Navy awards $77.89M contract for family housing facility maintenance and repair in Guam

Contract Overview

Contract Amount: $21,645,187 ($21.6M)

Contractor: Core Tech International Corporation

Awarding Agency: Department of Defense

Start Date: 2006-03-03

End Date: 2008-08-05

Contract Duration: 886 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200608!601178!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274206C1303 !A!N! !N! ! !20060303!20080302!778906404!778906404!778906404!N!SUN WOO CORPORATION !195 TUN JOSE SALAS STREET !TAMUNING !GU! !29350!010!66!FINEGAYAN STATION !GUAM !GUAM !+000021066480!N!N!000021066480!Z161!MAINT/FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236118!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!004!B! !Z!N!Z! ! !N!A!Y!Y!A! ! ! !A!A!000!A!B!Y!U!N! ! !1700!N62742!0001! !

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $21.6 million to CORE TECH INTERNATIONAL CORPORATION for work described as: 200608!601178!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274206C1303 !A!N! !N! ! !20060303!20080302!778906404!778906404!778906404!N!SUN WOO CORPORATION !195 TUN JOSE SALAS STREET !TAMUNING !GU! !29350!010!66!FINEGAYAN STATION !GUAM… Key points: 1. Contract focused on maintaining and repairing family housing facilities, indicating a need for ongoing infrastructure support. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of 886 days (approx. 2.4 years) points to a medium-term commitment for facility upkeep. 4. The primary service area is Guam, highlighting a significant regional focus for Navy housing maintenance. 5. The contract type is Firm Fixed Price, which transfers some risk to the contractor but can lead to higher initial bids. 6. The contractor, Sun Woo Corporation, is relatively new to federal contracting based on the award date, suggesting potential performance monitoring needs.

Value Assessment

Rating: fair

The total award amount of $77.89 million for maintenance and repair of family housing facilities over approximately 2.4 years appears substantial. Benchmarking this against similar contracts for housing maintenance in the Pacific region would be necessary for a precise value assessment. However, given the scope and location, the price may be within a reasonable range, though without specific comparable data, it's difficult to definitively assess value for money. The firm fixed-price nature suggests the government has locked in a price, but the contractor bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (4 indicated) suggests a competitive environment, which typically drives down prices and encourages innovation. The level of competition is a positive sign for price discovery and ensuring the government receives a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required maintenance and repair services, preventing potential overspending on essential housing infrastructure.

Public Impact

Navy families residing in Guam benefit from well-maintained and safe housing facilities. The contract ensures the continued habitability and operational readiness of residential properties managed by the Navy. The geographic impact is concentrated on Guam, supporting the local economy through construction and maintenance activities. The contract likely supports a local workforce in Guam, including construction workers, tradespeople, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record with this specific type of large-scale housing maintenance is not extensively documented prior to this award, requiring close performance monitoring.
Potential for cost overruns exists within a firm fixed-price contract if unforeseen issues arise in facility maintenance.
Geographic isolation of Guam can present logistical challenges and potentially increase costs for materials and specialized labor.

Positive Signals

Awarded under full and open competition, indicating a healthy market response and potential for competitive pricing.
The contract specifies maintenance and repair of family housing, addressing a critical need for military personnel and their families.
The firm fixed-price structure provides cost certainty for the government, assuming the contractor manages risks effectively.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on residential maintenance and repair. The market for military housing maintenance is significant, often involving large, long-term contracts awarded by various branches of the Department of Defense. Given the geographic location, this contract represents a substantial portion of construction and facility management spending within Guam's specific economic context, potentially involving local subcontractors.

Small Business Impact

While the contract was awarded to a prime contractor (Sun Woo Corporation), there is no explicit indication of a small business set-aside. However, large construction and maintenance contracts often involve subcontracting opportunities. It is possible that small businesses in Guam could be engaged as subcontractors for specialized services or local labor, contributing to the small business ecosystem in the region.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which awarded the contract. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Housing Privatization Initiative (MHPI)
Base Realignment and Closure (BRAC) related construction and maintenance
Department of Defense Facilities Maintenance Contracts
Naval Facilities Engineering Command (NAVFAC) Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature and geographic challenges.
Contractor's limited prior large-scale federal contract history requires performance monitoring.
Logistical complexities of operating in Guam could impact delivery and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to CORE TECH INTERNATIONAL CORPORATION. 200608!601178!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274206C1303 !A!N! !N! ! !20060303!20080302!778906404!778906404!778906404!N!SUN WOO CORPORATION !195 TUN JOSE SALAS STREET !TAMUNING !GU! !29350!010!66!FINEGAYAN STATION !GUAM !GUAM !+000021066480!N!N!000021066480!Z161!MAINT/FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236118!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CORE TECH INTERNATIONAL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2006-03-03. End: 2008-08-05.

What is the historical spending pattern for family housing maintenance and repair in Guam by the Department of the Navy?

Historical spending data for family housing maintenance and repair in Guam by the Department of the Navy would reveal trends in investment in military residential infrastructure. Analyzing past contracts, their values, durations, and the types of services rendered can provide context for the current $77.89 million award. This analysis would help determine if this contract represents an increase, decrease, or continuation of previous spending levels. It could also highlight any shifts in maintenance strategies or the condition of housing stock over time. Without specific historical data readily available in this format, a deeper dive into Navy budget documents and contract databases would be required to establish a comprehensive spending pattern for this specific geographic area and service category.

How does the per-square-foot cost of this contract compare to similar housing maintenance contracts in other Pacific island territories?

Comparing the per-square-foot cost of this $77.89 million contract to similar housing maintenance contracts in other Pacific island territories is crucial for assessing value for money. Factors such as the cost of living, material import costs, labor rates, and logistical challenges unique to island environments can significantly influence pricing. If data on comparable contracts were available, we could calculate an average cost per square foot for this contract and benchmark it. A higher cost per square foot might be justifiable due to Guam's specific economic conditions or the age/condition of the housing stock, but significant deviations from regional averages would warrant further investigation into the contract's pricing structure and scope.

What is the track record of Sun Woo Corporation in performing large-scale federal construction and maintenance contracts, particularly for the Department of Defense?

Sun Woo Corporation's track record in performing large-scale federal construction and maintenance contracts, especially for the Department of Defense, is a key indicator of potential performance risk. As this award appears to be a significant contract for the company, understanding their past performance on similar projects is vital. This would involve reviewing their contract history, including any past performance evaluations, awards, or disputes. A history of successful project completion, adherence to schedules and budgets, and positive client feedback would suggest a lower risk profile. Conversely, a lack of extensive experience or a history of performance issues would necessitate closer monitoring and potentially more stringent oversight by the contracting agency.

What specific types of maintenance and repair services are included under the 'Family Housing Facilities' category for this contract?

The 'Family Housing Facilities' category for this contract likely encompasses a broad range of services essential for maintaining residential properties. This typically includes routine maintenance (e.g., landscaping, pest control, minor repairs), preventative maintenance (e.g., HVAC servicing, roof inspections), and corrective maintenance or repair work (e.g., plumbing issues, electrical problems, structural repairs, interior/exterior renovations). The scope could also extend to upgrades and modernization efforts to ensure housing remains safe, functional, and up to current standards. A detailed breakdown of these services would be found in the contract's Statement of Work (SOW), which specifies the exact deliverables and performance standards expected from the contractor.

What are the potential risks associated with the firm fixed-price contract type for this specific housing maintenance project?

The firm fixed-price (FFP) contract type, while offering cost certainty to the government, carries specific risks for this housing maintenance project. The primary risk is that the contractor, Sun Woo Corporation, may face unforeseen cost increases due to factors like material price volatility, unexpected site conditions, or labor shortages, particularly in Guam's isolated market. If these costs exceed their initial estimates, the contractor might be incentivized to cut corners on quality or scope to maintain profitability, potentially impacting the long-term durability and safety of the housing facilities. Conversely, if the contractor significantly underestimates costs, they could face financial distress or default, disrupting essential services. The government's risk is primarily related to the potential for lower-quality work or contractor failure if cost pressures become too high.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 TUN JOSE SALAS STREET, TAMUNING, GU, 98

Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline