DoD awards $35.4M contract for Yokota Air Base housing, with Gilbane Japan GK as prime

Contract Overview

Contract Amount: $35,364,037 ($35.4M)

Contractor: Gilbane Japan GK

Awarding Agency: Department of Defense

Start Date: 2025-08-07

End Date: 2028-01-03

Contract Duration: 879 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IMPROVE MILITARY FAMILY HOUSING PAIP 9 PHASE 1, YOKOTA AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $35.4 million to GILBANE JAPAN GK for work described as: IMPROVE MILITARY FAMILY HOUSING PAIP 9 PHASE 1, YOKOTA AIR BASE, JAPAN Key points: 1. Contract awarded to Gilbane Japan GK for housing improvements at Yokota Air Base. 2. The contract is a definitive contract with a firm fixed price. 3. Project duration is approximately 879 days, ending in January 2028. 4. This contract falls under the 'Residential Remodelers' North American Industry Classification System (NAICS) code. 5. The award was made under full and open competition. 6. The Department of the Army is the issuing agency. 7. The total value of the contract is over $35 million.

Value Assessment

Rating: fair

The contract value of $35.4 million for housing improvements at Yokota Air Base appears to be within a reasonable range for a project of this scale and complexity, especially considering the international location which often incurs additional costs. Benchmarking against similar military housing renovation projects in the Asia-Pacific region would provide a more precise value-for-money assessment. The firm fixed-price structure shifts risk to the contractor, which can be beneficial for the government if costs are well-managed by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bids suggests a moderate level of competition. While not a large number of bidders, full and open competition generally promotes price discovery and encourages competitive pricing from the participating firms.

Taxpayer Impact: Full and open competition, even with a limited number of bids, is generally favorable for taxpayers as it aims to secure the best possible price through a structured bidding process.

Public Impact

Military families stationed at Yokota Air Base, Japan, will benefit from improved housing conditions. The project involves significant renovations and improvements to residential housing units. The geographic impact is localized to Yokota Air Base in Japan. The contract supports the construction and remodeling workforce, likely including both local and potentially U.S.-based personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation in an older facility.
Logistical challenges and increased costs associated with performing construction work in an overseas location.
Dependence on a single prime contractor, Gilbane Japan GK, for successful project completion.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps control costs and manage budget.
Clear project scope and defined end date provide predictability.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on residential remodeling and renovation. The Department of Defense is a significant investor in military family housing, both domestically and internationally, to ensure adequate living conditions for service members and their families. Spending in this area is influenced by infrastructure needs, aging facilities, and quality-of-life initiatives. Comparable spending benchmarks would typically be found within large-scale government construction and renovation programs.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-asides. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not immediately clear from this award alone, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed budget. Transparency may be enhanced through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are not explicitly stated.

Related Government Programs

Military Family Housing Improvement Program
Department of Defense Construction Contracts
Overseas Military Construction Projects
Residential Remodeling Contracts

Risk Flags

Overseas construction logistics
Potential for unforeseen site conditions
Compliance with foreign regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to GILBANE JAPAN GK. IMPROVE MILITARY FAMILY HOUSING PAIP 9 PHASE 1, 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 $35.4 million.

What is the period of performance?

Start: 2025-08-07. End: 2028-01-03.

What is the track record of Gilbane Japan GK in performing similar overseas military construction projects?

Assessing the track record of Gilbane Japan GK is crucial for understanding their capability to successfully execute this $35.4 million housing improvement contract at Yokota Air Base. Information on their past performance, particularly on Department of Defense contracts in Japan or similar overseas environments, would reveal their experience with logistical challenges, local regulations, and quality control standards. Reviewing past project completion times, budget adherence, and any documented performance issues or commendations would provide insight into their reliability. A history of successful, on-time, and within-budget project delivery would be a strong positive indicator, while a pattern of delays or cost overruns would raise concerns about potential risks for this current contract.

How does the per-unit cost of renovation compare to similar projects at other U.S. military bases?

To benchmark the value for money, a detailed analysis of the per-unit renovation cost is necessary. This would involve dividing the total contract value ($35.4 million) by the number of housing units to be renovated. This figure should then be compared against the average per-unit renovation costs for similar military housing projects at other U.S. bases, adjusting for factors like geographic location (which impacts labor and material costs), the scope of work (e.g., basic upgrades vs. complete gutting), and the age and condition of the existing structures. If the per-unit cost is significantly higher than comparable projects without a clear justification (like extreme remoteness or unique structural challenges), it could indicate potential overpricing or inefficiencies. Conversely, a cost below the average might suggest excellent value or a highly competitive bid.

What are the primary risks associated with performing construction in Japan for a U.S. military installation?

Performing construction at a U.S. military installation in Japan presents several unique risks. Logistical challenges are paramount, including importing materials and equipment, navigating customs, and managing transportation within the base and surrounding areas. Labor costs and availability can also be a factor, influenced by local regulations and agreements. Furthermore, understanding and complying with Japanese building codes and environmental regulations, in addition to U.S. military requirements, adds complexity. Geopolitical factors, while less common for construction, can influence security protocols and access. Finally, currency exchange rate fluctuations could impact the cost of imported goods and services if not adequately hedged. The firm fixed-price contract structure places the burden of managing these risks on Gilbane Japan GK.

What is the historical spending trend for military family housing improvements at Yokota Air Base or similar Pacific installations?

Analyzing historical spending for military family housing improvements at Yokota Air Base or comparable installations in the Pacific region is essential for contextualizing the current $35.4 million award. Understanding past investment levels can reveal whether this contract represents a significant increase or decrease in spending, potentially indicating a shift in priorities or a response to deferred maintenance. Examining trends over the last 5-10 years would show if there's a consistent program of upgrades or if spending is project-driven. Comparing Yokota's spending to other bases of similar size and strategic importance in the Pacific can also highlight regional investment disparities or common challenges. This historical data helps assess if the current funding is adequate for maintaining housing quality and meeting the needs of military families stationed there.

How will the success of this housing renovation project be measured and reported?

The success of this housing renovation project will likely be measured against several key performance indicators (KPIs) defined in the contract. These typically include adherence to the project schedule (ending January 3, 2028), completion within the firm fixed price of $35.4 million, and meeting specified quality standards for the renovations. Performance will be monitored by the contracting officer's representatives (CORs) or designated project managers from the Department of the Army. Regular progress reports from Gilbane Japan GK, site inspections, and potentially resident feedback surveys upon completion will contribute to the assessment. Final acceptance of the work by the government signifies the formal completion and success of the project, though ongoing warranties and defect liability periods will follow.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W912HV24R0001

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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $35,364,037

Exercised Options: $35,364,037

Current Obligation: $35,364,037

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline