DoD Awards $22.5M for Army Residential Remodelers, Full and Open Competition

Contract Overview

Contract Amount: $22,507,021 ($22.5M)

Contractor: Ichiken CO Ltd

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2027-10-01

Contract Duration: 791 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY 25 FUNDING

Plain-Language Summary

Department of Defense obligated $22.5 million to ICHIKEN CO LTD for work described as: FY 25 FUNDING Key points: 1. Contract awarded to ICHIKEN CO LTD for $22.5M. 2. Full and open competition was utilized. 3. The contract is for residential remodelers. 4. Duration is 791 days, ending October 2027.

Value Assessment

Rating: fair

The contract value of $22.5M for residential remodeling over nearly two years appears reasonable given the scope. Benchmarking against similar large-scale renovation projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust price discovery process. This method aims to secure the best value for the government by allowing all eligible contractors to bid.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it promotes competitive pricing and potentially lower overall costs.

Public Impact

Military families may see improved housing conditions. Local economies could benefit from construction jobs. Potential for long-term infrastructure improvements on base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is lengthy.
Specific scope of 'remodelers' could be broad.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.

Sector Analysis

This contract falls under construction services, specifically residential remodeling for the Department of the Army. Spending in this sector can fluctuate based on infrastructure needs and housing initiatives.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine if small businesses had a fair opportunity to compete.

Oversight & Accountability

The award was made by the Department of the Army, indicating standard federal procurement oversight. The firm fixed price contract type provides cost certainty, but monitoring performance against the scope will be crucial.

Related Government Programs

Residential Remodelers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for scope creep given broad 'remodelers' description.
Long contract duration increases risk of unforeseen issues.
Lack of explicit small business participation data.
Dependence on contractor performance for quality outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to ICHIKEN CO LTD. FY 25 FUNDING

Who is the contractor on this award?

The obligated recipient is ICHIKEN 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 $22.5 million.

What is the period of performance?

Start: 2025-08-01. End: 2027-10-01.

What is the specific scope of work for 'Residential Remodelers' and how does it align with the contract value?

The term 'Residential Remodelers' is broad and could encompass a wide range of activities from minor upgrades to significant renovations. A detailed breakdown of the expected remodeling tasks, materials, and labor hours is necessary to accurately assess if the $22.5M contract value is justified and to ensure the contractor delivers the intended improvements efficiently.

What are the key performance indicators (KPIs) for this contract to ensure successful project completion and taxpayer value?

Key performance indicators should include adherence to project timelines, quality of workmanship, compliance with building codes and safety standards, and effective budget management. Regular site inspections and progress reports will be vital. Measuring resident satisfaction post-remodel could also serve as a valuable metric for overall effectiveness and taxpayer return.

How will the Department of the Army ensure accountability and prevent cost overruns given the long contract duration and fixed-price nature?

Accountability will be maintained through rigorous contract administration, including regular progress reviews, milestone tracking, and performance evaluations. The firm fixed-price structure inherently limits cost overruns for the government, provided the scope is well-defined and change orders are managed strictly. Proactive risk management and clear communication channels with the contractor are essential.

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: SEALED BID

Solicitation ID: W912HV25B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1-1-1 SHIBAURA, MINATO

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,507,021

Exercised Options: $22,507,021

Current Obligation: $22,507,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline