DoD awards $6.5M for munitions facility repairs, with 6 bids received
Contract Overview
Contract Amount: $6,525,167 ($6.5M)
Contractor: Sumiju Yokosuka Kogyo CO., Ltd.
Awarding Agency: Department of Defense
Start Date: 2023-10-23
End Date: 2027-01-20
Contract Duration: 1,185 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR MUNITIONS SUPPORT BUILDINGS AND EARTH COVERED MAGAZINES (ECM).
Plain-Language Summary
Department of Defense obligated $6.5 million to SUMIJU YOKOSUKA KOGYO CO., LTD. for work described as: REPAIR MUNITIONS SUPPORT BUILDINGS AND EARTH COVERED MAGAZINES (ECM). Key points: 1. Contract awarded through full and open competition, suggesting a competitive market. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Delivery order under an existing contract indicates potential for follow-on work. 4. The duration of 1185 days suggests a significant scope of repair work. 5. The contractor, SUMIJU YOKOSUKA KOGYO CO., LTD., is a new entity in this contract data. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the scope of repairs and the condition of the facilities. The award amount of $6.5 million for a nearly four-year duration suggests a moderate annual spend. Without comparable repair contracts for similar munitions storage facilities, assessing the pricing and value for money is difficult. The firm fixed-price nature provides cost certainty but requires careful scope definition to avoid change orders.
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. Six bids were received, which suggests a reasonable level of competition for this type of specialized construction and repair service. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source award. The six bids indicate that the government had options, increasing the likelihood of securing services at a reasonable cost.
Public Impact
The primary beneficiaries are the Department of the Army, which will receive repaired and maintained munitions storage facilities. Services delivered include the repair of buildings and earth-covered magazines (ECMs) essential for safe munitions storage. The geographic impact is likely localized to the specific military installation where the facilities are located. Workforce implications may include employment opportunities for construction and skilled trades personnel involved in the repair work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of repairs is underestimated or unforeseen issues arise in aging infrastructure.
- Dependence on a single contractor for a critical infrastructure repair project could pose a risk if performance issues emerge.
- Ensuring compliance with stringent safety and environmental regulations for munitions storage facilities requires diligent oversight.
Positive Signals
- Awarded under full and open competition with six bids received, indicating a competitive process.
- Firm Fixed Price contract structure transfers cost risk to the contractor.
- The contract duration of over three years allows for thorough execution of repair work.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized facilities for defense purposes. The market for military construction and repair services is often characterized by a mix of large prime contractors and specialized subcontractors. Government spending in this area is substantial, driven by the need to maintain aging infrastructure and ensure the operational readiness of military installations. Comparable spending benchmarks would typically involve analyzing other repair and construction contracts for similar defense assets.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting plans specifically targeting small businesses in the provided data. This means that the primary contract was awarded to a large business or a foreign entity, and the direct impact on the small business ecosystem is limited unless subcontracting opportunities arise organically. Further analysis would be needed to determine if the prime contractor intends to utilize small business subcontractors.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to complete the work to specifications. Transparency is generally provided through contract award databases, but detailed oversight reports or inspector general involvement would depend on specific performance issues or audits.
Related Government Programs
- Military Construction
- Facility Maintenance and Repair
- Munitions Storage
- Defense Infrastructure
Risk Flags
- Potential for scope creep due to the nature of repair work on aging infrastructure.
- Ensuring contractor compliance with specialized safety and environmental regulations for munitions storage.
- Dependence on a single contractor for a critical infrastructure project.
Tags
department-of-defense, department-of-the-army, construction, repair, munitions-storage, firm-fixed-price, full-and-open-competition, delivery-order, commercial-and-institutional-building-construction, yokosuka, japan
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to SUMIJU YOKOSUKA KOGYO CO., LTD.. REPAIR MUNITIONS SUPPORT BUILDINGS AND EARTH COVERED MAGAZINES (ECM).
Who is the contractor on this award?
The obligated recipient is SUMIJU YOKOSUKA KOGYO CO., LTD..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2023-10-23. End: 2027-01-20.
What is the track record of SUMIJU YOKOSUKA KOGYO CO., LTD. with the Department of Defense or similar government agencies?
Based on the provided data, SUMIJU YOKOSUKA KOGYO CO., LTD. appears to be a new entity in relation to this specific contract award. Without access to broader federal procurement databases or past performance information, it is difficult to assess their historical track record with the Department of Defense or other government agencies. Further investigation into their contract history, past performance reviews, and any prior experience with similar construction and repair projects would be necessary to fully evaluate their reliability and capability.
How does the per-square-foot cost of these repairs compare to industry benchmarks for similar facilities?
The provided data does not include the square footage of the facilities being repaired or detailed cost breakdowns, making a direct per-square-foot cost comparison impossible. To perform such an analysis, one would need the total repairable area and the contract value allocated to those specific repairs. Industry benchmarks for institutional building construction vary significantly based on location, building type, age, and the complexity of the required work. Without these specifics, any comparison to market rates would be speculative.
What are the specific risks associated with repairing earth-covered magazines (ECMs) compared to standard buildings?
Repairing earth-covered magazines (ECMs) presents unique risks primarily due to their specialized nature and the materials involved in their construction and the munitions they are designed to store. ECMs are often built with reinforced concrete and covered with earth for blast mitigation and protection. Risks include potential structural integrity issues in aging ECMs, the need for specialized hazardous material handling protocols during repair, stringent safety requirements due to proximity to munitions, and the potential for environmental contamination if not managed properly. The repair process must adhere to strict military specifications to ensure continued safety and functionality.
What is the historical spending pattern for munitions facility repairs within the Department of the Army over the last five years?
Analyzing historical spending patterns for munitions facility repairs within the Department of the Army requires access to comprehensive federal procurement data over a defined period. This specific contract award of $6.5 million represents a single data point. A broader analysis would involve aggregating spending on similar North American Industry Classification System (NAICS) codes (like 236220) or Product Service Codes (PSCs) related to facility repair and construction for munitions storage across multiple years. This would reveal trends, identify peak spending periods, and highlight any significant increases or decreases in investment in such infrastructure.
What are the potential implications of this contract being a delivery order under an existing contract?
A delivery order issued under an existing contract, often referred to as a task order or a basic ordering agreement (BOA), implies that a broader contract vehicle was previously established, likely through a competitive process. This approach allows the government to procure specific goods or services incrementally as needed. For this contract, it suggests that the Department of the Army had pre-negotiated terms and conditions with a prime contractor, potentially streamlining the procurement process for these repairs. It also indicates that the initial contract vehicle likely covered a range of potential repair or construction needs, and this specific order defines the scope, cost, and schedule for the munitions facility work.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912HV20R0002
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 19, NATSUSHIMACHO, YOKOSUKA
Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $6,525,167
Exercised Options: $6,525,167
Current Obligation: $6,525,167
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912HV21D0008
IDV Type: IDC
Timeline
Start Date: 2023-10-23
Current End Date: 2027-01-20
Potential End Date: 2027-01-20 00:00:00
Last Modified: 2025-12-21
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