DoD awards $24.1M for Japanese infrastructure, with WSP USA leading construction
Contract Overview
Contract Amount: $24,100,163 ($24.1M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-20
End Date: 2025-10-17
Contract Duration: 758 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CIR/ ISI TANKS IN YOKOSUKA, SASEBO JAPAN
Plain-Language Summary
Department of Defense obligated $24.1 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: CIR/ ISI TANKS IN YOKOSUKA, SASEBO JAPAN Key points: 1. Contract value represents a significant investment in overseas military infrastructure. 2. The firm-fixed-price structure aims to control costs for the government. 3. Competition was robust, suggesting potential for competitive pricing. 4. The contract duration of over two years indicates a substantial project scope. 5. This award falls within the broader category of defense infrastructure support. 6. The project's success hinges on effective project management and timely execution.
Value Assessment
Rating: good
The contract value of $24.1 million for infrastructure construction in Japan appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, the firm-fixed-price nature of the award suggests a commitment to cost control. Benchmarking against similar overseas construction projects would provide further insight into value for money, but the competitive award process is a positive indicator.
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 had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bidders, as indicated, suggests a degree of market interest and engagement.
Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.
Public Impact
The Department of the Navy benefits from improved infrastructure at its facilities in Japan. This contract supports the construction of essential oil and gas pipeline infrastructure. The project's geographic impact is concentrated in Yokosuka and Sasebo, Japan. The contract may indirectly support local economies through employment and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Geopolitical factors in the region could impact project timelines or costs.
- Ensuring compliance with local Japanese regulations and environmental standards.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive pricing environment.
- Experienced contractor likely possesses relevant expertise for overseas projects.
Sector Analysis
This contract falls within the construction sector, specifically related to infrastructure development for energy transport. The market for such services is global, with significant government spending directed towards maintaining and upgrading critical infrastructure, especially in strategic overseas locations. Comparable spending benchmarks would typically involve large-scale civil engineering and construction projects, often with specialized requirements.
Small Business Impact
There is no indication that this contract included small business set-asides, nor are there explicit subcontracting requirements mentioned. The award to a large entity suggests that small businesses may not have been primary participants in the prime contract. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
The Department of the Navy, as the awarding agency, is responsible for oversight. The firm-fixed-price contract type provides a degree of accountability for the contractor to deliver within the agreed-upon price. Transparency is facilitated by the public award notice, but detailed project progress and financial reporting would be subject to contract terms and potentially Inspector General oversight if issues arise.
Related Government Programs
- Department of Defense Overseas Construction
- Navy Infrastructure Projects
- Energy Infrastructure Development
- Pipeline Construction Services
Risk Flags
- Potential for cost overruns
- Logistical challenges in overseas location
- Regulatory compliance complexity
Tags
defense, department-of-defense, department-of-the-navy, construction, infrastructure, pipeline-construction, full-and-open-competition, firm-fixed-price, overseas, japan, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. CIR/ ISI TANKS IN YOKOSUKA, SASEBO JAPAN
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2023-09-20. End: 2025-10-17.
What is the track record of WSP USA Environment & Infrastructure Inc. with similar Department of Defense contracts?
WSP USA Environment & Infrastructure Inc. has a history of performing work for the Department of Defense, often involving environmental consulting, engineering, and construction management services. While specific details on past pipeline construction projects for the DoD are not immediately available from this award alone, their broader portfolio suggests experience with large-scale government projects. A deeper dive into their contract history with agencies like the Army Corps of Engineers or the Navy would reveal their performance on comparable infrastructure initiatives, including their ability to manage complex projects in diverse environments and adhere to strict government requirements. Their past performance ratings on federal contracts, if publicly accessible, would offer further insight into their reliability and quality of work.
How does the awarded amount compare to similar overseas infrastructure projects managed by the Department of the Navy?
Comparing the $24.1 million award for pipeline construction in Japan to similar Department of the Navy overseas infrastructure projects requires access to a broader dataset of contract awards. However, for projects of this nature, involving specialized construction in a foreign, high-cost-of-living area, the amount appears within a plausible range. Factors such as the specific technical requirements of the pipelines, the complexity of the site, and the duration of the project (758 days) significantly influence cost. Without specific benchmarks for similar pipeline projects in the Pacific region or other overseas naval installations, it's challenging to definitively assess value. However, the competitive nature of the award suggests the price was deemed fair by the bidders.
What are the primary risks associated with this specific contract, and how are they being mitigated?
The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions, delays caused by logistical challenges in Japan, and adherence to stringent environmental and safety regulations. Geopolitical instability in the region could also pose a risk to project continuity. Mitigation strategies likely involve robust project management by WSP USA, detailed site investigations prior to and during construction, contingency planning for material and equipment delivery, and close coordination with local Japanese authorities. The firm-fixed-price contract structure itself acts as a risk mitigation tool for the government by capping the contractor's potential profit and incentivizing cost control.
How effective is the firm-fixed-price contract type in ensuring program effectiveness for this type of construction?
The firm-fixed-price (FFP) contract type is generally considered effective for construction projects where the scope of work is well-defined, as it shifts the risk of cost overruns to the contractor. For this pipeline construction project, the FFP structure incentivizes WSP USA to manage costs efficiently and complete the work within the agreed-upon budget. This can lead to greater cost certainty for the Department of the Navy. However, the effectiveness relies heavily on the accuracy of the initial scope definition and cost estimates. If unforeseen issues arise that significantly alter the scope, change orders could increase the total cost, potentially negating some of the FFP benefits. Nonetheless, for standard infrastructure construction, FFP is a common and often effective choice for controlling expenditures.
What is the historical spending pattern for oil and gas pipeline construction by the Department of the Navy in the Pacific region?
Analyzing the historical spending patterns for oil and gas pipeline construction by the Department of the Navy specifically in the Pacific region requires access to comprehensive historical contract data. This single award provides a data point but does not reveal a trend. Generally, the Navy invests in infrastructure maintenance and upgrades at its overseas bases, which can include pipeline systems for various fuels. Spending in this area can fluctuate based on the age of facilities, strategic priorities, and specific modernization initiatives. Without a broader analysis of past contracts, it's difficult to determine if this $24.1 million award represents a typical, increased, or decreased level of investment for such projects in the region.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N3943019R2101
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 751 ARBOR WAY, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,100,163
Exercised Options: $24,100,163
Current Obligation: $24,100,163
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $875,460
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943020D2228
IDV Type: IDC
Timeline
Start Date: 2023-09-20
Current End Date: 2025-10-17
Potential End Date: 2025-10-17 00:00:00
Last Modified: 2025-04-16
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