Army Awards $26.7M Construction Contract to Yuil Eng. & Const. Co. in FY05
Contract Overview
Contract Amount: $26,679,819 ($26.7M)
Contractor: Yuil ENG. & Const. CO.,Ltd
Awarding Agency: Department of Defense
Start Date: 2005-06-15
End Date: 2008-12-31
Contract Duration: 1,295 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: CONT, 101611, W912UM-05-R-0015, FY05
Plain-Language Summary
Department of Defense obligated $26.7 million to YUIL ENG. & CONST. CO.,LTD for work described as: CONT, 101611, W912UM-05-R-0015, FY05 Key points: 1. The contract value of $26.7 million falls within typical ranges for heavy civil engineering construction projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 4. The project duration of 1295 days indicates a significant, long-term construction undertaking.
Value Assessment
Rating: good
The contract value of $26.7 million appears reasonable for a large-scale civil engineering construction project of this duration. Benchmarking against similar Department of Defense construction contracts 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 bidders were allowed to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to have resulted in a fair market price, maximizing taxpayer value.
Public Impact
Infrastructure development: This contract likely supports the construction or upgrade of significant civil engineering infrastructure. Economic impact: The project will create jobs and stimulate economic activity in the construction sector. Long-term asset: The completed project will represent a long-term asset for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1295 days).
- No small business participation noted.
Positive Signals
- Fixed-price contract type.
- Full and open competition.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector (NAICS 237990). Spending in this sector is substantial, driven by government infrastructure needs and military base development. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss=false, sb=false). There is no specific information provided regarding subcontracting goals or efforts to include small businesses in the supply chain for this project.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard government oversight mechanisms for construction contracts would apply, including progress monitoring and quality assurance to ensure compliance with terms and taxpayer interests.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may increase risk of cost escalation or scope creep.
- No indication of small business participation.
- Lack of specific project details limits detailed value assessment.
- Potential for contractor financial strain on long-term fixed-price contracts.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to YUIL ENG. & CONST. CO.,LTD. CONT, 101611, W912UM-05-R-0015, FY05
Who is the contractor on this award?
The obligated recipient is YUIL ENG. & CONST. 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 $26.7 million.
What is the period of performance?
Start: 2005-06-15. End: 2008-12-31.
What specific type of civil engineering construction was undertaken, and how does its scope align with the awarded value?
The contract falls under NAICS code 237990, 'Other Heavy and Civil Engineering Construction.' While the specific project details are not provided, this category encompasses a wide range of activities such as water/sewer systems, dams, bridges, and tunnels. The $26.7 million value suggests a project of considerable scale, likely involving significant materials, labor, and specialized equipment.
What are the potential risks associated with a fixed-price contract for a project spanning over three years?
Fixed-price contracts shift cost overrun risk to the contractor. For a long-duration project like this (1295 days), risks include potential material price escalation, unforeseen site conditions, and labor cost increases, all of which could strain the contractor's profitability or lead to disputes if not managed effectively. However, it also provides cost certainty for the government.
How effective was the full and open competition in achieving the best value for the government?
Full and open competition is generally considered the most effective method for achieving best value by fostering a competitive environment. Without knowing the number of bids received or the price spread, it's difficult to definitively assess effectiveness. However, the process itself increases the likelihood of a competitive price and a qualified contractor being selected.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
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: W912UM05R0015
Offers Received: 7
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 73-3, GARAK-DONG, SONGPA-GU, SEOUL,, SEOUL
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,654,843,033
Exercised Options: $33,654,843,033
Current Obligation: $26,679,819
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-15
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2015-11-17
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