Air Force Awards $58M for Residential Remodeling to Obayashi Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $57,955,176 ($58.0M)
Contractor: Obayashi Corporation
Awarding Agency: Department of Defense
Start Date: 2010-08-11
End Date: 2014-04-21
Contract Duration: 1,349 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CLIN 1, BASE BID #1 363 UNITS INTERIOR W
Plain-Language Summary
Department of Defense obligated $58.0 million to OBAYASHI CORPORATION for work described as: CLIN 1, BASE BID #1 363 UNITS INTERIOR W Key points: 1. Significant contract value of $57.96 million for interior remodeling services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a single awardee for a large-scale project. 4. The sector involves residential remodeling, a common area for government facility maintenance.
Value Assessment
Rating: fair
The contract value of $57.96 million for 363 units suggests a per-unit cost of approximately $159,655. Without specific details on the scope of remodeling, it's difficult to benchmark against similar contracts, but this appears to be a substantial investment per unit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Impacts military housing quality and habitability for Air Force personnel. Supports the construction and remodeling industry, potentially creating jobs. Government spending on facility maintenance and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large-scale remodeling projects.
- Risk of contractor performance issues impacting project timelines.
- Long duration of the contract (1349 days) increases exposure to market fluctuations.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the construction and remodeling sector, specifically focusing on residential facilities. Government spending in this area is crucial for maintaining infrastructure and housing for personnel. Benchmarks for similar projects would depend heavily on the scope of work and location.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee, Obayashi Corporation, is a large international construction company, suggesting limited direct opportunity for small businesses in the prime contract.
Oversight & Accountability
Oversight would typically involve contract management by the Air Force to ensure adherence to specifications, quality standards, and timely completion. The duration and value suggest a need for robust monitoring.
Related Government Programs
- Residential Remodelers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Large contract value with a single awardee.
- Long contract duration increases risk exposure.
- Potential for scope creep and cost overruns in remodeling.
- Lack of detailed performance metrics in the provided data.
Tags
residential-remodelers, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.0 million to OBAYASHI CORPORATION. CLIN 1, BASE BID #1 363 UNITS INTERIOR W
Who is the contractor on this award?
The obligated recipient is OBAYASHI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $58.0 million.
What is the period of performance?
Start: 2010-08-11. End: 2014-04-21.
What was the specific scope of work for the interior remodeling, and how does the per-unit cost compare to industry averages for similar renovations?
The provided data lacks specific details on the scope of interior remodeling. The per-unit cost of approximately $159,655 is substantial. A thorough analysis would require comparing this figure against industry benchmarks for comparable renovation projects, considering factors like location, materials used, and the extent of the upgrades (e.g., kitchen and bathroom remodels, structural changes).
What were the key performance indicators (KPIs) for this contract, and how was contractor performance measured and evaluated?
The data does not specify the KPIs or performance evaluation metrics for this contract. Typically, for remodeling projects, KPIs would include adherence to schedule, quality of workmanship, safety compliance, and budget management. The contracting officer's representative (COR) would be responsible for monitoring these aspects throughout the contract's duration.
Were there any change orders or contract modifications issued during the contract period, and what was their impact on the total cost and schedule?
Information regarding change orders or contract modifications is not present in the provided data. For a contract of this duration and value, it is common to have modifications for unforeseen issues or scope adjustments. Analyzing these would be crucial to understanding the final cost and timeline deviations from the original plan.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA527010R0021
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2-15-2, KONAN, MINATO-KU
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $57,955,176
Exercised Options: $57,955,176
Current Obligation: $57,955,176
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-11
Current End Date: 2014-04-21
Potential End Date: 2014-04-21 00:00:00
Last Modified: 2014-10-08
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