Department of Defense awards $34.5M contract for residential remodeling services to POONGLIM INDUSTRIAL CO., LTD

Contract Overview

Contract Amount: $34,527,602 ($34.5M)

Contractor: Poonglim Industrial CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2006-03-22

End Date: 2009-09-30

Contract Duration: 1,288 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: PN-58398, BASIC PLUS OPTIONAL ITEMS

Plain-Language Summary

Department of Defense obligated $34.5 million to POONGLIM INDUSTRIAL CO., LTD. for work described as: PN-58398, BASIC PLUS OPTIONAL ITEMS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with fixed-price terms, indicating predictable costs. 3. The duration of the contract is 1288 days, spanning over three years. 4. The contract was awarded to a single vendor, POONGLIM INDUSTRIAL CO., LTD. 5. The contract is for residential remodeling, a service with broad applicability. 6. The contract value is substantial, indicating a significant project or series of projects.

Value Assessment

Rating: fair

Benchmarking the value of this $34.5 million contract for residential remodeling is challenging without specific details on the scope of work and location. However, the fixed-price nature suggests cost certainty for the government. Comparing it to similar large-scale remodeling projects within the Department of Defense or other federal agencies would provide better context for value assessment. The absence of specific performance metrics or quality indicators in the provided data makes a definitive value-for-money judgment 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 bids. The presence of 10 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The multiple bids received suggest that the government obtained a fair market price.

Public Impact

Military personnel and their families residing in government-provided housing are the primary beneficiaries of these residential remodeling services. The services delivered include general remodeling and repair of residential structures, enhancing living conditions. The geographic impact is likely concentrated around military installations where the Department of the Army manages housing. The contract supports the construction and remodeling workforce, potentially creating or sustaining jobs in the relevant geographic areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to assess if the full $34.5M was necessary for the completed work.
Fixed-price contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen.
Long contract duration (1288 days) increases the risk of scope creep or unforeseen cost escalations if not managed tightly.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost predictability for the government.
Multiple bids received (10) suggest market interest and potential for competitive pricing.

Sector Analysis

The residential remodeling sector is a significant part of the construction industry, encompassing a wide range of services from minor repairs to major renovations. Federal spending in this area often supports military housing infrastructure, ensuring adequate living conditions for service members and their families. Comparable spending benchmarks would typically be found within the broader federal construction and facilities maintenance categories, where contracts can range from thousands to millions of dollars depending on the scale and complexity of the project.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans or performance related to small businesses. The award to POONGLIM INDUSTRIAL CO., LTD. does not specify its size status. Therefore, the direct impact on the small business ecosystem is unclear from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Military Housing Privatization Initiative
Base Realignment and Closure (BRAC) Construction Projects
Department of Defense Facilities Maintenance Contracts
General Services Administration (GSA) Public Buildings Service Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Quality control concerns inherent in long-term fixed-price construction contracts.
Limited information on contractor's past performance in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to POONGLIM INDUSTRIAL CO., LTD.. PN-58398, BASIC PLUS OPTIONAL ITEMS

Who is the contractor on this award?

The obligated recipient is POONGLIM INDUSTRIAL 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 $34.5 million.

What is the period of performance?

Start: 2006-03-22. End: 2009-09-30.

What was the specific scope of work covered by this $34.5 million contract?

The provided data identifies the contract as 'PN-58398, BASIC PLUS OPTIONAL ITEMS' for residential remodeling. However, it does not detail the specific scope of work. This could range from minor repairs and upgrades to major renovations of multiple housing units. Without a detailed statement of work, it is impossible to ascertain the exact services rendered or the number of units affected. Further investigation into the contract file or related documentation would be necessary to understand the full scope and justify the awarded amount.

How does the $34.5 million contract value compare to similar residential remodeling projects for the Department of Defense?

Comparing this $34.5 million contract requires context regarding the number of housing units involved, the type of remodeling (e.g., kitchens, bathrooms, structural), and the geographic location. Large-scale military housing revitalization projects can easily reach tens of millions of dollars. For instance, contracts for renovating entire barracks or a significant number of family housing units could fall within this range. However, if this amount is for a smaller number of units or less extensive work, it might indicate a higher per-unit cost. Benchmarking against similar definitive contracts awarded by the Department of the Army for residential remodeling over the past five years would provide a more accurate comparison.

What are the potential risks associated with a fixed-price definitive contract of this duration?

A primary risk with fixed-price contracts, especially those with a long duration like 1288 days, is the potential for the contractor to reduce quality to maintain profitability if not rigorously overseen. Scope creep is another significant risk; if the government requires additional work beyond the original scope without a formal modification and price adjustment, it can strain the relationship and lead to disputes. Conversely, unforeseen market fluctuations in material costs or labor could impact the contractor's profitability, potentially leading to requests for equitable adjustments or performance issues. Robust contract administration and clear performance metrics are crucial to mitigate these risks.

What does the fact that 10 bids were received imply about the contractor selection and pricing?

Receiving 10 bids for this contract indicates a competitive marketplace for the specified residential remodeling services. This level of competition suggests that the government's solicitation was well-publicized and attracted significant interest from potential contractors. From a pricing perspective, multiple bids generally lead to more competitive offers, as contractors strive to present the most attractive price to win the contract. It implies that the government likely received a fair market price, as the award was made under full and open competition, and the presence of numerous bidders increases the likelihood that the winning bid was cost-effective.

What is the track record of POONGLIM INDUSTRIAL CO., LTD. with federal contracts, particularly in residential remodeling?

The provided data indicates that POONGLIM INDUSTRIAL CO., LTD. was awarded this definitive contract. To assess their track record, one would need to examine their past performance on federal contracts, specifically looking for similar projects in residential remodeling or construction. Key factors to consider include on-time delivery, adherence to budget, quality of work, and any history of disputes or contract terminations. A review of their contract history within the Federal Procurement Data System (FPDS) or other relevant databases would reveal the extent and nature of their previous federal engagements and provide insights into their reliability and capability.

How has federal spending on residential remodeling services evolved over the past decade?

Federal spending on residential remodeling services, particularly by agencies like the Department of Defense for military housing, has likely seen fluctuations influenced by military construction budgets, housing needs assessments, and infrastructure modernization initiatives. Historically, there have been periods of significant investment in improving military family housing and barracks. Spending trends can also be affected by broader economic conditions and government priorities. Analyzing aggregate data from FPDS for construction and remodeling services awarded by the DoD over the last ten years would reveal overall spending patterns, average contract values, and the prevalence of different contract types and competition levels in this sector.

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: W912UM06R0010

Offers Received: 10

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 823 YEOKSAM-DONG KANGNAM-KU, SEOUL

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,784,289,117

Exercised Options: $41,784,289,117

Current Obligation: $34,527,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline