DoD Awards $20.4M Contract for Yokota Air Base Facilities, NIPPO Corp Selected
Contract Overview
Contract Amount: $20,408,948 ($20.4M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2026-01-26
Contract Duration: 1,121 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF FACILITIES FOR DODEA PACIFIC EAST DISTRICT SUPERINTENDENT'S OFFICE AT YOKOTA AIR BASE JAPAN
Plain-Language Summary
Department of Defense obligated $20.4 million to NIPPO CORPORATION for work described as: CONSTRUCTION OF FACILITIES FOR DODEA PACIFIC EAST DISTRICT SUPERINTENDENT'S OFFICE AT YOKOTA AIR BASE JAPAN Key points: 1. Contract awarded to NIPPO CORPORATION for construction services. 2. Project aims to build facilities for DODEA Pacific East District Superintendent's Office. 3. Full and open competition was utilized for this procurement. 4. The contract is a Firm Fixed Price type, indicating price certainty.
Value Assessment
Rating: good
The contract value of $20.4 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar government construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process, allowing multiple qualified contractors to bid. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure development, with competition aiming to ensure value for money.
Public Impact
Enhances educational support infrastructure for military families in Japan. Supports the Department of Defense Education Activity (DODEA) mission. Contributes to the local economy through construction jobs and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term construction projects.
- Dependency on a single contractor for project completion.
Positive Signals
- Clear scope of work defined.
- Firm Fixed Price contract type mitigates cost escalation risk.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government construction spending in this sector can vary significantly based on infrastructure needs and geopolitical factors.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the prime contractor is NIPPO CORPORATION. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Army, as the contracting agency, is responsible for oversight. The definitive contract structure allows for clear milestones and deliverables to be monitored.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (over 3 years) increases risk of unforeseen issues.
- Geographic location in Japan may introduce logistical complexities.
- Firm Fixed Price contracts can strain contractor if costs escalate unexpectedly.
- Potential for scope creep if project requirements change during execution.
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 $20.4 million to NIPPO CORPORATION. CONSTRUCTION OF FACILITIES FOR DODEA PACIFIC EAST DISTRICT SUPERINTENDENT'S OFFICE AT YOKOTA AIR BASE 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 $20.4 million.
What is the period of performance?
Start: 2023-01-01. End: 2026-01-26.
What is the estimated cost per square foot for the facility construction, and how does it compare to industry benchmarks?
Without specific details on the facility's size and scope, calculating an exact cost per square foot is not possible from the provided data. However, for institutional buildings, costs can range widely based on location, materials, and complexity. A benchmark comparison would require detailed project specifications and local construction cost data for Yokota Air Base.
What are the key performance indicators (KPIs) for this contract, and how will NIPPO CORPORATION's performance be measured?
Key performance indicators for construction contracts typically include adherence to schedule, quality of workmanship, safety compliance, and budget management. The Department of the Army will likely monitor progress through regular site inspections, milestone reviews, and performance reports submitted by NIPPO CORPORATION to ensure the project meets all contractual requirements and specifications.
Are there any provisions for sustainability or environmental impact mitigation within the contract terms?
The provided data does not explicitly mention sustainability or environmental impact mitigation clauses. However, government construction contracts often include requirements for energy efficiency, waste reduction, and compliance with environmental regulations. A review of the full contract document would be necessary to confirm the presence and specifics of such provisions.
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: W912HV22B0011
Offers Received: 1
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: $20,408,948
Exercised Options: $20,408,948
Current Obligation: $20,408,948
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-01
Current End Date: 2026-01-26
Potential End Date: 2026-01-26 00:00:00
Last Modified: 2025-10-21
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