DoD Awards $50.8M for New Multifamily Housing Construction to Obayashi Corporation
Contract Overview
Contract Amount: $50,815,966 ($50.8M)
Contractor: Obayashi Corporation
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2009-06-01
Contract Duration: 977 days
Daily Burn Rate: $52.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CLIN 0001 THROUGH 0007
Plain-Language Summary
Department of Defense obligated $50.8 million to OBAYASHI CORPORATION for work described as: CLIN 0001 THROUGH 0007 Key points: 1. The contract awarded to Obayashi Corporation for $50.8 million covers new multifamily housing construction. 2. This is a significant award within the construction sector, specifically for housing. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 977 days, indicating a substantial project timeline.
Value Assessment
Rating: fair
The award amount of $50.8 million for new multifamily housing construction appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and fosters competitive pricing. This method is expected to yield fair market value for the services provided.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, with the government likely securing a favorable price through the bidding process.
Public Impact
Military families will benefit from new housing facilities, potentially improving morale and quality of life. The construction project will likely create jobs within the local economy where the housing is being built. The Department of Defense's investment in housing infrastructure supports its mission readiness and personnel retention efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in construction timelines can impact housing availability.
- Ensuring quality of construction meets long-term durability standards.
Positive Signals
- Awarded under full and open competition.
- Addresses critical infrastructure needs for military personnel.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The construction sector, particularly for large-scale residential projects like multifamily housing, involves significant capital investment and complex project management. Spending benchmarks for such projects vary widely based on location, materials, and specific requirements.
Small Business Impact
While this specific contract was awarded to Obayashi Corporation, large federal construction projects often involve subcontracting opportunities for small businesses in areas such as material supply, specialized labor, and support services.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms, including site inspections and progress reporting, would be in place to ensure compliance with contract terms and quality standards.
Related Government Programs
- New Multifamily Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is substantial, increasing exposure to market fluctuations.
- Construction projects are susceptible to unforeseen site conditions.
- Reliance on a single contractor for the entire scope.
- Potential for scope creep if not managed tightly.
Tags
new-multifamily-housing-construction-exc, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.8 million to OBAYASHI CORPORATION. CLIN 0001 THROUGH 0007
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 Army).
What is the total obligated amount?
The obligated amount is $50.8 million.
What is the period of performance?
Start: 2006-09-28. End: 2009-06-01.
What is the projected cost per unit for the new multifamily housing?
The provided data does not specify the number of units or the cost per unit. To determine this, one would need to know the total number of housing units to be constructed under CLINs 0001 through 0007. This information is crucial for assessing the value and affordability of the housing provided to service members and their families.
What are the specific risks associated with the construction timeline of 977 days?
A 977-day construction timeline (approximately 2.7 years) carries inherent risks such as potential weather delays, material shortages, labor availability issues, and unforeseen site conditions. These factors could lead to project delays, increased costs, and impact the timely availability of housing for military personnel.
How does the firm fixed price contract ensure effectiveness and value for the government?
A Firm Fixed Price (FFP) contract shifts most of the risk to the contractor, Obayashi Corporation. This means the government pays a set price regardless of the contractor's actual costs, incentivizing the contractor to manage the project efficiently and effectively to maintain profitability. This structure provides cost certainty for the government and encourages timely completion within budget.
Industry Classification
NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)
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: W912HV06R0014
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2-15-2, KONAN, MINATO-KU
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $51,135,993
Exercised Options: $51,135,993
Current Obligation: $50,815,966
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-28
Current End Date: 2009-06-01
Potential End Date: 2009-06-01 00:00:00
Last Modified: 2009-05-18
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