DoD Awards $29.4M for Okinawa Building Repair, Gilbane Building Company Selected
Contract Overview
Contract Amount: $29,359,955 ($29.4M)
Contractor: Gilbane Building Company
Awarding Agency: Department of Defense
Start Date: 2022-10-18
End Date: 2026-02-04
Contract Duration: 1,205 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR III MIG INTEL, BLDG. 2814, CAMP HANSEN, OKINAWA, JAPAN
Plain-Language Summary
Department of Defense obligated $29.4 million to GILBANE BUILDING COMPANY for work described as: REPAIR III MIG INTEL, BLDG. 2814, CAMP HANSEN, OKINAWA, JAPAN Key points: 1. Contract awarded to Gilbane Building Company for essential repairs at Camp Hansen, Okinawa. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. Fixed-price contract type aims to control costs for the $29.4M expenditure.
Value Assessment
Rating: good
The contract value of $29.4 million for building repair in Okinawa appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects in overseas military installations 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, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing the value of taxpayer funds allocated for this critical infrastructure repair.
Public Impact
Ensures operational readiness and safety for personnel stationed at Camp Hansen. Supports the local economy in Okinawa through construction activities and potential subcontracting. Addresses critical infrastructure needs for the Department of Defense in a key strategic location.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the extended duration and overseas location.
- Geopolitical risks associated with operating in Japan could impact project timelines.
- Dependency on a single contractor for a significant repair project.
Positive Signals
- Fixed-price contract helps mitigate cost escalation risks.
- Full and open competition suggests a competitive price was likely secured.
- Project addresses essential infrastructure needs, ensuring long-term operational capability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and repair of non-residential structures. Spending in this sector is often driven by government infrastructure needs and military base modernization efforts.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to Gilbane Building Company. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, should be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended contract duration (1205 days) increases exposure to market fluctuations and potential delays.
- Overseas location presents logistical and geopolitical risks.
- Lack of small business participation noted in the prime contract award.
- Potential for scope creep if repair needs are more extensive than initially defined.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to GILBANE BUILDING COMPANY. REPAIR III MIG INTEL, BLDG. 2814, CAMP HANSEN, OKINAWA, JAPAN
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.4 million.
What is the period of performance?
Start: 2022-10-18. End: 2026-02-04.
What is the estimated cost per square foot for the repair work, and how does it compare to similar projects?
The provided data does not include the square footage of the building or the specific scope of repairs, making a per-square-foot cost calculation impossible. To assess value, this information would be crucial for comparison against industry benchmarks for commercial and institutional building construction, especially in overseas locations which often incur higher costs due to logistics and labor.
What are the specific risks associated with performing construction in Okinawa, Japan, and how are they being mitigated?
Risks in Okinawa can include logistical challenges for materials and personnel, potential labor shortages, specific environmental regulations, and seismic activity. Mitigation strategies likely involve detailed logistical planning, robust safety protocols, coordination with local authorities, and potentially specialized construction techniques to address seismic concerns. The contract's duration and fixed-price nature suggest some risk has been factored into the pricing.
How effectively does this contract contribute to the long-term infrastructure resilience and operational readiness of Camp Hansen?
The contract's focus on repairing Building 2814 directly addresses a specific infrastructure need, contributing to the immediate operational readiness and safety of personnel. Its long-term effectiveness depends on the quality of the repairs and whether they adequately modernize or reinforce the structure against future stresses, ensuring sustained operational capability for the facility.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912HV22R0004
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7 JACKSON WALKWAY, PROVIDENCE, RI, 02903
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,359,955
Exercised Options: $29,359,955
Current Obligation: $29,359,955
Actual Outlays: $-9,710,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-18
Current End Date: 2026-02-04
Potential End Date: 2026-02-04 00:00:00
Last Modified: 2025-12-17
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