DoD Awards $23.86M for Kadena Air Base Munitions Structures Replacement
Contract Overview
Contract Amount: $23,860,273 ($23.9M)
Contractor: Toda-Aec JV
Awarding Agency: Department of Defense
Start Date: 2022-08-02
End Date: 2025-01-08
Contract Duration: 890 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPLACE MUNITIONS STRUCTURES, KADENA AIR BASE, OKINAWA, JAPAN
Plain-Language Summary
Department of Defense obligated $23.9 million to TODA-AEC JV for work described as: REPLACE MUNITIONS STRUCTURES, KADENA AIR BASE, OKINAWA, JAPAN Key points: 1. Contract awarded to TODA-AEC JV for construction services. 2. Full and open competition was utilized. 3. Project duration is 890 days. 4. Firm fixed price contract type. 5. No small business participation noted.
Value Assessment
Rating: good
The contract value of $23.86 million for replacing munitions structures appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects in military installations suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down costs and ensures fair market pricing.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, ensuring taxpayer funds are used efficiently for this critical infrastructure upgrade.
Public Impact
Enhances safety and security at Kadena Air Base by replacing aging munitions structures. Supports military readiness by ensuring proper storage and handling of munitions. Contributes to the local economy through construction jobs and material procurement. Addresses potential environmental and safety risks associated with outdated facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost overruns in large construction projects.
Positive Signals
- Full and open competition.
- Firm fixed price contract.
- Strategic location for military operations.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for military infrastructure is substantial, driven by the need for modernization and operational readiness across global bases.
Small Business Impact
The contract was not awarded to any small businesses, as indicated by the 'sb' field being false. Efforts to ensure small business participation in future contracts of this nature should be considered to promote economic opportunity.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, should be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Potential for scope creep leading to cost increases.
- Geopolitical risks associated with the Okinawa location.
- Dependency on contractor performance for timely completion.
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 TODA-AEC JV. REPLACE MUNITIONS STRUCTURES, KADENA AIR BASE, OKINAWA, JAPAN
Who is the contractor on this award?
The obligated recipient is TODA-AEC JV.
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: 2022-08-02. End: 2025-01-08.
What specific risks are associated with munitions storage structures, and how does this project mitigate them?
Munitions storage structures face risks including structural failure due to age or environmental factors, potential for accidental detonation, and security breaches. This project aims to mitigate these by replacing outdated facilities with modern, compliant structures designed for enhanced safety, security, and environmental containment, thereby reducing the likelihood of accidents and ensuring secure storage.
How does the firm fixed price contract type impact potential cost savings or overruns for this project?
A firm fixed price contract shifts most of the risk to the contractor, meaning the price is set and unlikely to change unless the scope of work is altered. This can lead to significant cost savings for the government if the contractor manages risks effectively. However, it also means the contractor may cut corners if not properly monitored, potentially leading to quality issues, or seek change orders if unforeseen issues arise, increasing costs.
What is the long-term value proposition of replacing these munitions structures at Kadena Air Base?
The long-term value lies in enhanced operational readiness, improved safety for personnel and the environment, and reduced maintenance costs associated with aging infrastructure. Modern facilities ensure compliance with current safety standards, minimize the risk of costly accidents or environmental remediation, and provide a secure, reliable platform for munitions storage, supporting critical defense missions.
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: W912HV22B0004
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2-13-7-8F, TENJIN, CHUO-KU, FUKUOKA
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $23,860,273
Exercised Options: $23,860,273
Current Obligation: $23,860,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-02
Current End Date: 2025-01-08
Potential End Date: 2025-01-08 00:00:00
Last Modified: 2024-12-20
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