Department of the Army awards $3.8M contract for building repair at Camp Carroll, emphasizing firm fixed-price terms

Contract Overview

Contract Amount: $3,833,735 ($3.8M)

Contractor: SAM a Construction CO., Ltd

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2026-10-05

Contract Duration: 523 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR FAILING OR FAILED BLDG. #S-253, CAMP CARROLL

Plain-Language Summary

Department of Defense obligated $3.8 million to SAM A CONSTRUCTION CO., LTD for work described as: REPAIR FAILING OR FAILED BLDG. #S-253, CAMP CARROLL Key points: 1. The contract utilizes a firm fixed-price structure, which shifts cost overrun risks to the contractor. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 523 days indicates a significant scope of work for building repair. 4. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contractor, SAM A CONSTRUCTION CO., LTD, is the sole awardee for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the parent IDIQ contract or the specific repair needs. However, the firm fixed-price nature is generally favorable for the government in controlling costs, provided the initial bid accurately reflects the work. The total award amount of $3,833,734.71 for a 523-day repair project needs to be assessed against the complexity and scale of the building issues at Camp Carroll. Without comparable repair projects or detailed cost breakdowns, a precise value-for-money assessment is difficult.

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 a bid. The presence of 13 bids suggests a healthy level of competition for this particular delivery order. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple contractors to offer their best pricing and terms, aiming to secure the contract. This competitive pressure helps ensure that taxpayer funds are used efficiently for the required building repairs.

Public Impact

Military personnel and operations at Camp Carroll will benefit from improved and functional building infrastructure. The contract delivers essential repair services for a failing or failed building, ensuring operational readiness. The geographic impact is localized to Camp Carroll, likely within South Korea, supporting U.S. military installations abroad. The contract supports the construction and repair workforce, potentially creating or sustaining jobs in the relevant industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial building assessments were incomplete, leading to cost increases despite fixed-price terms.
Dependence on a single contractor for this specific delivery order, SAM A CONSTRUCTION CO., LTD, could pose a risk if performance issues arise.
The firm fixed-price nature requires careful contract management to ensure all specified repairs are completed to standard.

Positive Signals

The firm fixed-price contract structure transfers cost overrun risk to the contractor.
Awarded through full and open competition, indicating a robust bidding process.
The contract duration of 523 days allows ample time for thorough and quality repair work.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant area of federal spending. This contract falls within the broader category of facilities maintenance and repair, which is crucial for maintaining military readiness and operational capabilities. Federal spending in this sector often involves large-scale projects, and contracts are typically awarded through competitive bidding processes to ensure value for money. The Department of Defense is a major client in this sector, with substantial investments in infrastructure upkeep and modernization across its global installations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The competition was open to all responsible sources, which may include small businesses if they met the qualifications, but it was not a targeted initiative for them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and engineering commands. As a delivery order under a potential IDIQ contract, oversight would involve monitoring contractor performance against the statement of work, ensuring adherence to the firm fixed-price terms, and verifying the quality of repairs. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Base Infrastructure Repair
Facilities Maintenance Contracts
Department of Defense Construction Projects
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Commercial and Institutional Building Construction Services

Risk Flags

Potential for unforeseen conditions in 'failing or failed' building impacting fixed-price scope.
Contractor performance risk for SAM A CONSTRUCTION CO., LTD.
Adequacy of initial building assessment for scope definition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to SAM A CONSTRUCTION CO., LTD. REPAIR FAILING OR FAILED BLDG. #S-253, CAMP CARROLL

Who is the contractor on this award?

The obligated recipient is SAM A CONSTRUCTION CO., LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2025-04-30. End: 2026-10-05.

What is the track record of SAM A CONSTRUCTION CO., LTD with the Department of Defense?

Assessing the track record of SAM A CONSTRUCTION CO., LTD requires a detailed review of their past performance on federal contracts, specifically with the Department of Defense. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without access to this specific performance data, it is difficult to definitively state their track record. However, being awarded a contract of this value suggests they have met the minimum qualifications and demonstrated some level of capability to the contracting agency.

How does the $3.8M award compare to similar building repair contracts awarded by the Department of the Army?

Comparing this $3.8 million award requires benchmarking against similar building repair contracts for facilities of comparable size and complexity, particularly those awarded by the Department of the Army in similar geographic regions or climates. Factors such as the type of building, the extent of damage (failing or failed), and the specific repair scope are critical. If this award represents a cost per square foot or cost per repair item that is significantly higher or lower than established benchmarks for similar projects, it would indicate potential issues with pricing or value. Without access to a database of comparable projects with detailed cost breakdowns, a precise comparison is not feasible.

What are the primary risks associated with a firm fixed-price contract for building repairs?

The primary risk with a firm fixed-price (FFP) contract for building repairs lies in the potential for unforeseen conditions or scope creep. While the FFP structure shifts cost overrun risk to the contractor, if the initial assessment of the 'failing or failed' building's condition was incomplete, the contractor may face significant unexpected costs. This could lead to pressure to cut corners on quality, disputes over change orders, or contractor default if the financial burden becomes too great. Effective government oversight and a well-defined initial scope are crucial to mitigate these risks.

What is the expected effectiveness of the repairs based on the contract details?

The expected effectiveness of the repairs hinges on the thoroughness of the initial assessment and the quality of execution by SAM A CONSTRUCTION CO., LTD. The contract specifies 'REPAIR FAILING OR FAILED BLDG. #S-253', indicating a need for critical intervention. The 523-day duration suggests a comprehensive approach. Effectiveness will be measured by the building's restored functionality, structural integrity, and compliance with relevant building codes and safety standards post-repair. The firm fixed-price nature incentivizes the contractor to complete the work efficiently, but the government must ensure the repairs meet all specified requirements and standards.

What are the historical spending patterns for building repair at Camp Carroll or similar military installations?

Analyzing historical spending patterns for building repair at Camp Carroll or comparable military installations would provide context for the $3.8 million award. This involves examining past contract awards for facilities maintenance and repair at this specific base or others with similar operational environments and infrastructure ages. Understanding the frequency, cost, and scope of previous repair projects can help determine if this current contract is an anomaly, an expected expenditure, or potentially an indicator of recurring issues or underinvestment in maintenance. Such analysis requires access to historical contract data and an understanding of the installation's infrastructure lifecycle.

How does the number of bids (13) influence the potential value for money in this contract?

A total of 13 bids for this delivery order suggests a competitive marketplace for the required building repair services. A higher number of bids generally increases the likelihood that the government receives competitive pricing, as contractors are motivated to offer their best terms to win the contract. This level of competition typically leads to better value for money for taxpayers, as it reduces the potential for inflated prices that might occur in a less competitive environment. The government can leverage this competition to secure a fair price for the scope of work.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 61, DONGDEOK-RO, JUNG-GU, DAEGU

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Foreign Owned, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $3,833,735

Exercised Options: $3,833,735

Current Obligation: $3,833,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QVN24D0051

IDV Type: IDC

Timeline