Department of the Navy awarded $12.8M for housing revitalization, with TIME ENGINEERING & CONSTRUCTION CO., LTD as the contractor

Contract Overview

Contract Amount: $12,772,082 ($12.8M)

Contractor: Time Engineering & Construction CO., Ltd

Awarding Agency: Department of Defense

Start Date: 2009-03-13

End Date: 2014-01-02

Contract Duration: 1,756 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WHOLE HOUSE REVITALIZATION, CHINHAE

Plain-Language Summary

Department of Defense obligated $12.8 million to TIME ENGINEERING & CONSTRUCTION CO., LTD for work described as: WHOLE HOUSE REVITALIZATION, CHINHAE Key points: 1. The contract value of $12.8M for housing revitalization appears to be a significant investment in military family housing. 2. The use of a definitive contract suggests a need for flexibility in scope or duration, which can sometimes lead to cost overruns if not managed carefully. 3. The contract was awarded under full and open competition, indicating a broad market search and potential for competitive pricing. 4. The duration of 1756 days (nearly 5 years) suggests a large-scale or complex project, requiring sustained effort and oversight. 5. The fixed-price nature of the contract aims to control costs, but the definitive contract type might allow for modifications that impact the final price. 6. The absence of small business set-asides means opportunities for smaller firms may have been limited in the prime contract award.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of 'WHOLE HOUSE REVITALIZATION' and the number of units involved. However, a nearly 5-year duration for a $12.8M contract suggests a substantial undertaking. The firm fixed-price structure is generally favorable for cost control, but the definitive contract type can introduce flexibility that might affect the final cost. Without comparable projects or detailed cost breakdowns, a precise value-for-money assessment is difficult, but the long duration and significant investment warrant careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the Department of the Navy sought bids from all responsible sources. This approach generally promotes a competitive environment, which can lead to better pricing and quality. The number of bidders is not specified, but full and open competition suggests a robust process was intended. The effectiveness of this competition in driving down costs depends on the number of qualified bidders and the clarity of the solicitation requirements.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it maximizes the pool of potential contractors, fostering a competitive environment that can lead to more favorable pricing and better service delivery.

Public Impact

Military families residing in Chinhae, South Korea, are the primary beneficiaries, receiving improved housing conditions. The services delivered include comprehensive revitalization of residential housing units, addressing structural and amenity needs. The geographic impact is localized to the Chinhae naval base area, directly affecting the quality of life for personnel stationed there. The contract supports the construction and remodeling workforce, likely employing skilled tradespeople for the duration of the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The definitive contract type, while allowing flexibility, could lead to scope creep and increased costs if not meticulously managed.
The long contract duration increases the risk of unforeseen issues arising, such as material cost fluctuations or changes in military housing standards.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The absence of small business participation in the prime contract award might limit broader economic impact and diversity in contracting.

Positive Signals

Awarding under full and open competition suggests a commitment to achieving competitive pricing and selecting the best value offer.
The firm fixed-price contract type provides cost certainty for the government, assuming the scope remains well-defined.
The contractor, TIME ENGINEERING & CONSTRUCTION CO., LTD, has been awarded a significant contract, indicating a level of trust and capability.
The focus on 'WHOLE HOUSE REVITALIZATION' implies a comprehensive approach to improving living conditions, which is a positive outcome for service members.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically focusing on residential remodeling for military housing. The market for military construction and renovation is substantial, driven by the need to maintain and upgrade aging infrastructure across global bases. Comparable spending benchmarks would typically involve other large-scale housing renovation projects awarded by the Department of Defense or other federal agencies. The size of this contract ($12.8M) positions it as a significant project within the residential construction sub-sector.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This means that the prime contract was open to all responsible contractors, regardless of size. While this maximizes competition, it also means that direct opportunities for small businesses to perform the prime contract work were not specifically reserved. Small businesses may still have opportunities to participate as subcontractors to the prime contractor, TIME ENGINEERING & CONSTRUCTION CO., LTD, but the extent of this subcontracting is not detailed in the provided information. The impact on the small business ecosystem depends on the prime contractor's subcontracting plan and adherence to any small business utilization goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and project management offices. As a definitive contract, it likely involves regular progress reviews, financial audits, and quality assurance checks to ensure compliance with the firm fixed-price terms and project specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Military Family Housing Construction
Department of Defense Facilities Maintenance
Residential Construction Contracts
Global Base Infrastructure Improvement
Naval Facilities Engineering Command Projects

Risk Flags

Long contract duration may increase risk of cost escalation due to market fluctuations.
Definitive contract type allows flexibility but requires stringent oversight to prevent scope creep.
Lack of specified number of bidders limits assessment of competitive intensity.
Absence of small business set-aside may limit broader economic participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to TIME ENGINEERING & CONSTRUCTION CO., LTD. WHOLE HOUSE REVITALIZATION, CHINHAE

Who is the contractor on this award?

The obligated recipient is TIME ENGINEERING & CONSTRUCTION CO., LTD.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2009-03-13. End: 2014-01-02.

What is the track record of TIME ENGINEERING & CONSTRUCTION CO., LTD with the Department of Defense?

Without access to a comprehensive database of contractor performance history, it is difficult to definitively assess TIME ENGINEERING & CONSTRUCTION CO., LTD's track record. However, being awarded a definitive contract valued at $12.8 million for a significant project like 'WHOLE HOUSE REVITALIZATION' suggests a certain level of established capability and past performance that met the Department of the Navy's requirements. Further investigation into past awards, performance reviews (if publicly available), and any past issues or commendations would be necessary for a thorough assessment. The duration and value of this contract imply a need for reliable execution and adherence to contractual obligations.

How does the per-unit cost of this housing revitalization compare to similar projects?

The provided data does not include the number of housing units being revitalized, making a per-unit cost calculation impossible. To benchmark this contract effectively, we would need to know the total number of units affected by the 'WHOLE HOUSE REVITALIZATION' project. Once that figure is known, the total contract value ($12,772,081.78) could be divided by the number of units. This per-unit cost could then be compared to similar housing revitalization projects undertaken by the Department of Defense or other federal agencies in comparable geographic locations and with similar scope of work. Without this unit count, any comparison would be speculative.

What are the primary risks associated with a definitive contract of this duration and value?

A primary risk with a definitive contract of this duration (1756 days) and value ($12.8M) is the potential for scope creep and cost escalation, despite the firm fixed-price structure. Definitive contracts offer flexibility, which can be beneficial but also allows for modifications that might increase the overall cost if not tightly controlled. Another significant risk is the contractor's ability to maintain performance and quality over such an extended period. Market volatility, such as fluctuations in material costs or labor availability, poses a risk, especially over nearly five years. Furthermore, ensuring consistent oversight and management from the government's side over the entire contract lifecycle is crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for housing revitalization projects?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including housing revitalization. By allowing all responsible sources to bid, it maximizes the potential for competitive pricing and encourages contractors to offer their best value proposals. This broad competition can drive down costs and improve the quality of services or goods provided. However, the effectiveness is contingent on the number of qualified bidders, the clarity and completeness of the solicitation, and the government's ability to properly evaluate proposals. If only a few contractors are capable of performing the work, the competitive advantage may be diminished.

What is the historical spending trend for residential remodelers by the Department of the Navy?

The provided data snippet focuses on a single contract and does not offer historical spending trends for residential remodelers by the Department of the Navy. To analyze historical spending, one would need to query contract databases for all awards made to contractors categorized under 'Residential Remodelers' (ND code) by the Department of the Navy over several fiscal years. This would involve aggregating contract values, identifying trends in award volume, average contract size, and the types of services procured. Such an analysis could reveal whether spending in this category has increased, decreased, or remained stable, and identify any shifts in contracting strategies or priorities.

What are the implications of the firm fixed-price contract type on project management and potential cost overruns?

A firm fixed-price (FFP) contract type is designed to provide the government with cost certainty and transfer most of the cost risk to the contractor. For the Department of the Navy, this means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their project efficiently and control expenses. However, for a project of this scale and duration, the risk of cost overruns for the contractor is significant. If unforeseen issues arise that are not covered by contract clauses allowing for equitable adjustments, the contractor may incur losses. Conversely, if the scope is not well-defined or changes frequently, the government might end up paying more through change orders, negating some of the FFP benefits.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

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: N4008408R4504

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550-14 SEOCHO-DONG, SEOCHO-KU, SEOUL

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,772,082

Exercised Options: $12,772,082

Current Obligation: $12,772,082

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline