DOD's $21M Yokosuka Power Upgrade Contract Awarded to Obayashi Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $20,978,175 ($21.0M)
Contractor: Obayashi Corporation
Awarding Agency: Department of Defense
Start Date: 2007-02-20
End Date: 2008-08-01
Contract Duration: 528 days
Daily Burn Rate: $39.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 1ST INCREMENT - P-998 POWER UPGRADES, YOKOSUKA, JAPAN
Plain-Language Summary
Department of Defense obligated $21.0 million to OBAYASHI CORPORATION for work described as: 1ST INCREMENT - P-998 POWER UPGRADES, YOKOSUKA, JAPAN Key points: 1. The Department of the Army awarded a $20.98 million contract for power upgrades in Yokosuka, Japan. 2. Obayashi Corporation secured the contract through full and open competition. 3. The project involves power and communication line construction, indicating critical infrastructure development. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract value of $20.98 million for power infrastructure upgrades appears reasonable given the scope and location. 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 using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures reliable power infrastructure for U.S. military operations in Yokosuka, Japan. Supports critical communication networks essential for national security. Contributes to the modernization of U.S. military facilities abroad. Creates jobs and economic activity related to construction and infrastructure development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependency on timely delivery of specialized materials and equipment.
Positive Signals
- Firm Fixed Price contract limits government exposure to cost increases.
- Awarded through full and open competition, suggesting competitive pricing.
- Project addresses critical infrastructure needs for military readiness.
Sector Analysis
This contract falls under the Construction and Engineering sector, specifically related to utility infrastructure. Spending in this area is crucial for maintaining and upgrading essential services for government operations, particularly in overseas installations.
Small Business Impact
The contract was awarded through full and open competition, which typically favors larger, established firms. There is no specific indication of small business participation in this award, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Department of Defense's contracting process, including competitive bidding and contract oversight, aims to ensure efficient use of taxpayer funds. Monitoring project progress and adherence to specifications are key oversight functions.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays due to complex construction in an active military zone.
- Geopolitical factors in the region could impact material sourcing or logistics.
- Ensuring compliance with Japanese environmental and construction regulations.
- Cybersecurity risks associated with integrated power and communication systems.
Tags
power-and-communication-line-and-related, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to OBAYASHI CORPORATION. 1ST INCREMENT - P-998 POWER UPGRADES, YOKOSUKA, JAPAN
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 $21.0 million.
What is the period of performance?
Start: 2007-02-20. End: 2008-08-01.
What is the projected impact of this power upgrade on the operational readiness of the Yokosuka base?
The power upgrade is expected to significantly enhance the operational readiness of Yokosuka base by ensuring a stable and reliable power supply. This is critical for supporting advanced communication systems, essential base functions, and the deployment of modern military assets, thereby reducing the risk of disruptions due to power failures and improving overall mission effectiveness.
Are there any identified risks associated with the Obayashi Corporation's performance on this contract?
While Obayashi Corporation is a reputable firm, potential risks could include unforeseen geological conditions at the construction site impacting timelines and costs, or supply chain disruptions for specialized electrical components. The Firm Fixed Price nature of the contract mitigates direct cost escalation for the government, but delays could still impact operational readiness.
How does this contract contribute to the long-term energy security and resilience of the Yokosuka installation?
This contract directly contributes to long-term energy security by upgrading aging power infrastructure to meet current and future demands. It enhances resilience against potential threats or natural disasters by modernizing systems, potentially incorporating more robust or redundant power sources, ensuring sustained operations for critical military functions.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912HV07R0002
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: $21,084,773
Exercised Options: $21,084,773
Current Obligation: $20,978,175
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-02-20
Current End Date: 2008-08-01
Potential End Date: 2008-08-01 00:00:00
Last Modified: 2008-06-30
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