DoD Awards $17.5M for MCAS Townhouse Revitalization, Phase 4, to Nippo Corporation
Contract Overview
Contract Amount: $17,478,880 ($17.5M)
Contractor: Nippo Corporation
Awarding Agency: Department of Defense
Start Date: 2015-07-27
End Date: 2027-05-15
Contract Duration: 4,310 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY24 WHOLE HOUSE REVITALIZATION NORTH SIDE TOWNHOUSE, PHASE 4, MCAS
Plain-Language Summary
Department of Defense obligated $17.5 million to NIPPO CORPORATION for work described as: FY24 WHOLE HOUSE REVITALIZATION NORTH SIDE TOWNHOUSE, PHASE 4, MCAS Key points: 1. Significant investment in military housing infrastructure. 2. Competition method appears robust, potentially driving value. 3. Long contract duration raises questions about flexibility and potential cost overruns. 4. Residential Remodelers sector is competitive, but specific expertise may limit bidders.
Value Assessment
Rating: fair
The contract value of $17.5M over approximately 12 years suggests a substantial project. Benchmarking against similar large-scale residential revitalization projects is difficult without more granular cost data, but the duration implies significant scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration and specialized nature of military housing revitalization might have implicitly limited the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for essential military housing upgrades. The competitive award process aims to ensure reasonable pricing, but the long-term nature warrants close monitoring for cost efficiency.
Public Impact
Enhances quality of life for service members and their families. Supports the readiness and retention of military personnel. Contributes to the local economy through construction jobs and material procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years)
- Potential for scope creep over extended period
- Limited specific data on per-unit cost efficiency
Positive Signals
- Awarded under full and open competition
- Addresses critical infrastructure needs
- Firm Fixed Price contract type limits cost risk to government
Sector Analysis
This contract falls within the construction sector, specifically residential remodeling for military installations. Spending benchmarks for such large-scale, long-term projects are highly variable based on location, scope, and specific requirements.
Small Business Impact
While awarded under full and open competition, the data does not indicate if small businesses were prime contractors or subcontractors. Large, multi-year infrastructure projects often involve significant subcontracting opportunities.
Oversight & Accountability
The Department of Defense, through the Department of the Army, is responsible for oversight. The long duration necessitates robust program management and regular performance reviews to ensure accountability and adherence to contract terms.
Related Government Programs
- Residential Remodelers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential for cost escalation
- Risk of outdated standards
- Limited visibility into small business participation
Tags
residential-remodelers, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to NIPPO CORPORATION. FY24 WHOLE HOUSE REVITALIZATION NORTH SIDE TOWNHOUSE, PHASE 4, MCAS
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 $17.5 million.
What is the period of performance?
Start: 2015-07-27. End: 2027-05-15.
What is the estimated cost per housing unit, and how does it compare to similar projects?
The provided data does not allow for a precise per-unit cost calculation due to the project's phased nature and long duration. A detailed cost breakdown would be needed to compare it against industry benchmarks for military housing revitalization, considering factors like modernization scope and regional labor costs.
What are the specific risks associated with a contract spanning over a decade?
Long-duration contracts carry risks such as potential material cost escalation beyond initial projections, outdated technology or building standards by completion, contractor performance degradation over time, and difficulties in adapting to evolving military family needs or base requirements. Effective contract management is crucial to mitigate these.
How will the effectiveness of this revitalization be measured over its multi-year lifecycle?
Effectiveness will likely be measured through key performance indicators (KPIs) related to housing quality improvements, resident satisfaction surveys, reduction in maintenance calls, adherence to project timelines and budget, and overall impact on service member morale and retention. Regular inspections and phased milestone reviews are essential.
Industry Classification
NAICS: Construction › Residential Building Construction › Residential Remodelers
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W912HV24R0016
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: $17,478,880
Exercised Options: $17,478,880
Current Obligation: $17,478,880
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-27
Current End Date: 2027-05-15
Potential End Date: 2027-05-15 00:00:00
Last Modified: 2025-10-28
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