military Family Housing Improvement Program
Department of Defense Construction Contracts
Overseas Military Construction Projects
Residential Remodeling Services

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of project delays due to unforeseen site conditions or logistical issues.
Contractor performance risk, though mitigated by firm-fixed-price and contractor's experience.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to GILBANE JAPAN GK. FY2202 ZNRE254300 IMPROVE FAMILY HOUSING, YOKOTA AIR BASE, PHASE 8 (45 UN) - PAIP8

Who is the contractor on this award?

The obligated recipient is GILBANE JAPAN GK.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2022-04-29. End: 2025-10-23.

What is Gilbane Japan GK's track record with similar large-scale military housing projects?

Gilbane Building Company, the parent entity, has a significant history of undertaking large-scale construction and renovation projects for the U.S. military, including housing. Their experience often spans various military branches and locations globally. While specific details on Gilbane Japan GK's prior performance on similar projects are not detailed in this data, their affiliation with the larger Gilbane organization suggests a capacity for managing complex, high-value contracts. A deeper dive into their past performance reviews, contract history with the DoD, and any reported issues or successes on comparable projects would provide a more comprehensive assessment of their suitability and reliability for this specific Yokota Air Base contract.

How does the awarded price compare to the estimated cost or independent government cost estimate?

The provided data does not include the estimated cost or the independent government cost estimate (IGCE) for this contract. Therefore, a direct comparison to assess if the awarded price of $44.8 million represents good value or if it was significantly above or below expectations is not possible. Typically, contracting officers develop an IGCE before soliciting bids to establish a benchmark for evaluating offers. Without this information, it's challenging to definitively state whether the price achieved through competition was optimal from a cost-efficiency standpoint. Further analysis would require access to the contract file or related procurement documentation that details the cost estimates.

What are the primary risks associated with a multi-year construction project in an overseas location?

Several risks are inherent in a multi-year construction project at an overseas location like Yokota Air Base. These include logistical challenges related to material procurement, transportation, and customs; potential currency fluctuations affecting costs; geopolitical instability or changes in local regulations; labor availability and management issues, including compliance with local labor laws; and environmental or natural disaster risks specific to the region. Furthermore, managing communication and coordination across different time zones and cultures can add complexity. The firm-fixed-price nature of this contract shifts some financial risk to the contractor, but delays or unforeseen issues could still impact the government if not managed proactively through contract administration and oversight.

What is the expected impact of these housing improvements on military readiness and personnel retention?

Improving family housing quality is directly linked to enhancing military readiness and personnel retention. Modern, safe, and comfortable housing reduces stress on service members and their families, contributing to higher morale and job satisfaction. This, in turn, can lead to increased retention rates, as quality of life is a significant factor for personnel deciding to stay in the military. Better housing also minimizes distractions and personal issues that could affect a service member's focus on their duties, thereby indirectly supporting operational readiness. For Yokota Air Base, these upgrades signal a commitment to supporting its personnel, making it a more attractive assignment and potentially improving overall unit cohesion and effectiveness.

How has spending on military family housing construction and renovation evolved over the past five fiscal years?

Spending on military family housing construction and renovation has been a consistent priority for the Department of Defense, driven by the need to address aging infrastructure and improve living conditions. Over the past five fiscal years, there has been a sustained focus on modernizing housing stock across all branches. While specific aggregate figures fluctuate annually based on budget allocations, congressional priorities, and the lifecycle of major construction projects, the overall trend indicates significant and ongoing investment. Factors influencing spending include the condition of existing housing, the number of military families stationed at various bases, and the availability of both domestic and overseas construction markets. This particular contract for Yokota Air Base is representative of the continued investment in this category.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HV22R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3-12-2, NIHOMBASHIKAYABACHO, CHUO-KU

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $44,832,353

Exercised Options: $44,832,353

Current Obligation: $44,832,353

Actual Outlays: $7,163,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline