DoD Awards $23.9M for Kadena AB Airfield Damage Repair Storage Facilities
Contract Overview
Contract Amount: $23,904,864 ($23.9M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-15
End Date: 2025-02-13
Contract Duration: 944 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY22 AIRFIELD DAMAGE REPAIR STORAGE FACILITIES, KADENA AB, OKIANWA, JAPAN
Plain-Language Summary
Department of Defense obligated $23.9 million to NIPPO CORPORATION for work described as: FY22 AIRFIELD DAMAGE REPAIR STORAGE FACILITIES, KADENA AB, OKIANWA, JAPAN Key points: 1. Contract awarded to NIPPO CORPORATION for airfield damage repair storage facilities. 2. Full and open competition was utilized for this procurement. 3. The contract has a firm fixed price structure. 4. Project duration is 944 days, ending in February 2025.
Value Assessment
Rating: good
The contract value of $23.9M appears reasonable for a large-scale construction project of this nature, especially considering the location and scope. Benchmarking against similar airfield infrastructure projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for soliciting bids and achieving competitive pricing. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this critical infrastructure project.
Public Impact
Enhances operational readiness by providing necessary storage for airfield damage repair equipment. Supports military infrastructure development in the Indo-Pacific region. Contributes to the local economy through construction activities. Ensures timely repair capabilities for a vital air base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Clear project scope and duration
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for DoD is substantial, supporting infrastructure globally. The value is within a typical range for major construction projects at overseas bases.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors in this specific award. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, managed this procurement. Standard oversight mechanisms for construction contracts are expected to be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential logistical challenges in Okinawa
- Dependence on a single prime contractor
- Long project duration increases risk exposure
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to NIPPO CORPORATION. FY22 AIRFIELD DAMAGE REPAIR STORAGE FACILITIES, KADENA AB, OKIANWA, JAPAN
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 Army).
What is the total obligated amount?
The obligated amount is $23.9 million.
What is the period of performance?
Start: 2022-07-15. End: 2025-02-13.
What is the historical performance of NIPPO CORPORATION on similar DoD contracts?
Information on NIPPO CORPORATION's past performance with the DoD is crucial for assessing reliability and execution capability. Reviewing their track record on similar-sized construction projects, particularly those involving airfield infrastructure or overseas operations, would provide insight into their ability to meet schedule, budget, and quality requirements. This historical data helps mitigate performance risks.
Are there any specific environmental or logistical challenges unique to Kadena Air Base that could impact project cost or timeline?
Kadena Air Base, located in Okinawa, Japan, may present unique logistical challenges due to its remote island location and potential environmental considerations. Factors such as material import, labor availability, and adherence to local regulations could influence project costs and timelines. Understanding these specific challenges is vital for accurate risk assessment and effective project management.
How does the awarded price compare to independent cost estimates for similar airfield storage facilities?
Comparing the awarded price of $23.9 million to independent cost estimates for comparable airfield damage repair storage facilities is essential for validating value. This benchmark analysis helps determine if the government secured a fair and reasonable price. Discrepancies could indicate potential overpricing or, conversely, exceptional value achieved through competition.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912HV22B0003
Offers Received: 4
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: $23,904,864
Exercised Options: $23,904,864
Current Obligation: $23,904,864
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-15
Current End Date: 2025-02-13
Potential End Date: 2025-02-13 00:00:00
Last Modified: 2025-04-03
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