DoD Awards $23.75M Combat Arms Training Facility Contract to Obayashi Corporation at Yokota Air Base
Contract Overview
Contract Amount: $23,753,152 ($23.8M)
Contractor: Obayashi Corporation
Awarding Agency: Department of Defense
Start Date: 2022-11-08
End Date: 2026-01-11
Contract Duration: 1,160 days
Daily Burn Rate: $20.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY22 ZNRE063004 COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, YOKOTA AIR BASE, JAPAN
Plain-Language Summary
Department of Defense obligated $23.8 million to OBAYASHI CORPORATION for work described as: FY22 ZNRE063004 COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, YOKOTA AIR BASE, JAPAN Key points: 1. Contract awarded for a significant infrastructure project at a key US Air Force base in Japan. 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. Potential risks include construction delays, cost overruns, and geopolitical factors affecting the Japan-based project.
Value Assessment
Rating: good
The contract value of $23.75M for a training facility appears reasonable given the scope and location. Benchmarking against similar DoD construction projects in overseas locations would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all responsible sources to submit bids, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive nature of the award is expected to result in a fair price, maximizing the value of taxpayer funds allocated to this essential military infrastructure.
Public Impact
Enhances combat readiness capabilities for US forces stationed in Japan. Supports the long-term infrastructure development and modernization efforts of the Department of Defense. Provides construction employment opportunities, potentially benefiting local economies in Japan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risks associated with operating in Japan.
- Potential for supply chain disruptions affecting construction materials.
- Currency exchange rate fluctuations impacting the final cost.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost escalation.
- Experienced contractor likely involved.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for military training facilities. Spending in this sector is often driven by modernization needs and geopolitical requirements, with significant government investment.
Small Business Impact
The data indicates this contract was awarded to Obayashi Corporation, a large international firm. There is no explicit indication of small business participation in this specific award, which is common for large-scale construction projects of this nature.
Oversight & Accountability
The Department of Defense is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, are expected to be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability in the region.
- Potential for unforeseen site conditions.
- Reliance on foreign supply chains.
- Contractor performance history in similar environments.
- Compliance with Japanese environmental regulations.
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 $23.8 million to OBAYASHI CORPORATION. FY22 ZNRE063004 COMBAT ARMS TRAINING MAINTENANCE (CATM) FACILITY, YOKOTA AIR BASE, 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 $23.8 million.
What is the period of performance?
Start: 2022-11-08. End: 2026-01-11.
What is the projected impact of this facility on the operational readiness of combat arms units at Yokota Air Base?
The new Combat Arms Training Maintenance (CATM) facility is expected to significantly enhance operational readiness by providing a modern, dedicated space for essential training. This includes improved safety features, realistic simulation capabilities, and efficient maintenance operations for firearms and related equipment, ultimately ensuring units are better prepared for their missions.
What are the primary risks associated with the construction of this facility in Japan, and how are they being mitigated?
Key risks include navigating Japanese construction regulations, potential labor shortages, and logistical challenges for materials. Mitigation strategies likely involve close collaboration with local authorities, engaging experienced Japanese subcontractors, and robust supply chain management to ensure timely delivery of necessary resources and adherence to quality standards.
How does the firm fixed price contract structure ensure cost-effectiveness for this project?
The Firm Fixed Price (FFP) contract structure shifts the risk of cost overruns to the contractor, Obayashi Corporation. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon budget. For the government, it provides budget certainty and protects against unexpected increases in material or labor costs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912HV22B0008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2-15-2, KONAN, MINATO-KU
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $23,753,152
Exercised Options: $23,753,152
Current Obligation: $23,753,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-08
Current End Date: 2026-01-11
Potential End Date: 2026-01-11 00:00:00
Last Modified: 2025-11-11
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