DoD awards $39.6M for airfield damage repair equipment storage at Yokota Air Base, Japan

Contract Overview

Contract Amount: $39,631,389 ($39.6M)

Contractor: Gilbane Japan GK

Awarding Agency: Department of Defense

Start Date: 2023-02-03

End Date: 2025-07-18

Contract Duration: 896 days

Daily Burn Rate: $44.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AIRFIELD DAMAGE REPAIR EQUIPMENT STORAGE FACILITY, YOKOTA AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $39.6 million to GILBANE JAPAN GK for work described as: CONSTRUCTION OF AIRFIELD DAMAGE REPAIR EQUIPMENT STORAGE FACILITY, YOKOTA AIR BASE, JAPAN Key points: 1. Contract awarded to Gilbane Japan GK for construction services. 2. Project aims to enhance operational readiness by providing dedicated storage. 3. Full and open competition suggests a competitive bidding process. 4. Definitive contract type indicates a single, established agreement. 5. Firm fixed price contract type locks in costs, reducing financial risk. 6. Project duration of 896 days highlights the scale of the construction. 7. No small business set-aside, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $39.6 million for a large-scale construction project like an airfield damage repair equipment storage facility appears reasonable within the context of military infrastructure development. Benchmarking against similar construction projects for specialized military equipment storage, especially in overseas locations like Japan, would provide a more precise value-for-money assessment. The firm fixed price structure helps control costs, but the final value will depend on the execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized construction project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition, despite having only two bidders, provides some assurance that taxpayer funds were used efficiently by allowing multiple companies to vie for the contract, potentially driving down the price.

Public Impact

Benefits the U.S. Air Force by providing essential storage for critical repair equipment. Enhances operational readiness and response capabilities for airfield maintenance. Supports the infrastructure at Yokota Air Base, a key U.S. installation in Japan. Likely involves a significant construction workforce, potentially including local Japanese labor. Ensures timely access to equipment needed for rapid airfield repairs, minimizing downtime.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Dependence on the timely delivery of specialized construction materials and equipment.
Risk of schedule delays due to logistical challenges in an overseas location.

Positive Signals

Firm fixed price contract mitigates budget uncertainty.
Full and open competition suggests a competitive pricing environment.
Experienced contractor (Gilbane) likely brings expertise in large-scale construction projects.
Strategic location at Yokota Air Base ensures proximity to operational needs.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically for military infrastructure. The market for constructing specialized facilities for defense purposes is significant, driven by ongoing modernization and operational needs of armed forces globally. Comparable spending benchmarks for similar military construction projects in overseas bases can vary widely based on location, scope, and specific requirements, but projects of this scale often run into tens of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the prime contract was awarded to a larger entity capable of undertaking a project of this magnitude. The absence of small business participation in the prime contract may limit opportunities for smaller firms to engage in this specific project, though they might be involved in lower-tier subcontracts if the prime contractor utilizes them.

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, which holds the contractor responsible for delivering the facility within the agreed-upon cost. Transparency is typically facilitated through contract award announcements and reporting mechanisms, though detailed oversight activities are often internal to the agency.

Related Government Programs

Airfield Pavement Repair
Military Construction Projects
Base Infrastructure Development
Logistics and Storage Facilities
Defense Contract Management

Risk Flags

Potential for schedule slippage due to overseas logistics.
Risk of unforeseen site conditions impacting cost and schedule.
Limited competition (2 bidders) may affect optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to GILBANE JAPAN GK. CONSTRUCTION OF AIRFIELD DAMAGE REPAIR EQUIPMENT STORAGE FACILITY, YOKOTA AIR BASE, JAPAN

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 $39.6 million.

What is the period of performance?

Start: 2023-02-03. End: 2025-07-18.

What is Gilbane Japan GK's track record with Department of Defense construction contracts, particularly overseas?

Gilbane Building Company, the parent entity, has a substantial history of executing large-scale construction projects for the Department of Defense, both domestically and internationally. Their experience often includes military family housing, barracks, training facilities, and operational infrastructure. While specific details on Gilbane Japan GK's prior DoD contracts are not provided here, their affiliation with the larger Gilbane organization suggests a capacity to handle complex projects. A deeper dive into their past performance database, such as the Contractor Performance Assessment Reporting System (CPARS), would reveal specific project outcomes, quality of work, timeliness, and overall contractor responsibility on similar DoD endeavors.

How does the $39.6 million cost compare to similar airfield damage repair equipment storage facilities at other U.S. bases?

Benchmarking the $39.6 million cost requires comparing it to similar projects, considering factors like size, complexity, location, and prevailing construction costs. Constructing specialized storage facilities for heavy equipment on overseas bases like Yokota Air Base can be more expensive than domestic projects due to logistical challenges, import duties, and potentially higher labor costs. Without specific data on comparable facilities, it's difficult to definitively state if this price is high or low. However, for a facility designed to house specialized repair equipment and support critical airfield operations, a multi-million dollar investment is expected. Further analysis would involve examining the square footage, specific storage requirements, and any unique environmental or security considerations factored into the cost.

What are the primary risks associated with constructing this facility, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen site conditions, material price fluctuations (though mitigated by FFP), and schedule delays stemming from logistical challenges in Japan, labor availability, or weather. The firm fixed price (FFP) contract is a primary mitigation strategy, placing the financial risk of cost overruns on the contractor. The selection of Gilbane Japan GK, presumably an experienced firm, also mitigates risks related to execution quality and project management. The 896-day duration allows for a structured approach to managing these risks over a significant period. However, the government must maintain diligent oversight to ensure the contractor adheres to the contract terms and proactively addresses any emerging issues.

What is the expected impact of this facility on the operational effectiveness of airfield damage repair at Yokota Air Base?

The construction of a dedicated storage facility is expected to significantly enhance the operational effectiveness of airfield damage repair (ADR) at Yokota Air Base. Currently, equipment may be stored in less secure, less accessible, or dispersed locations, leading to delays in deployment during emergencies. A centralized, purpose-built facility ensures that critical ADR equipment is readily available, protected from the elements, and maintained in operational readiness. This improved accessibility and readiness directly translates to faster response times for airfield repairs, minimizing flight disruptions and supporting the base's overall mission continuity and sortie generation capabilities.

How has spending on similar construction projects at U.S. bases in Japan trended over the past five years?

Spending on similar construction projects at U.S. bases in Japan has generally trended upwards over the past five years, driven by infrastructure modernization initiatives, increased defense posture, and the need to maintain aging facilities. Projects range from housing and training facilities to operational infrastructure like hangars and support buildings. Factors influencing this trend include geopolitical considerations, the U.S.-Japan Status of Forces Agreement (SOFA) which outlines responsibilities, and the specific modernization priorities of the U.S. Forces Japan (USFJ). While specific aggregate spending data isn't provided, the consistent need for upgrades and new construction suggests a sustained level of investment in the region.

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: W912HV22B0009

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: $39,631,389

Exercised Options: $39,631,389

Current Obligation: $39,631,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline