Department of the Army awarded $19.4M contract for Kunsan Dormitory construction in FY05

Contract Overview

Contract Amount: $19,370,145 ($19.4M)

Contractor: Pumyang Construction CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2005-05-09

End Date: 2008-09-30

Contract Duration: 1,240 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: CONST KUNSAN DORM, MLWR01-3102A, FY05

Plain-Language Summary

Department of Defense obligated $19.4 million to PUMYANG CONSTRUCTION CO., LTD. for work described as: CONST KUNSAN DORM, MLWR01-3102A, FY05 Key points: 1. Contract value appears reasonable for a dormitory construction project of this scale. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of over three years indicates a complex undertaking. 5. The contract was awarded by the Department of the Army, a major federal entity. 6. The North American Industry Classification System (NAICS) code 237990 covers heavy and civil engineering construction.

Value Assessment

Rating: good

The contract value of approximately $19.4 million for dormitory construction is within a typical range for projects of this nature, especially considering the era of award (FY05). Without specific benchmarks for dormitory construction in South Korea during that period, a direct per-square-foot comparison is difficult. However, the fixed-price nature of the contract suggests an effort to control costs. The award amount is consistent with the estimated value for similar large-scale construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 18 bids suggests a robust level of interest and competition for this project. This broad competition is generally favorable for price discovery and achieving a market-based price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Military personnel stationed at Kunsan Air Base will benefit from improved housing. The contract delivered construction services for a dormitory facility. The geographic impact is localized to Kunsan Air Base, South Korea. The project likely supported construction jobs and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise, despite fixed-price contract.
Quality control and adherence to construction standards are critical for long-term durability.
Logistical challenges in a foreign deployment could impact project timeline and costs.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in a competitive price.
Award to a single contractor streamlines project management and execution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to building infrastructure. The Department of Defense frequently engages in construction projects to support military installations both domestically and abroad. The market for such services is often characterized by large, complex projects requiring specialized expertise and significant capital investment. Benchmarking against similar military housing or dormitory construction contracts would provide further context on value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor engaged small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project execution oversight information may not be publicly available.

Related Government Programs

Military Construction, Army
Base Realignment and Closure (BRAC) projects
Foreign Military Construction Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Logistical complexities of construction in a foreign country.
Quality assurance and adherence to construction standards.
Labor availability and cost fluctuations in the local market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to PUMYANG CONSTRUCTION CO., LTD.. CONST KUNSAN DORM, MLWR01-3102A, FY05

Who is the contractor on this award?

The obligated recipient is PUMYANG 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 $19.4 million.

What is the period of performance?

Start: 2005-05-09. End: 2008-09-30.

What was the contractor's track record with the Department of Defense prior to this award?

Information regarding Pumyang Construction Co., Ltd.'s specific track record with the Department of Defense prior to this FY05 award is not detailed in the provided data. Generally, for large construction contracts, agencies conduct pre-award assessments of contractor past performance. This would typically involve reviewing previous contracts, performance evaluations, and any history of disputes or litigation. A thorough review would assess their experience with similar projects, financial stability, and ability to meet quality and schedule requirements. Without access to the agency's source selection decision or contractor performance databases, a definitive statement on their prior track record is not possible based solely on this award notice.

How does the awarded amount compare to the government's estimate or other similar dormitory projects?

The provided data does not include the government's estimate for this project, nor does it offer direct comparisons to other dormitory projects awarded around the same time or in similar geographic locations. However, the contract was awarded under full and open competition with 18 bids, suggesting that the awarded price of $19.4 million was likely competitive and reflected market conditions at the time. To perform a detailed value comparison, one would need access to the original solicitation documents, the government's independent government cost estimate (IGCE), and data on comparable construction projects in South Korea during FY05, considering factors like square footage, amenities, and construction complexity.

What were the primary risks identified for this construction project, and how were they mitigated?

While specific risk mitigation strategies are not detailed in the award notice, common risks for overseas construction projects of this magnitude include logistical challenges (transportation of materials and personnel), potential for unforeseen site conditions (geotechnical issues, unexploded ordnance in some regions), labor availability and cost fluctuations, and adherence to local building codes and environmental regulations. The fixed-price contract structure inherently transfers some cost risk to the contractor. The agency's mitigation likely involved thorough site investigations, robust contract language addressing potential issues, and close project management and oversight during execution.

What is the expected effectiveness or impact of this dormitory on military readiness or personnel morale?

The construction of a new dormitory at Kunsan Air Base is expected to significantly improve living conditions for military personnel stationed there. Modern, well-maintained housing directly contributes to higher morale, better quality of life, and potentially increased retention rates. Improved facilities can also enhance the overall operational readiness of the base by providing a more stable and comfortable environment for service members, allowing them to focus more effectively on their duties. The project directly addresses the need for adequate and modern infrastructure to support the military mission.

How has spending on dormitory construction by the Department of the Army trended over the years?

Analyzing the historical spending trends for dormitory construction by the Department of the Army would require access to comprehensive federal procurement data over multiple fiscal years. This specific award from FY05 represents a single data point. Generally, military construction spending fluctuates based on overall defense budgets, strategic priorities (e.g., troop deployments, base modernizations), and specific infrastructure needs identified through military construction planning processes. Factors like the end of major conflicts or shifts in global posture can influence the volume and value of such contracts awarded annually.

Were there any significant contract modifications or change orders issued during the project's lifecycle?

The provided award data does not contain information on contract modifications or change orders. Such details would typically be found in contract modification history records, which are often maintained separately from the initial award notice. Significant modifications could arise from changes in project scope, unforeseen site conditions, or adjustments to timelines. The extent and nature of modifications can impact the final cost and duration of the project, and are important factors in assessing the overall success and value of the contract.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912UM05R0002

Offers Received: 18

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 394-8 SSANYONG-DONG, CHONAN

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,309,528,169

Exercised Options: $24,309,528,169

Current Obligation: $19,370,145

Contract Characteristics

Cost or Pricing Data: NO

Timeline